Interior Department awards $9.2M contract for housing replacement after fire, highlighting construction needs in Alaska

Contract Overview

Contract Amount: $9,206,519 ($9.2M)

Contractor: Ames 1, LLC

Awarding Agency: Department of the Interior

Start Date: 2025-04-25

End Date: 2026-06-09

Contract Duration: 410 days

Daily Burn Rate: $22.5K/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: LACL 310751 - REPLACE TWO HOUSING UNITS LOST TO STRUCTURAL FIRE

Place of Performance

Location: PORT ALSWORTH, LAKE AND PENINSULA County, ALASKA, 99653

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $9.2 million to AMES 1, LLC for work described as: LACL 310751 - REPLACE TWO HOUSING UNITS LOST TO STRUCTURAL FIRE Key points: 1. Contract addresses critical infrastructure repair following a structural fire. 2. The fixed-price contract aims to control costs for rebuilding housing units. 3. Competition was full and open, suggesting a competitive bidding process. 4. The project is located in a remote region of Alaska, potentially impacting logistics and costs. 5. This award falls under commercial and institutional building construction services. 6. The contract duration of 410 days indicates a substantial rebuilding effort.

Value Assessment

Rating: good

The contract value of $9.2 million for replacing two housing units appears reasonable given the circumstances. The firm fixed-price structure helps mitigate cost overruns. Benchmarking against similar construction projects in remote Alaskan locations would provide a more precise value assessment, but the nature of the work (fire damage repair) and location suggest a potentially higher cost baseline than standard new construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations might have had limitations, the final award was made after a broad competitive process. The number of bidders is not specified, but the 'full and open' nature suggests multiple interested parties participated, which generally promotes competitive pricing.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive bids and thus a better price for the services rendered.

Public Impact

Federal employees and their families stationed at the National Park Service site will benefit from restored housing. The contract delivers essential construction services to rebuild critical infrastructure. The geographic impact is localized to a specific site within Alaska. The project will likely involve local labor and subcontractors, providing economic stimulus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to remote Alaskan logistics and material transportation.
Weather conditions in Alaska can impact construction timelines and increase costs.
Availability of skilled labor in remote areas may be a challenge.

Positive Signals

Firm fixed-price contract helps manage budget certainty.
Addressing a critical need for housing ensures operational continuity for the National Park Service.
Full and open competition suggests a robust bidding process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. The federal government is a significant consumer of construction services, particularly for infrastructure maintenance and upgrades in national parks and other federal facilities. Spending in this sector is influenced by infrastructure needs, agency budgets, and the condition of existing federal properties. Comparable spending benchmarks would typically involve analyzing other construction contracts for similar facilities in remote or challenging environments.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, it's possible that small businesses participated in the bidding process. However, without explicit set-aside provisions, the direct impact on the small business ecosystem is not guaranteed and would depend on their ability to compete with larger firms.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service, a division of the Department of the Interior. Accountability measures would include adherence to the contract's scope of work, delivery schedule, and quality standards. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided in the data.

Related Government Programs

Federal Building and Facilities Construction
Disaster Recovery and Resilience Projects
National Park Service Infrastructure Maintenance
Alaska Federal Construction Projects

Risk Flags

Remote Location Logistics
Potential Weather Delays
Skilled Labor Availability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $9.2 million to AMES 1, LLC. LACL 310751 - REPLACE TWO HOUSING UNITS LOST TO STRUCTURAL FIRE

Who is the contractor on this award?

The obligated recipient is AMES 1, 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 $9.2 million.

What is the period of performance?

Start: 2025-04-25. End: 2026-06-09.

What is the track record of AMES 1, LLC in performing similar federal construction contracts, particularly in remote locations?

A review of federal contract databases would be necessary to fully assess AMES 1, LLC's track record. Specifically, one would look for past performance on contracts of similar size, scope, and complexity, with a particular emphasis on projects undertaken in challenging logistical environments like remote Alaska. Examining past performance evaluations and any reported disputes or contract terminations would provide crucial insights into their reliability and capability to execute this housing replacement project successfully. Without this specific data, it's difficult to definitively gauge their experience in this niche.

How does the awarded price of $9.2 million compare to the estimated cost for similar housing replacement projects in remote Alaskan regions?

Benchmarking this $9.2 million contract against similar projects in remote Alaska is challenging without access to detailed cost data for comparable endeavors. Factors such as the specific site conditions, remoteness, material transportation costs, labor rates, and the extent of structural damage from the fire significantly influence project costs. Generally, construction in remote Alaska incurs a premium due to logistical complexities and higher operating expenses. A thorough comparison would require analyzing data from other federal or state construction projects involving housing replacement or new builds in similarly isolated Alaskan communities to determine if this price falls within an expected range.

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

The primary risks associated with this contract likely include logistical challenges inherent in remote Alaskan construction, such as material delivery delays and increased transportation costs. Adverse weather conditions can also impact the construction schedule and potentially increase expenses. Furthermore, the availability of a skilled local workforce might be a concern. Mitigation strategies typically involve detailed logistical planning, contingency budgeting for weather delays, and proactive recruitment or training of local labor. The firm fixed-price nature of the contract also places the risk of cost overruns primarily on the contractor, provided the scope remains unchanged.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for projects in remote areas?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the need for broad competition with specific project requirements. In remote areas, where the pool of qualified contractors might be smaller, this approach allows the agency to initially exclude sources that clearly do not meet stringent requirements (e.g., specific certifications, past performance in similar environments) before opening the competition broadly. This can lead to a more focused and efficient competition among capable firms. While it aims for competitive pricing, the inherent challenges of remote work can still limit the number of truly competitive bids, potentially impacting price discovery compared to projects in more accessible locations.

What is the historical spending pattern for housing construction and repair by the Department of the Interior's National Park Service in Alaska?

Analyzing historical spending patterns for housing construction and repair by the Department of the Interior's National Park Service in Alaska would reveal trends in infrastructure investment in the region. This would involve examining annual budgets allocated for facilities maintenance, repair, and new construction within NPS Alaska units over several fiscal years. Such an analysis could highlight periods of increased investment, common types of projects undertaken (e.g., barracks, ranger housing, visitor facilities), and the average cost of similar projects. Understanding these patterns provides context for the current $9.2 million award, indicating whether it represents a typical expenditure or a significant deviation.

What are the potential long-term implications of this housing replacement project for the operational capacity of the National Park Service in this specific Alaskan location?

The long-term implications of this housing replacement project are primarily positive for the operational capacity of the National Park Service. By replacing structurally compromised housing, the project ensures safe and adequate living conditions for essential personnel stationed at the park. This directly supports the NPS's ability to maintain a consistent presence, manage park resources effectively, and deliver visitor services. Reliable housing is crucial for staff retention and morale, particularly in remote areas, thereby contributing to the sustained operational effectiveness and mission accomplishment of the park unit.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140P2025R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ames 1 , LLC

Address: 3138 COMMERCIAL DR, ANCHORAGE, AK, 99501

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,206,519

Exercised Options: $9,206,519

Current Obligation: $9,206,519

Actual Outlays: $6,619,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1623D0029

IDV Type: IDC

Timeline