Department of the Interior awards $5.2M contract for building construction to Olgoonik Federal, LLC

Contract Overview

Contract Amount: $5,207 ($5.2K)

Contractor: Olgoonik Federal, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-06-17

End Date: 2026-09-30

Contract Duration: 835 days

Daily Burn Rate: $6/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NCI-24-066 INSTALL NEW BSC

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $5,206.97 to OLGOONIK FEDERAL, LLC for work described as: NCI-24-066 INSTALL NEW BSC Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration spans over two years, suggesting a significant scope of work. 3. Awarded to a single vendor, raising questions about competitive pricing. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. 6. The awarding agency is the Department of the Interior, with work to be performed in Maryland.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of work and the underlying IDIQ vehicle it may be part of. However, a $5.2 million contract for building construction over approximately two years suggests a moderate-sized project. The firm-fixed-price structure is generally favorable for the government, as it shifts cost overrun risks to the contractor. Without comparable bids or detailed cost breakdowns, a precise value-for-money assessment is difficult, but the price appears within a reasonable range for a project of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. This means that only one vendor was solicited or considered for the award. While sole-source awards can sometimes be justified for specialized services or urgent needs, they typically result in less competitive pricing compared to full and open competition. The lack of multiple bidders limits the government's ability to leverage market forces to secure the best possible price and terms.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the most cost-effective solution, as there was no pressure from competing bids to drive down the price.

Public Impact

The primary beneficiaries are the residents and employees who will utilize the constructed or renovated facilities. The contract delivers essential building construction services, likely involving new construction, renovation, or repair of government facilities. Geographic impact is concentrated in Maryland, where the work will be performed. The contract supports jobs within the construction sector, including skilled trades and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure necessity and fairness.
Contract duration of over two years necessitates ongoing monitoring for performance and adherence to scope.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a specific company suggests a pre-existing relationship or specialized capability.
Delivery order structure implies it fits within a broader contracting framework.

Sector Analysis

The commercial and institutional building construction sector is a significant part of the U.S. economy, encompassing the building of non-residential structures like offices, schools, and government facilities. Federal spending in this sector is substantial, supporting infrastructure development and maintenance. This contract, valued at $5.2 million, represents a moderate investment within this broad industry. Comparable spending benchmarks would depend heavily on the specific type and scale of construction, but federal agencies frequently contract for such services to maintain and expand their physical footprint.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information suggesting subcontracting opportunities for small businesses. The award to Olgoonik Federal, LLC, a company that may or may not qualify as a small business depending on its size standards, does not automatically imply benefits for the broader small business ecosystem. Further investigation into the contractor's size status and subcontracting plans would be needed to assess its impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified work within the agreed-upon price. Transparency would be enhanced if the contract details, including the specific scope of work and justification for the sole-source award, were publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Construction Contracts
Public Buildings Service (PBS) Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency on specific project scope and justification.
Contractor performance history not readily available in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5,206.97 to OLGOONIK FEDERAL, LLC. NCI-24-066 INSTALL NEW BSC

Who is the contractor on this award?

The obligated recipient is OLGOONIK FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $5,206.97.

What is the period of performance?

Start: 2024-06-17. End: 2026-09-30.

What is the specific scope of work for this building construction contract?

The provided data indicates the contract is for 'NCI-24-066 INSTALL NEW BSC' and falls under NAICS code 236220 (Commercial and Institutional Building Construction). However, the exact nature of the 'BSC' installation or the broader construction project is not detailed. It could range from installing a building systems control (BSC) to constructing a new building or renovating an existing one. A comprehensive understanding of the scope requires access to the contract's statement of work (SOW), which would detail the specific tasks, deliverables, timelines, and performance standards required from Olgoonik Federal, LLC.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. The justification for such an award typically stems from unique capabilities of the contractor, urgent and compelling needs that preclude full competition, or situations where only one responsible source can fulfill the requirement. Without further documentation, such as a Justification and Approval (J&A) document, the specific reasons remain unclear. Sole-source awards are exceptions to the general policy of full and open competition and require rigorous justification to ensure fair and reasonable pricing and prevent potential waste.

How does the $5.2 million contract value compare to similar building construction projects for the Department of the Interior?

Comparing the $5.2 million value requires context on the specific type and scale of construction. For instance, a small renovation project might be considered high-value, while a large new facility construction could be seen as moderate. The Department of the Interior manages a vast portfolio of buildings and infrastructure across diverse geographic locations. To benchmark effectively, one would need to identify comparable projects within the Department or other federal agencies that involve similar construction types (e.g., office buildings, visitor centers, maintenance facilities), geographic regions, and project durations. Access to historical contract databases and spending reports would be crucial for such a comparison.

What is Olgoonik Federal, LLC's track record with federal construction contracts?

Information on Olgoonik Federal, LLC's specific track record with federal construction contracts is not provided in the summary data. To assess their performance history, one would need to examine past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A review of their past performance would reveal their reliability, quality of work, adherence to schedules and budgets, and overall suitability for undertaking significant construction projects. This information is critical for understanding the risk associated with this particular award.

What are the potential risks associated with a sole-source award for building construction?

The primary risk of a sole-source award for building construction is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the contractor may not feel compelled to offer the most cost-effective solution. Other risks include a potential reduction in innovation, as there's less incentive to propose novel or more efficient construction methods. Furthermore, it raises concerns about fairness and equal opportunity for other qualified contractors who were not solicited. Ensuring the government has robust negotiation leverage and thorough cost analysis is crucial to mitigate these risks.

What is the expected impact of this contract on the Maryland construction market?

The $5.2 million contract awarded to Olgoonik Federal, LLC, for work in Maryland, is expected to have a positive, albeit localized, impact on the state's construction market. It will likely stimulate economic activity by creating jobs for construction workers, project managers, and support staff within the region. Additionally, it may lead to increased demand for materials, equipment, and subcontractors operating in Maryland. The specific impact will depend on the scale and duration of the project, as well as the extent to which local resources and labor are utilized by the prime contractor.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 700, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,207

Exercised Options: $5,207

Current Obligation: $5,207

Actual Outlays: $495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 140D0420D0006

IDV Type: IDC

Timeline