Interior Department awards $88K contract for water systems in Montana, with limited competition

Contract Overview

Contract Amount: $88,220 ($88.2K)

Contractor: City of Hardin

Awarding Agency: Department of the Interior

Start Date: 2024-05-21

End Date: 2027-03-31

Contract Duration: 1,044 days

Daily Burn Rate: $85/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CITY OF HARDIN - ROCKY MOUNTAIN REGIONAL

Place of Performance

Location: CROW AGENCY, BIG HORN County, MONTANA, 59022

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $88,219.97 to CITY OF HARDIN for work described as: CITY OF HARDIN - ROCKY MOUNTAIN REGIONAL Key points: 1. Contract value appears modest, suggesting a focused scope of work. 2. Limited competition raises questions about potential price overruns and optimal value. 3. Contract duration extends over two years, indicating ongoing service needs. 4. The contract is for water supply and irrigation systems, a critical infrastructure need. 5. Geographic focus on Montana suggests localized impact and benefits. 6. Firm Fixed Price contract type offers cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $88,219.97 is relatively small, making direct comparison to larger infrastructure projects difficult. Without more detailed cost breakdowns or benchmarks for similar water system maintenance in Montana, assessing value for money is challenging. The firm fixed-price structure provides some cost control, but the limited competition could mean the price is not as competitive as it could be.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source is available or capable of meeting the requirement. The lack of competition limits the government's ability to solicit multiple bids and potentially negotiate a lower price.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. This could lead to higher costs than if multiple vendors had vied for the contract.

Public Impact

The City of Hardin, Montana, is the direct recipient and likely beneficiary of the water supply and irrigation system services. The contract supports essential public infrastructure, ensuring reliable water access for the local community. The geographic impact is concentrated in Hardin, Montana, and surrounding areas served by these systems. Workforce implications are likely localized, potentially involving local contractors or employees for service delivery and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Limited public information on the specific services to be rendered and performance metrics.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Contract addresses essential infrastructure needs for water supply and irrigation.
Award to a municipal entity (City of Hardin) may indicate a focus on local service delivery.

Sector Analysis

This contract falls within the 'Water Supply and Irrigation Systems' category, which is a subset of the broader infrastructure and public works sector. The market for such services typically involves specialized engineering and maintenance firms. While specific market size data for this niche is not readily available, it is a critical component of local government operations and federal support for tribal or rural infrastructure.

Small Business Impact

The contract was awarded to the City of Hardin, which is a municipal entity, not a small business. There is no indication of small business set-asides or subcontracting requirements associated with this award. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education, given their role in awarding the contract. Accountability measures would be defined by the contract terms and performance standards. Transparency is limited due to the sole-source nature of the award and the absence of publicly detailed performance reports.

Related Government Programs

Bureau of Indian Affairs Water Infrastructure Programs
Bureau of Indian Education Facilities Management
Rural Water Supply Grants
State of Montana Water Resource Management

Risk Flags

Sole-source award may indicate limited market availability or urgency.
Lack of competition could lead to suboptimal pricing.
Contract duration extends over two years, requiring ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $88,219.97 to CITY OF HARDIN. CITY OF HARDIN - ROCKY MOUNTAIN REGIONAL

Who is the contractor on this award?

The obligated recipient is CITY OF HARDIN.

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 $88,219.97.

What is the period of performance?

Start: 2024-05-21. End: 2027-03-31.

What specific services are included under the 'Water Supply and Irrigation Systems' contract?

The provided data indicates the contract is for 'Water Supply and Irrigation Systems' but does not detail the specific services. Typically, such contracts can encompass a range of activities including maintenance, repair, operation, and potentially upgrades of water treatment facilities, distribution networks, pipelines, pumps, and irrigation canals. The scope could include routine inspections, emergency repairs, water quality monitoring, and system efficiency improvements. Further details would be found in the contract's statement of work (SOW) or performance work statement (PWS), which are not publicly available in this data extract.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which often implies a sole-source justification. Common reasons for sole-source awards include situations where only one vendor possesses the unique capability, technology, or security clearance required; when urgent and compelling circumstances prevent a competitive process; or when the contract is a follow-on to a previous sole-source award where the original justification remains valid. Without the specific justification document from the Department of the Interior, the precise reason remains unknown, but it suggests a perceived lack of alternatives or a critical need that could only be met by the selected contractor.

What is the historical spending pattern for water supply and irrigation systems by the Bureau of Indian Affairs in Montana?

The provided data only includes details for this single contract awarded on May 21, 2024. To assess historical spending patterns for water supply and irrigation systems by the Bureau of Indian Affairs (BIA) in Montana, one would need to access historical contract databases (like FPDS or USASpending.gov) and filter by the agency (Department of the Interior), the specific bureau (BIA), the geographic location (Montana), and relevant North American Industry Classification System (NAICS) codes related to water infrastructure. Analyzing trends over several fiscal years would reveal the typical investment levels, types of contracts awarded, and the prevalence of competitive versus sole-source procurements in this sector for the region.

How does the firm fixed-price contract type benefit the government in this scenario?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government as it establishes a ceiling price that the contractor must not exceed. The contractor assumes the risk of cost overruns, which incentivizes them to manage their expenses efficiently. For the government, this provides budget certainty and predictability, making financial planning easier. In the context of water supply and irrigation systems, where operational costs can fluctuate due to material prices or labor, an FFP contract helps shield the agency from unexpected cost increases, ensuring the $88,219.97 award remains the total cost unless contract modifications occur.

What are the potential risks associated with a sole-source award for essential services like water systems?

Sole-source awards carry several potential risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, meaning taxpayers may overpay for the services. It can also reduce the incentive for the awarded contractor to innovate or provide exceptional service, as they face no immediate threat from competitors. Furthermore, it raises concerns about whether a truly exhaustive search for alternative sources was conducted, potentially overlooking capable small businesses or other qualified vendors. This can also limit transparency and public trust in the procurement process.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140A0424C0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 406 N CHEYENNE AVE, HARDIN, MT, 59034

Business Categories: Category Business, Council of Governments, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $147,220

Exercised Options: $88,220

Current Obligation: $88,220

Actual Outlays: $47,895

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline