Interior Department awards $3.2M construction contract to Suulutaq Inc. for Klamath Falls FWO Phase 5

Contract Overview

Contract Amount: $3,238,408 ($3.2M)

Contractor: Suulutaaq Inc

Awarding Agency: Department of the Interior

Start Date: 2024-11-27

End Date: 2027-02-01

Contract Duration: 796 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OR-KLAMATH FALLS FWO-PHASE 5 CONSTRUCTION

Place of Performance

Location: KLAMATH FALLS, KLAMATH County, OREGON, 97603

State: Oregon Government Spending

Plain-Language Summary

Department of the Interior obligated $3.2 million to SUULUTAAQ INC for work described as: OR-KLAMATH FALLS FWO-PHASE 5 CONSTRUCTION Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. The duration of the contract is approximately 796 days, suggesting a medium-term project. 4. The project is located in Oregon, potentially impacting local construction workforce and businesses. 5. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category. 6. The award amount is $3,238,408, representing a significant investment in infrastructure.

Value Assessment

Rating: fair

The contract value of $3.2 million for heavy civil engineering construction appears within a reasonable range for a project of this nature. However, without specific details on the scope of work for Phase 5 of the Klamath Falls FWO construction, a precise value-for-money assessment is challenging. Benchmarking against similar Fish and Wildlife Service construction projects or other federal civil engineering contracts of comparable complexity and scale would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of competitive procurement. While it indicates competition was sought, the 'after exclusion of sources' clause suggests that certain potential bidders may have been excluded based on pre-defined criteria. The presence of 5 bidders indicates a moderate level of competition, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, suggests that taxpayers likely benefited from a range of proposals, contributing to a more competitive price than a sole-source award.

Public Impact

The U.S. Fish and Wildlife Service will benefit from the completed construction, enhancing its operational capabilities at the Klamath Falls facility. The project will deliver heavy and civil engineering construction services, likely involving site preparation, building, or infrastructure development. The geographic impact is concentrated in Oregon, potentially creating temporary employment opportunities for the local construction workforce. The contract supports federal infrastructure development goals within the environmental and wildlife management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and impact on overall competition.
Lack of detailed scope of work makes it difficult to fully assess the value for money and potential risks associated with the construction phase.
The firm-fixed-price contract type places the burden of cost overruns on the contractor, which could lead to quality compromises if not adequately monitored.

Positive Signals

Awarded through full and open competition, suggesting a robust process to solicit bids.
The firm-fixed-price contract structure provides cost certainty for the government.
The contract award to Suulutaq Inc. contributes to the federal government's infrastructure development objectives.

Sector Analysis

The 'Other Heavy and Civil Engineering Construction' sector encompasses a wide range of infrastructure projects, from roads and bridges to utility systems and site development. Federal spending in this area is crucial for maintaining and upgrading public infrastructure. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per linear foot for similar construction types, adjusted for geographic location and project complexity. The $3.2 million award for Phase 5 of this project fits within the typical scale of federal construction contracts for specialized facilities.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The fact that it was competed under 'Full and Open Competition After Exclusion of Sources' with 5 bidders suggests that larger firms may have been the primary participants. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Fish and Wildlife Service contracting officers and project managers. Accountability measures would include adherence to the contract terms, performance milestones, and quality standards. Transparency is generally facilitated through federal procurement databases like SAM.gov, where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Buildings and Facilities Construction
Infrastructure Improvement Projects
Environmental Conservation Facilities
U.S. Fish and Wildlife Service Capital Investments

Risk Flags

Potential for cost overruns impacting contractor profitability and quality under FFP.
Risk of unforeseen site conditions in heavy civil engineering projects.
Need for robust oversight due to 'exclusion of sources' clause in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.2 million to SUULUTAAQ INC. OR-KLAMATH FALLS FWO-PHASE 5 CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is SUULUTAAQ INC.

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 $3.2 million.

What is the period of performance?

Start: 2024-11-27. End: 2027-02-01.

What is the specific scope of work for Phase 5 construction at the Klamath Falls FWO?

The provided data does not detail the specific scope of work for Phase 5 construction at the Klamath Falls Fish and Wildlife Office (FWO). This phase likely represents a distinct segment of a larger construction or renovation project. Typically, such phases involve specific building elements, site infrastructure, or specialized installations. To understand the project's full context, details on what 'Phase 5' entails—such as new building construction, utility upgrades, environmental remediation, or specific facility enhancements—would be required. This information is crucial for assessing the value, risks, and performance expectations associated with the $3.2 million contract awarded to Suulutaq Inc.

How does the $3.2 million contract value compare to similar construction projects by the U.S. Fish and Wildlife Service?

Benchmarking the $3.2 million contract value against similar U.S. Fish and Wildlife Service (FWS) construction projects requires access to historical contract data for comparable facilities and project types. Without specific details on the scope of work for Phase 5, direct comparison is challenging. However, FWS projects can range significantly in cost depending on the complexity, size, and location. Projects involving new construction of research facilities, visitor centers, or major infrastructure upgrades can easily reach multi-million dollar figures. A thorough comparison would involve identifying FWS contracts for similar 'heavy and civil engineering construction' over the past 3-5 years, analyzing their award amounts, and adjusting for inflation and regional cost differences. This would help determine if the $3.2 million represents a fair market price for the services rendered.

What are the potential risks associated with a firm-fixed-price contract for heavy construction?

Firm-fixed-price (FFP) contracts, while offering cost certainty to the government, can introduce risks, particularly in complex construction projects. For the contractor, unforeseen site conditions, material price escalations, labor shortages, or design changes can lead to cost overruns, potentially impacting their financial stability or willingness to maintain quality standards to protect profit margins. For the government, the primary risk is that the contractor might cut corners on quality or safety to control costs, especially if the initial pricing was too aggressive. Effective oversight, clear contract specifications, and robust quality assurance processes are critical to mitigate these risks and ensure the project is completed to the required standards within the fixed price.

What does 'Full and Open Competition After Exclusion of Sources' imply for this contract?

The procurement term 'Full and Open Competition After Exclusion of Sources' indicates a competitive process was used, but with a specific condition. It means that the agency solicited offers from all responsible sources, but prior to the solicitation, certain sources were excluded based on specific criteria outlined in the solicitation or related documentation. This exclusion is typically justified by factors such as the need for specialized capabilities, prior performance on related work, or specific security requirements. While it aims to ensure competition among qualified entities, the exclusion clause means the pool of potential bidders was narrower than in a standard 'full and open' competition. The fact that 5 bidders participated suggests sufficient competition was achieved despite the exclusions.

What is the track record of Suulutaq Inc. in federal contracting?

Information regarding the specific track record of Suulutaq Inc. in federal contracting is not detailed in the provided data snippet. To assess their reliability and past performance, one would typically review their contract history on federal procurement databases (e.g., SAM.gov, FPDS). This would include examining the types of contracts they have been awarded, their performance ratings on past projects, any past performance issues or disputes, and their experience with similar types of construction. A positive track record with successful completion of similar federal projects would increase confidence in their ability to execute this $3.2 million contract effectively.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: SEALED BID

Solicitation ID: 140FC324B0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5250 HIGHBANKS RD STE 650, SPRINGFIELD, OR, 97478

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

Financial Breakdown

Contract Ceiling: $3,238,408

Exercised Options: $3,238,408

Current Obligation: $3,238,408

Actual Outlays: $27,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline