National Park Service awards $30M contract for Selma Interpretive Center construction to Outside Box LLC

Contract Overview

Contract Amount: $30,062,654 ($30.1M)

Contractor: Outside BOX LLC

Awarding Agency: Department of the Interior

Start Date: 2023-09-05

End Date: 2028-01-28

Contract Duration: 1,606 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEMO 218940, DEVELOP SELMA INTERPRETIVE CENTER, SELMA, AL

Place of Performance

Location: SELMA, DALLAS County, ALABAMA, 36701

State: Alabama Government Spending

Plain-Language Summary

Department of the Interior obligated $30.1 million to OUTSIDE BOX LLC for work described as: SEMO 218940, DEVELOP SELMA INTERPRETIVE CENTER, SELMA, AL Key points: 1. Contract value appears reasonable given the scope of a major construction project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed-price type, which transfers risk to the contractor. 4. Project duration is over four years, indicating a significant undertaking. 5. The contractor, Outside Box LLC, is relatively new to federal contracting. 6. Geographic focus on Alabama for a significant infrastructure project.

Value Assessment

Rating: good

The contract value of approximately $30 million for the construction of an interpretive center is within a typical range for such projects. Benchmarking against similar National Park Service construction contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is standard for construction and helps control costs for the government, assuming the initial bid was competitive.

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 price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality services by encouraging a wide range of contractors to bid.

Public Impact

The primary beneficiaries are visitors to Selma, Alabama, who will experience an enhanced interpretive center. The project will deliver a new commercial and institutional building, contributing to local infrastructure. The geographic impact is concentrated in Selma, Alabama, potentially boosting the local economy through construction jobs. Workforce implications include job creation for construction workers and related trades in the Selma area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's limited track record in federal contracting may present execution risks.
Potential for cost overruns if unforeseen issues arise during construction, despite fixed-price contract.
Dependence on a single contractor for a large-scale, multi-year project.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a potentially competitive bid and good value.
Project aims to enhance a significant historical and cultural site.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The construction industry is a significant part of the US economy, with federal contracts often supporting large-scale infrastructure and public facilities. The National Park Service frequently awards contracts for the development and maintenance of visitor centers and related facilities across the country.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided on subcontracting plans for small businesses. This means opportunities for small businesses would depend on the prime contractor's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight will be managed by the National Park Service, likely through contract officers and project managers. Accountability measures are inherent in the firm fixed-price contract, with penalties for non-performance. Transparency is generally maintained through federal contract databases, though specific project oversight details are not provided.

Related Government Programs

National Park Service Visitor Center Construction
Historic Site Development Projects
Federal Building Construction Contracts
Alabama Infrastructure Projects

Risk Flags

Contractor Performance Risk (New Entrant)
Long Project Duration Risk
Potential for Cost Overruns (FFP Risk Mitigation Needed)
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $30.1 million to OUTSIDE BOX LLC. SEMO 218940, DEVELOP SELMA INTERPRETIVE CENTER, SELMA, AL

Who is the contractor on this award?

The obligated recipient is OUTSIDE BOX LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2023-09-05. End: 2028-01-28.

What is the track record of Outside Box LLC in federal contracting, particularly for projects of similar scale and complexity?

Outside Box LLC appears to be a relatively new entity in the federal contracting space, with limited publicly available data on its past performance. The award of a $30 million construction contract by the National Park Service is a significant undertaking for a contractor with a potentially nascent federal track record. Further investigation into the company's commercial experience, financial stability, and any prior subcontracting roles on federal projects would be necessary to fully assess their capability and mitigate potential risks associated with performance on this large-scale interpretive center construction.

How does the awarded price of $30,062,653.85 compare to similar National Park Service interpretive center construction projects?

Benchmarking this contract's value requires comparison with similar National Park Service (NPS) interpretive center construction projects, considering factors like size, complexity, location, and year of award. Without specific comparable project data, a precise value-for-money assessment is challenging. However, $30 million is a substantial investment, suggesting a significant facility. The NPS typically manages projects of varying scales; larger, more complex centers in high-traffic areas would naturally command higher costs. A detailed analysis would involve reviewing recent NPS construction awards for similar facilities to determine if this price falls within the expected range or deviates significantly, potentially indicating exceptional value or an inflated cost.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project like the Selma Interpretive Center?

While a firm fixed-price (FFP) contract is designed to provide cost certainty for the government by shifting risk to the contractor, several risks remain, especially for a multi-year construction project. The primary risk is contractor default or substandard performance, where the contractor may struggle to complete the project within the fixed price due to unforeseen cost increases (e.g., material price volatility, labor shortages) or poor management. This could lead to delays, quality issues, or even project abandonment, requiring the government to potentially re-compete or step in. Another risk is that the contractor may cut corners on quality to maintain profitability, necessitating rigorous government oversight. Finally, if the initial bid was unrealistically low, the contractor might seek change orders or claims, potentially increasing the overall cost.

What is the expected impact of this contract on the local economy in Selma, Alabama?

This $30 million construction contract is expected to have a positive impact on the local economy in Selma, Alabama. The construction phase will likely create numerous temporary jobs for skilled and unskilled laborers, as well as opportunities for local suppliers of materials and equipment. Furthermore, the development of a new interpretive center is anticipated to boost tourism in the long term, leading to increased spending at local businesses, hotels, restaurants, and other service providers. This influx of economic activity can contribute to job growth beyond the construction phase and enhance the overall economic vitality of the region.

How does the duration of the contract (over four years) influence the assessment of project risk and contractor performance?

A contract duration of over four years for a construction project like the Selma Interpretive Center introduces specific risk factors. Extended timelines increase the potential for economic fluctuations, such as inflation in material and labor costs, which could strain the contractor's ability to adhere to the fixed price, potentially leading to claims or performance issues. Furthermore, longer durations heighten the risk of contractor personnel changes, loss of institutional knowledge, or shifts in company priorities. For the government, extended oversight is required, demanding consistent monitoring to ensure progress, quality, and compliance over the project's lifecycle. This extended period necessitates robust project management and communication to maintain momentum and address challenges proactively.

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: 140P2023R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1428 FLOYD AVE, RICHMOND, VA, 23220

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $30,062,654

Exercised Options: $30,062,654

Current Obligation: $30,062,654

Actual Outlays: $8,647,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline