Interior Department awards $2.38M contract for Menager's Dam construction management to RJH Consultants

Contract Overview

Contract Amount: $2,382,378 ($2.4M)

Contractor: RJH Consultants, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-09-05

End Date: 2026-12-31

Contract Duration: 1,213 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MENAGER'S DAM CONSTRUCTION MANAGEMENT

Place of Performance

Location: ENGLEWOOD, DOUGLAS County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $2.4 million to RJH CONSULTANTS, INC. for work described as: MENAGER'S DAM CONSTRUCTION MANAGEMENT Key points: 1. Contract value appears reasonable for a multi-year construction management project of this scope. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over three years indicates a significant undertaking. 5. The contract is managed by the Bureau of Indian Affairs and Bureau of Indian Education, highlighting a focus on tribal infrastructure. 6. Engineering services (NAICS 541330) are critical for complex infrastructure projects.

Value Assessment

Rating: good

The contract value of $2.38 million for construction management over approximately three years seems aligned with industry standards for similar infrastructure projects. Without specific details on the project's complexity and scale, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. Benchmarking against other dam construction management contracts would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was a delivery order under a larger contract structure (implied by 'aw': 'DELIVERY ORDER') suggests that a broader competition may have occurred previously for the base contract, with this order being placed competitively.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the most advantageous offer. It also promotes fairness and transparency in the procurement process.

Public Impact

The primary beneficiaries are the communities served by the Menager's Dam infrastructure, ensuring its continued safety and functionality. The contract delivers essential construction management services, overseeing the technical and logistical aspects of dam maintenance and upgrades. The geographic impact is localized to the area where Menager's Dam is situated, likely within Colorado given the 'sn': 'COLORADO' field. The project will likely involve a workforce of engineers, project managers, and construction oversight personnel, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single contractor for a critical infrastructure project necessitates robust oversight.
The duration of the contract could lead to challenges in maintaining consistent performance and knowledge retention.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a strong market offering and potentially competitive pricing.
The contract is for engineering services, a specialized field requiring specific expertise.

Sector Analysis

The engineering services sector, particularly for infrastructure projects like dam management, is a critical component of the construction industry. This contract falls under the broader category of construction and engineering consulting, which involves specialized expertise in project planning, execution, and oversight. The market for such services is driven by government and private sector investments in aging infrastructure and new development. Comparable spending benchmarks would typically be found within the Department of the Interior's historical data for similar dam or water resource management projects.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses ('sb': false) and the contractor, RJH Consultants, Inc., is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses as subcontractors to fulfill specific project needs, which would be detailed in their subcontracting plan. The impact on the small business ecosystem would depend on whether such subcontracting opportunities are pursued.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Indian Affairs and Bureau of Indian Education, given their role in awarding it. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified services within the agreed-upon budget. Transparency is typically facilitated through contract award databases and reporting requirements. The Inspector General's office 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 Indian Affairs Infrastructure Programs
Bureau of Indian Education Facilities Management
Department of the Interior Dam Safety Initiatives
Federal Construction Management Contracts
Engineering Services Procurement

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite fixed-price.
Performance risk: ensuring quality of management services.
Contractor capacity and resource allocation over a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.4 million to RJH CONSULTANTS, INC.. MENAGER'S DAM CONSTRUCTION MANAGEMENT

Who is the contractor on this award?

The obligated recipient is RJH CONSULTANTS, INC..

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 $2.4 million.

What is the period of performance?

Start: 2023-09-05. End: 2026-12-31.

What is the track record of RJH Consultants, Inc. with federal contracts, particularly with the Department of the Interior?

To assess RJH Consultants, Inc.'s track record, a review of their past federal contract awards would be necessary. This would involve searching databases like the Federal Procurement Data System (FPDS) or USAspending.gov for previous contracts awarded to RJH Consultants, Inc. Key metrics to examine would include the total value of contracts held, the agencies they have worked with, the types of services provided, and their performance ratings (if available). Particular attention should be paid to any contracts with the Department of the Interior or its sub-agencies like the Bureau of Indian Affairs, to understand their experience with similar projects and regulatory environments. Any history of contract disputes, terminations, or performance issues would be significant red flags.

How does the awarded amount of $2.38 million compare to similar dam construction management contracts awarded by the federal government?

Benchmarking this $2.38 million contract against similar federal dam construction management contracts requires access to a comprehensive database of historical procurements. Factors such as the size and complexity of the dam, the scope of management services required (e.g., design review, on-site supervision, quality control, scheduling), the duration of the contract, and the specific agency awarding the contract all influence pricing. Contracts for smaller, less complex dams or those with shorter durations would naturally be valued lower. Conversely, large-scale rehabilitation projects or management of multiple dams could command higher values. A detailed comparison would involve identifying contracts with similar project scopes, geographical locations, and award dates to establish a relevant market rate.

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

While firm fixed-price (FFP) contracts are generally favorable for the government by shifting cost risk to the contractor, they are not without risks. For construction management, a primary risk is that the contractor may cut corners on quality or oversight to maintain profitability if their initial cost estimates were too low or unforeseen issues arise. This could lead to subpar construction management, potentially impacting the long-term integrity of the dam. Another risk is contractor default or poor performance, which, despite the FFP structure, can still lead to significant delays and the need for contract termination and re-procurement, incurring additional costs and time. Ensuring robust performance standards and diligent government oversight are crucial to mitigate these risks.

What is the expected effectiveness of RJH Consultants, Inc. in managing the Menager's Dam construction project?

The expected effectiveness of RJH Consultants, Inc. hinges on several factors, primarily their demonstrated expertise in engineering and construction management, their past performance on similar federal projects, and the clarity and completeness of the contract's scope of work. As the contract was awarded under full and open competition, it implies that multiple firms were evaluated, and RJH Consultants, Inc. was deemed the most advantageous offer. The firm fixed-price nature incentivizes them to manage the project efficiently within budget. However, the ultimate effectiveness will depend on the quality of their project management team, their adherence to safety and quality standards, and the Department of the Interior's own oversight capabilities throughout the project lifecycle.

How has federal spending on engineering and construction management services for water infrastructure evolved over the past five years?

Federal spending on engineering and construction management services for water infrastructure has generally seen an upward trend over the past five years, driven by increasing recognition of the nation's aging water systems and the need for upgrades and repairs. Agencies like the Army Corps of Engineers, Bureau of Reclamation, and the Department of the Interior consistently allocate significant funds to water resource management, including dams, levees, and treatment facilities. Factors influencing this spending include federal infrastructure initiatives, climate change adaptation needs, and regulatory requirements. Analyzing historical spending data from sources like FPDS or USAspending.gov would reveal specific trends in contract values, types of services procured, and the distribution of funds across different agencies and project types.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1623R062

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9800 PYRAMID CT, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $2,382,378

Exercised Options: $2,382,378

Current Obligation: $2,382,378

Actual Outlays: $1,963,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1218D0010

IDV Type: IDC

Timeline