DOE awards $54M firm-fixed-price contract for construction services in South Carolina
Contract Overview
Contract Amount: $53,956,046 ($54.0M)
Contractor: North Wind Construction Services, LLC
Awarding Agency: Department of Energy
Start Date: 2022-12-15
End Date: 2025-06-30
Contract Duration: 928 days
Daily Burn Rate: $58.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONTRACT LINE ITEM 0003, SUBCLIN NO. 0003B, SUBSTRUCTURE CONSTRUCTION (FOUNDATIONS) - TASK 4 CONTRACT LINE ITEM 0003, SUBCLIN NO. 0003C, BUILDING/FACILITIES SHELL (SUPER STRUCTURE/EXTERIOR ENCLOSURE/ROOFING - TASK 5 CONTRACT LINE ITEM 0003, SU
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $54.0 million to NORTH WIND CONSTRUCTION SERVICES, LLC for work described as: CONTRACT LINE ITEM 0003, SUBCLIN NO. 0003B, SUBSTRUCTURE CONSTRUCTION (FOUNDATIONS) - TASK 4 CONTRACT LINE ITEM 0003, SUBCLIN NO. 0003C, BUILDING/FACILITIES SHELL (SUPER STRUCTURE/EXTERIOR ENCLOSURE/ROOFING - TASK 5 CONTRACT LINE ITEM 0003, SU Key points: 1. Contract awarded as a delivery order under an existing contract. 2. Services include substructure, shell, exterior, and roofing construction. 3. Contract duration extends over two fiscal years. 4. The contract is firm-fixed-price, indicating price certainty. 5. The contractor has experience in commercial and institutional building construction. 6. The contract is not subject to small business set-asides. 7. The contract is for construction services in South Carolina.
Value Assessment
Rating: fair
The contract value of $53.96 million for construction services appears to be within a reasonable range for a project of this scope, though direct comparisons are difficult without detailed project specifications. The firm-fixed-price structure helps manage cost overruns. Benchmarking against similar large-scale institutional building projects would provide a clearer picture of value for money. The contract's duration of over two years suggests a substantial undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source or not available for competition basis. This means that the Department of Energy did not solicit bids from multiple contractors. The specific justification for this procurement approach is not detailed here, but it typically implies that only one contractor was deemed capable of performing the work or that other specific circumstances warranted a non-competitive award.
Taxpayer Impact: Sole-source awards can limit price competition, potentially leading to higher costs for taxpayers compared to fully competed contracts. Transparency regarding the justification for sole-source awards is crucial for ensuring accountability.
Public Impact
The Department of Energy benefits from the construction of necessary facilities. Services delivered include foundational work, building shells, exterior enclosures, and roofing. The geographic impact is localized to South Carolina. Workforce implications include potential job creation for construction trades in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Sole-source justification needs further scrutiny to ensure necessity.
- Firm-fixed-price contracts can sometimes lead to scope creep if not managed carefully.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Contract duration aligns with the scope of construction services.
- Contractor is experienced in the relevant NAICS code.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is characterized by the construction of non-residential buildings such as government facilities, educational institutions, and healthcare buildings. The market size for federal construction projects is substantial, with significant annual spending across various agencies. This specific contract represents a portion of the Department of Energy's capital investment in infrastructure.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to North Wind Construction Services, LLC, a company that is not explicitly identified as a small business in this context, suggests it is likely a larger entity. This means that the direct economic benefit to the small business ecosystem from this specific award is limited.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency would be enhanced by public availability of the contract details and performance reports, though specific oversight mechanisms like Inspector General involvement would depend on the nature of any potential issues.
Related Government Programs
- Department of Energy Facilities Construction
- Federal Building and Infrastructure Projects
- Construction Services Contracts
- Firm-Fixed-Price Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for higher costs due to lack of competition.
- Limited transparency on specific project requirements and scope.
Tags
construction, department-of-energy, south-carolina, firm-fixed-price, delivery-order, sole-source, institutional-building, infrastructure, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $54.0 million to NORTH WIND CONSTRUCTION SERVICES, LLC. CONTRACT LINE ITEM 0003, SUBCLIN NO. 0003B, SUBSTRUCTURE CONSTRUCTION (FOUNDATIONS) - TASK 4 CONTRACT LINE ITEM 0003, SUBCLIN NO. 0003C, BUILDING/FACILITIES SHELL (SUPER STRUCTURE/EXTERIOR ENCLOSURE/ROOFING - TASK 5 CONTRACT LINE ITEM 0003, SU
Who is the contractor on this award?
The obligated recipient is NORTH WIND CONSTRUCTION SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $54.0 million.
What is the period of performance?
Start: 2022-12-15. End: 2025-06-30.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this non-competitive award is not detailed in the provided data. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the agency's needs, or in cases of urgent and compelling need. Without further documentation from the Department of Energy, such as a Justification for Other Than Full and Open Competition (JOFOC), the precise reasons remain unknown. This lack of transparency can raise concerns about whether the government obtained the best possible value and if competition was appropriately explored.
How does the contract value compare to similar construction projects undertaken by the Department of Energy or other federal agencies?
Directly comparing the $53.96 million contract value without detailed project specifications (e.g., square footage, complexity of foundations, specific roofing materials, site conditions) is challenging. However, the Department of Energy, like other large federal agencies, undertakes numerous construction projects annually. Projects of this magnitude for institutional or facility construction are not uncommon. Benchmarking would require access to data on similar projects, considering factors like location, type of facility, and construction timeline. The firm-fixed-price nature suggests a defined scope, which aids in cost control compared to cost-plus contracts for similar work.
What are the potential risks associated with a sole-source construction contract of this size?
The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not achieve the most favorable price. Other risks include a lack of innovation that competition might foster, and potential complacency from the awarded contractor regarding performance and quality, as there is no immediate threat of losing future business to competitors. Furthermore, ensuring the sole-source justification is valid and accurately reflects a genuine lack of alternatives is critical to mitigate risks of improper procurement.
What is North Wind Construction Services, LLC's track record with federal contracts, particularly with the Department of Energy?
Information on North Wind Construction Services, LLC's specific track record with federal contracts, including their performance history with the Department of Energy, is not provided in the data snippet. A comprehensive assessment would require reviewing contract databases (like SAM.gov or FPDS) for past awards, contract values, performance ratings, and any past performance issues or disputes. Understanding their experience with similar types of construction projects (substructure, shell, roofing) and their history of meeting deadlines and budget constraints would be crucial for evaluating their reliability on this $53.96 million contract.
What are the implications of the firm-fixed-price (FFP) contract type for project cost and scope management?
A firm-fixed-price contract establishes a ceiling price that the government will not exceed, and the contractor is obligated to complete the work for that price, regardless of their actual costs. This provides significant cost certainty for the government and incentivizes the contractor to manage costs efficiently. However, for complex construction projects, an FFP contract can increase risk for the contractor, potentially leading them to inflate their initial bid to cover unforeseen issues. It also means that any changes to the scope of work typically require formal contract modifications, which can be time-consuming and may involve price adjustments.
How does the contract duration of 928 days (approximately 2.5 years) align with typical federal construction project timelines?
A duration of 928 days, or roughly 2.5 years, is a substantial but not unusual timeframe for a federal construction project valued at $53.96 million. Large-scale infrastructure and building projects often span multiple fiscal years due to planning, procurement, execution, and potential weather-related delays. The start date of December 15, 2022, and end date of June 30, 2025, confirm this multi-year execution. This duration allows for phased construction, integration of various building systems, and completion of complex tasks like substructure and exterior work.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cook Inlet Region Inc
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $53,956,046
Exercised Options: $53,956,046
Current Obligation: $53,956,046
Actual Outlays: $53,956,046
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303321DEM000059
IDV Type: IDC
Timeline
Start Date: 2022-12-15
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-05-06
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