DOJ's $28M FCI Danbury Low Institution Contract Awarded to Sealaska Constructors LLC

Contract Overview

Contract Amount: $28,070,490 ($28.1M)

Contractor: Sealaska Constructors LLC

Awarding Agency: Department of Justice

Start Date: 2015-06-30

End Date: 2017-10-06

Contract Duration: 829 days

Daily Burn Rate: $33.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF 151003-DESIGN AND CONSTRUCTION OF THE LOW INSTITUTION AND ENTRY BUILDING FOR FCI DANBURY, CT.

Place of Performance

Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06811

State: Connecticut Government Spending

Plain-Language Summary

Department of Justice obligated $28.1 million to SEALASKA CONSTRUCTORS LLC for work described as: IGF::CT::IGF 151003-DESIGN AND CONSTRUCTION OF THE LOW INSTITUTION AND ENTRY BUILDING FOR FCI DANBURY, CT. Key points: 1. Contract awarded for construction of a low institution and entry building at FCI Danbury. 2. The contract was not available for competition, raising questions about price discovery. 3. The project duration was 829 days, indicating a significant construction timeline. 4. The firm fixed price contract type suggests a defined scope and cost control.

Value Assessment

Rating: questionable

The contract value of $28,070,490 for a commercial and institutional building construction project is difficult to benchmark without specific details on the building's size, complexity, and features. The lack of competitive bidding makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to an open, competitive process.

Taxpayer Impact: The lack of competition may have resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer value.

Public Impact

Construction of new federal prison facilities impacts public safety and correctional capacity. The award to Sealaska Constructors LLC, a specific company, highlights the role of contractors in federal infrastructure projects. The project's location in Danbury, CT, means local economic impacts through jobs and resource utilization. The duration of the project suggests a substantial undertaking with potential for delays and cost overruns if not managed effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing due to sole-source award
Long project duration

Positive Signals

Firm fixed price contract
Specific project for correctional facility enhancement

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Benchmarking requires comparison with similar federal or large-scale private construction projects, considering factors like square footage, materials, and specific facility requirements.

Small Business Impact

Information on small business participation is not provided in the data. The award to Sealaska Constructors LLC does not indicate whether they are a small business or if they subcontracted to small businesses.

Oversight & Accountability

Oversight would typically involve the Bureau of Prisons ensuring the contractor adheres to the contract terms, quality standards, and schedule. The lack of competition warrants closer scrutiny of the pricing and performance.

Related Government Programs

Commercial and Institutional Building Construction
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited transparency in price determination
Contractor performance risk over extended duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28.1 million to SEALASKA CONSTRUCTORS LLC. IGF::CT::IGF 151003-DESIGN AND CONSTRUCTION OF THE LOW INSTITUTION AND ENTRY BUILDING FOR FCI DANBURY, CT.

Who is the contractor on this award?

The obligated recipient is SEALASKA CONSTRUCTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2015-06-30. End: 2017-10-06.

What was the justification for awarding this contract on a limited/sole-source basis, and how was the price determined to be fair and reasonable?

The justification for a limited or sole-source award is crucial for understanding the necessity of bypassing full and open competition. Without this justification, it's difficult to assess if the government received fair value. Price reasonableness in such cases often relies on historical pricing, independent cost estimates, or comparisons to similar, competitively awarded contracts, though these methods are less robust than open competition.

What are the potential risks associated with a sole-source construction contract for a federal facility, and how were they mitigated?

Sole-source construction contracts carry risks of inflated pricing, reduced quality due to lack of competitive pressure, and potential contractor complacency. Mitigation strategies could include rigorous negotiation, detailed scope definition, independent cost analysis, and stringent oversight throughout the project lifecycle. The long duration of this project amplifies these risks if not actively managed.

How does the firm fixed price contract structure impact the overall value and effectiveness of this construction project?

A firm fixed price (FFP) contract aims to provide cost certainty for the government by shifting most of the risk to the contractor. This can enhance effectiveness by incentivizing the contractor to control costs and adhere to the schedule. However, if the initial price was not competitive due to the limited award, the 'value' aspect may be compromised despite the FFP structure.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sealaska Corporation (UEI: 078199049)

Address: 13810 SE EASTGATE WAY STE 420, BELLEVUE, WA, 98005

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: $28,070,490

Exercised Options: $28,070,490

Current Obligation: $28,070,490

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline