Forest Service awards $2.4M for building construction, including fire alarm and mold remediation

Contract Overview

Contract Amount: $241,969 ($242.0K)

Contractor: FED Serve LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-09-22

End Date: 2026-07-13

Contract Duration: 294 days

Daily Burn Rate: $823/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MULTI BUILDING FIRE ALARM SYSTEM REPLACEMENT AND MOLD REMEDIATION

Place of Performance

Location: NEMO, LAWRENCE County, SOUTH DAKOTA, 57759

State: South Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $241,969 to FED SERVE LLC for work described as: MULTI BUILDING FIRE ALARM SYSTEM REPLACEMENT AND MOLD REMEDIATION Key points: 1. Contract value represents a significant investment in facility maintenance and safety upgrades. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price structure aims to control costs and provide budget certainty. 4. The project addresses critical infrastructure needs, including fire safety and environmental health. 5. The duration of the contract indicates a substantial scope of work. 6. The specific NAICS code points to a focus on commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $2.4 million for a multi-building fire alarm system replacement and mold remediation appears reasonable given the scope and duration. Without specific benchmarks for similar projects in South Dakota, a direct comparison is difficult. However, the fixed-price nature of the contract suggests that the government has negotiated a set cost, which can be advantageous in managing expenditures. The inclusion of both fire alarm systems and mold remediation indicates a comprehensive approach to building safety and habitability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that the opportunity was broadly advertised, and multiple bids were likely solicited. While the 'exclusion of sources' phrasing might suggest some initial limitations, the overall 'full and open' designation implies a robust competitive process. The number of bidders is not specified, but this type of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition allows for the widest possible pool of contractors to bid, increasing the likelihood of receiving competitive pricing and ensuring taxpayer dollars are used efficiently.

Public Impact

Federal facilities in South Dakota will benefit from upgraded fire safety systems and improved environmental conditions. The project will deliver essential maintenance and modernization services to government-owned buildings. The geographic impact is concentrated in South Dakota, where the Forest Service operates. The contract supports the construction and maintenance workforce, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during mold remediation, despite fixed-price contract.
Dependence on contractor's expertise for complex fire alarm system integration.
Risk of delays if permitting or site access issues occur in South Dakota.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market and potentially good value.
Focus on critical safety and environmental upgrades enhances facility longevity and user well-being.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing facility upgrades and maintenance. The NAICS code 236220 covers the construction of commercial buildings and warehouses. Spending in this sector for federal facilities is ongoing, driven by the need to maintain aging infrastructure, comply with safety regulations, and improve energy efficiency. Comparable spending benchmarks would typically involve analyzing other federal construction contracts for similar building types and scopes of work, often found within agency-specific facilities management budgets.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small business set-asides is likely minimal unless the prime contractor engages in subcontracting with small businesses. The Forest Service's overall small business utilization goals would be a key factor in assessing subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Forest Service contracting officer and project managers. Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified services and materials. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract performance or award process.

Related Government Programs

Federal Building Construction
Facility Maintenance and Repair
Public Safety Infrastructure
Environmental Remediation Services

Risk Flags

Potential for unforeseen conditions during mold remediation.
Complexity of integrating new fire alarm systems across multiple buildings.
Contract duration may be subject to delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $241,969 to FED SERVE LLC. MULTI BUILDING FIRE ALARM SYSTEM REPLACEMENT AND MOLD REMEDIATION

Who is the contractor on this award?

The obligated recipient is FED SERVE LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $241,969.

What is the period of performance?

Start: 2025-09-22. End: 2026-07-13.

What is the historical spending pattern for multi-building fire alarm system replacement and mold remediation by the Forest Service?

Analyzing historical spending for similar projects by the Forest Service is crucial for context. While this specific contract is for $2.4 million, understanding if this amount is typical, higher, or lower than previous investments in comparable facility upgrades can reveal trends. For instance, if the Forest Service has recently increased spending in this area, it might indicate a proactive approach to aging infrastructure or a response to identified systemic issues across its facilities. Conversely, a significant deviation from historical norms could warrant further investigation into the specific needs of the South Dakota facilities or the pricing strategy employed in this procurement. Without access to detailed historical data for this specific service category, it's difficult to provide precise figures, but a review of past Forest Service contracts for building systems and environmental services would be necessary for a comprehensive analysis.

How does the contractor, FED SERVE LLC, perform on other federal contracts, particularly those involving construction and remediation?

FED SERVE LLC's performance on other federal contracts is a key indicator of their reliability and capability. A review of their past contract history, including on-time delivery, quality of work, and adherence to budget, would provide valuable insights. Specifically, looking at previous construction projects, fire alarm system installations, or mold remediation efforts would offer the most relevant performance context. High ratings and successful completion of similar projects would suggest a lower risk for this current contract. Conversely, a history of performance issues, disputes, or contract terminations could raise concerns about FED SERVE LLC's ability to meet the requirements of this $2.4 million award. Assessing past performance is a standard part of government procurement due diligence.

What are the specific risks associated with mold remediation in federal buildings, and how are they mitigated in this contract?

Mold remediation in federal buildings presents several risks, including potential health hazards to occupants and workers, the possibility of incomplete removal leading to recurrence, and the risk of damaging building materials during the process. This contract, valued at $2.4 million, likely includes detailed specifications and protocols for mold assessment, containment, removal, and post-remediation verification. The fixed-price nature of the contract aims to transfer some of the cost risk to the contractor, incentivizing efficient and thorough remediation. However, unforeseen conditions (e.g., hidden mold growth, structural damage) could still lead to change orders or disputes if not adequately addressed in the contract's scope of work and contingency planning. Robust oversight by the Forest Service project managers will be critical to ensure compliance with environmental and safety standards throughout the remediation process.

What is the estimated per-unit cost for fire alarm system replacement or mold remediation based on this contract's value and scope?

Determining an accurate per-unit cost for fire alarm system replacement or mold remediation from this contract's total value of $2.4 million is challenging without detailed breakdowns of the scope of work. The contract covers multiple buildings, and the extent of mold contamination can vary significantly. For fire alarm systems, costs depend on the size and complexity of the buildings, the type of system installed (e.g., addressable vs. conventional), and the number of devices. For mold remediation, costs are highly dependent on the square footage affected, the type and severity of mold, and the containment and disposal procedures required. Benchmarking would require comparing this contract's total cost against similar projects with clearly defined units (e.g., cost per square foot for remediation, cost per device for fire alarms) to assess value for money.

How does the 'exclusion of sources' clause in the contract type affect competition and potential pricing?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain potential sources may have been excluded prior to the main solicitation. This exclusion could be based on various factors, such as specific technical capabilities, past performance, or security requirements. If the exclusion significantly narrows the field of potential bidders, it could reduce the overall level of competition compared to a truly unrestricted full and open competition. Reduced competition can sometimes lead to less aggressive pricing, as contractors may face fewer rivals. However, the Forest Service likely determined that the exclusion was justified to ensure the necessary qualifications were met for this specific project, balancing competition with the need for specialized expertise.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5012 2ND ST E, WEST FARGO, ND, 58078

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $241,969

Exercised Options: $241,969

Current Obligation: $241,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1282A724D0009

IDV Type: IDC

Timeline