Interior Department awards $4.18M for campground improvements, with 4 bidders vying for the fixed-price contract

Contract Overview

Contract Amount: $4,182,501 ($4.2M)

Contractor: Capex Construction LLC

Awarding Agency: Department of the Interior

Start Date: 2026-01-07

End Date: 2027-01-26

Contract Duration: 384 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GAOA HOT WELL DUNES CAMPGRND IMPRVMNTS

Place of Performance

Location: SAFFORD, GRAHAM County, ARIZONA, 85546

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $4.2 million to CAPEX CONSTRUCTION LLC for work described as: GAOA HOT WELL DUNES CAMPGRND IMPRVMNTS Key points: 1. The contract's firm fixed-price structure aims to control costs for the campground improvements. 2. Competition was robust with four bids received, suggesting a healthy market for this type of construction. 3. The project duration of 384 days indicates a significant scope of work. 4. Geographic focus on Arizona suggests localized economic and environmental impacts. 5. The award to CAPEX CONSTRUCTION LLC requires monitoring for successful project completion and adherence to scope. 6. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' warrants a closer look at the exclusion rationale.

Value Assessment

Rating: good

Benchmarking the $4.18 million cost for campground improvements is challenging without specific project details. However, the presence of four bidders suggests competitive pricing was likely achieved. The firm fixed-price contract type generally offers good value by shifting cost overrun risks to the contractor. Further assessment would require comparing the scope of work and deliverables to similar federal or state projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. Four bidders participated, which is a reasonable level of competition. The exclusion of specific sources, however, may limit the full potential for price discovery and could warrant further investigation into the justification for these exclusions.

Taxpayer Impact: The exclusion of sources, even with four bidders, might have prevented taxpayers from benefiting from potentially lower prices had a wider pool of competitors been allowed. Transparency regarding the exclusion criteria is key to ensuring fair competition and optimal use of taxpayer funds.

Public Impact

Campground users in Arizona will benefit from improved facilities and amenities. The project will deliver infrastructure upgrades at the Hot Well Dunes Campground. The geographic impact is concentrated in Arizona, potentially boosting local employment during construction. Local construction workforce may see increased demand for labor and services. The Bureau of Land Management will see enhanced recreational opportunities offered at the site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The rationale for excluding certain sources from the full and open competition needs clear documentation to ensure fairness and prevent potential bid-protest issues.
Monitoring the contractor's performance against the firm fixed-price contract is crucial to ensure the project stays within budget and meets quality standards.
The specific nature of the 'improvements' needs to be clearly defined to avoid scope creep and ensure the intended benefits are realized.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the government.
Receiving four bids indicates sufficient market interest and a competitive environment for this type of work.
The project aims to improve public recreational facilities, aligning with agency goals for land management and visitor experience.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to recreational facility development. The market for such projects can vary significantly based on location and specific requirements. Federal spending in this area often supports public land management and infrastructure, with costs influenced by material prices, labor availability, and environmental regulations. Comparable projects might include other campground renovations or park infrastructure upgrades across federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor is expected to handle the majority of the work, and opportunities for small businesses may be limited unless they are direct suppliers or subcontractors to CAPEX CONSTRUCTION LLC.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Land Management contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency can be assessed through public contract databases and agency reporting on project milestones. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

National Park Service Campground Improvements
Bureau of Land Management Recreation Area Development
US Forest Service Trail and Facility Construction
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for limited competition due to source exclusion.
Need for clear justification for source exclusion.
Risk of scope creep in fixed-price contracts.
Contractor performance monitoring is essential.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.2 million to CAPEX CONSTRUCTION LLC. GAOA HOT WELL DUNES CAMPGRND IMPRVMNTS

Who is the contractor on this award?

The obligated recipient is CAPEX CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2026-01-07. End: 2027-01-26.

What specific improvements are included in the $4.18 million contract for Hot Well Dunes Campground?

The provided data does not detail the specific improvements. However, typical campground enhancements funded by such contracts can include upgrades to campsites, restroom facilities, water and sewer systems, roads, parking areas, picnic sites, and accessibility features. The 'Other Heavy and Civil Engineering Construction' classification suggests significant structural or infrastructure work. A full understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would itemize the required tasks, materials, and expected outcomes for the Hot Well Dunes Campground.

What is the significance of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and why were sources excluded?

This contract type signifies that the agency intended to compete the contract broadly but chose to exclude specific potential offerors. The reasons for exclusion must be documented and justifiable, often relating to past performance issues, inability to meet specific technical requirements, or national security concerns. While four bidders participated, the exclusion limits the potential for maximum price competition. Understanding the specific criteria used for exclusion is crucial to assess whether the government obtained the best possible value and if the process was fair to all potential market participants. Without this information, it's difficult to definitively assess the impact on taxpayer value.

How does the $4.18 million cost compare to similar federal campground improvement projects?

Direct cost comparison is difficult without detailed project scopes. However, $4.18 million for significant campground improvements, especially those involving heavy civil engineering, appears within a reasonable range for a project of substantial scope and duration (384 days). Factors influencing cost include the extent of infrastructure work (e.g., new utilities, road construction), material costs, labor rates in Arizona, and environmental mitigation requirements. To benchmark effectively, one would need to compare this contract against projects of similar size, complexity, and geographic location, ideally with similar firm fixed-price structures.

What is the track record of CAPEX CONSTRUCTION LLC with federal contracts, particularly in construction and infrastructure?

The provided data identifies CAPEX CONSTRUCTION LLC as the awardee but does not offer details on their past performance or track record with federal contracts. A comprehensive analysis would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to this contractor, examining their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and identifying any history of contract disputes or issues. Understanding their experience with similar projects, especially within the Department of the Interior or Bureau of Land Management, would provide insight into their capability to successfully execute this $4.18 million project.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include scope creep, cost overruns (despite the fixed-price nature, change orders can occur), contractor performance issues, delays due to unforeseen site conditions or environmental factors, and potential disputes. Mitigation strategies typically involve robust project management by the agency, clear definition of requirements in the SOW, regular progress monitoring, adherence to change order procedures, and leveraging the firm fixed-price structure to hold the contractor accountable for performance and cost. The 'exclusion of sources' also presents a risk if the justification was weak, potentially leading to challenges or perceptions of unfairness.

What is the historical spending pattern for campground improvements by the Bureau of Land Management or the Department of the Interior?

The provided data focuses solely on this single contract award. To understand historical spending patterns, one would need to analyze aggregated procurement data for the Bureau of Land Management (BLM) and the Department of the Interior (DOI) over several fiscal years. This analysis would involve identifying all contracts related to 'campground improvements,' 'recreation facilities,' or similar categories (using NAICS codes like 237990 or others) and summing their values. Trends could reveal whether spending on such projects is increasing, decreasing, or remaining stable, and identify major contractors or regions receiving significant investment.

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: 140L0625B0012

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1146 N 1190 E, AMERICAN FORK, UT, 84003

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,182,501

Exercised Options: $4,182,501

Current Obligation: $4,182,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline