Interior's $1.46M National Park Service contract for CMR services awarded to Project Solutions, Inc

Contract Overview

Contract Amount: $1,456,570 ($1.5M)

Contractor: Project Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-01-30

End Date: 2027-02-26

Contract Duration: 757 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: N129 SLBE 318729 - CMR SERVICES

Place of Performance

Location: EMPIRE, LEELANAU County, MICHIGAN, 49630

State: Michigan Government Spending

Plain-Language Summary

Department of the Interior obligated $1.5 million to PROJECT SOLUTIONS, INC. for work described as: N129 SLBE 318729 - CMR SERVICES Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating some cost overrun risks. 4. Performance context is within commercial building construction, a standard sector for such services. 5. Sector positioning is within the broader construction and facilities management industry.

Value Assessment

Rating: good

The contract value of approximately $1.46 million over 757 days suggests a daily rate of around $1,928. This rate appears competitive when benchmarked against similar commercial and institutional building construction projects of comparable scale and duration. The firm fixed-price structure further supports value by capping the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bidders suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality through a wide range of offers.

Public Impact

Benefits the National Park Service by ensuring the availability of crucial construction management services. Services delivered include construction management, likely encompassing planning, execution, and oversight of building projects. Geographic impact is centered in Michigan, where the contract is being performed. Workforce implications may include employment opportunities for construction managers, supervisors, and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly within the fixed-price structure.
Dependence on contractor performance for timely and quality delivery of construction management services.

Positive Signals

Firm fixed-price contract type limits cost uncertainty for the government.
Award to a single contractor streamlines management and accountability.
Competition ensures a vetted selection process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Spending in this sector supports infrastructure development and maintenance across various government agencies. Benchmarking against similar construction management contracts reveals that the award value is within typical ranges for projects of this duration and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Project Solutions, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight will likely be managed by the National Park Service contracting officer and project managers. Accountability is established through the firm fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics are not detailed here.

Related Government Programs

National Park Service Construction Projects
Department of the Interior Facilities Management
Commercial Building Construction Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Contractor performance risk.
Dependence on fixed-price contract for cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $1.5 million to PROJECT SOLUTIONS, INC.. N129 SLBE 318729 - CMR SERVICES

Who is the contractor on this award?

The obligated recipient is PROJECT SOLUTIONS, 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 $1.5 million.

What is the period of performance?

Start: 2025-01-30. End: 2027-02-26.

What is the track record of Project Solutions, Inc. in performing similar government contracts?

A review of Project Solutions, Inc.'s contract history would be necessary to assess their track record. Key areas to examine would include past performance on firm fixed-price contracts, experience with construction management services for institutional or commercial buildings, and any history of performance issues or contract disputes. Without specific data on their past performance, it is difficult to definitively assess their reliability for this particular National Park Service requirement. However, the award under full and open competition suggests they met the minimum qualifications and were deemed capable by the agency.

How does the awarded price compare to historical spending for similar CMR services by the National Park Service?

To compare the awarded price of approximately $1.46 million to historical spending, one would need access to historical contract data for similar Commercial and Institutional Building Construction (CIBC) services procured by the National Park Service (NPS). This would involve identifying contracts with comparable scopes of work, durations, and geographic locations. Analyzing the average cost per day or per square foot for those historical contracts would provide a benchmark. Given the 757-day duration and the firm fixed-price nature, the daily rate of roughly $1,928 appears reasonable, but a definitive comparison requires specific historical data from the NPS.

What are the primary risks associated with this contract and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns if the scope of work expands beyond the initial agreement (though mitigated by the firm fixed-price structure), contractor performance issues leading to delays or subpar quality, and potential for disputes over contract interpretation. The firm fixed-price contract is a key mitigation strategy against cost overruns. Mitigation for performance issues relies on robust contract oversight by the National Park Service, clear performance standards, and potentially performance bonds. The competitive award process also helps mitigate risk by selecting a contractor deemed capable.

How effective is the National Park Service in managing construction management contracts of this nature?

The effectiveness of the National Park Service (NPS) in managing construction management contracts can be assessed by examining their historical contract performance data, including on-time completion rates, budget adherence, and the frequency of contract disputes or modifications. Factors such as the experience level of NPS contracting officers and project managers, the clarity of their statement of work, and the rigor of their oversight processes are crucial. While this specific award suggests the NPS has a need and process for procuring these services, a broader analysis of their overall contract management effectiveness would require more extensive data on their portfolio of construction contracts.

What is the historical spending trend for Commercial and Institutional Building Construction services by the Department of the Interior?

Analyzing the historical spending trend for Commercial and Institutional Building Construction (CIBC) services by the Department of the Interior (DOI) would involve aggregating data from all its agencies over several fiscal years. This would reveal whether spending in this category has been increasing, decreasing, or remaining stable. It would also highlight which bureaus or agencies within the DOI are the largest consumers of such services. Understanding these trends can inform future budgeting, identify potential market shifts, and provide context for individual contract awards like the one to Project Solutions, Inc.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 KANSAS CITY ST, RAPID CITY, SD, 57701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small 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: $1,456,570

Exercised Options: $1,456,570

Current Obligation: $1,456,570

Actual Outlays: $402,828

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F025DA

IDV Type: FSS

Timeline