Interior Department awards $38.2M contract for Painted Desert Community Complex rehabilitation to Stronghold Engineering Inc

Contract Overview

Contract Amount: $38,201,696 ($38.2M)

Contractor: Stronghold Engineering Inc

Awarding Agency: Department of the Interior

Start Date: 2025-05-28

End Date: 2027-06-01

Contract Duration: 734 days

Daily Burn Rate: $52.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PEFO 267538 REHABILITATE PAINTED DESERT COMMUNITY COMPLEX

Place of Performance

Location: PETRIFIED FOREST NATL PK, APACHE County, ARIZONA, 86028

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $38.2 million to STRONGHOLD ENGINEERING INC for work described as: PEFO 267538 REHABILITATE PAINTED DESERT COMMUNITY COMPLEX Key points: 1. Contract value of $38.2 million for rehabilitation services. 2. Awarded through full and open competition, indicating a broad market search. 3. Firm Fixed Price contract type suggests defined scope and cost certainty. 4. Performance period spans over two years, from May 2025 to June 2027. 5. Project located in Arizona, impacting local workforce and economy. 6. Contractor, Stronghold Engineering Inc., has a track record with federal agencies. 7. NAICS code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $38.2 million for the rehabilitation of the Painted Desert Community Complex appears reasonable given the scope of work, which involves significant construction and renovation. Benchmarking against similar large-scale institutional building projects suggests that this figure is within expected ranges. The firm fixed-price nature of the contract provides cost control for the government, assuming the scope is well-defined and change orders are managed effectively. Further analysis would require detailed cost breakdowns and comparison to specific project complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this project. While more than two bidders would typically indicate stronger price discovery, full and open competition generally leads to more competitive pricing than limited or sole-source procurements. The agency's decision to use this method implies confidence in obtaining fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential contractors, thereby driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are visitors to the Petrified Forest National Park, who will experience improved facilities. The project will deliver essential rehabilitation and modernization of community complex structures. Geographic impact is concentrated in Arizona, specifically within the Petrified Forest National Park. Workforce implications include job creation for construction trades and related support services in the local Arizona area. The National Park Service will benefit from enhanced infrastructure to support its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large rehabilitation projects if initial assessments are incomplete.
Dependence on a single contractor for a multi-year, high-value project introduces performance risk.
Firm Fixed Price contracts can lead to disputes if the scope is not precisely defined from the outset.

Positive Signals

Full and open competition suggests a robust bidding process that should yield competitive pricing.
Firm Fixed Price contract type offers cost certainty to the government.
The project addresses critical infrastructure needs for a national park, aligning with public interest.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as government facilities, educational institutions, and public complexes. Federal spending in this area is crucial for maintaining and upgrading public infrastructure. Comparable spending benchmarks would involve analyzing other large-scale federal building renovation projects, particularly those managed by agencies like the National Park Service or General Services Administration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (ss: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Stronghold Engineering Inc., may choose to subcontract portions of the work, potentially creating opportunities for small businesses in the construction supply chain. The absence of a small business set-aside means the competition was open to all responsible sources, regardless of size.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance or closeout.

Related Government Programs

National Park Service Infrastructure Projects
Federal Building and Facility Construction
Department of the Interior Capital Investments
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential for unforeseen conditions in rehabilitation projects.
Risk of contractor performance issues on large-scale projects.
Importance of robust oversight for firm fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $38.2 million to STRONGHOLD ENGINEERING INC. PEFO 267538 REHABILITATE PAINTED DESERT COMMUNITY COMPLEX

Who is the contractor on this award?

The obligated recipient is STRONGHOLD ENGINEERING 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 $38.2 million.

What is the period of performance?

Start: 2025-05-28. End: 2027-06-01.

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

Stronghold Engineering Inc. has a history of federal contracting. While specific details on past performance within the Department of the Interior or National Park Service require deeper database searches, their selection for this significant project suggests they meet the agency's pre-qualification criteria. Federal contractors are typically assessed on past performance, technical capability, and business responsibility. A review of their contract history would reveal the types of projects undertaken, their value, and any performance ratings or disputes. This information is crucial for understanding their capacity to successfully execute the Painted Desert Community Complex rehabilitation.

How does the $38.2 million contract value compare to similar rehabilitation projects for national park facilities?

Comparing the $38.2 million contract value requires access to a database of similar national park facility rehabilitation projects, including their scope, size, and duration. However, for a complex rehabilitation of a community complex within a national park, this figure is not inherently excessive. Factors influencing cost include the age and condition of the existing structures, the complexity of the required renovations (e.g., structural, electrical, plumbing, HVAC upgrades), historical preservation requirements, and the remoteness of the location. A preliminary assessment suggests the value is commensurate with large-scale public infrastructure projects, but a definitive benchmark would necessitate a detailed comparative analysis of project specifics.

What are the primary risks associated with a firm fixed-price contract for a large-scale rehabilitation project?

The primary risk with a firm fixed-price (FFP) contract for a large-scale rehabilitation project is the potential for scope creep and associated change orders. If the initial assessment of the existing conditions is incomplete or unforeseen issues arise during demolition or construction (e.g., hazardous materials, structural deficiencies not apparent), the contractor may request significant adjustments to the price and schedule. While FFP aims to provide cost certainty, poorly defined scopes can lead to disputes and cost overruns if not managed meticulously by the government. Conversely, if the contractor underestimates the work, they bear the loss, which could impact quality or lead to contractor default.

How effective is full and open competition in ensuring value for money for taxpayer-funded construction projects?

Full and open competition is generally considered the most effective method for ensuring value for money in taxpayer-funded construction projects. By allowing all responsible sources to compete, it maximizes the number of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition puts downward pressure on bids and encourages contractors to offer their best terms. While it requires more administrative effort to manage the solicitation process, the potential savings and improved outcomes for the government typically outweigh these costs, especially for significant projects like the Painted Desert Community Complex rehabilitation.

What are the historical spending patterns for building construction and rehabilitation within the National Park Service?

Historical spending patterns for building construction and rehabilitation within the National Park Service (NPS) fluctuate based on congressional appropriations, infrastructure needs assessments, and specific preservation initiatives. The NPS manages a vast inventory of historic and modern structures requiring ongoing maintenance, repair, and modernization. Spending typically increases during periods of focused infrastructure investment or when addressing deferred maintenance backlogs. Analyzing past NPS budgets and contract awards for similar projects would reveal trends in project types, average contract values, and the proportion of spending allocated to new construction versus rehabilitation. This contract represents a significant investment within that broader spending context.

What are the potential implications of this contract on the local Arizona economy and workforce?

This $38.2 million contract is expected to have a positive impact on the local Arizona economy and workforce. The construction sector is labor-intensive, and a project of this magnitude will likely create numerous jobs for skilled tradespeople, laborers, project managers, and support staff. Local suppliers of construction materials, equipment, and services may also benefit from subcontracting opportunities. The influx of wages and business revenue associated with the project can stimulate economic activity in the surrounding communities. The duration of the contract, spanning over two years, suggests a sustained period of employment and economic contribution.

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: 140P2024R0113

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 150 W WALNUT AVE, PERRIS, CA, 92571

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $38,201,696

Exercised Options: $38,201,696

Current Obligation: $38,201,696

Actual Outlays: $7,463,543

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline