Interior Department awards $27.1M design-build contract for Dennehotso Boarding School construction

Contract Overview

Contract Amount: $27,108,046 ($27.1M)

Contractor: C3 Limited Liability Company

Awarding Agency: Department of the Interior

Start Date: 2012-09-23

End Date: 2014-12-08

Contract Duration: 806 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD FOR NEW SCHOOL AT DENNEHOTSO BOARDING SCHOOL.

Place of Performance

Location: DENNEHOTSO, APACHE County, ARIZONA, 86535

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $27.1 million to C3 LIMITED LIABILITY COMPANY for work described as: DESIGN/BUILD FOR NEW SCHOOL AT DENNEHOTSO BOARDING SCHOOL. Key points: 1. Contract value represents a significant investment in educational infrastructure for the Bureau of Indian Affairs. 2. The project was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. The project duration of approximately 806 days indicates a substantial construction timeline. 5. The award was made by the Bureau of Indian Affairs, highlighting its role in supporting Native American education. 6. The contract falls under industrial building construction, a broad category encompassing various facility types.

Value Assessment

Rating: fair

The contract value of $27.1 million for a design-build project of this nature requires benchmarking against similar educational facility constructions. Without specific cost breakdowns for design and construction phases, a precise value-for-money assessment is challenging. The firm fixed-price structure suggests an attempt to cap costs, but the final value is compared against the initial bid. The benchmark of $33,633 per day of contract duration provides a rough cost indicator, but its true value depends heavily on the scope and complexity of the school's design and construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite having only two bidders, suggests that taxpayers likely received a competitive price. However, exploring avenues to encourage more bidders in future solicitations could further enhance taxpayer value.

Public Impact

Students and staff at Dennehotso Boarding School will benefit from a new, modern educational facility. The project will deliver a completed design and construction of a new school building. The geographic impact is concentrated in Arizona, specifically serving the Dennehotso community. The construction phase will likely create temporary jobs for skilled trades and laborers in the region. The completed school will support the educational mission of the Bureau of Indian Education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design complexities arise, despite the fixed-price nature.
Risk of schedule delays impacting the timely opening of the new school facility.
Dependence on the contractor's ability to manage both design and construction effectively.
Limited competition with only two bidders could mean less aggressive pricing than a more crowded field.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Design-build approach can streamline the project delivery process.
Awarded through full and open competition, allowing for a broad range of potential contractors.
Project addresses a critical need for improved educational infrastructure.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically for educational facilities. The market for school construction, particularly for federal agencies like the Bureau of Indian Affairs, involves specialized requirements related to location, student needs, and cultural considerations. Benchmarking this contract's value against similar federal or state-funded school construction projects would provide further context on its cost-effectiveness.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. Future analysis could explore whether the prime contractor has a history of engaging small businesses in their supply chain or if subcontracting opportunities were part of the solicitation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Indian Affairs contracting officers and project managers. The firm fixed-price nature provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are not specified here.

Related Government Programs

Bureau of Indian Affairs School Construction Program
Federal School Facilities Modernization
Design-Build Construction Contracts
Native American Education Infrastructure

Risk Flags

Limited Competition
Potential for Schedule Delays
Contractor Performance Risk
Site Condition Unknowns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $27.1 million to C3 LIMITED LIABILITY COMPANY. DESIGN/BUILD FOR NEW SCHOOL AT DENNEHOTSO BOARDING SCHOOL.

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 $27.1 million.

What is the period of performance?

Start: 2012-09-23. End: 2014-12-08.

What is the contractor's track record with similar federal design-build projects, particularly for educational facilities?

Information regarding C3 Limited Liability Company's specific track record with federal design-build projects for educational facilities is not detailed in the provided data. A comprehensive review would involve examining past performance evaluations, contract history with agencies like the Department of Defense or Department of Education, and any reported issues or successes on similar projects. Understanding their experience in managing the complexities of both design and construction, especially within budget and schedule constraints for schools, is crucial for assessing future performance risk.

How does the awarded price compare to similar design-build school construction projects in Arizona or other Bureau of Indian Education service areas?

A direct comparison of the $27.1 million award to similar projects is challenging without access to a broader dataset of comparable federal or state-funded school construction contracts. Factors such as project size (square footage), specific design requirements, site conditions, and prevailing labor costs in the region significantly influence pricing. The benchmark of approximately $33,633 per day of contract duration offers a preliminary cost indicator, but a more robust analysis would involve normalizing costs based on project scope and location to determine if this represents a competitive market rate.

What are the primary risk indicators associated with this specific contract, considering its design-build nature and location?

Key risk indicators include the inherent complexities of managing both design and construction under a single contract, which requires strong contractor integration and oversight. The project's location in a potentially remote area like Dennehotso could present logistical challenges, supply chain issues, and difficulties in sourcing skilled labor, potentially impacting schedule and cost. Furthermore, the limited competition (two bidders) suggests a potential risk that the government may not have secured the most competitive pricing possible. Unforeseen site conditions are also a common risk in construction projects, which could lead to change orders and cost increases, even under a fixed-price contract.

What is the anticipated effectiveness of this new school facility in improving educational outcomes for students at Dennehotso Boarding School?

The effectiveness of the new school facility in improving educational outcomes is anticipated to be significant, assuming the design incorporates modern pedagogical needs and the construction meets quality standards. A new, well-equipped facility can provide a more conducive learning environment, potentially reducing disruptions, improving student engagement, and offering better resources for both students and educators. The project's success in delivering a functional and inspiring space directly supports the Bureau of Indian Education's mission to provide quality education. However, the ultimate effectiveness also depends on curriculum, teaching quality, and community involvement, which are outside the scope of the construction contract itself.

How does the historical spending pattern for school construction by the Bureau of Indian Affairs compare to this award?

Analyzing historical spending patterns for the Bureau of Indian Affairs (BIA) school construction would provide context for the $27.1 million award. This involves examining the frequency, size, and types of school construction contracts awarded by the BIA over several fiscal years. Understanding the average cost per project, the typical duration, and the prevailing contract types (e.g., design-build vs. separate design and construction) can help determine if this award is within the expected range or represents an outlier. Such analysis could reveal trends in investment in Native American educational infrastructure and highlight any shifts in procurement strategies or funding levels.

What are the specific performance metrics or milestones used to evaluate the contractor's success on this project?

Specific performance metrics and milestones for this contract are not detailed in the provided summary. However, typical evaluations for design-build construction projects focus on adherence to the design specifications, quality of workmanship, completion of project phases according to the schedule, and final delivery within the firm fixed-price budget. Key milestones would likely include design completion and approval, major construction phases (e.g., foundation, framing, roofing), and final inspection and occupancy. The government's project managers and contracting officers would monitor progress against these benchmarks throughout the contract duration.

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

Solicitation ID: A12PS02144

Offers Received: 2

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: $27,108,046

Exercised Options: $27,108,046

Current Obligation: $27,108,046

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: INF98210AD001

IDV Type: IDC

Timeline