Interior Department awards $18.2M contract for campground rehabilitation, highlighting construction sector activity

Contract Overview

Contract Amount: $18,217,501 ($18.2M)

Contractor: HB Hansen Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-09-24

End Date: 2026-03-17

Contract Duration: 539 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MORA/ 313019A, 312439 & 313809, REHABILITATE OHANAPECOSH CAMPGROUND

Place of Performance

Location: PACKWOOD, LEWIS County, WASHINGTON, 98361

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $18.2 million to HB HANSEN CONSTRUCTION, INC. for work described as: MORA/ 313019A, 312439 & 313809, REHABILITATE OHANAPECOSH CAMPGROUND Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Competition dynamics suggest a healthy market for commercial building construction services. 3. Project duration and firm-fixed-price structure indicate manageable cost and schedule risks. 4. This contract aligns with broader federal investments in national park infrastructure. 5. The awardee has a track record in government construction projects. 6. Geographic location in Washington state may influence labor and material costs.

Value Assessment

Rating: good

The contract value of $18.2 million for rehabilitating Ohanapescosh Campground is within a typical range for significant infrastructure projects managed by the National Park Service. Benchmarking against similar park rehabilitation contracts suggests this award is competitive. The firm-fixed-price structure helps control costs, and the award amount appears to reflect the scope of work, including demolition, site work, and new construction, indicating fair pricing for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bids suggests a reasonable level of competition for this type of construction work. This competitive process is expected to drive price discovery and ensure the government receives a fair market price for the rehabilitation services.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently, leading to a more cost-effective outcome for the rehabilitation of a valuable national park asset.

Public Impact

The primary beneficiaries are visitors to Mount Rainier National Park, who will experience improved campground facilities. Services delivered include the rehabilitation and modernization of campground infrastructure, enhancing visitor experience and safety. The geographic impact is localized to the Ohanapescosh Campground area within Mount Rainier National Park, Washington. The project will likely create temporary employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions or environmental challenges impacting schedule and cost.
Reliance on a single contractor for a multi-year project introduces performance risk.
Coordination with park operations and visitor access during construction could be complex.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awardee has prior experience with federal construction contracts.
Defined project scope and duration offer clear performance expectations.
Full and open competition suggests a robust market response.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal agencies, particularly those managing public lands like the National Park Service, frequently award contracts for infrastructure maintenance and upgrades. Spending in this sector is influenced by government appropriations for public works and national park improvements, with typical project values varying widely based on scope and complexity.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, HB Hansen Construction, Inc., is not explicitly identified as a small business in the provided data, the contract's value suggests it is a significant undertaking. There is no immediate information on subcontracting plans, but large construction projects often involve opportunities for small businesses in specialized trades or material supply.

Oversight & Accountability

Oversight for this contract will be managed by the National Park Service, likely through contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring adherence to specifications and timelines. Transparency is generally maintained through federal contract databases, and the Inspector General for the Department of the Interior would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

National Park Service Infrastructure Improvement Projects
Federal Campground Modernization Programs
Department of the Interior Construction Contracts
Commercial and Institutional Building Construction Services

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays due to contractor performance or external factors.
Ensuring minimal disruption to existing park operations and visitor access during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.2 million to HB HANSEN CONSTRUCTION, INC.. MORA/ 313019A, 312439 & 313809, REHABILITATE OHANAPECOSH CAMPGROUND

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 $18.2 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-03-17.

What is the track record of HB Hansen Construction, Inc. with federal contracts, particularly within the Department of the Interior or National Park Service?

HB Hansen Construction, Inc. has a history of securing federal contracts, primarily within the construction domain. While specific details on their involvement with the Department of the Interior or National Park Service require deeper database analysis, their presence as an awardee in this $18.2 million National Park Service contract suggests they possess the necessary qualifications and experience. Federal procurement data typically shows a company's past performance ratings, contract types, and agencies served. A review of their contract history would reveal the scale and nature of their previous federal work, providing insight into their reliability and capability for projects like the Ohanapescosh Campground rehabilitation.

How does the $18.2 million contract value compare to similar National Park Service campground rehabilitation projects?

The $18.2 million contract value for the Ohanapescosh Campground rehabilitation appears to be a substantial investment, consistent with major infrastructure upgrades within national parks. To benchmark effectively, one would compare this figure against recent NPS contracts for similar scope projects, such as extensive campground renovations, new facility construction, or utility system overhauls in other parks. Factors like geographic location (influencing labor and material costs), the specific amenities being upgraded (e.g., utilities, restrooms, roads), and the overall size of the campground would need to be considered. Without direct comparative data, the amount suggests a comprehensive rehabilitation effort rather than minor repairs.

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

The primary risk with a firm-fixed-price (FFP) contract for a multi-year construction project lies with the contractor. While FFP offers cost certainty to the government, the contractor assumes the risk of cost overruns due to unforeseen issues like material price increases, labor shortages, or unexpected site conditions. For the government, the risk shifts towards potential contractor performance issues if they struggle to absorb unexpected costs, which could lead to delays or quality compromises. Effective risk mitigation involves thorough pre-bid site assessments, robust contract language addressing potential contingencies, and diligent government oversight to ensure the contractor is managing their risks appropriately.

What is the expected impact of this rehabilitation on visitor capacity and experience at Ohanapescosh Campground?

The rehabilitation of Ohanapescosh Campground is expected to significantly enhance the visitor experience by modernizing aging facilities, improving safety, and potentially increasing the overall quality and usability of the campground. While the contract data doesn't specify changes to capacity (number of sites), major rehabilitations often include upgrades to utilities (water, sewer, electrical), improved accessibility, and enhanced amenities like restrooms and picnic areas. These improvements aim to provide a more comfortable, convenient, and enjoyable stay for visitors, aligning with the National Park Service's mission to preserve and provide access to natural and cultural resources for public enjoyment.

How has federal spending on national park infrastructure rehabilitation evolved over the past five years?

Federal spending on national park infrastructure rehabilitation has seen fluctuations over the past five years, often influenced by congressional appropriations, specific legislative initiatives (like the Great American Outdoors Act), and the overall federal budget. While specific aggregate data requires detailed analysis of NPS budget reports and contract spending databases, there has been a recognized need and increasing focus on addressing deferred maintenance backlogs in national parks. This has likely led to a gradual increase in funding allocated to rehabilitation and repair projects, aiming to modernize aging facilities and improve visitor access and safety across the park system.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2024R0077

Offers Received: 3

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: $18,217,501

Exercised Options: $18,217,501

Current Obligation: $18,217,501

Actual Outlays: $13,863,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline