Interior Department's $50.6M Mormon Island Dam contract awarded to Suulutaaq, Inc. after exclusion of sources

Contract Overview

Contract Amount: $50,599,588 ($50.6M)

Contractor: Suulutaaq, Inc.

Awarding Agency: Department of the Interior

Start Date: 2013-07-17

End Date: 2016-02-12

Contract Duration: 940 days

Daily Burn Rate: $53.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF - MORMON ISLAND AUXILIARY DAM (MIAD) OVERLAY

Place of Performance

Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $50.6 million to SUULUTAAQ, INC. for work described as: IGF::CT::IGF - MORMON ISLAND AUXILIARY DAM (MIAD) OVERLAY Key points: 1. The contract's value of $50.6 million represents a significant investment in civil engineering infrastructure. 2. Awarded under 'Full and Open Competition After Exclusion of Sources,' the procurement method warrants scrutiny regarding its impact on competition. 3. The duration of 940 days suggests a complex and potentially lengthy project execution. 4. The contract type 'Firm Fixed Price' aims to control costs but may shift risk to the contractor. 5. The 'Other Heavy and Civil Engineering Construction' sector is critical for national infrastructure maintenance and development. 6. The Bureau of Reclamation's role indicates a focus on water resource management and related infrastructure. 7. The exclusion of sources in the competition phase raises questions about the breadth of market engagement.

Value Assessment

Rating: fair

Benchmarking the value of this $50.6 million contract is challenging without specific cost breakdowns or comparable project data. The 'Firm Fixed Price' contract type suggests an attempt to cap costs, but the final price relative to the initial estimate or market rates for similar civil engineering projects is not readily available. The contract's duration of 940 days also implies a substantial scope of work, making a direct per-unit cost comparison difficult without detailed task specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that while the competition was intended to be open, certain sources were deliberately excluded. This procurement strategy is less common than standard full and open competition and can limit the pool of potential bidders. The fact that 7 bids were received suggests some level of interest, but the exclusion of specific sources may have impacted the overall competitiveness and potentially the price discovery process.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, could mean taxpayers did not benefit from the widest possible competitive pricing. This method warrants careful review to ensure it was justified and did not inadvertently lead to higher costs than a truly unrestricted competition might have yielded.

Public Impact

The primary beneficiaries are likely the residents and industries in California that rely on the integrity and functionality of the Mormon Island Auxiliary Dam. The services delivered involve heavy and civil engineering construction, specifically related to overlay or reinforcement of the dam structure. The geographic impact is localized to the Folsom Lake area in California, where the dam is situated. The project would likely involve a workforce of skilled construction laborers, engineers, and project managers, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition method requires further investigation to understand the rationale and potential impact on cost.
Lack of detailed cost breakdowns makes it difficult to assess value for money and benchmark against similar projects.
The contract's duration and fixed-price nature could lead to change orders if unforeseen issues arise, potentially increasing the final cost.
Limited public information on the specific nature of the 'overlay' work could obscure potential risks or complexities.
The contractor's track record for similar large-scale civil engineering projects would provide better context for performance assessment.

Positive Signals

The 'Firm Fixed Price' contract type provides cost certainty for the government, assuming no significant change orders.
Awarding to a single contractor (Suulutaaq, Inc.) can streamline project management and communication.
The Bureau of Reclamation's involvement suggests adherence to established engineering standards and oversight for critical water infrastructure.
Receiving 7 bids indicates a degree of market interest despite the 'exclusion of sources' stipulation.
The project addresses critical infrastructure needs for dam safety and potentially water management.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a vital part of the construction industry focused on large-scale public works. This sector includes projects like dams, bridges, highways, and utility infrastructure. Spending in this area is often driven by government initiatives for infrastructure repair, upgrades, and new development. Comparable spending benchmarks would typically involve analyzing the cost per linear foot for dam reinforcement, square footage for overlay work, or total project cost relative to dam size and complexity.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be indirect, potentially through subcontracting opportunities if Suulutaaq, Inc. engages small businesses for specialized services. However, without explicit subcontracting plans or goals, the direct benefit to small businesses remains uncertain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Reclamation, a division of the Department of the Interior, which is responsible for managing water and power resources. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is facilitated through contract award databases like FPDS, which provide basic information on the contract. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Bureau of Reclamation Construction Projects
Army Corps of Engineers Civil Works Projects
Federal Dam Safety and Maintenance Programs
Infrastructure Investment and Jobs Act Projects

Risk Flags

Procurement method 'Full and Open Competition After Exclusion of Sources' warrants scrutiny.
Lack of detailed cost breakdown hinders value-for-money assessment.
Contractor's specific experience with similar dam projects is not readily available.
Potential for change orders on long-duration FFP contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $50.6 million to SUULUTAAQ, INC.. IGF::CT::IGF - MORMON ISLAND AUXILIARY DAM (MIAD) OVERLAY

Who is the contractor on this award?

The obligated recipient is SUULUTAAQ, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $50.6 million.

What is the period of performance?

Start: 2013-07-17. End: 2016-02-12.

What specific 'overlay' work was performed on the Mormon Island Auxiliary Dam, and what was the justification for this work?

The specific 'overlay' work performed on the Mormon Island Auxiliary Dam (MIAD) under contract number 237990 is not detailed in the provided data. Typically, dam overlays can refer to various types of structural reinforcement or protective layers applied to the dam's surface. This could include concrete overlays for crack repair and erosion protection, asphalt overlays for waterproofing, or specialized geomembrane applications. The justification for such work usually stems from structural assessments identifying degradation, seismic vulnerability, or the need to enhance the dam's lifespan and operational efficiency. Without access to the contract's statement of work or technical specifications, the precise nature and rationale for the overlay remain speculative. Further investigation into Bureau of Reclamation project documentation would be necessary to ascertain the exact scope and purpose.

How does the $50.6 million contract value compare to other similar dam overlay or reinforcement projects undertaken by the Bureau of Reclamation or other federal agencies?

Directly comparing the $50.6 million contract value for the Mormon Island Auxiliary Dam overlay without specific details on the scope, materials, and complexity of the work is challenging. However, major dam rehabilitation and construction projects can range from tens of millions to billions of dollars. For instance, significant dam safety projects often involve extensive structural repairs, seismic retrofitting, or spillway upgrades that can easily exceed $100 million. Smaller-scale overlay or repair projects might fall within the $10 million to $50 million range, depending on the size of the dam and the extent of the work. The Bureau of Reclamation has undertaken numerous large-scale projects, and while $50.6 million is a substantial sum, it appears to be within the typical range for significant civil engineering work on a major dam structure. A more precise comparison would require analyzing the square footage of the overlay, the type of materials used, and the specific engineering challenges addressed.

What are the potential risks associated with a 'Firm Fixed Price' contract for a project of this nature and duration?

A 'Firm Fixed Price' (FFP) contract, while aiming to provide cost certainty, carries inherent risks for complex civil engineering projects like dam overlays, especially over a 940-day duration. The primary risk is that unforeseen conditions encountered during construction (e.g., unexpected geological issues, material defects, or environmental challenges) could lead to significant change orders. If the contractor underestimated the complexity or cost of the work, they might seek additional compensation through change orders, potentially eroding the 'fixed' nature of the price. Conversely, if the contractor absorbs unexpected costs, they might cut corners on quality, posing a risk to the dam's integrity. The long duration also increases the likelihood of encountering such issues and the potential for escalation in material or labor costs if not adequately accounted for in the initial pricing. Effective oversight and a well-defined scope are crucial to mitigate these risks.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply about the bidding process and potential cost savings?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced procurement strategy. It implies that the agency initially intended to compete the contract broadly but then decided to exclude certain potential sources based on specific criteria. This exclusion could be due to reasons such as past performance issues with certain contractors, national security concerns, or the need for specialized capabilities that only a subset of the market possesses. While 7 bids were received, indicating some level of competition, the exclusion of sources inherently limits the breadth of competition compared to a truly unrestricted 'full and open' process. This limitation could potentially result in less aggressive pricing than might have been achieved with a wider pool of bidders. The justification for excluding sources is critical; if the exclusions were arbitrary or not well-founded, it could suggest a missed opportunity for greater cost savings for taxpayers.

What is the track record of Suulutaaq, Inc. in managing large-scale civil engineering and dam construction projects?

Information regarding Suulutaaq, Inc.'s specific track record in managing large-scale civil engineering and dam construction projects is not detailed in the provided data. To assess their capability and reliability for the Mormon Island Auxiliary Dam overlay contract, a review of their past performance on similar projects would be essential. This would include examining the size and complexity of previous contracts, their on-time and on-budget completion rates, any history of disputes or contract modifications, and client feedback. Without this information, it is difficult to definitively evaluate the contractor's suitability and the associated performance risks. Further research into federal contract databases and industry reports would be needed to build a comprehensive profile of Suulutaaq, Inc.'s relevant experience.

How has federal spending on 'Other Heavy and Civil Engineering Construction' evolved over the past decade, and what are the key drivers?

Federal spending on 'Other Heavy and Civil Engineering Construction' has generally seen fluctuations driven by economic conditions, infrastructure needs, and legislative priorities. Over the past decade, there have been periods of increased investment spurred by initiatives aimed at modernizing aging infrastructure, addressing climate resilience, and promoting economic recovery. Key drivers include the need for repairs and upgrades to critical infrastructure such as dams, bridges, transportation networks, and water systems. Federal funding often supports large-scale projects that are beyond the capacity of state and local governments. Recent legislative actions, like the Infrastructure Investment and Jobs Act, are expected to significantly boost spending in this sector. However, the pace of spending can also be influenced by budget appropriations, project readiness, and the availability of qualified contractors. Analyzing historical spending patterns reveals a cyclical nature, often tied to federal infrastructure plans and economic stimulus efforts.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R13PS20092

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Suulutaaq Inc (UEI: 145408303)

Address: 110 RAILROAD AVE STE A, SUISUN CITY, CA, 94585

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,599,588

Exercised Options: $50,599,588

Current Obligation: $50,599,588

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline