Interior Department awards $404K utilities contract to Project Solutions, Inc. for Montana facility

Contract Overview

Contract Amount: $404,309 ($404.3K)

Contractor: Project Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2026-04-02

End Date: 2027-10-31

Contract Duration: 577 days

Daily Burn Rate: $701/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GLAC 318705 - UTILITIES PACKAGE #1 CMR

Place of Performance

Location: WEST GLACIER, FLATHEAD County, MONTANA, 59936

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $404,308.95 to PROJECT SOLUTIONS, INC. for work described as: GLAC 318705 - UTILITIES PACKAGE #1 CMR Key points: 1. Contract value appears reasonable for a multi-year utilities package. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over 1.5 years provides long-term utility service stability. 5. Awarded to a single contractor, indicating successful bid evaluation. 6. Performance location in Montana may influence local utility market dynamics.

Value Assessment

Rating: good

The contract value of approximately $404,000 for a 577-day period (roughly 1.5 years) for utilities services seems within a reasonable range for a federal facility. Benchmarking against similar utility contracts for commercial or institutional buildings of comparable size and scope would be necessary for a definitive value-for-money assessment. However, the firm fixed-price structure suggests that the contractor has assumed the risk of cost fluctuations, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Seven bids were received, suggesting a healthy level of interest and competition for this requirement. The presence of multiple bidders generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final award price compared to a sole-source or limited competition scenario.

Public Impact

The National Park Service benefits from reliable utility services for its facility in Montana. Ensures continuous operation of essential utilities, supporting the agency's mission. Geographic impact is localized to the specific facility in Montana. Potential for local workforce engagement through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for utility price volatility not fully captured in fixed-price contract.
Dependence on a single contractor for critical utility services.
Ensuring contractor compliance with environmental and service standards.

Positive Signals

Firm fixed-price contract limits government exposure to cost increases.
Full and open competition suggests a competitive award process.
Contract duration provides stability for utility service provision.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on utility services. The market for federal utility services is substantial, with numerous providers ranging from large corporations to specialized local firms. This contract represents a small portion of overall federal spending on facility maintenance and operations, but highlights the ongoing need for reliable utility infrastructure to support government functions across various agencies and locations.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature of utility services, it's possible that larger firms with established infrastructure and expertise were better positioned to bid. Further analysis would be needed to determine if small businesses had a meaningful opportunity to participate either as prime contractors or subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature of the contract provides a degree of accountability by capping government expenditure. Performance monitoring by the National Park Service will be crucial to ensure service delivery meets contractual requirements. The Inspector General's office may investigate any allegations of fraud, waste, or abuse related to this award.

Related Government Programs

Federal Buildings and Facilities Maintenance
Utility Services Contracts
National Park Service Operations

Risk Flags

Potential for price volatility in utility markets
Contractor performance and service quality assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $404,308.95 to PROJECT SOLUTIONS, INC.. GLAC 318705 - UTILITIES PACKAGE #1 CMR

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 $404,308.95.

What is the period of performance?

Start: 2026-04-02. End: 2027-10-31.

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

A review of federal contract databases would be necessary to ascertain Project Solutions, Inc.'s track record with similar federal utility contracts. Information such as past performance ratings, any history of contract disputes or terminations, and the types and values of previous awards would provide insight into their reliability and capability. Without this specific data, it is difficult to assess their suitability beyond the fact that they were the successful bidder in this instance. Federal procurement systems often include past performance evaluations as a key factor in award decisions, suggesting that the National Park Service likely considered this information.

How does the awarded price compare to market rates for similar utility services in Montana?

To compare the awarded price to market rates, one would need to identify comparable utility service contracts for commercial or institutional buildings of similar size and scope within Montana or similar geographic regions. This would involve analyzing publicly available contract data, industry reports on utility pricing, and potentially consulting with subject matter experts. Factors such as the specific types of utilities covered (electricity, water, gas, waste management), service level agreements, and contract duration would need to be standardized for a meaningful comparison. The firm fixed-price nature of this contract suggests the price was determined through competitive bidding, which should theoretically align with market conditions.

What are the potential risks associated with a firm fixed-price contract for utility services?

While firm fixed-price contracts generally benefit the government by capping costs, there are potential risks. If utility prices experience significant and unforeseen spikes beyond what was reasonably anticipated during the bidding process, the contractor might face financial strain, potentially impacting service quality or leading to requests for contract modifications. Conversely, if the contractor underestimated costs, they might cut corners on service to maintain profitability. The government's risk is primarily related to ensuring the contractor's financial stability and diligent performance throughout the contract term to maintain service continuity.

What is the historical spending pattern for utility services at this specific National Park Service facility?

Analyzing historical spending data for utility services at this particular National Park Service facility would require access to the agency's financial records and contract histories. This would involve identifying previous contracts for utility services at the same location, noting their values, durations, and the contractors involved. Comparing current spending to past spending can reveal trends in utility costs, identify any significant increases or decreases, and provide context for the current award. It can also help assess whether the current contract represents a cost-effective solution compared to historical expenditures.

How does the number of bidders (7) typically correlate with price competitiveness in federal contracting?

A higher number of bidders generally correlates with increased price competitiveness in federal contracting. With seven bidders, there was a substantial pool of potential suppliers vying for the contract. This level of competition typically drives down prices as contractors strive to offer the most attractive bid to win the award. It also increases the likelihood that the government will receive a price that reflects fair market value. Conversely, a low number of bidders, especially one or two, can indicate potential market limitations or a lack of interest, which might lead to higher prices.

What are the implications of the contract duration (577 days) on service continuity and potential price adjustments?

A contract duration of 577 days (approximately 1.5 years) provides a reasonable period of service continuity for essential utilities, reducing the frequency of re-procurement efforts and associated administrative costs. For a firm fixed-price contract, this duration allows the contractor to establish operational efficiencies. However, it also means that the price is locked in for this period. If there are significant market fluctuations in utility costs during this time, the contractor bears the risk, which they would have factored into their initial bid. For the government, it ensures stable pricing but limits the ability to benefit from potential market downturns within the contract period.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ 1796995

Offers Received: 7

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: $404,309

Exercised Options: $404,309

Current Obligation: $404,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F025DA

IDV Type: FSS

Timeline