KIC Construction awarded $2.29M contract for Selawik NWR Storage Facility, a definitive contract with fixed pricing

Contract Overview

Contract Amount: $2,288,888 ($2.3M)

Contractor: KIC Construction, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-08-07

End Date: 2026-11-15

Contract Duration: 830 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AK SELAWIK NWR STORAGE FACILITY

Place of Performance

Location: KOTZEBUE, NORTHWEST ARCTIC County, ALASKA, 99752

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $2.3 million to KIC CONSTRUCTION, LLC for work described as: AK SELAWIK NWR STORAGE FACILITY Key points: 1. Contract awarded to KIC Construction, LLC for a storage facility at Selawik National Wildlife Refuge. 2. The contract type is a definitive contract with a firm fixed price, indicating price certainty. 3. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 4. The contract duration is 830 days, spanning from August 2024 to November 2026. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The award amount of $2.29 million is a significant investment for infrastructure in a remote location.

Value Assessment

Rating: good

The contract value of $2.29 million for a storage facility appears reasonable given the scope of construction. Benchmarking against similar federal construction projects for remote or specialized facilities would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, but the final cost will depend on the contractor's efficiency and material costs. Without specific details on the facility's size and complexity, a direct per-unit cost comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, possibly related to qualifications or prior performance. With two bidders, the level of competition was moderate, which can still lead to competitive pricing but might not be as robust as a larger number of bids. The exclusion of sources warrants further investigation to ensure it did not unduly limit competition.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging lower prices. The moderate number of bidders suggests that while some price pressure existed, there may have been opportunities for better price discovery if more qualified firms had participated.

Public Impact

The primary beneficiaries are the U.S. Fish and Wildlife Service, which will gain essential storage capacity for operations at Selawik National Wildlife Refuge. The project will deliver a new storage facility, crucial for housing equipment, supplies, and materials needed for refuge management and conservation efforts. The geographic impact is concentrated in Alaska, specifically within the Selawik National Wildlife Refuge, supporting federal land management in a remote region. The construction activities will likely involve a workforce skilled in commercial and institutional building, potentially creating temporary employment opportunities in the region or for specialized construction crews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in the remote Alaskan environment.
Risk of delays due to weather, logistics, or material availability in Alaska.
Ensuring the exclusion of sources did not negatively impact overall competition and price.
Adequate oversight is crucial for a project in a remote location with a single contractor.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor (KIC Construction, LLC) can streamline project management.
The project addresses a clear need for infrastructure at the refuge.
The competition, though moderate, suggests a degree of market interest.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for such services in remote areas like Alaska is often specialized, with fewer large firms willing or able to undertake projects due to logistical challenges and higher operating costs. The value of $2.29 million is moderate for a federal construction project, but significant in the context of infrastructure development for a national wildlife refuge in a remote location. Comparable spending benchmarks would focus on similar facility constructions in geographically challenging or isolated federal lands.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting plans. Given the nature and location of the project, it's possible that larger, specialized construction firms are better equipped to handle the logistical demands. Further analysis would be needed to determine if small business participation was encouraged or required through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Fish and Wildlife Service. Given the remote location, robust oversight mechanisms will be critical to ensure project progress, quality control, and adherence to the contract terms. Transparency will depend on the agency's reporting practices and the availability of project status updates. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Wildlife Refuge System Infrastructure Projects
Federal Building Construction Contracts
Department of the Interior Construction Awards
Alaska Federal Procurement

Risk Flags

Potential for cost overruns due to remote location logistics.
Risk of project delays due to weather and environmental factors.
Adequacy of competition given 'exclusion of sources' clause.
Ensuring quality construction in a challenging environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.3 million to KIC CONSTRUCTION, LLC. AK SELAWIK NWR STORAGE FACILITY

Who is the contractor on this award?

The obligated recipient is KIC CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-08-07. End: 2026-11-15.

What is the track record of KIC Construction, LLC with federal contracts, particularly in remote or challenging environments?

A review of KIC Construction, LLC's federal contract history would be necessary to assess their track record. Key metrics to examine include past performance on similar construction projects, adherence to schedules and budgets, and any history of contract disputes or terminations. Experience with projects in Alaska or other remote regions would be particularly relevant. Understanding their past performance provides insight into their capability to successfully execute the Selawik NWR Storage Facility project and manage potential risks associated with the location and scope of work. Without specific data on their past federal awards and performance reviews, it is difficult to definitively assess their reliability for this project.

How does the $2.29 million award compare to the estimated cost or budget for this storage facility project?

The $2.29 million award represents the government's commitment to procure the storage facility from KIC Construction, LLC. To assess value for money, this amount should be compared against the government's independent cost estimate (ICE) for the project, if one was developed. A significant difference between the award and the ICE could indicate issues with the bidding process or the initial estimate. Furthermore, comparing the cost per square foot or per cubic foot of storage space to similar facilities built in comparable environments would offer a valuable benchmark. The firm fixed-price nature of the contract suggests that the government has negotiated a ceiling price, but understanding the underlying cost basis and potential for profit is crucial for a complete value assessment.

What specific risks are associated with constructing a facility in the remote Selawik National Wildlife Refuge, and how are they mitigated in this contract?

Constructing in remote Alaska presents significant risks, including extreme weather conditions, limited access for personnel and materials, potential environmental sensitivities, and higher logistical costs. The contract's firm fixed-price structure aims to mitigate financial risks for the government by capping costs. However, the contractor bears the primary risk of cost overruns due to these challenges. Mitigation strategies likely include detailed site surveys, robust logistical planning, and potentially phased construction schedules to account for seasonal limitations. The contract's duration (830 days) suggests an acknowledgment of these potential delays. The 'exclusion of sources' clause might also relate to ensuring only contractors with proven experience in such environments were considered, thereby reducing performance risk.

What is the expected effectiveness of the new storage facility in supporting the operational needs of the Selawik National Wildlife Refuge?

The effectiveness of the storage facility hinges on its design, capacity, and accessibility relative to the operational requirements of the Selawik National Wildlife Refuge. As a dedicated storage space, it is expected to improve the organization, preservation, and security of essential equipment, vehicles, research materials, and supplies. This enhanced capability can lead to more efficient refuge management, better preparedness for field operations, and potentially reduced costs associated with maintaining or replacing stored items. The U.S. Fish and Wildlife Service's justification for the facility, likely detailed in project planning documents, would outline the specific needs it is intended to meet and how its completion will contribute to the refuge's conservation and management mission.

How does historical spending on similar infrastructure projects within the U.S. Fish and Wildlife Service or Department of the Interior compare to this $2.29 million award?

To assess historical spending patterns, one would need to analyze the Department of the Interior's and specifically the U.S. Fish and Wildlife Service's (FWS) portfolio of construction contracts over several fiscal years. This analysis should focus on projects of similar scope (e.g., building construction, storage facilities) and in comparable geographic locations (e.g., remote federal lands, Alaska). Key metrics for comparison include the average contract value, the range of award amounts, and the typical duration of such projects. Understanding this historical context helps determine if the $2.29 million award is within the expected range for this type of infrastructure development, or if it represents an outlier, potentially signaling unique project requirements or market conditions.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140FC324R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kikiktagruk Inupiat Corp

Address: 373A E 2 AVE, KOTZEBUE, AK, 99752

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,288,888

Exercised Options: $2,288,888

Current Obligation: $2,288,888

Actual Outlays: $202,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline