Interior's $14.9M Kettle Falls Power Line Contract Awarded to Michels Construction
Contract Overview
Contract Amount: $14,910,195 ($14.9M)
Contractor: Michels Construction, Inc.
Awarding Agency: Department of the Interior
Start Date: 2025-09-26
End Date: 2027-10-31
Contract Duration: 765 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: VOYA 306890 - KETTLE FALLS POR DESIGN BU
Place of Performance
Location: INTERNATIONAL FALLS, KOOCHICHING County, MINNESOTA, 56649
Plain-Language Summary
Department of the Interior obligated $14.9 million to MICHELS CONSTRUCTION, INC. for work described as: VOYA 306890 - KETTLE FALLS POR DESIGN BU Key points: 1. Contract awarded to Michels Construction, Inc. for power and communication line construction. 2. The contract has a firm fixed price and a duration of 765 days. 3. Competition was full and open, suggesting a competitive bidding process. 4. The project is located in Minnesota and is managed by the National Park Service.
Value Assessment
Rating: good
The contract value of $14.9 million for power and communication line construction appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it promotes a fair marketplace and encourages competitive pricing.
Public Impact
Enhances critical infrastructure at Kettle Falls, supporting park operations and visitor services. Supports local economy through construction jobs and related services in Minnesota. Ensures reliable power and communication for the National Park Service facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on a single contractor for project completion.
Positive Signals
- Clear contract type (firm fixed price) limits cost uncertainty.
- Full and open competition suggests a competitive award process.
- Defined project scope and duration.
Sector Analysis
This contract falls within the construction sector, specifically related to utility infrastructure. Spending benchmarks for similar power and communication line construction projects can vary significantly based on geographic location, complexity, and material costs.
Small Business Impact
The data indicates that the contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The National Park Service is responsible for overseeing this contract. Standard oversight procedures for construction projects, including site inspections and progress monitoring, should be in place to ensure compliance and quality.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of the Interior Contracting
- National Park Service Programs
Risk Flags
- Potential for scope creep if not tightly managed.
- Contractor performance risk.
- Environmental impact during construction.
- Dependency on specific materials and supply chains.
Tags
power-and-communication-line-and-related, department-of-the-interior, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $14.9 million to MICHELS CONSTRUCTION, INC.. VOYA 306890 - KETTLE FALLS POR DESIGN BU
Who is the contractor on this award?
The obligated recipient is MICHELS 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 $14.9 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-10-31.
What is the estimated cost per mile or per structure for this power and communication line construction?
Without detailed project specifications, calculating a precise cost per mile or structure is challenging. However, given the total contract value of $14.9 million and the nature of power and communication line construction, the cost will depend heavily on terrain, length of lines, number of poles/structures, and underground vs. overhead installation. Further breakdown of the contract's scope is needed for a meaningful per-unit cost analysis.
What are the primary risks associated with the firm fixed price contract type for this project?
While a firm fixed price contract protects the government from cost overruns, the primary risk lies with the contractor. If Michels Construction encounters unforeseen issues (e.g., difficult soil conditions, material price spikes, labor shortages), they bear the financial burden. This could potentially lead to quality compromises or contractor disputes if not managed carefully through contract clauses and oversight.
How effectively does this contract contribute to the National Park Service's mission at Kettle Falls?
This contract directly supports the NPS mission by ensuring the reliable operation of essential utilities at Kettle Falls. Upgraded power and communication lines are crucial for visitor safety, resource management, administrative functions, and potentially emergency response. The project's success will enhance the overall visitor experience and operational efficiency of the park facility.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 817 MAIN ST, BROWNSVILLE, WI, 53006
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,910,195
Exercised Options: $14,910,195
Current Obligation: $14,910,195
Actual Outlays: $141,488
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-26
Current End Date: 2027-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2025-11-19
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