Interior Department awards $41.4M design-build contract for Arizona boarding school and dormitory

Contract Overview

Contract Amount: $41,358,922 ($41.4M)

Contractor: C3 Limited Liability Company

Awarding Agency: Department of the Interior

Start Date: 2010-08-30

End Date: 2012-09-30

Contract Duration: 762 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD KAIBETO BOARDING SCHOOL AND DORMITORY

Place of Performance

Location: KAIBETO, COCONINO County, ARIZONA, 86053

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $41.4 million to C3 LIMITED LIABILITY COMPANY for work described as: DESIGN BUILD KAIBETO BOARDING SCHOOL AND DORMITORY Key points: 1. Contract value represents a significant investment in educational infrastructure for Native American students. 2. The project was awarded using full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs, but potential for change orders exists. 4. Project duration of 762 days indicates a substantial construction timeline. 5. The award to C3 Limited Liability Company suggests a focus on established construction firms for large-scale projects. 6. Geographic focus on Arizona highlights investment in specific regional needs.

Value Assessment

Rating: fair

The contract value of $41.4 million for a design-build boarding school and dormitory appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar federal construction projects for educational facilities in the Southwest would provide a more precise assessment of value for money. The firm-fixed-price structure suggests an attempt to cap costs, but the final expenditure could be influenced by change orders or unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method generally promotes a competitive environment, potentially leading to better pricing and terms for the government. The number of bidders is not specified, but the use of this procurement method suggests that multiple firms likely participated, allowing for price discovery and selection of the most advantageous offer.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

Benefits Native American students by providing improved living and learning facilities. Delivers essential educational infrastructure, including a boarding school and dormitory. Geographic impact is concentrated in Arizona, addressing specific regional needs. Workforce implications include job creation in construction and related trades during the project lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if change orders are not managed effectively under the firm-fixed-price contract.
Construction timelines can be subject to delays due to weather, material availability, or unforeseen site issues.
Ensuring the quality of design and construction to meet the long-term needs of students and staff.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Design-build approach can streamline the construction process by integrating design and construction phases.
Awarded through full and open competition, suggesting a competitive selection process.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically for educational facilities. The federal government frequently invests in construction projects for schools, particularly those serving Native American communities through the Bureau of Indian Affairs. The market for such projects is competitive, with numerous firms capable of undertaking large-scale design-build initiatives. Comparable spending benchmarks would involve analyzing other federal school construction projects, considering factors like location, size, and specific requirements.

Small Business Impact

The contract was not set aside for small businesses and was awarded under full and open competition. This suggests that the primary focus was on securing the best value from the broadest possible pool of contractors, rather than specifically targeting small business participation. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage smaller firms in the construction ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of the Interior's Bureau of Indian Affairs. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through federal contract databases where award information is published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Bureau of Indian Affairs School Construction
Federal Education Facilities
Design-Build Construction Contracts
Department of the Interior Capital Projects

Risk Flags

Potential for cost overruns
Schedule delay risks
Contractor performance uncertainty
Site condition variability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $41.4 million to C3 LIMITED LIABILITY COMPANY. DESIGN BUILD KAIBETO BOARDING SCHOOL AND DORMITORY

Who is the contractor on this award?

The obligated recipient is C3 LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $41.4 million.

What is the period of performance?

Start: 2010-08-30. End: 2012-09-30.

What is the track record of C3 Limited Liability Company in completing federal design-build projects of similar scale and complexity?

Assessing the track record of C3 Limited Liability Company is crucial for understanding their capacity to deliver on this $41.4 million design-build contract. A review of past federal contract awards to C3 LLC would reveal their experience with similar projects, including educational facilities, boarding schools, or dormitories. Key performance indicators to examine would include on-time and on-budget completion rates, any history of contract disputes or terminations, and client satisfaction ratings from previous government agencies. Understanding their past performance provides insight into the likelihood of successful project execution and helps mitigate potential risks associated with contractor capability.

How does the awarded price of $41.4 million compare to industry benchmarks for similar design-build educational facilities in Arizona?

To benchmark the $41.4 million award, a comparative analysis with similar design-build educational facilities in Arizona is necessary. This would involve researching recent construction projects of comparable size (square footage, number of beds/rooms), scope (design and construction of school and dormitory), and type (educational, residential). Factors such as prevailing labor costs, material prices, and local permitting requirements in Arizona would influence the benchmark. If the awarded price is significantly higher than comparable projects, it could indicate potential issues with the bidding process, contractor pricing, or unique project complexities not immediately apparent. Conversely, a lower price might suggest strong competition or efficient project planning.

What are the primary risk indicators associated with this specific design-build contract, and how are they being managed?

Primary risk indicators for this design-build contract include potential cost overruns due to the firm-fixed-price nature, which can be exacerbated by unforeseen site conditions or scope creep through change orders. The 762-day duration presents risks related to schedule delays from weather, material sourcing, or labor availability. Contractor performance risk is also present, though mitigated by the full and open competition award. Management strategies likely involve robust project management by the Bureau of Indian Affairs, strict change order controls, regular site inspections, and performance monitoring. Contingency planning for potential delays and cost increases would also be a key management aspect.

How effective is the design-build approach likely to be for this specific project, considering the needs of a boarding school and dormitory?

The design-build approach is often effective for projects like this boarding school and dormitory as it integrates the design and construction phases under a single contract. This can lead to faster project delivery, improved coordination between designers and builders, and a single point of responsibility for the owner. For a facility requiring specific considerations for student living and education, early contractor input during the design phase can ensure constructability and functional requirements are met efficiently. However, the success hinges on the contractor's ability to translate the unique needs of a boarding school environment into a cohesive and functional design, followed by quality construction.

What are the historical spending patterns for similar educational construction projects by the Bureau of Indian Affairs in Arizona over the past five years?

Analyzing historical spending patterns for similar educational construction projects by the Bureau of Indian Affairs (BIA) in Arizona over the past five years would provide valuable context for the $41.4 million award. This would involve examining the number of contracts awarded, their average values, typical project durations, and the types of construction undertaken (e.g., new builds, renovations, specific facilities like dormitories or classrooms). Understanding these patterns can reveal trends in BIA's capital investment strategies, average cost per project, and the frequency of design-build versus traditional design-bid-build procurements in the region. Such data can help assess whether the current award aligns with historical investment levels or represents a significant deviation.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5990 GREENWOOD PLAZA BLVD STE 205, GREENWOOD VILLAGE, CO, 06

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,358,922

Exercised Options: $41,358,922

Current Obligation: $41,358,922

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: INF98210AD001

IDV Type: IDC

Timeline