National Park Service awards $35M contract for Acadia National Park facility, highlighting construction needs

Contract Overview

Contract Amount: $35,019,732 ($35.0M)

Contractor: Nickerson & O'day, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-02-21

End Date: 2026-12-31

Contract Duration: 1,409 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ACAD 151309, DEMOLISH AND CONSTRUCT NEW MAINTENANCE FACILITY (GAOA PROJECT), ACADIA NATIONAL PARK, HANCOCK COUNTY, MAINE

Place of Performance

Location: BAR HARBOR, HANCOCK County, MAINE, 04609

State: Maine Government Spending

Plain-Language Summary

Department of the Interior obligated $35.0 million to NICKERSON & O'DAY, INC. for work described as: ACAD 151309, DEMOLISH AND CONSTRUCT NEW MAINTENANCE FACILITY (GAOA PROJECT), ACADIA NATIONAL PARK, HANCOCK COUNTY, MAINE Key points: 1. Contract addresses critical infrastructure needs for Acadia National Park's maintenance operations. 2. The project involves demolition and new construction, indicating a significant capital investment. 3. Fixed-price contract type aims to control costs, but potential for change orders exists. 4. Competition was robust, suggesting a competitive market for this type of construction. 5. The duration of the contract (1409 days) points to a complex and lengthy project. 6. Geographic focus on Maine suggests regional economic impact and specialized labor requirements.

Value Assessment

Rating: good

The contract value of $35 million for demolishing and constructing a new maintenance facility appears reasonable given the scope and duration. Benchmarking against similar large-scale federal construction projects for national parks or similar facilities would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope is well-defined. However, without detailed cost breakdowns or comparisons to private sector construction of equivalent facilities, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 2 bids received. This level of competition is generally positive, suggesting that multiple capable contractors were interested and able to bid. The presence of two bidders indicates a degree of market interest, which can contribute to price discovery and potentially lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. However, a higher number of bidders might have yielded even more competitive pricing.

Taxpayer Impact: Full and open competition with two bidders suggests a fair market price was likely achieved, benefiting taxpayers by avoiding potential overpayment associated with less competitive procurements.

Public Impact

The primary beneficiaries are the National Park Service and its operational staff at Acadia National Park, who will gain a modern and functional maintenance facility. The project will deliver essential infrastructure for maintaining park resources, visitor services, and administrative functions. The geographic impact is concentrated in Hancock County, Maine, potentially creating local employment opportunities during the construction phase. The construction workforce in Maine will be directly impacted, with potential for skilled labor demand. Improved maintenance facilities can indirectly benefit park visitors through better-preserved infrastructure and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during demolition or construction.
Contract duration is substantial, increasing exposure to potential labor or material cost fluctuations.
Dependence on a single contractor for a large, multi-year project carries inherent performance risks.

Positive Signals

Firm fixed-price contract provides cost certainty for the base scope of work.
Full and open competition suggests a competitive market and potentially fair pricing.
The National Park Service is undertaking a necessary infrastructure upgrade, indicating proactive asset management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal agencies, particularly those managing large land areas like the National Park Service, frequently engage in construction and renovation projects to maintain and upgrade facilities. Spending in this sector is influenced by infrastructure needs, federal appropriations, and the condition of existing assets. Comparable spending benchmarks would involve analyzing other large-scale federal building construction contracts, particularly those awarded by agencies like the Department of Defense or the General Services Administration.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large or medium-sized business. The absence of a small business set-aside or explicit subcontracting goals means that the direct impact on the small business ecosystem for this specific contract may be limited, unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the National Park Service contracting officers and project managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm fixed-price nature may simplify some aspects of financial oversight but requires diligent monitoring of project progress and scope adherence. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

National Park Service Facility Maintenance and Construction
Federal Building Construction Contracts
Department of the Interior Infrastructure Projects
Large-Scale Commercial Construction Procurements

Risk Flags

Potential for unforeseen site conditions
Risk of material cost escalation over contract duration
Contractor performance and schedule adherence
Adequacy of competition (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $35.0 million to NICKERSON & O'DAY, INC.. ACAD 151309, DEMOLISH AND CONSTRUCT NEW MAINTENANCE FACILITY (GAOA PROJECT), ACADIA NATIONAL PARK, HANCOCK COUNTY, MAINE

Who is the contractor on this award?

The obligated recipient is NICKERSON & O'DAY, 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 $35.0 million.

What is the period of performance?

Start: 2023-02-21. End: 2026-12-31.

What is the track record of Nickerson & O'Day, Inc. with federal contracts, particularly with the National Park Service or Department of the Interior?

Nickerson & O'Day, Inc. has a history of performing work for federal agencies. A review of federal procurement databases would reveal the extent and nature of their past performance, including contract values, types of services rendered, and performance ratings. Specifically examining their prior engagements with the National Park Service or the Department of the Interior would provide insight into their experience with similar projects, regulatory environments, and agency-specific requirements. Positive past performance on comparable projects would increase confidence in their ability to successfully execute this $35 million maintenance facility contract. Conversely, any history of performance issues, disputes, or contract terminations would raise concerns.

How does the awarded price compare to similar construction projects for national park facilities or comparable institutional buildings?

To assess the value for money, the $35 million contract price should be benchmarked against similar federal construction projects. This involves comparing the cost per square foot, the complexity of the work (demolition and new construction), and the project duration against other maintenance facilities, visitor centers, or administrative buildings within the National Park System or other federal land management agencies. Factors such as geographic location (labor and material costs), specific site challenges, and the level of finishes can influence costs. Without access to detailed cost breakdowns or a database of comparable project costs, a precise comparison is difficult. However, the firm fixed-price nature suggests an effort to contain costs within a defined scope.

What are the primary risks associated with a multi-year, firm fixed-price construction contract of this magnitude?

The primary risks associated with this $35 million, multi-year firm fixed-price contract include potential cost overruns due to unforeseen site conditions discovered during demolition or excavation, which are common in construction. Material price escalation and labor shortages over the 1409-day duration could also strain the fixed price if not adequately accounted for in the initial bid. Performance risk is another significant concern; delays or quality issues could impact the National Park Service's operations. While the firm fixed-price structure aims to protect the government from cost increases, it places the risk of cost overruns on the contractor, potentially leading to disputes or quality compromises if the contractor faces financial pressure. Scope creep, if not managed tightly through change order processes, can also inflate the total cost.

What is the historical spending pattern for facility construction and maintenance within Acadia National Park or the National Park Service?

Analyzing historical spending patterns for facility construction and maintenance at Acadia National Park and across the National Park Service (NPS) is crucial for context. This contract represents a significant capital investment, and understanding whether it aligns with or deviates from historical trends can indicate funding priorities and infrastructure needs. For instance, has NPS consistently allocated substantial funds for new facilities, or is this an exceptional expenditure? Examining past budgets and contract awards for similar projects within NPS would reveal if spending has been increasing, decreasing, or remaining stable. This context helps assess if the $35 million award is a reasonable allocation within the broader NPS infrastructure investment strategy and whether it addresses a backlog of deferred maintenance or new operational requirements.

What are the implications of awarding this contract to Nickerson & O'Day, Inc. regarding small business participation and subcontracting?

Since this contract was awarded under full and open competition and does not appear to have a small business set-aside designation, the primary award is likely to a larger firm. The implications for small business participation depend heavily on Nickerson & O'Day, Inc.'s subcontracting strategy. If the contract includes specific small business subcontracting goals, it could create significant opportunities for small businesses in Maine and beyond to participate in various aspects of the project, such as specialized trades, material supply, or support services. However, if no such goals are mandated, small business involvement might be limited to opportunities that arise organically or through the prime contractor's voluntary outreach. A thorough review of the contract's clauses regarding subcontracting would clarify the extent of expected small business engagement.

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: 140P2022R0045

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 35 AIRPORT RD, BREWER, ME, 04412

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

Financial Breakdown

Contract Ceiling: $35,019,732

Exercised Options: $35,019,732

Current Obligation: $35,019,732

Actual Outlays: $30,868,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline