Interior's $19.5M Flandreau School Construction Contract Awarded to Arviso-Okland JV

Contract Overview

Contract Amount: $19,461,281 ($19.5M)

Contractor: Arviso-Okland Construction Joint Venture

Awarding Agency: Department of the Interior

Start Date: 2009-12-03

End Date: 2011-12-16

Contract Duration: 743 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::14 2302::TAS PROJECT Y9F02 RECOVERY FLANDREAU INDIAN SCHOOL CONSTRUCTION CONTRACT NO. RA000210055, POP 435 CD. P & S Y139, NAICS 236220.

Place of Performance

Location: FLANDREAU, MOODY County, SOUTH DAKOTA, 57028

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $19.5 million to ARVISO-OKLAND CONSTRUCTION JOINT VENTURE for work described as: TAS::14 2302::TAS PROJECT Y9F02 RECOVERY FLANDREAU INDIAN SCHOOL CONSTRUCTION CONTRACT NO. RA000210055, POP 435 CD. P & S Y139, NAICS 236220. Key points: 1. The contract awarded to ARVISO-OKLAND CONSTRUCTION JOINT VENTURE for the Flandreau Indian School construction project represents a significant investment in educational infrastructure. 2. Commercial and Institutional Building Construction (NAICS 236220) is a competitive sector, but the specific nature of school construction can influence bidder pools. 3. The contract's duration of 743 days suggests a complex project, potentially carrying risks related to schedule overruns and cost escalation. 4. The Bureau of Indian Affairs and Bureau of Indian Education are responsible for overseeing this project, highlighting a focus on Native American educational facilities.

Value Assessment

Rating: fair

The award amount of $19,461,280.67 for a 743-day project needs comparison against similar school construction projects in South Dakota to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific requirements of the Flandreau Indian School project may have limited the number of qualified bidders.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently, but the final cost relative to project scope and market rates will determine the ultimate taxpayer impact.

Public Impact

Improved educational facilities for students at the Flandreau Indian School. Potential for job creation in the construction sector in South Dakota. Demonstrates federal commitment to fulfilling trust responsibilities for Native American education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project duration.
Risk of cost overruns if unforeseen issues arise during construction.
Ensuring the quality of construction meets educational facility standards.

Positive Signals

Awarded through full and open competition.
Clear project scope for school construction.
Experienced joint venture likely selected.

Sector Analysis

The construction sector, particularly for institutional buildings like schools, is subject to economic cycles and material cost fluctuations. Benchmarks for similar projects in the Midwest would provide better context for this $19.5 million contract.

Small Business Impact

The data indicates the contract was not awarded to small businesses (SB: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The Bureau of Indian Affairs and Bureau of Indian Education are responsible for oversight. Regular progress reports, site inspections, and adherence to contract terms are crucial for accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Potential for schedule overruns due to project complexity.
Risk of cost increases related to material prices or unforeseen site conditions.
Need for robust oversight to ensure quality and adherence to specifications.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $19.5 million to ARVISO-OKLAND CONSTRUCTION JOINT VENTURE. TAS::14 2302::TAS PROJECT Y9F02 RECOVERY FLANDREAU INDIAN SCHOOL CONSTRUCTION CONTRACT NO. RA000210055, POP 435 CD. P & S Y139, NAICS 236220.

Who is the contractor on this award?

The obligated recipient is ARVISO-OKLAND CONSTRUCTION JOINT VENTURE.

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 $19.5 million.

What is the period of performance?

Start: 2009-12-03. End: 2011-12-16.

What was the competitive landscape for this specific school construction project, and did the 'full and open' nature truly yield the best possible price?

While advertised as 'full and open,' the specialized nature of constructing an Indian school may have limited the pool of truly competitive bidders. A deeper dive into the number of proposals received and the price spread between them would clarify if the competition effectively drove down costs or if unique project requirements led to a less competitive outcome than typical commercial construction.

Are there any specific risks associated with constructing facilities for Native American schools that could impact cost or schedule?

Construction projects on tribal lands can sometimes face unique challenges, including land use regulations, environmental reviews, and community engagement requirements, which may not be present in standard commercial projects. These factors, if not adequately addressed during planning, could lead to delays or increased costs. The 743-day duration suggests these complexities may have been anticipated.

How does the final cost of this project compare to the initial estimated value, and what factors contributed to any variance?

The provided data shows the awarded amount ($19.46M) but not the initial estimate or any subsequent modifications. To assess value and effectiveness, a comparison of the awarded price against the original estimate and any change orders is necessary. Understanding the reasons for any significant deviations would reveal potential issues with initial budgeting, unforeseen site conditions, or scope changes.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1978 S W TEMPLE, SALT LAKE CITY, UT, 90

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

Financial Breakdown

Contract Ceiling: $19,461,281

Exercised Options: $19,461,281

Current Obligation: $19,461,281

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: INA12PC60038

IDV Type: IDC

Timeline