DOI awards $9.89M for Nome Creek Road repairs, with 5 bidders competing

Contract Overview

Contract Amount: $9,890,700 ($9.9M)

Contractor: Central Environmental Inc

Awarding Agency: Department of the Interior

Start Date: 2024-12-19

End Date: 2027-01-06

Contract Duration: 748 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GAOA NOME CREEK ROAD REPAIR

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99709

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $9.9 million to CENTRAL ENVIRONMENTAL INC for work described as: GAOA NOME CREEK ROAD REPAIR Key points: 1. Contract value appears reasonable given the scope of road repair and construction. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of over two years indicates a significant, long-term project. 4. Fixed-price contract shifts risk to the contractor, potentially impacting final cost. 5. Project located in Alaska, a region with unique logistical and environmental challenges. 6. Contract awarded to Central Environmental Inc., requiring assessment of their past performance.

Value Assessment

Rating: good

The contract value of $9.89 million for road repair and construction in Alaska seems within a reasonable range for a project of this scale and duration. Benchmarking against similar federal highway construction projects in remote or challenging environments would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the contractor is experienced and efficient. However, without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. With 5 bidders participating, there was a moderate level of competition. The exclusion of sources warrants further investigation to understand if it limited the competitive landscape or was based on legitimate technical or capability requirements. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely received a fair price, but a broader competitive field could have potentially yielded even greater savings.

Public Impact

Benefits the Bureau of Land Management by ensuring access and operational capability in the region. Delivers essential infrastructure improvements for road maintenance and repair. Geographic impact is concentrated in Alaska, specifically affecting the Nome Creek area. Workforce implications include potential job creation for construction labor in Alaska. Improved road infrastructure can support resource management and public access activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen site conditions arise in Alaska's challenging terrain.
Risk associated with the contractor's experience in executing large-scale infrastructure projects in remote Arctic environments.
The 'exclusion of sources' in the competition process could indicate a less than optimal competitive environment.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Award to a single contractor with a defined scope and duration provides clear accountability.
The project addresses a critical infrastructure need for the Bureau of Land Management in Alaska.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader Construction industry. Federal spending in this sector supports national infrastructure development and maintenance. The market size for federal highway construction is substantial, with numerous contracts awarded annually across various agencies. This specific project's value of approximately $9.89 million is moderate for a federal construction contract, especially considering the logistical complexities often associated with projects in Alaska. Comparable spending benchmarks would typically involve analyzing the cost per mile or per square foot of similar road repair projects in comparable geographic and environmental conditions.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided details. This suggests that the prime contract was likely awarded to a larger entity capable of handling the project's scope and complexity. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract will primarily reside with the Bureau of Land Management (BLM), the awarding agency. The contract's firm fixed-price nature and defined period of performance (ending January 2027) provide clear accountability metrics. Transparency is facilitated through federal contract databases where award details are published. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, ensuring a level of accountability.

Related Government Programs

Federal Highway Administration Construction Projects
Bureau of Land Management Infrastructure Maintenance
Department of the Interior Capital Improvement Projects
Alaska Regional Infrastructure Development

Risk Flags

Potential for cost overruns due to remote location and environmental factors.
Contract duration exceeds one year, increasing exposure to market fluctuations.
Competition level is moderate, with potential for improved price discovery with more bidders.
Specific rationale for 'exclusion of sources' needs further clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $9.9 million to CENTRAL ENVIRONMENTAL INC. GAOA NOME CREEK ROAD REPAIR

Who is the contractor on this award?

The obligated recipient is CENTRAL ENVIRONMENTAL INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2024-12-19. End: 2027-01-06.

What is the track record of Central Environmental Inc. on similar federal infrastructure projects, particularly in remote or challenging environments like Alaska?

Assessing the track record of Central Environmental Inc. is crucial for understanding their capability to successfully execute the Nome Creek Road Repair project. A review of their past performance on federal contracts, especially those involving highway, street, or bridge construction, would reveal their history of meeting deadlines, staying within budget, and adhering to quality standards. Specific attention should be paid to projects undertaken in Alaska or similar Arctic/sub-Arctic regions, as these environments present unique logistical, environmental, and operational challenges. Data on project completion rates, any contract modifications or disputes, and client satisfaction ratings from previous federal agencies would provide valuable insights into their reliability and expertise. Without this specific performance data, the current assessment relies on the assumption that the contracting agency performed due diligence.

How does the awarded amount of $9.89 million compare to the estimated cost or benchmark for similar road repair projects in Alaska?

The awarded amount of $9.89 million for the Nome Creek Road Repair project needs to be benchmarked against similar federal construction contracts in Alaska to ascertain its value for money. Factors such as the length of road repaired, the type of repairs (e.g., resurfacing, base repair, drainage improvements), the terrain, and the specific logistical costs associated with working in remote Alaskan locations significantly influence project costs. Comparing this contract's cost per mile or per unit of work to other BLM or Federal Highway Administration projects in Alaska would provide a clearer picture. If this contract's cost is significantly higher than comparable projects, it could indicate potential overpricing or unforeseen complexities. Conversely, if it aligns with or is lower than benchmarks, it suggests competitive pricing and efficient procurement.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, and how might they impact cost and quality?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type presents a nuanced risk profile. While it aims for open competition, the explicit exclusion of certain sources suggests that the pool of potential bidders was intentionally narrowed. This exclusion could be based on legitimate technical requirements, security concerns, or past performance issues, but it also carries the risk of limiting overall competition. If the excluded sources were capable and could have offered competitive bids, their absence might lead to higher prices or reduced innovation. The impact on cost could be an increase if the remaining bidders face less pressure to offer the lowest price. The impact on quality might be less pronounced if the remaining bidders are highly qualified, but a reduced competitive set could theoretically lessen the incentive for contractors to exceed minimum quality standards. Understanding the rationale behind the source exclusion is key to assessing these risks.

What are the primary performance metrics and oversight mechanisms in place to ensure the successful completion of the Nome Creek Road Repair project by January 2027?

The primary performance metrics for the Nome Creek Road Repair project will likely revolve around adherence to the construction schedule, quality of materials and workmanship, and compliance with environmental and safety regulations. The Bureau of Land Management (BLM) will establish specific deliverables and milestones within the contract. Oversight will be conducted by BLM contracting officers and technical representatives who will monitor progress, conduct site inspections, and review contractor reports. The firm fixed-price nature of the contract incentivizes the contractor, Central Environmental Inc., to manage costs and timelines effectively to maximize profit. Any deviations from the contract requirements or performance standards could trigger contractual remedies, including potential penalties or termination, underscoring the importance of robust oversight.

How has federal spending on road construction and repair in Alaska trended over the past five years, and does this contract align with those patterns?

Analyzing federal spending on road construction and repair in Alaska over the past five years would provide context for this $9.89 million contract. Alaska's unique geographical challenges, including permafrost, extreme weather, and remote locations, often lead to higher construction costs compared to the contiguous United States. Federal spending in this area is typically driven by needs for infrastructure maintenance, resource access, and support for remote communities. Trends might show fluctuations based on specific project needs, congressional appropriations, and national infrastructure initiatives. This contract appears to be a significant, but not unprecedented, investment for a specific road repair project. Aligning it with broader spending patterns would involve comparing its value and scope to other federal road projects awarded in Alaska during the same period to identify any anomalies or confirm it as part of a consistent investment strategy.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140L0624R0040

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 229 E WHITNEY RD, ANCHORAGE, AK, 99501

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,890,700

Exercised Options: $9,890,700

Current Obligation: $9,890,700

Actual Outlays: $8,044,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline