Interior Department awards $2M contract for lighthouse lantern repair, highlighting infrastructure needs

Contract Overview

Contract Amount: $2,028,660 ($2.0M)

Contractor: Sustainable Group Inc

Awarding Agency: Department of the Interior

Start Date: 2025-04-21

End Date: 2026-05-27

Contract Duration: 401 days

Daily Burn Rate: $5.1K/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: KP LIGHTHOUSE LANTERN REPAIR

Place of Performance

Location: KILAUEA, KAUAI County, HAWAII, 96754

State: Hawaii Government Spending

Plain-Language Summary

Department of the Interior obligated $2.0 million to SUSTAINABLE GROUP INC for work described as: KP LIGHTHOUSE LANTERN REPAIR Key points: 1. Contract value appears reasonable for specialized infrastructure repair services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include project delays or unforeseen structural issues during repair. 4. This contract addresses critical infrastructure maintenance for navigational aids. 5. The award falls within the broader category of commercial and institutional building construction. 6. The firm fixed-price structure shifts cost overrun risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $2 million for lighthouse lantern repair seems aligned with specialized construction and maintenance projects. Benchmarking against similar federal contracts for historical building restoration or specialized maritime infrastructure repair would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the government has secured a defined cost, assuming the scope of work is well-defined and the contractor has accurately estimated their costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific exclusions were applied. This suggests that only a subset of potential bidders were eligible, which could limit the overall competitive pressure. The presence of two bidders, as indicated by the data, suggests some level of competition, but it is not as robust as a scenario with numerous bidders.

Taxpayer Impact: While not the most competitive scenario, the exclusion of sources means taxpayers may not have benefited from the absolute lowest price achievable through unrestricted competition. However, the fixed-price nature of the contract provides cost certainty.

Public Impact

The U.S. Fish and Wildlife Service benefits from the repair of essential navigational infrastructure. Mariners and the maritime industry will benefit from maintained safe navigation. The project's geographic impact is focused on Hawaii, specifically the location of the lighthouse. The contract supports the construction sector workforce, likely involving skilled tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen structural issues arise during repair.
Reliance on a limited number of bidders could impact price competitiveness.
Ensuring timely completion within the fixed-price constraint is crucial.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor indicates a selection based on qualifications and price.
The contract addresses a critical infrastructure maintenance need.

Sector Analysis

This contract falls within the broader construction industry, specifically focusing on specialized building maintenance and repair. The market for lighthouse maintenance is niche, often involving historical preservation and maritime engineering expertise. Comparable spending benchmarks would likely be found within federal agencies responsible for coastal infrastructure, such as the Coast Guard or National Park Service, for similar restoration or repair projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Sustainable Group Inc. engages them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Fish and Wildlife Service contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified repairs by a certain date. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Lighthouse Programs
Maritime Navigation Aids Maintenance
Historic Building Preservation Contracts
Department of the Interior Infrastructure Projects

Risk Flags

Limited competition due to source exclusion.
Potential for unforeseen issues in historic structure repair.
Contract duration of over one year requires careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.0 million to SUSTAINABLE GROUP INC. KP LIGHTHOUSE LANTERN REPAIR

Who is the contractor on this award?

The obligated recipient is SUSTAINABLE GROUP 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 $2.0 million.

What is the period of performance?

Start: 2025-04-21. End: 2026-05-27.

What is the track record of Sustainable Group Inc. in performing similar lighthouse or historical building repair contracts for federal agencies?

A review of federal procurement data would be necessary to ascertain Sustainable Group Inc.'s specific track record with lighthouse or historical building repairs. While the award indicates they were selected for this project, their past performance on similar, complex infrastructure projects is a key indicator of their capability. Examining past contract awards, performance evaluations (if publicly available), and any reported issues or successes on previous government contracts would provide insight into their reliability and expertise in this specialized field. Without this specific data, the assessment relies on the assumption that the awarding agency conducted a thorough due diligence process.

How does the awarded price compare to the estimated cost or budget for this lighthouse lantern repair project?

The provided data indicates the awarded amount is $2,028,660.26. To assess if this represents good value, it would be crucial to compare this figure against the government's initial cost estimate or allocated budget for the project. If the awarded price is significantly below the estimate, it could indicate strong competition or a conservative estimate. Conversely, if it's at or above the estimate, it warrants further scrutiny to ensure no overpayment occurred. The firm fixed-price nature means the government is committed to this amount, making pre-award cost analysis critical for value determination.

What are the primary risks associated with repairing a lighthouse lantern, and how are they mitigated in this contract?

Key risks in lighthouse lantern repair include unforeseen structural damage to the historic tower, material degradation not immediately apparent, weather-related delays impacting work schedules, and challenges in accessing remote locations. This contract, being firm fixed-price, mitigates financial risk for the government by capping the total cost. However, the contractor assumes the risk of cost overruns. Mitigation of operational and technical risks relies on the contractor's expertise, detailed site surveys, and potentially phased work approvals by the U.S. Fish and Wildlife Service to ensure quality and address issues as they arise.

What is the historical spending pattern for lighthouse maintenance and repair within the Department of the Interior or similar agencies?

Analyzing historical spending patterns for lighthouse maintenance and repair within the Department of the Interior and agencies like the U.S. Coast Guard (historically responsible for many aids to navigation) would provide context for this $2 million award. Such analysis would reveal average contract values, frequency of repairs, and the typical scope of work. Understanding whether this contract represents a typical investment, an increase due to aging infrastructure, or a one-time major overhaul is essential for assessing its significance and ensuring consistent resource allocation for critical maritime infrastructure.

What specific components or systems does 'KP LIGHTHOUSE LANTERN REPAIR' encompass, and what is the expected lifespan extension?

The contract title 'KP LIGHTHOUSE LANTERN REPAIR' suggests the work will focus on the lantern room itself, which typically includes the optical apparatus (lens, lighting mechanism), ventilation, and structural integrity of the lantern housing. Specific components could range from replacing or refurbishing the Fresnel lens, repairing the rotating mechanism, upgrading lighting systems for efficiency and reliability, and ensuring the weatherproofing of the structure. The expected lifespan extension would depend on the extent of the repairs and upgrades; a comprehensive overhaul could extend the operational life of the lantern system by decades, ensuring continued functionality as a navigational aid.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140FHR24R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1480 MORAGA RD STE I-374, MORAGA, CA, 94556

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,028,660

Exercised Options: $2,028,660

Current Obligation: $2,028,660

Actual Outlays: $740,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline