Interior's Bureau of Indian Affairs Awards $218.7M for High School Construction in Arizona

Contract Overview

Contract Amount: $218,746,004 ($218.7M)

Contractor: Tepa EC, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-23

End Date: 2027-12-07

Contract Duration: 1,170 days

Daily Burn Rate: $187.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MANY FARMS HIGH SCHOOL CONSTRUCTION BUILD.

Place of Performance

Location: MANY FARMS, APACHE County, ARIZONA, 86538

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $218.7 million to TEPA EC, LLC for work described as: MANY FARMS HIGH SCHOOL CONSTRUCTION BUILD. Key points: 1. Significant investment in educational infrastructure for Native American communities. 2. Competition method suggests a potentially robust price discovery process. 3. Risk of cost overruns or delays in large-scale construction projects. 4. Construction sector is subject to material cost fluctuations and labor availability.

Value Assessment

Rating: good

The contract value of $218.7 million for a high school construction project appears substantial. Benchmarking against similar large-scale educational building projects would be necessary for a precise assessment, but the scale suggests a significant undertaking.

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 method, while allowing broad participation, indicates specific criteria or circumstances led to the exclusion of certain potential bidders, which could impact the final price discovery.

Taxpayer Impact: Taxpayer funds are being allocated to improve educational facilities, which has long-term societal benefits. The competitive nature of the award aims to ensure value for money.

Public Impact

Direct impact on educational opportunities for students in Arizona. Job creation through construction activities in the local economy. Potential for improved learning environments and school facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large construction projects.
Dependence on specific contractor (TEPA EC, LLC) for project completion.
Risk of delays impacting educational timelines.

Positive Signals

Investment in critical educational infrastructure.
Competitive award process aimed at securing fair pricing.
Long-term benefit to the student community.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be influenced by economic conditions, government funding priorities for infrastructure, and regional development needs. Benchmarks for similar projects vary widely based on size, complexity, and location.

Small Business Impact

The data indicates the contract was awarded to TEPA EC, LLC. There is no explicit information provided regarding small business participation or subcontracting goals within this award, warranting further investigation into potential opportunities for small businesses.

Oversight & Accountability

Oversight will be crucial to ensure the project stays within budget and schedule. The Bureau of Indian Affairs and Bureau of Indian Education are responsible for monitoring progress and ensuring compliance with contract terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Lack of explicit small business participation details.
Potential for cost escalation in construction projects.
Complexity of managing large-scale infrastructure development.
Dependence on a single prime contractor for project delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $218.7 million to TEPA EC, LLC. MANY FARMS HIGH SCHOOL CONSTRUCTION BUILD.

Who is the contractor on this award?

The obligated recipient is TEPA EC, LLC.

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 $218.7 million.

What is the period of performance?

Start: 2024-09-23. End: 2027-12-07.

What specific factors contributed to the 'Exclusion of Sources' in the full and open competition, and how might this have influenced the final bid price?

The exclusion of sources typically occurs when specific qualifications, past performance, or unique capabilities are required that only a subset of potential bidders can meet. This can limit the breadth of competition, potentially leading to higher prices if the excluded sources represented significant competitive pressure. Further details on the solicitation's requirements would clarify the rationale and impact.

How does the awarded price of $218.7 million compare to industry benchmarks for similar high school construction projects of comparable size and complexity in Arizona?

A direct comparison requires detailed project specifications (square footage, materials, specialized facilities) and current market data for construction costs in Arizona. However, for a project of this magnitude, it is essential to benchmark against recent, similar educational construction projects to ascertain if the price is competitive or potentially inflated, considering material and labor cost trends.

What are the established risk mitigation strategies and contingency plans in place to address potential cost overruns or schedule delays for this large-scale construction project?

Effective project management for large construction contracts typically includes robust risk assessment, contingency budgeting, and detailed scheduling with buffer times. The Bureau of Indian Affairs and Bureau of Indian Education should have protocols for monitoring contractor performance, managing change orders, and addressing unforeseen issues like material shortages or labor disputes to keep the project on track and within budget.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1624R0010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5045 LIST DR STE 110, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $218,746,004

Exercised Options: $218,746,004

Current Obligation: $218,746,004

Actual Outlays: $61,944,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1623D0026

IDV Type: IDC

Timeline