Yosemite National Park seismic upgrades awarded at $37.7M to Perini Management Services, Inc

Contract Overview

Contract Amount: $37,670,776 ($37.7M)

Contractor: Perini Management Services, Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-08-31

End Date: 2025-10-16

Contract Duration: 1,142 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: YOSE 154910B AHWAHNEE HOTEL SEISMIC UPGRADES- YOSEMITE NATIONAL PARK

Place of Performance

Location: YOSEMITE NATIONAL PARK, MARIPOSA County, CALIFORNIA, 95389

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $37.7 million to PERINI MANAGEMENT SERVICES, INC. for work described as: YOSE 154910B AHWAHNEE HOTEL SEISMIC UPGRADES- YOSEMITE NATIONAL PARK Key points: 1. Contract value represents a significant investment in preserving a historic national landmark. 2. The project aims to mitigate seismic risks for a critical visitor facility. 3. Fixed-price contract type suggests cost certainty for the government. 4. Project duration of over three years indicates a complex scope of work. 5. Geographic location in California may influence labor and material costs.

Value Assessment

Rating: good

The contract value of $37.7 million for seismic upgrades at the Ahwahnee Hotel appears reasonable given the scope and historical significance of the project. While direct comparisons to similar hotel seismic retrofits are difficult due to unique site conditions and historical preservation requirements, the firm-fixed-price nature of the contract provides cost predictability. Benchmarking against other large-scale construction projects within national parks or for historic buildings would offer further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of a single award suggests that Perini Management Services, Inc. submitted the most advantageous proposal based on the evaluation criteria. The competitive process is expected to have driven a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The primary beneficiaries are visitors to Yosemite National Park, who will have continued access to the historic Ahwahnee Hotel. The project ensures the structural integrity and safety of a significant cultural and architectural asset. The geographic impact is localized to Yosemite National Park, California. Workforce implications include employment opportunities for construction labor and specialized trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during seismic retrofitting.
Risk of project delays due to the complexities of working within a historic structure and a national park environment.
Dependence on specialized construction expertise for seismic upgrades.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an experienced contractor with a track record in large-scale construction.
Project addresses critical safety and preservation needs for a national treasure.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is characterized by large-scale projects with significant capital investment. This contract falls within the realm of specialized renovation and retrofitting, requiring expertise in structural engineering and historical preservation. Comparable spending benchmarks could include other major infrastructure or historic building restoration projects undertaken by federal agencies or state governments.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Perini Management Services, Inc. is the prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized trades or material supply. The impact on the small business ecosystem will depend on the subcontracting plan developed by the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service, a division of the Department of the Interior. Accountability measures will be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details may not be publicly disclosed.

Related Government Programs

National Park Service Infrastructure Projects
Historic Preservation Fund
Federal Building Seismic Retrofitting Programs
Yosemite National Park Operations

Risk Flags

Potential for cost overruns due to unforeseen conditions in historic structure.
Risk of project delays impacting park operations and visitor access.
Complexity of seismic retrofitting in a sensitive environmental and historical site.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $37.7 million to PERINI MANAGEMENT SERVICES, INC.. YOSE 154910B AHWAHNEE HOTEL SEISMIC UPGRADES- YOSEMITE NATIONAL PARK

Who is the contractor on this award?

The obligated recipient is PERINI MANAGEMENT SERVICES, 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 $37.7 million.

What is the period of performance?

Start: 2022-08-31. End: 2025-10-16.

What is the track record of Perini Management Services, Inc. on similar federal contracts, particularly those involving historic preservation or seismic retrofitting?

Perini Management Services, Inc. has a history of performing large-scale construction and renovation projects for federal agencies. While specific details on their experience with seismic retrofitting of historic hotels may require deeper investigation into their past performance reports and project portfolio, their general experience in complex federal construction suggests a capacity to handle such a project. A review of their contract history with the General Services Administration (GSA) or other agencies involved in building management and preservation would provide more granular insights into their qualifications and past performance on projects of similar scale and complexity. Their ability to successfully manage budgets, schedules, and quality control on previous federal contracts is a key indicator of their suitability for this significant undertaking at Yosemite.

How does the awarded amount of $37.7 million compare to the estimated cost for similar seismic upgrade projects in historic buildings?

Directly comparing the $37.7 million award to similar seismic upgrade projects in historic buildings is challenging due to the unique nature of each project, including building size, architectural complexity, seismic zone, and specific upgrade requirements. However, large-scale historic building renovations and seismic retrofits can range from tens of millions to hundreds of millions of dollars. The Ahwahnee Hotel is a significant and iconic structure, and seismic upgrades often involve extensive structural reinforcement, which can be costly. The firm-fixed-price nature of this contract suggests that the National Park Service has a defined budget and expects the contractor to deliver within that scope. Benchmarking against publicly available data for similar, though not identical, projects would be necessary for a more precise value assessment.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

Key risk indicators for this contract include potential unforeseen structural issues discovered during the renovation of a historic building, which could lead to scope changes and cost increases. The complexity of seismic retrofitting itself presents technical risks. Furthermore, working within a national park environment can introduce logistical challenges and potential delays related to access, environmental regulations, and coordination with park operations. Mitigation strategies likely include thorough pre-construction surveys, detailed engineering plans, a robust change order process, and close collaboration between the contractor and the National Park Service. The firm-fixed-price contract also incentivizes the contractor to manage costs effectively, though contingency planning is crucial.

What is the expected effectiveness of these seismic upgrades in ensuring the long-term preservation and safety of the Ahwahnee Hotel?

The seismic upgrades are expected to significantly enhance the structural resilience of the Ahwahnee Hotel, protecting it from damage during earthquakes and ensuring the safety of occupants and visitors. By reinforcing the building's foundation, structural frame, and non-structural elements, the project aims to meet modern seismic safety standards while respecting the historic character of the hotel. The effectiveness will be measured by the building's performance during seismic events and its continued ability to serve its function as a premier lodging facility within Yosemite National Park for decades to come. The project's success hinges on the quality of the engineering design and the execution of the construction work.

How does historical spending on similar infrastructure or renovation projects within national parks inform the assessment of this contract's value?

Historical spending on similar infrastructure and renovation projects within national parks provides a crucial benchmark for assessing the value of this contract. Projects involving historic preservation, structural upgrades, or major facility renovations in national parks often involve significant costs due to unique environmental considerations, preservation requirements, and logistical challenges of remote locations. Analyzing past expenditures on projects of comparable scale and complexity within the National Park Service or other federal land management agencies can reveal typical cost ranges, common challenges, and the effectiveness of different contracting approaches. This historical data helps determine if the $37.7 million award for the Ahwahnee Hotel seismic upgrades is within an expected range or if it warrants further scrutiny regarding cost efficiency and value for money.

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: 140P2022R0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tutor Perini Corporation

Address: 73 MOUNT WAYTE AVE, FRAMINGHAM, MA, 01702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,670,776

Exercised Options: $37,670,776

Current Obligation: $37,670,776

Actual Outlays: $37,631,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline