National Park Service contract for Mt. Rainier infrastructure awarded for $42.3M, completed in 2008

Contract Overview

Contract Amount: $42,285,461 ($42.3M)

Contractor: Miller/ Watts Korsmo J V

Awarding Agency: Department of the Interior

Start Date: 2006-05-25

End Date: 2008-10-25

Contract Duration: 884 days

Daily Burn Rate: $47.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REHABILITATE FAILING STRUCTURAL COMPONENENT OF PARADISE INN AND ANNEX AND REPLACE JACKSON VISITOR CENTER AND REHABILITATE THE UPPER PARKING LOT, MT. RAINIER NATIONAL PARK, WASHINGTON

Place of Performance

Location: ASHFORD, PIERCE County, WASHINGTON, 98304

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $42.3 million to MILLER/ WATTS KORSMO J V for work described as: REHABILITATE FAILING STRUCTURAL COMPONENENT OF PARADISE INN AND ANNEX AND REPLACE JACKSON VISITOR CENTER AND REHABILITATE THE UPPER PARKING LOT, MT. RAINIER NATIONAL PARK, WASHINGTON Key points: 1. The contract aimed to address critical infrastructure needs at Mt. Rainier National Park, including rehabilitation and replacement of key facilities. 2. The project was awarded under full and open competition, suggesting a broad market engagement. 3. The contract duration was 884 days, indicating a significant, multi-year undertaking. 4. The firm-fixed-price contract type suggests that cost risks were largely borne by the contractor. 5. The project involved construction and rehabilitation, falling under the Commercial and Institutional Building Construction sector. 6. The award was made by the Department of the Interior's National Park Service, a key steward of national parks.

Value Assessment

Rating: fair

The total award amount was approximately $42.3 million. Benchmarking this against similar large-scale park infrastructure projects is challenging without more specific project scope details. However, the firm-fixed-price nature of the contract implies that the price was set upfront, which can be advantageous for the government if the contractor accurately estimated costs. The contract was awarded in 2006 and completed in 2008, making direct cost comparisons to current market rates difficult due to inflation and market shifts.

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 (as suggested by 'no': 2) suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of contractors to bid, potentially driving down costs through competitive pressure.

Public Impact

Visitors to Mt. Rainier National Park benefit from improved and modernized facilities, enhancing their experience. The rehabilitation of the Paradise Inn and Annex, along with the replacement of the Jackson Visitor Center, ensures the long-term viability of essential park infrastructure. The project's geographic impact is concentrated within Mt. Rainier National Park in Washington State. The construction activities likely supported local and regional employment in the building trades during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial bids did not fully account for all project complexities, despite the fixed-price nature.
The limited number of bidders (two) might indicate potential barriers to entry for other firms or a niche market for this type of specialized park construction.
Ensuring the long-term durability and maintenance costs of the newly constructed and rehabilitated facilities will be a future consideration.

Positive Signals

The use of full and open competition promotes a fair and transparent procurement process.
The firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
The project addressed critical infrastructure needs, ensuring the continued operation and visitor access to a major national park.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which encompasses a wide range of projects from new builds to major renovations of public and private facilities. The market for national park infrastructure construction is specialized, often requiring adherence to specific environmental regulations, historical preservation standards, and remote location logistics. The $42.3 million award is a substantial figure for a single construction project, reflecting the complexity and scale of rehabilitating and replacing key visitor facilities within a national park setting.

Small Business Impact

The contract was awarded under full and open competition and there is no explicit indication of a small business set-aside. The prime contractor, MILLER/WATTS KORSMO J V, is a joint venture, which can sometimes involve small businesses. However, without further information on the joint venture's composition or subcontracting plans, the direct impact on small businesses is unclear. It is possible that subcontracting opportunities were available to small businesses within the construction trades.

Oversight & Accountability

Oversight for this contract would have been managed by the National Park Service, likely through contracting officers and project managers responsible for ensuring compliance with contract terms, quality standards, and timelines. The Department of the Interior's Inspector General's office would have had jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports are not always publicly accessible.

Related Government Programs

National Park Service Infrastructure Projects
Department of the Interior Construction Contracts
Federal Building Rehabilitation Programs
Visitor Center Construction and Renovation

Risk Flags

Potential for cost overruns if change orders were extensive.
Limited competition (2 bidders) may have impacted price discovery.
Long-term maintenance costs for rehabilitated/new structures.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $42.3 million to MILLER/ WATTS KORSMO J V. REHABILITATE FAILING STRUCTURAL COMPONENENT OF PARADISE INN AND ANNEX AND REPLACE JACKSON VISITOR CENTER AND REHABILITATE THE UPPER PARKING LOT, MT. RAINIER NATIONAL PARK, WASHINGTON

Who is the contractor on this award?

The obligated recipient is MILLER/ WATTS KORSMO J V.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $42.3 million.

What is the period of performance?

Start: 2006-05-25. End: 2008-10-25.

What was the specific scope of work for the Paradise Inn and Annex rehabilitation and the Jackson Visitor Center replacement?

The contract aimed to rehabilitate a failing structural component of the Paradise Inn and Annex and replace the Jackson Visitor Center. This likely involved significant structural repairs, modernization of facilities, potential upgrades to utilities and life safety systems, and complete demolition and reconstruction of the visitor center. The scope would also include rehabilitating the upper parking lot, suggesting improvements to visitor access and circulation. Detailed architectural and engineering plans would have defined the precise scope, materials, and performance standards for each element of the project.

How did the final cost compare to the initial bid or estimated cost?

As this was a firm-fixed-price contract awarded in 2006 for $42,285,460.71 and completed in 2008, the final cost to the government was the awarded price. Firm-fixed-price contracts place the responsibility for cost overruns on the contractor. Therefore, unless there were change orders approved by the government that increased the contract value, the final expenditure should align with the initial award amount. Without access to the contract's modification history, it's impossible to definitively state if the final cost deviated from the original bid due to approved changes.

What were the key performance indicators (KPIs) for this construction project?

Key performance indicators for a construction project of this nature typically include adherence to schedule (completion by the specified end date), quality of workmanship (meeting building codes, specifications, and design standards), safety performance (minimizing accidents and injuries on site), and compliance with environmental regulations. For the National Park Service, additional KPIs might involve minimizing disruption to park operations and visitors, and ensuring the aesthetic integration of new structures with the natural environment. The firm-fixed-price nature also implies that cost control within the contractor's bid was a critical performance aspect.

What is the track record of the contractor, MILLER/WATTS KORSMO J V, on similar federal projects?

MILLER/WATTS KORSMO J V is a joint venture. Information on the specific track record of this joint venture on similar federal projects would require searching federal procurement databases like SAM.gov or FPDS. Joint ventures are often formed for specific large-scale projects, pooling resources and expertise. Analyzing the past performance of the individual entities that comprise the joint venture, if they have separate contracting histories, would provide further insight into their capabilities and reliability in executing complex construction and rehabilitation projects for federal agencies.

Were there any significant challenges or disputes during the contract performance period?

Information regarding significant challenges or disputes during the performance of this specific contract (Award ID: 236220) is not readily available in the provided summary data. Contract disputes can arise from various issues, including differing site conditions, scope disagreements, delays, or quality concerns. Resolution typically involves negotiation, mediation, or formal dispute resolution processes. A review of contract modification history and any associated litigation or claims data would be necessary to identify and assess any major challenges encountered during the 884-day performance period.

How does the $42.3 million award compare to other National Park Service infrastructure projects of similar scale?

Comparing the $42.3 million award requires context regarding the specific scope and complexity. Large-scale infrastructure projects for the National Park Service, such as major visitor center construction, road rehabilitation, or utility system upgrades in high-visitation parks, can easily run into tens of millions of dollars. For instance, major renovations or new constructions in iconic parks like Yosemite or Grand Canyon can exceed this amount significantly depending on the scale and specific needs. This award appears to be a substantial investment, consistent with the significant rehabilitation and replacement work undertaken at a popular location like Mt. Rainier.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1443N8000060901

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 77 DIGITAL DR STE 100, NOVATO, CA, 02

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

Financial Breakdown

Contract Ceiling: $42,285,461

Exercised Options: $42,285,461

Current Obligation: $42,285,461

Timeline