Paulsen Construction awarded $20.9M contract for Yellowstone historic building rehabilitation

Contract Overview

Contract Amount: $20,973,647 ($21.0M)

Contractor: Paulsen Construction, LLC

Awarding Agency: Department of the Interior

Start Date: 2025-04-14

End Date: 2026-12-31

Contract Duration: 626 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: YELL 307127 - REHABILITATE EXTERIORS OF HISTORIC FT. YELLOWSTONE BUILDINGS, YELLOWSTONE NATIONAL PARK

Place of Performance

Location: GARDINER, PARK County, MONTANA, 59030

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $21.0 million to PAULSEN CONSTRUCTION, LLC for work described as: YELL 307127 - REHABILITATE EXTERIORS OF HISTORIC FT. YELLOWSTONE BUILDINGS, YELLOWSTONE NATIONAL PARK Key points: 1. Contract value appears reasonable given the scope of rehabilitating historic structures. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a single award for a defined period. 4. Firm fixed price contract type mitigates cost overrun risk for the government. 5. Project duration of 626 days allows for thorough and careful restoration work. 6. Location in Montana suggests potential for regional economic impact.

Value Assessment

Rating: good

The contract value of $20.9 million for rehabilitating historic buildings in Yellowstone National Park seems aligned with the complexity and scale of such projects. While specific benchmarks for historic building rehabilitation in national parks are not readily available, similar large-scale construction and renovation projects for federal facilities often fall within this range. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

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 a bid. The presence of 4 bidders suggests a healthy level of competition for this project. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. The multiple bids received indicate that the government likely secured a competitive price for the rehabilitation services.

Public Impact

Preserves and protects historic structures within Yellowstone National Park for future generations. Ensures the structural integrity and aesthetic appeal of key park buildings. Supports the tourism and recreational activities by maintaining visitor-accessible facilities. Potential for job creation in construction and related trades within Montana and surrounding areas. Enhances the overall visitor experience by providing safe and well-maintained historical sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen structural issues in historic buildings requiring additional funding or scope changes.
Dependence on specialized labor for historic preservation techniques could impact project timelines if not readily available.
Environmental considerations within a national park setting may add complexity and require strict adherence to regulations.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Long project duration allows for meticulous execution of historic preservation tasks.
Award to Paulsen Construction, LLC, indicates a selected contractor with the capacity to perform the work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on historic preservation. The market for historic building rehabilitation is specialized, often involving unique materials, techniques, and regulatory compliance. Federal agencies, particularly the National Park Service, frequently engage in such contracts to maintain their vast portfolio of historic assets. Comparable spending benchmarks are difficult to establish due to the bespoke nature of historic preservation, but large-scale renovation projects for public buildings can range from millions to tens of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that small business subcontracting was not explicitly mentioned as a requirement. The award went to Paulsen Construction, LLC, which may or may not be a small business. Further investigation would be needed to determine if small businesses will have opportunities to participate as subcontractors on this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service, a division of the Department of the Interior. The firm fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Accountability measures will be embedded in the contract's performance standards and deliverables. Transparency is generally maintained through federal contract databases, though specific project-level oversight details are not provided.

Related Government Programs

National Park Service Historic Preservation Fund
Federal Buildings Fund
Construction and Engineering Services
Building Exterior Rehabilitation

Risk Flags

Potential for unforeseen conditions in historic structures.
Environmental compliance within a national park.
Logistical challenges in a remote park location.
Availability of specialized labor for historic preservation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $21.0 million to PAULSEN CONSTRUCTION, LLC. YELL 307127 - REHABILITATE EXTERIORS OF HISTORIC FT. YELLOWSTONE BUILDINGS, YELLOWSTONE NATIONAL PARK

Who is the contractor on this award?

The obligated recipient is PAULSEN 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 $21.0 million.

What is the period of performance?

Start: 2025-04-14. End: 2026-12-31.

What is the track record of Paulsen Construction, LLC in completing similar historic rehabilitation projects for federal agencies?

Information regarding Paulsen Construction, LLC's specific track record with federal historic rehabilitation projects is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract history with federal agencies, and any reported issues or successes on similar projects. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for this information. Understanding their experience with the unique challenges of historic preservation, adherence to preservation standards (like those set by the Secretary of the Interior's Standards for the Treatment of Historic Properties), and ability to manage projects within national park environments is crucial for assessing their capability.

How does the awarded amount compare to the estimated cost or bids from other competitors?

The provided data indicates that there were 4 bidders for this contract, with Paulsen Construction, LLC being awarded the $20.9 million definitive contract. However, the specific bid amounts from the other three competitors are not disclosed. To assess value for money, a comparison of all submitted bids would be necessary. If the awarded amount is significantly lower than other bids or the government's independent cost estimate, it suggests good value. Conversely, if it is the highest bid or substantially exceeds estimates, it might warrant further scrutiny. The firm fixed-price nature, however, caps the government's financial exposure at the awarded amount, regardless of the contractor's actual costs.

What are the primary risks associated with rehabilitating historic buildings in a national park setting?

Rehabilitating historic buildings, especially within a national park like Yellowstone, presents several risks. These include the potential for unforeseen structural issues (e.g., hidden rot, asbestos, lead paint) that are common in older structures and can increase costs and timelines. Environmental risks are also significant, given the sensitive ecosystem of a national park, requiring strict adherence to environmental regulations and potentially impacting construction methods and schedules. Furthermore, working in a high-traffic tourist area necessitates careful planning to minimize disruption to visitors and park operations. The specialized nature of historic preservation also means a risk of not finding qualified labor or materials, potentially leading to delays or compromises in restoration quality. Finally, the remoteness of some park locations can add logistical challenges and increase costs.

What is the expected impact of this contract on the preservation of Yellowstone National Park's historical assets?

This contract is expected to have a direct and positive impact on the preservation of Yellowstone National Park's historical assets. By rehabilitating the exteriors of historic buildings, the project aims to protect these structures from further deterioration due to weather and time. This work is crucial for maintaining the architectural integrity and historical significance of these buildings, ensuring they can continue to stand and be appreciated by future generations. The rehabilitation efforts will likely involve repairs to roofing, siding, windows, and other exterior elements, using materials and techniques appropriate for historic structures, thereby safeguarding the park's tangible links to its past.

How does the duration of the contract (626 days) align with typical timelines for similar historic building rehabilitation projects?

A contract duration of 626 days (approximately 21 months) for a project valued at $20.9 million involving the rehabilitation of historic building exteriors appears to be a reasonable timeframe. Historic preservation projects often require more time than standard construction due to the need for meticulous work, specialized techniques, potential for unforeseen conditions, and the requirement to comply with strict preservation standards. The extended duration allows for careful planning, execution, and quality control, minimizing the risk of rushed work that could compromise the historic fabric of the buildings. It also accommodates potential weather delays, especially in a location like Yellowstone, and allows for phased work if necessary to keep parts of the park accessible.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2024R0177

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3075 S SPECIALTY CIR, SALT LAKE CITY, UT, 84115

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

Financial Breakdown

Contract Ceiling: $20,973,647

Exercised Options: $20,973,647

Current Obligation: $20,973,647

Actual Outlays: $5,415,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline