Department of Defense awards $18.9M construction contract for Ojo Encino Day School to Alutiiq International Solutions

Contract Overview

Contract Amount: $18,874,181 ($18.9M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2008-02-08

End Date: 2011-09-30

Contract Duration: 1,330 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION FOR OJO ENCINO DAY SCHOOL

Place of Performance

Location: CUBA, SANDOVAL County, NEW MEXICO, 87013

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: CONSTRUCTION FOR OJO ENCINO DAY SCHOOL Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 1330 days indicates a significant, long-term project. 4. Fixed-price contract type shifts risk to the contractor, encouraging cost control. 5. Project is located in New Mexico, potentially impacting local construction workforce and economy. 6. No small business set-aside was utilized, suggesting larger firms were primary bidders.

Value Assessment

Rating: good

The contract value of $18.9 million for the construction of a day school is within a typical range for such projects. Benchmarking against similar educational facility constructions by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator for cost predictability, as it places the onus of cost management on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, which can lead to more competitive pricing and better value for the government.

Public Impact

The primary beneficiaries are students and staff of the Ojo Encino Day School, who will receive a new or renovated facility. The contract delivers essential construction services for a federal educational facility. The geographic impact is concentrated in New Mexico, potentially stimulating local economic activity and employment in the construction sector. The project will likely involve a significant construction workforce, including skilled tradespeople and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on the contractor's ability to manage a complex, multi-year construction project effectively.
Ensuring compliance with all environmental and safety regulations during the construction phase.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust bidding process that likely yielded a competitive price.
The long duration allows for thorough planning and execution of a substantial construction project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The federal government is a significant consumer of construction services, particularly for infrastructure, educational facilities, and military installations. The market for large-scale construction projects is often dominated by established firms capable of handling complex, high-value contracts. Benchmarks for similar school construction projects by the DoD can range widely based on size, complexity, and location.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the competition was open to all business sizes, and the winning contractor, Alutiiq International Solutions, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data, which would typically be a consideration for larger federal construction contracts to ensure broader economic impact.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring adherence to project specifications, timelines, and quality standards. Accountability is built into the firm fixed-price contract, where the contractor is responsible for delivering the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not provided.

Related Government Programs

Department of Defense Military Construction
Federal School Construction Projects
General Services Administration (GSA) Public Buildings Service Construction

Risk Flags

Potential for delays due to unforeseen site conditions.
Risk of quality compromises if contractor focuses solely on cost reduction.
Contractor performance and financial stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. CONSTRUCTION FOR OJO ENCINO DAY SCHOOL

Who is the contractor on this award?

The obligated recipient is ALUTIIQ INTERNATIONAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2008-02-08. End: 2011-09-30.

What is the track record of Alutiiq International Solutions, LLC with federal construction contracts?

Alutiiq International Solutions, LLC has a history of securing federal contracts, primarily with the Department of Defense. Their portfolio includes various construction and support services. Analyzing their past performance on similar-sized construction projects, particularly educational or institutional buildings, would provide insight into their capability and reliability. Reviewing past contract awards, completion records, and any reported disputes or performance issues would offer a comprehensive view of their track record. Data on their financial stability and bonding capacity would also be relevant for assessing their ability to successfully execute a contract of this magnitude.

How does the awarded amount compare to similar construction projects for educational facilities within the DoD?

The $18.9 million award for the Ojo Encino Day School construction is a substantial figure, typical for a significant building project. To benchmark its value, one would compare it to the cost per square foot or per student capacity of other DoD-funded school constructions. Factors like geographic location (affecting labor and material costs), specific design requirements, and the extent of renovation versus new build heavily influence these costs. Without detailed project scope and specifications, a precise comparison is difficult, but the amount suggests a project of considerable scale and complexity, likely encompassing all phases from site preparation to final finishes.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks for the government in a firm fixed-price contract are minimal regarding cost overruns, as the price is set. However, risks can emerge if the contractor cuts corners on quality to maintain profitability, leading to potential long-term maintenance issues. Another risk is contractor default or poor performance, which could lead to significant delays and the need to re-compete or bring in a replacement contractor, potentially at a higher cost. Scope creep, if not managed tightly through change orders, can also become an issue. For the contractor, the main risk is underestimating costs or encountering unforeseen site conditions, which could lead to financial losses.

What is the expected effectiveness of this contract in delivering a functional and safe educational facility?

The effectiveness of this contract hinges on robust project management, quality control, and adherence to the specified design and construction standards. The firm fixed-price nature incentivizes the contractor to complete the project efficiently within budget. The Department of the Army's oversight, through a COR and potentially third-party inspectors, will be crucial in ensuring the facility meets safety codes, educational requirements, and durability standards. A well-executed project should result in a safe, functional, and long-lasting educational environment for students and staff.

How has historical spending on similar construction projects by the Department of the Army trended?

Historical spending by the Department of the Army on construction projects, particularly for facilities like schools and barracks, has been substantial and often subject to fluctuations based on defense budgets and infrastructure needs. Trends may show an increasing emphasis on energy efficiency, sustainability, and modern technological integration in new builds. Analyzing past spending patterns can reveal average project costs, common contract types utilized, and the typical duration for similar undertakings. This contract's value and duration appear consistent with historical patterns for significant facility construction within the DoD.

What are the implications of the 'Commercial and Institutional Building Construction' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' signifies that the primary activity under this contract involves the construction of non-residential buildings such as schools, hospitals, government buildings, and other commercial establishments. This classification helps categorize the contract within the broader construction industry, allowing for benchmarking against industry standards, labor requirements, and typical project complexities associated with this type of construction. It guides the selection of appropriate contract clauses and oversight mechanisms relevant to commercial and institutional building projects.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PP07R0024

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3033 S PARKER RD STE 1111, AURORA, CO, 80014

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,874,181

Exercised Options: $18,874,181

Current Obligation: $18,874,181

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline