Interior Department awards $7.35M contract for water filtration system replacement in Alaska's Katmai National Park

Contract Overview

Contract Amount: $7,354,599 ($7.4M)

Contractor: Ahtna Global LLC

Awarding Agency: Department of the Interior

Start Date: 2024-12-16

End Date: 2026-07-22

Contract Duration: 583 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KATM 312344 REPLACE WATER FILTRATION SYSTEM AT KING SALMON, KATMAI NATIONAL PARK & PRESERVE, ALASKA

Place of Performance

Location: KING SALMON, BRISTOL BAY County, ALASKA, 99613

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $7.4 million to AHTNA GLOBAL LLC for work described as: KATM 312344 REPLACE WATER FILTRATION SYSTEM AT KING SALMON, KATMAI NATIONAL PARK & PRESERVE, ALASKA Key points: 1. Contract awarded to AHTNA GLOBAL LLC for a critical infrastructure upgrade. 2. The project addresses essential water filtration needs within a national park. 3. Fixed-price contract type suggests defined cost expectations. 4. Project duration of 583 days indicates a significant but manageable timeline. 5. Geographic location in Alaska presents unique logistical considerations. 6. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $7.35 million for a water filtration system replacement appears reasonable given the scope and location. While direct comparisons are difficult without specific project details, infrastructure projects in remote or challenging environments like Alaska often incur higher costs due to logistics, specialized labor, and material transport. 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 after exclusion of sources,' indicating that the opportunity was broadly advertised, but specific sources were excluded for reasons not detailed here. The fact that it was competed broadly suggests a healthy level of competition was sought. However, the exclusion of sources warrants further investigation to understand its impact on the final price and bidder pool.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The exclusion of sources, if not justified by specific technical requirements or past performance, could potentially limit price discovery and increase costs.

Public Impact

Benefits park visitors and staff by ensuring access to clean and safe drinking water. Supports the operational integrity of Katmai National Park & Preserve. Impacts the local workforce in Alaska through potential employment opportunities during construction. Ensures compliance with environmental and health regulations for water quality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the remote Alaskan location and associated logistical challenges.
Risk of project delays due to weather or unforeseen site conditions common in Alaska.
Dependence on a single contractor for a critical infrastructure component.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting a competitive bidding process.
Contractor AHTNA GLOBAL LLC likely has experience with similar projects or in the region.

Sector Analysis

This contract falls within the Construction and Engineering sector, specifically focusing on building infrastructure. The market for such services in remote or environmentally sensitive areas like national parks is specialized. Comparable spending benchmarks would typically involve other large-scale infrastructure projects within federal lands or similar challenging geographic locations, where costs are often elevated due to logistical complexities and the need for specialized expertise.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the National Park Service, a division of the Department of the Interior. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified system within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Park Service Infrastructure Projects
Federal Building and Facility Construction
Water and Sewer System Construction
Alaska Federal Contracts

Risk Flags

Potential for cost overruns due to remote location
Risk of project delays due to weather
Competition level requires further scrutiny due to source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $7.4 million to AHTNA GLOBAL LLC. KATM 312344 REPLACE WATER FILTRATION SYSTEM AT KING SALMON, KATMAI NATIONAL PARK & PRESERVE, ALASKA

Who is the contractor on this award?

The obligated recipient is AHTNA GLOBAL 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 $7.4 million.

What is the period of performance?

Start: 2024-12-16. End: 2026-07-22.

What is the track record of AHTNA GLOBAL LLC in performing similar federal construction projects, particularly in remote or environmentally sensitive locations?

A review of federal contract databases indicates that AHTNA GLOBAL LLC has a history of performing various construction and support services for federal agencies. While specific details on past water filtration system projects in remote locations are not immediately available from this summary, their experience with federal contracts suggests familiarity with government procurement processes and compliance requirements. Further analysis would involve examining past performance evaluations and project completion records for similar infrastructure projects to assess their capability and reliability in executing this specific contract successfully, especially considering the unique challenges presented by the Katmai National Park environment.

How does the awarded price of $7.35 million compare to similar water filtration system replacement projects in other national parks or remote federal facilities?

Benchmarking this contract's value is challenging without granular data on comparable projects. However, infrastructure projects in remote areas like Alaska typically incur higher costs due to significant logistical expenses, including transportation of materials and personnel, potential need for specialized equipment, and higher labor rates. Factors such as the scale of the system, complexity of the installation, and specific environmental mitigation requirements would influence the final cost. While $7.35 million is a substantial sum, it may be within a reasonable range for a project of this nature in such a demanding location, assuming thorough cost analysis was performed during the procurement process.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential project delays due to Alaska's severe weather conditions, logistical challenges in material delivery and site access, and unforeseen environmental or geological issues. Mitigation strategies likely involve detailed project planning with built-in schedule contingencies, robust supply chain management, and close coordination with park authorities for site access and environmental compliance. The firm-fixed-price nature of the contract also incentivizes the contractor to manage costs effectively, though it shifts cost overrun risk to them. The 'exclusion of sources' in the competition also presents a potential risk if it unduly limited the bidder pool.

What is the expected impact of this contract on the local economy and workforce in the vicinity of Katmai National Park?

This contract is expected to have a positive impact on the local economy and workforce in Alaska, particularly in the region surrounding Katmai National Park. The construction activities will likely create temporary employment opportunities for skilled and unskilled labor in areas such as project management, heavy equipment operation, plumbing, and general construction. Additionally, the procurement of local services and materials, where feasible, could further stimulate economic activity. The duration of the project (583 days) suggests a sustained period of potential employment and economic benefit for the local community.

What historical spending patterns exist for water infrastructure maintenance and replacement within the National Park Service, and how does this contract fit within them?

Historical spending on water infrastructure within the National Park Service (NPS) often reflects the aging infrastructure across many park units and the challenges of maintaining systems in remote or protected areas. NPS consistently requires significant investment in deferred maintenance and upgrades. This $7.35 million contract for a critical system replacement in Katmai National Park aligns with the NPS's ongoing efforts to address these infrastructure needs. While specific historical spending figures for water filtration systems alone are not provided, this project represents a significant, targeted investment to ensure operational integrity and public health within a key national park.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140P2024R0087

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 W 38TH AVE STE 200 J, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,354,599

Exercised Options: $7,354,599

Current Obligation: $7,354,599

Actual Outlays: $6,607,791

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140F0822D0008

IDV Type: IDC

Timeline