Interior Department awards $25.7M contract for fire-damaged housing and infrastructure reconstruction in Colorado
Contract Overview
Contract Amount: $25,721,578 ($25.7M)
Contractor: HPM, Inc.
Awarding Agency: Department of the Interior
Start Date: 2023-04-18
End Date: 2026-05-26
Contract Duration: 1,134 days
Daily Burn Rate: $22.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ROMO 316133_RECONSTRUCT HOUSING AND INFRASTRUCTURE DESTROYED BY FIRE
Place of Performance
Location: ESTES PARK, LARIMER County, COLORADO, 80517
State: Colorado Government Spending
Plain-Language Summary
Department of the Interior obligated $25.7 million to HPM, INC. for work described as: ROMO 316133_RECONSTRUCT HOUSING AND INFRASTRUCTURE DESTROYED BY FIRE Key points: 1. Contract aims to rebuild essential housing and infrastructure following a significant fire event. 2. The reconstruction effort is critical for restoring community services and resident well-being. 3. The contract duration of 1134 days indicates a substantial and complex rebuilding project. 4. Fixed-price contract type suggests a defined scope and budget, potentially limiting cost overruns. 5. The award to HPM, INC. follows a competitive process, implying a selection based on merit and price. 6. Geographic focus on Colorado highlights the localized impact and recovery needs. 7. The contract's success hinges on effective project management and timely completion of reconstruction phases.
Value Assessment
Rating: good
The contract value of $25.7 million for housing and infrastructure reconstruction appears reasonable given the scope of rebuilding after a fire. Benchmarking against similar disaster recovery projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to control costs, but the ultimate value will depend on the quality and timeliness of the reconstruction.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial exclusions might have occurred, the final award was made through a broad competitive process. The presence of 2 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received a fair price for the reconstruction services.
Public Impact
Residents of the affected area in Colorado will benefit from the reconstruction of their homes and essential infrastructure. The National Park Service will see the restoration of critical facilities, enabling continued operations and visitor access. The project will have a significant positive impact on the local Colorado economy through job creation and material sourcing. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for delays in reconstruction due to unforeseen site conditions or material shortages.
- Ensuring the quality of reconstructed housing and infrastructure meets long-term durability standards.
- Managing the complexity of rebuilding multiple housing units and associated infrastructure simultaneously.
Positive Signals
- The firm fixed-price contract provides cost certainty for the government.
- The competitive award process suggests a strong likelihood of selecting a capable contractor.
- The defined contract duration provides a clear timeline for project completion.
Sector Analysis
This contract falls within the construction and infrastructure sector, specifically focusing on disaster recovery and rebuilding. The market for such services is often driven by government needs following natural disasters. Comparable spending benchmarks would involve analyzing other large-scale reconstruction efforts funded by federal agencies like FEMA or the Department of Defense after significant events.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if HPM, INC. has a history of subcontracting with small businesses or if opportunities exist within this project's scope.
Oversight & Accountability
Oversight 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's performance clauses and payment schedules. Transparency can be assessed through public contract databases and reporting requirements. Inspector General jurisdiction would typically fall under the Department of the Interior's IG office.
Related Government Programs
- Federal Emergency Management Agency (FEMA) Disaster Relief Fund
- Department of Housing and Urban Development (HUD) Community Development Block Grants
- Army Corps of Engineers Civil Works Programs
Risk Flags
- Potential for cost escalation beyond fixed price if scope changes or unforeseen issues arise.
- Risk of project delays impacting community recovery timelines.
- Ensuring long-term durability and resilience of reconstructed structures.
- Adequate oversight to ensure quality and compliance with standards.
Tags
construction, housing, infrastructure, disaster-recovery, department-of-the-interior, national-park-service, colorado, firm-fixed-price, full-and-open-competition, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $25.7 million to HPM, INC.. ROMO 316133_RECONSTRUCT HOUSING AND INFRASTRUCTURE DESTROYED BY FIRE
Who is the contractor on this award?
The obligated recipient is HPM, 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 $25.7 million.
What is the period of performance?
Start: 2023-04-18. End: 2026-05-26.
What is the track record of HPM, INC. in completing similar large-scale reconstruction projects for federal agencies?
A review of HPM, INC.'s contract history would be necessary to assess their track record. Specifically, one would look for past performance on projects of similar size, scope, and complexity, particularly those involving housing and infrastructure reconstruction after disaster events. Examining past performance evaluations, any documented disputes or contract terminations, and the timeliness of their project completions would provide crucial insights into their capabilities and reliability for this significant reconstruction effort.
How does the awarded price compare to the estimated cost or market rates for similar reconstruction services?
To benchmark the value, the awarded price of $25.7 million needs to be compared against independent cost estimates or market rates for comparable housing and infrastructure reconstruction projects in the Colorado region or similar disaster-affected areas. This would involve analyzing the unit costs for specific reconstruction elements (e.g., per square foot for housing, per linear foot for utilities) and comparing them to industry standards or data from similar federal contracts. A significant deviation from market rates, either higher or lower, would warrant further investigation into the pricing structure and potential risks or benefits.
What are the primary risks associated with this reconstruction contract, and how are they being mitigated?
Key risks include potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen site conditions or material price fluctuations, delays due to weather or supply chain issues, and quality control challenges in rebuilding diverse housing and infrastructure. Mitigation strategies likely involve detailed site assessments, robust contingency planning, strict quality assurance protocols, and clear communication channels between the contractor and the National Park Service. The contract's performance clauses and liquidated damages for delays also serve as risk mitigation tools.
What is the expected effectiveness of the reconstructed housing and infrastructure in meeting the long-term needs of the community?
The effectiveness will depend on the design specifications, the quality of materials used, and the adherence to modern building codes and resilience standards. The National Park Service's involvement suggests a focus on restoring not just basic functionality but also ensuring the new structures are durable and sustainable, potentially incorporating features to withstand future environmental challenges. Community engagement during the planning and reconstruction phases can also ensure the rebuilt facilities align with residents' evolving needs and expectations.
What has been the historical spending pattern for housing and infrastructure reconstruction by the National Park Service or Department of the Interior?
Analyzing historical spending data for the National Park Service and the Department of the Interior on reconstruction projects, particularly those related to disaster recovery, would provide context. This includes examining the frequency and scale of such contracts, the typical duration, and the average contract values. Understanding past spending patterns can help identify trends, assess the current contract's size relative to historical investments, and evaluate the agency's capacity and approach to managing similar recovery efforts.
Industry Classification
NAICS: Construction › Residential Building Construction › New Housing For-Sale Builders
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: TWO STEP
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9781 S MERIDIAN BLVD, CENTENNIAL, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,721,578
Exercised Options: $25,721,578
Current Obligation: $25,721,578
Actual Outlays: $25,243,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2023-04-18
Current End Date: 2026-05-26
Potential End Date: 2026-05-26 00:00:00
Last Modified: 2026-02-11
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