Interior Department contract for meat case upgrades awarded to Suulutaaq Inc. for $14.16M

Contract Overview

Contract Amount: $14,158,000 ($14.2M)

Contractor: Suulutaaq Inc

Awarding Agency: Department of the Interior

Start Date: 2006-08-25

End Date: 2006-12-26

Contract Duration: 123 days

Daily Burn Rate: $115.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRAD/REPLACE SINGLE DECK MEAT CASES

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96818

State: Hawaii Government Spending

Plain-Language Summary

Department of the Interior obligated $14.2 million to SUULUTAAQ INC for work described as: UPGRAD/REPLACE SINGLE DECK MEAT CASES Key points: 1. The contract's value of $14.16 million for replacing meat cases appears high for the scope of work. 2. Limited competition for this contract raises concerns about potential overpayment and lack of market-driven pricing. 3. The firm-fixed-price contract type shifts risk to the contractor, but the lack of competition may negate this benefit. 4. The short duration of 123 days suggests a focused project, but the cost per day is substantial. 5. This contract falls within the commercial building construction sector, but the specific nature of meat cases is niche. 6. The absence of small business involvement is noted, with no set-aside or subcontracting requirements indicated.

Value Assessment

Rating: questionable

The awarded amount of $14.16 million for upgrading or replacing single deck meat cases seems disproportionately high for the described scope. Without detailed breakdowns of materials, labor, and overhead, it is difficult to benchmark precisely. However, comparable projects for commercial refrigeration or specialized fixtures typically fall within a much lower cost range, especially for a 123-day duration. The lack of competitive bidding further exacerbates concerns about value for money, as a sole-source or limited competition award can often lead to inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or limited competition basis, as indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one vendor was solicited or considered for the award. Such a procurement approach bypasses the standard competitive bidding process, which is designed to foster price discovery and ensure the government receives the best possible value. The lack of multiple bidders significantly limits the government's ability to negotiate favorable terms and pricing.

Taxpayer Impact: Taxpayers may have paid a premium for these meat cases due to the absence of competitive pressure. Without competing offers, there is no assurance that the price reflects fair market value.

Public Impact

The primary beneficiaries are likely the facilities managed by the Department of the Interior that house these meat cases. The contract delivers upgrades or replacements for single deck meat cases, improving functionality and potentially aesthetics within the facilities. The geographic impact is limited to Hawaii, as indicated by 'SN': 'HAWAII'. Workforce implications are likely confined to the direct employees of Suulutaaq Inc. and any subcontractors they may have utilized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for the specified scope of work.
Sole-source award limits price competition and potentially inflates costs.
Lack of transparency in the justification for sole-source procurement.
Short contract duration coupled with a high total cost raises value-for-money questions.

Positive Signals

Firm-fixed-price contract shifts performance risk to the contractor.
Contract awarded to a specific entity, indicating a known supplier.
Project addresses a specific need for equipment upgrade/replacement.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction (NAICS 236220) sector. This broad sector encompasses the construction of non-residential buildings. While the specific task involves upgrading or replacing meat cases, which are specialized fixtures, it is categorized under general building construction. The market for such specialized fixtures within larger construction projects can vary, but typically involves manufacturers and installers of commercial refrigeration and display equipment. Benchmarking spending in this specific niche is challenging without more granular data, but the overall construction sector sees significant federal investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). There is no information provided regarding subcontracting plans or requirements. This suggests that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were likely limited or non-existent. The absence of small business considerations in a contract of this size could represent a missed opportunity to support the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and potentially program managers within the Department of the Interior. Accountability measures would be tied to the firm-fixed-price terms, requiring Suulutaaq Inc. to deliver the specified meat cases within the agreed timeframe and quality standards. Transparency is limited due to the sole-source nature of the award, with minimal public information available regarding the justification or detailed cost breakdown. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction Contracts
Department of the Interior Facilities Management
Commercial Refrigeration Equipment Procurement
Government Building Maintenance and Repair

Risk Flags

High contract value for scope
Sole-source award
Lack of competition justification
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $14.2 million to SUULUTAAQ INC. UPGRAD/REPLACE SINGLE DECK MEAT CASES

Who is the contractor on this award?

The obligated recipient is SUULUTAAQ INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2006-08-25. End: 2006-12-26.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source or limited competition award. Without further documentation, the specific justification remains unclear. Common reasons for sole-source awards include unique capabilities of a single contractor, urgent and compelling needs where only one source can meet the requirement, or when market research fails to identify any other responsible sources. For a contract involving meat cases, it's unusual unless there's a highly specialized requirement tied to existing infrastructure or a proprietary system that only Suulutaaq Inc. can address. Further investigation into the contract file would be necessary to ascertain the official justification.

How does the $14.16 million cost compare to similar meat case upgrade projects?

Benchmarking the $14.16 million cost for upgrading single deck meat cases is challenging without more specific project details and market data. However, this figure appears exceptionally high for what is generally considered a fixture replacement or upgrade. Typical costs for commercial refrigeration units and display cases can range from a few thousand to tens of thousands of dollars per unit, depending on size, features, and brand. A project involving multiple units over a 123-day period might reasonably cost several hundred thousand dollars, perhaps up to a million for a very large installation with complex requirements. The $14.16 million figure suggests either an extremely large number of units, highly specialized custom fabrication, or significant markups due to the lack of competition.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for overpayment and reduced value for taxpayer money. Without competitive bidding, the government loses the leverage to negotiate lower prices and ensure the contractor is operating efficiently. There's also a risk that the contractor may not prioritize quality or timely delivery as stringently as they would under competitive pressure. Furthermore, sole-source awards can stifle innovation and prevent smaller, potentially more cost-effective businesses from entering the market. Transparency is often reduced, making it harder to scrutinize the contract's fairness and necessity.

What is the track record of Suulutaaq Inc. in performing federal contracts, particularly in construction?

Information regarding Suulutaaq Inc.'s track record with federal contracts is not provided in the data. To assess their performance, one would need to examine past contract awards, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Given this contract was awarded in 2006, their performance history prior to and subsequent to this award would be relevant. A lack of readily available federal contract history might indicate they are primarily a commercial entity or have limited experience with government procurement, which could itself be a risk factor.

What does the short duration (123 days) imply about the scope and complexity of the work?

A contract duration of 123 days (approximately four months) suggests a relatively focused and well-defined scope of work. It implies that the project is not a large-scale new construction but rather an upgrade, replacement, or specific installation task. This short timeframe, however, makes the $14.16 million award seem even more substantial on a per-day or per-month basis. It indicates that the work, while perhaps requiring specialized equipment or materials, is expected to be completed within a limited window, potentially pointing towards a need for rapid deployment or a critical upgrade requirement.

Are there any indications of cost savings or efficiencies achieved through this contract?

Based on the provided data, there are no indications of cost savings or efficiencies achieved through this contract. The sole-source nature of the award and the high total value relative to the described scope suggest the opposite may be true – that potential savings were forgone due to the lack of competition. Without detailed cost breakdowns, performance metrics, or post-award reviews, it is impossible to quantify any efficiencies. The contract type (firm-fixed-price) aims for cost certainty for the government, but doesn't inherently guarantee savings, especially in a non-competitive environment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 B ST STE 207, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,158,000

Exercised Options: $14,158,000

Current Obligation: $14,158,000

Parent Contract

Parent Award PIID: IND0406CT61540

IDV Type: IDC

Timeline