Rafter H Construction awarded $42.4M contract for New Wind River Job Corps Center, a firm-fixed-price definitive contract

Contract Overview

Contract Amount: $42,376,564 ($42.4M)

Contractor: Rafter H Construction LLC

Awarding Agency: Department of Labor

Start Date: 2013-06-28

End Date: 2015-08-31

Contract Duration: 794 days

Daily Burn Rate: $53.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF NEW WIND RIVER JOB CORPS CENTER

Place of Performance

Location: RIVERTON, FREMONT County, WYOMING, 82501

State: Wyoming Government Spending

Plain-Language Summary

Department of Labor obligated $42.4 million to RAFTER H CONSTRUCTION LLC for work described as: IGF::OT::IGF NEW WIND RIVER JOB CORPS CENTER Key points: 1. Contract value of $42.4 million for construction services. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. Competition was full and open after exclusion of sources, indicating a competitive process. 4. Contract duration of 794 days. 5. Project located in Wyoming, potentially impacting local workforce and economy. 6. The contract falls under Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $42.4 million for the New Wind River Job Corps Center appears to be a significant investment. Benchmarking this against similar large-scale construction projects for educational or vocational facilities would be necessary to fully assess value for money. The firm-fixed-price structure provides cost certainty, but the absence of detailed cost breakdowns or comparisons makes a precise value assessment challenging without further data on project scope and market rates for similar construction in Wyoming.

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 the competition was intended to be broad, specific sources may have been excluded prior to the main solicitation. This suggests a competitive process was followed, but the exact reasons for exclusion and the number of bidders that responded are not detailed. The level of competition, even with exclusions, likely contributed to price discovery, though the extent is unknown.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to bid, potentially leading to lower prices than a sole-source award. However, the specifics of the exclusion process warrant further scrutiny to ensure maximum taxpayer value was achieved.

Public Impact

The primary beneficiaries are students and staff of the New Wind River Job Corps Center, who will utilize the new facility. The contract delivers construction services for a new educational and vocational training facility. The geographic impact is concentrated in Wyoming, potentially creating local construction jobs and stimulating the local economy. Workforce implications include employment opportunities for construction workers and related trades in the project area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
The 'exclusion of sources' clause requires understanding to ensure fair competition was maintained.
Dependence on the contractor's ability to manage project timelines and quality effectively.
Potential impact of local labor market conditions on project completion.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition, even with exclusions, suggests an effort to achieve competitive pricing.
The contract is for a specific, tangible asset (a Job Corps Center) with clear public benefit.
Award to Rafter H Construction LLC, a specific contractor, implies a selection based on qualifications.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The market for such projects is driven by government and private sector demand for new facilities. Comparable spending benchmarks would involve analyzing the cost per square foot or per student capacity for similar vocational training centers or educational institutions constructed in recent years, both federally and privately funded.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, Rafter H Construction LLC, may not be obligated to subcontract a specific portion of the work to small businesses, potentially limiting opportunities for the small business ecosystem on this particular project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration, the contracting agency. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, delivery schedules, and quality requirements. Transparency is facilitated by the contract award notice, but detailed project progress reports and financial oversight mechanisms are not specified in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Job Corps Program
Federal Construction Contracts
Department of Labor Facilities

Risk Flags

Competition Clause Ambiguity
Potential for Quality Compromise in FFP
Lack of Small Business Subcontracting Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $42.4 million to RAFTER H CONSTRUCTION LLC. IGF::OT::IGF NEW WIND RIVER JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is RAFTER H CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $42.4 million.

What is the period of performance?

Start: 2013-06-28. End: 2015-08-31.

What is the historical spending pattern for Rafter H Construction LLC with the federal government?

Analyzing the historical spending of Rafter H Construction LLC with the federal government requires access to a comprehensive federal procurement database. Without specific data on past contracts awarded to this entity, it's impossible to determine their track record. A review would typically involve looking at the number of contracts awarded, their total value, the agencies involved, and the types of services rendered. A pattern of successful past performance, particularly on similar construction projects, would indicate a lower risk for future contracts. Conversely, a history of contract issues, delays, or cost overruns would raise concerns about their reliability and capability.

How does the awarded amount compare to the estimated cost or budget for the New Wind River Job Corps Center project?

The provided data indicates an awarded amount of $42,376,564.43. However, there is no information regarding the government's initial estimated cost or the allocated budget for the New Wind River Job Corps Center project. To assess if this award represents good value, this figure needs to be compared against the government's independent cost estimate. If the awarded amount is significantly lower than the estimate, it could suggest strong competition or a favorable market. If it is higher, it might indicate issues with the initial estimate or a less competitive bidding environment. Without the estimated cost, a direct comparison to gauge value for money is not possible.

What are the specific risks associated with a firm-fixed-price definitive contract for a large construction project?

Firm-fixed-price (FFP) contracts offer cost certainty to the government, meaning the contractor bears the risk of cost overruns. For a large construction project like the Job Corps Center, the primary risks with an FFP contract include the contractor potentially cutting corners on quality or materials to maintain profitability if costs escalate unexpectedly. There's also a risk that the contractor may not have adequately estimated all project costs, leading to financial distress or default. Conversely, if the contractor significantly underestimated costs, they might be less motivated to perform efficiently. The definitive contract nature implies it's a finalized agreement, reducing flexibility for scope changes without formal modifications, which can be cumbersome.

What is the typical duration for similar federal construction contracts of this magnitude?

The contract duration is 794 days, which is approximately 2.17 years. For large-scale federal construction projects, durations can vary significantly based on project complexity, size, and location. Projects of similar magnitude, involving the construction of institutional or educational facilities, often range from 18 months to 3 years. A duration of just over two years for a project valued at $42.4 million appears to be within a reasonable and typical timeframe, suggesting that the project scope and complexity are likely commensurate with the allocated time. However, specific benchmarks would depend on the exact square footage, features, and site conditions.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause impact the fairness and competitiveness of the bidding process?

The clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open to all responsible sources, certain potential offerors were excluded prior to the solicitation. The fairness and competitiveness depend heavily on the justification for these exclusions. If the exclusions were based on objective criteria related to capability, past performance, or specific requirements, and were documented appropriately, the process can still be considered fair and competitive among the remaining pool. However, if the exclusions were arbitrary or lacked clear justification, it could limit competition and potentially lead to higher prices or less optimal solutions for the government. Understanding the rationale behind the exclusions is key to assessing the true level of competition.

What are the potential long-term implications for the local Wyoming economy from this construction project?

This $42.4 million construction project has the potential for significant positive long-term implications for the local Wyoming economy. Firstly, it directly creates jobs in the construction sector, benefiting local laborers, tradespeople, and suppliers. Secondly, the influx of workers may lead to increased spending in local businesses such as restaurants, retail stores, and accommodation providers. In the long term, the completed Job Corps Center will provide vocational training, equipping local residents with skills that can lead to better employment opportunities and contribute to a more skilled regional workforce, potentially attracting further economic development. The project also represents a substantial federal investment in the state's infrastructure.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL131RB20621

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 207 GEORGETOWN DR, REXBURG, ID, 83440

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,376,564

Exercised Options: $42,376,564

Current Obligation: $42,376,564

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline