National Park Service awards $27.7M contract for Sugarlands Headquarters and utility system rehabilitation in Great Smoky Mountains National Park

Contract Overview

Contract Amount: $27,664,729 ($27.7M)

Contractor: Atherton Construction LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-26

End Date: 2026-08-19

Contract Duration: 692 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRSM 149285/149368 - REHABILITATE SUGARLANDS HEADQUARTERS, AND REHAB SUGARLANDS WATER AND WASTEWATER SYSTEMS GREAT SMOKY MOUNTAINS NATIONAL PARK, GATLINBURG TN

Place of Performance

Location: GATLINBURG, SEVIER County, TENNESSEE, 37738

State: Tennessee Government Spending

Plain-Language Summary

Department of the Interior obligated $27.7 million to ATHERTON CONSTRUCTION LLC for work described as: GRSM 149285/149368 - REHABILITATE SUGARLANDS HEADQUARTERS, AND REHAB SUGARLANDS WATER AND WASTEWATER SYSTEMS GREAT SMOKY MOUNTAINS NATIONAL PARK, GATLINBURG TN Key points: 1. The contract focuses on essential infrastructure upgrades, aiming to improve the operational capacity and longevity of park facilities. 2. Atherton Construction LLC, the selected contractor, will undertake significant rehabilitation work, indicating a need for specialized construction expertise. 3. The project's scope includes both building rehabilitation and critical water/wastewater system improvements, addressing multiple facets of park infrastructure. 4. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, potentially benefiting the government. 5. The duration of the contract, nearly two years, allows for comprehensive execution of the rehabilitation tasks. 6. The award is a definitive contract, implying a commitment to a specific scope of work and timeline.

Value Assessment

Rating: good

The contract value of $27.7 million for rehabilitating a headquarters building and water/wastewater systems in a national park appears reasonable given the scope. While direct comparisons are difficult without specific project details, similar large-scale infrastructure projects in federal facilities often range in the tens of millions. The firm-fixed-price structure helps control costs for the government, assuming the initial bid was competitive. Benchmarking against similar construction projects within the National Park Service or other federal agencies would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple interested contractors had the opportunity to bid. The presence of 5 bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to more favorable pricing for the government and ensures that the most capable contractor is selected based on technical and price factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring the government receives the best value for its investment in critical park infrastructure.

Public Impact

Park visitors and staff will benefit from improved facilities and reliable water/wastewater services at the Sugarlands Headquarters. The rehabilitation of water and wastewater systems ensures environmental compliance and public health within the park. The project supports the operational continuity of the Great Smoky Mountains National Park, a major tourist destination. Local and regional construction workforce may see employment opportunities during the contract performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions requiring change orders, impacting final cost.
Dependence on contractor's ability to manage complex utility system repairs effectively.
Coordination challenges between building rehabilitation and utility work could lead to delays.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bid process and potentially better pricing.
Award to a single contractor streamlines management and accountability for the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the maintenance and modernization of government facilities nationwide. The National Park Service, as a major land management agency, frequently engages in construction and rehabilitation projects to preserve historical sites and ensure visitor safety and access. Comparable spending benchmarks would involve looking at other large-scale renovation projects for federal buildings or critical infrastructure within other agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While the primary contractor is Atherton Construction LLC, there is no explicit information provided regarding subcontracting plans or goals for small businesses. The impact on the small business ecosystem will depend on whether the prime contractor actively seeks to engage small businesses for specialized services or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which places cost responsibility on the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details are not provided. The Inspector General for the Department of the Interior may have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

National Park Service Facility Maintenance
Federal Building Construction and Renovation
Public Infrastructure Projects
Water and Wastewater System Upgrades

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Contractor performance risk on complex utility system rehabilitation.
Coordination challenges between different rehabilitation tasks.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $27.7 million to ATHERTON CONSTRUCTION LLC. GRSM 149285/149368 - REHABILITATE SUGARLANDS HEADQUARTERS, AND REHAB SUGARLANDS WATER AND WASTEWATER SYSTEMS GREAT SMOKY MOUNTAINS NATIONAL PARK, GATLINBURG TN

Who is the contractor on this award?

The obligated recipient is ATHERTON CONSTRUCTION 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 $27.7 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-08-19.

What is Atherton Construction LLC's track record with the federal government, particularly with the National Park Service or Department of the Interior?

A review of federal procurement data indicates that Atherton Construction LLC has a history of receiving federal contracts. While specific details on past performance with the National Park Service or Department of the Interior require deeper analysis of contract databases, their selection for this significant project suggests they possess the necessary qualifications and experience. Further investigation into their past project completion records, including any reported issues or successes, would provide a more comprehensive understanding of their reliability and capability for complex rehabilitation tasks. Examining contract close-out data and any performance evaluations would be crucial for a thorough assessment.

How does the awarded amount of $27.7 million compare to similar rehabilitation projects for national park headquarters or utility systems?

Directly comparing the $27.7 million award to similar projects is challenging without granular data on the scope, complexity, and location of comparable rehabilitation efforts. However, large-scale infrastructure and building renovation projects within federal agencies, especially those involving critical systems like water and wastewater, frequently run into the tens of millions of dollars. For instance, major renovations at other National Park Service sites or similar federal facilities (e.g., Forest Service, Bureau of Land Management) often involve substantial capital outlays. The specific challenges of working within a national park environment, such as environmental regulations and logistical constraints, can also influence costs. A benchmark analysis would require identifying projects with similar square footage, system complexity, and duration.

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

Key risks for this contract include potential unforeseen site conditions during rehabilitation, which could lead to scope creep and cost overruns, despite the firm-fixed-price structure. Another risk involves the complexity of rehabilitating aging water and wastewater systems, where technical challenges or discovery of hidden defects could arise. Logistical challenges within a national park setting, such as limited access or environmental restrictions, also pose a risk. Mitigation strategies likely include thorough site investigations prior to award, detailed contract specifications, robust project management by the National Park Service, and the contractor's own risk management protocols. The firm-fixed-price nature itself is a mitigation tool, placing the financial risk of cost overruns on the contractor.

What is the expected impact of this contract on the operational effectiveness and visitor experience at Great Smoky Mountains National Park?

This contract is expected to significantly enhance the operational effectiveness and visitor experience at the Sugarlands Headquarters and surrounding areas. The rehabilitation of the headquarters building will likely improve workspace functionality and safety for park staff. More critically, the rehabilitation of water and wastewater systems will ensure reliable service, prevent potential environmental hazards, and maintain public health standards. This directly contributes to a positive visitor experience by ensuring essential facilities are functional and safe. Improved infrastructure supports the park's mission of preservation and public access, allowing staff to operate more efficiently and visitors to enjoy the park's resources without disruption from utility failures.

How has federal spending on similar construction and infrastructure projects within the National Park Service trended in recent years?

Federal spending on construction and infrastructure projects within the National Park Service has generally seen fluctuations but has been a consistent area of investment, particularly in recent years with increased focus on deferred maintenance. Legislation like the Great American Outdoors Act has provided significant funding boosts for addressing backlogs in park infrastructure. Trends show a growing allocation towards major rehabilitation projects, utility system upgrades, and visitor facility improvements across various park units. While specific year-over-year data for 'headquarters and utility system rehabilitation' requires detailed analysis, the overall trend indicates a sustained or increasing commitment to modernizing and maintaining critical park assets to ensure their longevity and usability for the public.

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: 140P2024R0032

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1050 WIGWAM PKWY, HENDERSON, NV, 89074

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

Financial Breakdown

Contract Ceiling: $28,475,873

Exercised Options: $27,664,729

Current Obligation: $27,664,729

Actual Outlays: $15,587,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline