EPA awards $5.7M for building construction, highlighting full and open competition for consolidation project

Contract Overview

Contract Amount: $5,722,737 ($5.7M)

Contractor: Firelake-Diversified JV2 LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2024-07-31

End Date: 2027-01-12

Contract Duration: 895 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO SECURE CONSTRUCTION SERVICES FOR ORD/R6 CONSOLIDATION PROJECTED TASK ORDER 4 BID PACKAGE 3.

Place of Performance

Location: ADA, PONTOTOC County, OKLAHOMA, 74820

State: Oklahoma Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $5.7 million to FIRELAKE-DIVERSIFIED JV2 LLC for work described as: TO SECURE CONSTRUCTION SERVICES FOR ORD/R6 CONSOLIDATION PROJECTED TASK ORDER 4 BID PACKAGE 3. Key points: 1. Contract value represents a significant investment in consolidating EPA facilities. 2. The use of full and open competition suggests a robust market for these services. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of nearly three years indicates a substantial scope of work. 5. The award to a joint venture may reflect specialized capabilities required for the project. 6. Geographic location in Oklahoma points to regional infrastructure development.

Value Assessment

Rating: good

The contract value of $5.7 million for construction services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale commercial and institutional building construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope was well-defined prior to bidding. Without specific cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging, but the competitive nature of the award suggests a market-driven price.

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 multiple bidders were likely considered, but specific sources were initially excluded before a broader competition was opened. This approach can sometimes be used to ensure specific technical requirements are met while still allowing for broad market participation. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive environment that should lead to price discovery and potentially better pricing for the government.

Taxpayer Impact: A competitive bidding process, even with initial source exclusions, is generally favorable for taxpayers as it encourages multiple firms to offer their best pricing and services, potentially driving down costs compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the EPA employees and operations that will be consolidated into a new or improved facility. The project delivers essential construction services for a significant federal infrastructure project. The geographic impact is focused on Oklahoma, potentially stimulating local economic activity and employment. Workforce implications include job creation for construction trades and related support services in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely managed throughout the project's nearly three-year duration.
Risk of delays impacting the EPA's consolidation timeline and operational efficiency.
Dependence on the performance and financial stability of the joint venture contractor.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
The project addresses a clear need for facility consolidation, likely improving operational efficiency for the EPA.

Sector Analysis

The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to facility management. This contract falls under commercial and institutional building construction, a segment that requires specialized expertise. Federal spending in this area is often driven by the need to modernize aging facilities, consolidate operations, or meet new environmental and security standards. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar government facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, FIRELAKE-DIVERSIFIED JV2 LLC, may still engage small businesses as subcontractors to fulfill project requirements. The impact on the small business ecosystem would depend on the subcontracting opportunities offered by the joint venture and the specific capabilities of local small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Environmental Protection Agency's contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified construction services within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

EPA Facility Modernization Projects
Federal Building Construction Contracts
ORD/R6 Consolidation Initiatives
Commercial and Institutional Building Construction Services

Risk Flags

Potential for scope creep given the long project duration.
Contractor performance risk associated with joint venture structure.
Market volatility impacting material and labor costs over three years.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $5.7 million to FIRELAKE-DIVERSIFIED JV2 LLC. TO SECURE CONSTRUCTION SERVICES FOR ORD/R6 CONSOLIDATION PROJECTED TASK ORDER 4 BID PACKAGE 3.

Who is the contractor on this award?

The obligated recipient is FIRELAKE-DIVERSIFIED JV2 LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2024-07-31. End: 2027-01-12.

What is the track record of FIRELAKE-DIVERSIFIED JV2 LLC in completing similar federal construction projects on time and within budget?

Assessing the track record of FIRELAKE-DIVERSIFIED JV2 LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented instances of delays, cost overruns, or disputes. A joint venture's performance can be influenced by the combined experience and capabilities of its constituent companies. Without specific historical data on this JV, it's difficult to definitively assess their reliability for this $5.7 million project, which has a substantial duration of nearly three years. Further investigation into their project history, particularly for projects of similar scale and complexity, would be necessary to gauge their likelihood of success.

How does the awarded amount of $5.7 million compare to the average cost of similar EPA facility consolidation or construction projects?

To benchmark the $5.7 million award, one would need to compare it against similar federal construction projects, specifically those undertaken by the EPA or other agencies for consolidating commercial and institutional buildings. Key metrics for comparison include cost per square foot, cost per facility, or total project cost for projects with comparable scope and complexity. Factors such as geographic location (construction costs vary regionally), specific building requirements (e.g., specialized labs, security features), and the age and condition of existing structures significantly influence project costs. A preliminary assessment suggests the amount is substantial, reflecting a significant construction undertaking. A detailed analysis would require access to a database of comparable federal construction projects and their associated costs, adjusted for relevant variables.

What are the primary risks associated with a nearly three-year construction project, and how are they mitigated in this contract?

A construction project spanning almost three years carries inherent risks, including potential cost escalation due to material price fluctuations, labor shortages, unforeseen site conditions (e.g., environmental hazards, soil instability), design changes, and weather-related delays. For this EPA contract, the firm fixed-price (FFP) structure is a primary risk mitigation tool, placing the onus on the contractor (FIRELAKE-DIVERSIFIED JV2 LLC) to absorb cost overruns unless scope changes occur. The contract's 'full and open competition' aspect also suggests that bidders factored potential risks into their pricing. However, the EPA will still need robust project management, including regular site inspections, progress monitoring, and strict change order control, to manage risks effectively and ensure the project stays on track and within budget.

What specific services are included under 'Commercial and Institutional Building Construction' for this EPA consolidation project?

The classification 'Commercial and Institutional Building Construction' (NAICS code 236220) typically encompasses the construction of a wide range of non-residential buildings. For the EPA's ORD/R6 Consolidation Project, this likely includes site preparation, foundation work, structural framing, installation of mechanical, electrical, and plumbing systems, interior finishing, roofing, and potentially exterior improvements. Given it's a consolidation project, it might involve new construction, renovation of existing structures, or a combination thereof. Specific services would be detailed in the contract's Statement of Work (SOW), outlining requirements for office spaces, laboratories, meeting rooms, utilities, and any specialized infrastructure needed for the EPA's operations at the consolidated site in Oklahoma.

How does the 'full and open competition after exclusion of sources' procurement method impact potential cost savings for the government compared to other methods?

The procurement method 'full and open competition after exclusion of sources' is a nuanced approach. While 'full and open competition' generally maximizes the pool of potential bidders, leading to competitive pricing and potential cost savings, the 'exclusion of sources' element introduces a layer of pre-qualification or limitation. This could mean that while the final award was competitive, the initial pool might have been smaller than in a purely unrestricted full and open competition. The impact on cost savings depends heavily on *why* sources were excluded and how many bidders ultimately participated. If the exclusion was justified and a sufficient number of capable bidders still competed vigorously, cost savings could be substantial. However, if the exclusion significantly limited competition, the savings might be less than optimal compared to a truly unrestricted process.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 68HERC24R0096

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1011 E 31ST STREET, LAWRENCE, KS, 66046

Business Categories: American Indian Owned Business, Category Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $5,722,737

Exercised Options: $5,722,737

Current Obligation: $5,722,737

Actual Outlays: $3,144,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERC23D0021

IDV Type: IDC

Timeline