Interior's $23.9M Wide Ruins School Design/Build Contract Awarded to C3 LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $23,893,129 ($23.9M)

Contractor: C3 Limited Liability Company

Awarding Agency: Department of the Interior

Start Date: 2012-03-27

End Date: 2014-12-31

Contract Duration: 1,009 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD SERVICES FOR NEW SCHOOL AT WIDE RUINS, AZ FOR BIE.

Place of Performance

Location: CHAMBERS, APACHE County, ARIZONA, 86502, UNITED STATES OF AMERICA

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $23.9 million to C3 LIMITED LIABILITY COMPANY for work described as: DESIGN/BUILD SERVICES FOR NEW SCHOOL AT WIDE RUINS, AZ FOR BIE. Key points: 1. The contract value of $23.9 million represents a significant investment in educational infrastructure for the Bureau of Indian Affairs and Bureau of Indian Education. 2. Awarded under full and open competition, the contract suggests a market where multiple firms could potentially bid, fostering price discovery. 3. The firm-fixed-price contract type shifts performance risk to the contractor, C3 LLC, potentially leading to cost overruns if not managed effectively. 4. The project's focus on industrial building construction indicates a need for specialized expertise in developing educational facilities. 5. The contract duration of approximately 3 years (1009 days) allows for a substantial construction and design phase. 6. The absence of small business set-aside flags indicates the competition was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

The contract value of $23.9 million for a design/build school project requires careful benchmarking against similar projects. Without specific cost breakdowns for design versus construction, or detailed scope of work, a precise value-for-money assessment is challenging. However, the fixed-price nature suggests the government sought to cap costs, though the final price is dependent on the contractor's efficiency and unforeseen issues. The award to a single entity, C3 LLC, means the government is relying on their ability to deliver within the agreed budget.

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 typically suggests a competitive environment where multiple companies vied for the contract. The fact that only one bid was received (as indicated by 'no': 1) is a critical point. While the competition was open, the low number of bids could suggest limited market interest, potential barriers to entry, or that the solicitation was highly specific. This could impact price discovery and potentially lead to a less competitive price than if more bids had been submitted.

Taxpayer Impact: A full and open competition, even with a single bid, theoretically allows for market forces to influence pricing. However, a single bid raises concerns about whether taxpayers received the most competitive price possible, as the government had limited options to negotiate against.

Public Impact

Students and staff at Wide Ruins, AZ, will benefit from a new, modern educational facility. The project delivers essential infrastructure for the Bureau of Indian Education, supporting its mission to provide quality education. The geographic impact is concentrated in Wide Ruins, Arizona, addressing specific community needs. The construction phase will likely create temporary employment opportunities for skilled and unskilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to fixed-price contract if contractor faces unforeseen challenges.
Limited competition indicated by a single bid, raising questions about optimal price discovery.
Dependence on C3 LLC's capacity and expertise for successful project delivery.
Lack of specific small business subcontracting goals might limit opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Firm-fixed-price contract shifts risk to the contractor, potentially controlling final costs.
Project addresses a critical need for educational infrastructure in the specified location.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically for educational facilities. The market for design-build services for government projects, particularly for agencies like the Bureau of Indian Affairs and Bureau of Indian Education, is specialized. Benchmarking this $23.9 million contract would involve comparing it to other design-build school construction projects, considering factors like square footage, complexity, and geographic location. The federal government is a significant client in the construction sector, with spending often driven by infrastructure needs and agency mandates.

Small Business Impact

The contract does not appear to have been set aside for small businesses, as indicated by 'sb': false. This means the competition was open to all eligible firms, regardless of size. While there's no explicit small business set-aside, the prime contractor, C3 LLC, may still engage small businesses for subcontracting opportunities. However, without specific subcontracting plans or goals mandated in the contract, the extent of small business involvement is uncertain and depends on the prime contractor's procurement strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education. Mechanisms likely include contract performance monitoring, site inspections, and financial reviews. Accountability rests with C3 LLC to deliver the project according to specifications and within budget. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Bureau of Indian Affairs School Construction
Bureau of Indian Education Facilities
Design-Build Construction Contracts
Federal School Infrastructure Projects

Risk Flags

Single Bid Received
Potential for Cost Overruns (FFP)
Limited Competition Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $23.9 million to C3 LIMITED LIABILITY COMPANY. DESIGN/BUILD SERVICES FOR NEW SCHOOL AT WIDE RUINS, AZ FOR BIE.

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 $23.9 million.

What is the period of performance?

Start: 2012-03-27. End: 2014-12-31.

What is the track record of C3 Limited Liability Company in completing federal design-build projects, particularly educational facilities?

Assessing the track record of C3 Limited Liability Company requires a review of their past performance on federal contracts. Information on previous projects, including their success in meeting deadlines, staying within budget, and adhering to quality standards, would be crucial. Specifically, experience with design-build delivery methods and the construction of educational institutions is highly relevant. A search of federal procurement databases (like SAM.gov or FPDS) could reveal past awards, performance evaluations, and any reported issues or disputes. Without this specific data, it's difficult to definitively assess their capability and reliability for this significant project.

How does the $23.9 million contract value compare to similar design-build school construction projects managed by the Department of the Interior or other federal agencies?

To benchmark the $23.9 million contract value, we would need to compare it against similar design-build school construction projects. Key comparison points include the size (square footage), complexity of design, specific educational needs addressed, and geographic location, as these factors significantly influence cost. For instance, comparing it to other Bureau of Indian Education projects or similar K-12 school constructions funded by agencies like the Department of Defense (overseas schools) or GSA would provide context. Factors like prevailing labor rates and material costs in Arizona versus other regions also play a role. A higher or lower cost per square foot compared to benchmarks could indicate exceptional value or potential overpricing.

What are the primary risks associated with a firm-fixed-price contract for a design-build project of this magnitude?

The primary risk with a firm-fixed-price (FFP) contract for a large design-build project like this is that the contractor, C3 LLC, bears the brunt of any cost overruns. If unforeseen site conditions arise, material costs escalate unexpectedly, or design complexities are greater than anticipated, the contractor's profit margin will shrink, or they could incur a loss. Conversely, if the contractor manages costs efficiently and completes the project under budget, they retain the savings, which can be a significant incentive. For the government, the risk is that the contractor might cut corners on quality to protect their profit, or that the initial fixed price might have been inflated to account for potential contractor risks, leading to a higher-than-necessary cost.

Given that only one bid was received under 'full and open competition,' what does this suggest about the market for this type of construction service?

Receiving only one bid under a 'full and open competition' solicitation can suggest several market dynamics. It might indicate that the project's requirements were highly specialized, deterring many potential bidders. Alternatively, the geographic location or the specific nature of the work could limit the pool of qualified contractors. It's also possible that the solicitation documents were complex, or the anticipated profit margins were not attractive enough for multiple firms to invest in preparing a bid. This situation raises concerns about whether the government received the best possible price, as competition is a key driver of cost savings for taxpayers. It could also signal a need for the agency to re-evaluate its solicitation strategies to encourage broader participation.

What are the potential implications of the contract's duration (1009 days) on project delivery and cost control?

A contract duration of 1009 days (approximately 2.76 years) for a design-build school project suggests a comprehensive scope that includes both the design phase and the full construction lifecycle. This extended timeline allows for thorough planning, design development, permitting, and phased construction, which can be beneficial for complex projects. It may also provide the contractor, C3 LLC, with adequate time to manage resources effectively and mitigate risks associated with material procurement and labor availability. However, a longer duration also increases the exposure to market fluctuations, such as rising material costs or changes in labor regulations, which could impact the final cost if not adequately addressed in the contract's pricing structure or contingency planning.

How does the Bureau of Indian Affairs and Bureau of Indian Education typically manage oversight for large construction projects like the Wide Ruins school?

The Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE), as part of the Department of the Interior, typically employ a multi-faceted approach to overseeing large construction projects. This often involves dedicated project managers, contract specialists, and on-site representatives who monitor progress, review submittals, approve payments, and ensure compliance with contract terms and specifications. Regular site inspections, progress meetings, and quality assurance checks are standard procedures. For projects of this scale, oversight may also involve coordination with tribal entities and adherence to specific federal regulations governing construction on tribal lands. The agency's Inspector General's office also provides an independent layer of oversight to detect and prevent fraud, waste, and abuse.

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, 80111

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

Financial Breakdown

Contract Ceiling: $23,893,129

Exercised Options: $23,893,129

Current Obligation: $23,893,129

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: INF98210AD001

IDV Type: IDC

Timeline