Interior Department awards $14.7M construction contract to HB Hansen Construction, Inc. for National Park Service facilities

Contract Overview

Contract Amount: $14,708,498 ($14.7M)

Contractor: HB Hansen Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-09-21

End Date: 2026-02-12

Contract Duration: 1,240 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NOCA 259864

Place of Performance

Location: STEHEKIN, CHELAN County, WASHINGTON, 98852

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $14.7 million to HB HANSEN CONSTRUCTION, INC. for work described as: NOCA 259864 Key points: 1. Contract value appears reasonable given the scope of commercial and institutional building construction. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Contract duration of over three years indicates a significant project timeline. 5. The award falls within the broad category of construction services for federal agencies.

Value Assessment

Rating: good

The contract value of approximately $14.7 million for commercial and institutional building construction seems aligned with typical federal projects of this nature. Benchmarking against similar construction contracts awarded by the National Park Service or other Interior Department bureaus would provide a more precise assessment of value for money. The firm fixed-price structure is generally favorable for controlling costs, assuming the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The agency's commitment to open competition suggests an effort to secure the best possible value.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and higher quality services that result from a robust competitive bidding process.

Public Impact

The primary beneficiaries are the National Park Service and its visitors, who will gain improved or new facilities. Services delivered include the construction of commercial and institutional buildings, likely supporting park operations and visitor experiences. The geographic impact is concentrated in Washington state, where the construction will take place. Workforce implications include job creation for construction workers and related trades in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements are not clearly defined.
Risk of delays due to unforeseen site conditions or permitting issues.
Dependence on the contractor's ability to manage subcontractors effectively.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a strong market response and potential for competitive pricing.
Contract duration allows for thorough project execution and quality assurance.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. This contract for commercial and institutional building construction fits within the broader federal construction market, which is characterized by numerous small and large firms vying for government work. Comparable spending benchmarks would involve analyzing the average cost per square foot or per project for similar types of buildings constructed by federal agencies.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate specific subcontracting goals for small businesses. This suggests that the primary award went to a larger firm, and any small business participation would likely be through the prime contractor's own subcontracting decisions. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the project.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified facilities within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly available.

Related Government Programs

National Park Service Facility Construction
Department of the Interior Building Projects
Federal Commercial Construction Contracts
Washington State Construction Projects

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of delays due to unforeseen site conditions.
Contractor performance history needs further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $14.7 million to HB HANSEN CONSTRUCTION, INC.. NOCA 259864

Who is the contractor on this award?

The obligated recipient is HB HANSEN CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2022-09-21. End: 2026-02-12.

What is the track record of HB Hansen Construction, Inc. with federal contracts, particularly with the Department of the Interior or National Park Service?

A review of federal contract databases indicates that HB Hansen Construction, Inc. has a history of receiving federal awards. To provide a comprehensive assessment, one would need to analyze the specific types of contracts awarded, their values, performance ratings (if available), and any past issues or disputes. Examining their past performance on similar construction projects for agencies like the National Park Service would be crucial in evaluating their capability and reliability for this $14.7 million award. Without specific performance data for this contractor, it's difficult to definitively assess their track record beyond their presence in the federal contracting space.

How does the awarded amount of $14.7 million compare to similar commercial and institutional building construction projects undertaken by the National Park Service in recent years?

Benchmarking this $14.7 million contract against similar projects requires access to detailed data on comparable National Park Service (NPS) construction projects, including scope, size, location, and complexity. Generally, federal construction projects of this magnitude can vary significantly in cost based on these factors. If this contract is for a large visitor center, administrative building, or a complex of facilities, the price might be within the expected range. However, if it's for a smaller structure, it could indicate a higher per-unit cost. A detailed comparison would involve analyzing cost per square foot, project duration, and specific construction elements against a portfolio of recently awarded NPS construction contracts.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project of this scale?

The primary risk with a firm fixed-price (FFP) contract, especially for a multi-year construction project, lies in the potential for the contractor to underbid the project or encounter unforeseen issues that erode their profit margin. For the government, the main risk is that the contractor might cut corners on quality or safety to maintain profitability if costs escalate beyond their initial estimates. While FFP shifts most cost risk to the contractor, poorly defined scopes of work or inadequate initial cost estimations by the government can lead to change orders, which can increase the overall cost and negate the FFP benefit. Effective project management and clear communication are vital to mitigate these risks.

What is the expected impact of this contract on the local workforce in Washington state?

This $14.7 million construction contract is expected to have a positive impact on the local workforce in Washington state by creating numerous jobs. These jobs would span various skilled trades, including carpenters, electricians, plumbers, masons, and heavy equipment operators, as well as project managers, supervisors, and administrative support staff. The duration of the contract, extending into February 2026, suggests sustained employment opportunities. Furthermore, the demand for construction materials and services could stimulate business for local suppliers and subcontractors, indirectly supporting additional employment in related industries.

Are there any specific performance metrics or milestones defined within the contract that will be used to measure the success of HB Hansen Construction, Inc.?

While the provided data does not detail specific performance metrics or milestones, federal construction contracts, especially those of this value and duration, typically include such provisions. These often involve adherence to project schedules, quality control standards, safety regulations, and timely completion of defined phases or deliverables. The National Park Service would likely have a project management team responsible for monitoring progress against these metrics and ensuring compliance with contract specifications. Failure to meet key performance indicators could result in penalties or other contractual remedies.

How does the National Park Service typically ensure accountability and transparency for large construction contracts awarded through full and open competition?

The National Park Service (NPS) ensures accountability and transparency for large construction contracts through several mechanisms. Firstly, the full and open competition process itself promotes transparency by allowing broad participation and public visibility of the bidding process. Contract awards are typically published on federal procurement data systems like SAM.gov. Secondly, the contract terms, often including detailed specifications, schedules, and payment milestones, establish clear expectations and accountability. Project managers and contracting officers conduct regular oversight, site inspections, and progress reviews. Finally, mechanisms like performance bonds and potential audits by the Inspector General's office provide further layers of accountability.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2022R0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hbhansen Construction Inc

Address: 8803 NORTHWOOD RD, LYNDEN, WA, 98264

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

Financial Breakdown

Contract Ceiling: $14,708,498

Exercised Options: $14,708,498

Current Obligation: $14,708,498

Actual Outlays: $14,653,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline