Interior's $11.6M Stehekin WWTP Upgrade to Replace Aging Facility, Awarded to HB Hansen Construction

Contract Overview

Contract Amount: $11,587,350 ($11.6M)

Contractor: HB Hansen Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-09-21

End Date: 2026-06-01

Contract Duration: 984 days

Daily Burn Rate: $11.8K/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: THIS PROJECT WILL REPLACE EXISTING STEHEKIN WASTEWATER TREATMENT PLANT (WWTP) WITH A MODERN FACILITY. PROJECT SCOPE INCLUDES DEMOLITION AND REMOVAL OF EXISTING PACKAGE SKID AND TANKS, REHABILITATION AND UPGRADE OF THE BUILDING, AND INSTALLATION OF N

Place of Performance

Location: STEHEKIN, CHELAN County, WASHINGTON, 98852

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $11.6 million to HB HANSEN CONSTRUCTION, INC. for work described as: THIS PROJECT WILL REPLACE EXISTING STEHEKIN WASTEWATER TREATMENT PLANT (WWTP) WITH A MODERN FACILITY. PROJECT SCOPE INCLUDES DEMOLITION AND REMOVAL OF EXISTING PACKAGE SKID AND TANKS, REHABILITATION AND UPGRADE OF THE BUILDING, AND INSTALLATION OF N Key points: 1. Project aims to modernize critical wastewater infrastructure in Washington. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Firm Fixed Price contract type offers cost certainty for taxpayers. 4. The project falls within the broader construction sector, specifically water and sewer infrastructure.

Value Assessment

Rating: fair

The contract value of $11.6M for a wastewater treatment plant upgrade appears within a reasonable range for such infrastructure projects. Benchmarking against similar, complex water treatment facility constructions would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources were excluded, potentially limiting the breadth of competition and impacting price discovery.

Taxpayer Impact: The use of a firm fixed price contract provides cost predictability for taxpayers. However, the limited competition aspect could mean that the final price might not be as optimized as it could have been under full and open competition.

Public Impact

Improved public health and environmental protection through upgraded wastewater treatment. Potential for job creation during the construction phase. Ensures continued operation of essential services for the Stehekin community. Modernization of federal infrastructure assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Potential for cost overruns if unforeseen issues arise during demolition/rehabilitation.
Project duration of nearly 1000 days presents schedule risk.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Addresses critical infrastructure needs.
Modernization will improve operational efficiency and environmental compliance.

Sector Analysis

This project falls under the construction sector, specifically focusing on water and sewer infrastructure. Spending in this area is crucial for maintaining public health and environmental standards. Benchmarks for similar projects vary widely based on scale and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The National Park Service, under the Department of the Interior, is responsible for this project. Oversight will be critical to ensure the project stays on schedule and within budget, given the complexity of replacing an existing treatment plant.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of the Interior Contracting
National Park Service Programs

Risk Flags

Limited competition.
Potential for unforeseen site conditions.
Long project duration.
Dependency on specialized construction expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.6 million to HB HANSEN CONSTRUCTION, INC.. THIS PROJECT WILL REPLACE EXISTING STEHEKIN WASTEWATER TREATMENT PLANT (WWTP) WITH A MODERN FACILITY. PROJECT SCOPE INCLUDES DEMOLITION AND REMOVAL OF EXISTING PACKAGE SKID AND TANKS, REHABILITATION AND UPGRADE OF THE BUILDING, AND INSTALLATION OF N

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 $11.6 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-06-01.

What specific criteria led to the exclusion of certain sources in the competition process?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique qualifications are required that only a limited number of contractors possess. Without further details on the solicitation, it's difficult to ascertain the exact reasons. This could be due to specialized equipment needs, site-specific challenges, or regulatory compliance requirements for wastewater treatment facilities.

What are the primary risks associated with rehabilitating and upgrading an existing wastewater treatment plant?

Key risks include encountering unforeseen structural issues during demolition, discovering hazardous materials, or facing unexpected site conditions that increase remediation costs. Integration challenges with existing systems and potential delays due to environmental regulations or permitting can also impact the project. Ensuring the continuity of service during the upgrade is another significant operational risk.

How will the success of this infrastructure upgrade be measured in terms of effectiveness and long-term value?

Effectiveness will be measured by the plant's ability to meet or exceed current and future environmental discharge standards, its operational reliability, and reduced maintenance costs. Long-term value will be assessed through the extended lifespan of the facility, improved energy efficiency, and its capacity to serve the community's needs for decades, thereby justifying the initial investment.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2023R0131

Offers Received: 2

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: $11,587,350

Exercised Options: $11,587,350

Current Obligation: $11,587,350

Actual Outlays: $6,974,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline