Interior Department awards $10.3M contract for Yellowstone sewage treatment, highlighting infrastructure needs

Contract Overview

Contract Amount: $10,297,368 ($10.3M)

Contractor: Bairco Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2025-09-12

End Date: 2026-10-13

Contract Duration: 396 days

Daily Burn Rate: $26.0K/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: YELL 311631, MAMMOTH COLLECTIONS, YELLOWSTONE NATIONAL PARK

Place of Performance

Location: GARDINER, PARK County, MONTANA, 59030

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $10.3 million to BAIRCO CONSTRUCTION INC for work described as: YELL 311631, MAMMOTH COLLECTIONS, YELLOWSTONE NATIONAL PARK Key points: 1. Contract value represents a significant investment in critical park infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for specialized construction. 3. Contract duration of 396 days indicates a substantial scope of work. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic location in Montana points to regional economic impact. 6. Focus on sewage treatment underscores environmental protection priorities within national parks.

Value Assessment

Rating: good

The contract value of $10.3 million for sewage treatment facilities in Yellowstone National Park appears reasonable given the specialized nature of the work and the remote location. Benchmarking against similar infrastructure projects within national parks or remote federal installations would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, but the final cost will depend on the contractor's efficiency and any unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, specific exclusions were made. This could be due to specialized requirements or prior performance considerations. With 3 bidders, the competition level appears moderate, potentially leading to a balanced price discovery. Further details on the reasons for excluding other sources would clarify the extent of competition.

Taxpayer Impact: A moderate level of competition can help ensure taxpayers receive a fair price, but the exclusion of certain sources warrants scrutiny to confirm that the best possible value was obtained.

Public Impact

Benefits park visitors and staff through improved sanitation and environmental protection. Ensures compliance with environmental regulations for wastewater management in a sensitive ecosystem. Supports the long-term operational sustainability of Yellowstone National Park. Potential for local and regional employment opportunities during the construction phase. Enhances the visitor experience by maintaining park infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in a remote park environment.
Risk of delays due to weather or logistical challenges specific to Yellowstone.
Ensuring adequate oversight to maintain quality standards for critical infrastructure.

Positive Signals

Firm fixed-price contract provides cost certainty.
Moderate competition among bidders suggests a reasonable price was likely negotiated.
Contract awarded to a known entity (BAIRCO CONSTRUCTION INC) may indicate prior positive performance.
Focus on essential environmental infrastructure aligns with agency mission.

Sector Analysis

This contract falls within the Construction and Engineering sector, specifically focusing on environmental infrastructure. The market for specialized sewage treatment facilities, particularly in remote or environmentally sensitive locations like national parks, is niche. Spending on park infrastructure is a key priority for the National Park Service, often driven by deferred maintenance backlogs and the need to comply with environmental standards. Comparable spending benchmarks would typically be found in federal construction awards for similar facilities or within large-scale public works projects.

Small Business Impact

The contract does not indicate a small business set-aside. Given the nature of the work and the apparent moderate competition, there may be limited direct subcontracting opportunities for small businesses unless BAIRCO Construction Inc. voluntarily engages them. The impact on the small business ecosystem is likely minimal unless specific subcontracting plans are mandated or pursued by the prime contractor.

Oversight & Accountability

Oversight will likely be managed by the National Park Service contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for non-performance or delays. Transparency is generally maintained through federal contract databases, though specific project-level oversight details are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Park Service Infrastructure Projects
Federal Wastewater Treatment Facility Construction
Environmental Protection Agency Grants and Contracts
Department of the Interior Capital Investments

Risk Flags

Potential for unforeseen site conditions
Logistical challenges in remote location
Weather-related construction delays
Environmental impact mitigation requirements
Need for specialized construction expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.3 million to BAIRCO CONSTRUCTION INC. YELL 311631, MAMMOTH COLLECTIONS, YELLOWSTONE NATIONAL PARK

Who is the contractor on this award?

The obligated recipient is BAIRCO 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 $10.3 million.

What is the period of performance?

Start: 2025-09-12. End: 2026-10-13.

What is BAIRCO CONSTRUCTION INC's track record with similar federal contracts, particularly for environmental infrastructure in sensitive locations?

BAIRCO CONSTRUCTION INC has a history of federal contracting, though specific details on past performance for sewage treatment facilities in national parks or similarly sensitive environments require deeper analysis of their contract history. Reviewing past performance evaluations, any contract disputes, and the scale of previous projects would be crucial. Understanding their experience with environmental compliance, remote work logistics, and stakeholder coordination within federal land management agencies would provide insight into their capability to successfully execute this Yellowstone contract. A lack of direct, comparable project experience might increase performance risk.

How does the awarded amount of $10.3 million compare to the estimated cost or bids for similar sewage treatment facility projects in other national parks or federal lands?

Benchmarking this $10.3 million contract against similar projects is essential for assessing value for money. Factors such as project scope, capacity, specific technological requirements, site accessibility, and local labor costs significantly influence pricing. Without specific data on comparable projects (e.g., recent awards for wastewater upgrades in Grand Canyon or Yosemite), it's difficult to definitively state if this represents a high or low cost. However, the firm fixed-price nature suggests the agency aimed for cost certainty, and the moderate competition (3 bidders) implies a negotiated price that was deemed fair at the time of award.

What are the primary risks associated with constructing sewage treatment facilities in a remote and environmentally sensitive area like Yellowstone National Park?

Constructing sewage treatment facilities in Yellowstone presents several key risks. Environmental risks include potential disruption to wildlife, soil, and water resources during construction, requiring stringent mitigation measures. Logistical challenges are significant due to the park's remote location, impacting material delivery, equipment access, and workforce mobilization, potentially leading to increased costs and delays. Weather-related risks are also high, with short construction seasons and extreme conditions potentially hindering progress. Furthermore, ensuring the long-term operational reliability and maintenance of the facility in such an isolated setting poses an ongoing challenge.

What is the expected impact of this contract on Yellowstone National Park's environmental compliance and operational capacity?

This contract is expected to significantly enhance Yellowstone National Park's environmental compliance and operational capacity by upgrading or replacing aging sewage treatment infrastructure. Modernized facilities are crucial for meeting stringent federal and state wastewater discharge standards, thereby protecting the park's sensitive ecosystems, including rivers and geysers, from pollution. Improved capacity can also accommodate current and future visitor numbers more effectively, reducing the risk of system failures or overflows. Ultimately, this investment supports the park's long-term sustainability and its mission to preserve natural resources while providing essential services.

How has federal spending on national park infrastructure, specifically sanitation and water systems, trended over the past five years?

Federal spending on national park infrastructure, particularly sanitation and water systems, has generally seen an increasing trend over the past five years, driven by growing awareness of deferred maintenance backlogs and the critical need for environmental protection. While specific figures fluctuate annually based on appropriations and project priorities, there has been a concerted effort, often supported by supplemental funding or dedicated infrastructure bills, to address aging facilities. This Yellowstone contract aligns with that broader trend of prioritizing essential utility upgrades within the National Park System to ensure public health, environmental safety, and operational resilience.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the procurement process and potential fairness?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that the solicitation was initially intended for all responsible sources, but specific sources were excluded from consideration. The reasons for exclusion must be justified and documented, often relating to national security, proprietary data, or specific capabilities. While it aims for broad competition, the exclusion means not all potential bidders participated. The fairness hinges on the validity and necessity of these exclusions. If the exclusions were well-founded and the remaining competition was robust (as suggested by 3 bidders), it can still yield fair market value. However, it warrants a review of the justification for exclusions.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities

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: SEALED BID

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1164 ROAD 7, LOVELL, WY, 82431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,297,368

Exercised Options: $10,297,368

Current Obligation: $10,297,368

Actual Outlays: $1,812,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline