Tutor Perini Corporation awarded $28.8M contract for elevator replacement at Carlsbad Caverns National Park

Contract Overview

Contract Amount: $28,780,502 ($28.8M)

Contractor: Tutor Perini Corporation

Awarding Agency: Department of the Interior

Start Date: 2020-09-23

End Date: 2024-08-30

Contract Duration: 1,437 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CAVE 219342 MOD 3 ELEVATOR 1&2 REPLACEME

Place of Performance

Location: CARLSBAD, EDDY County, NEW MEXICO, 88220

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $28.8 million to TUTOR PERINI CORPORATION for work described as: CAVE 219342 MOD 3 ELEVATOR 1&2 REPLACEME Key points: 1. Contract value of $28.8 million for elevator modernization. 2. Awarded to Tutor Perini Corporation, a large, established construction firm. 3. Full and open competition indicates a potentially competitive bidding process. 4. Firm Fixed Price contract type suggests cost certainty for the government. 5. Project duration of 1437 days (nearly 4 years) points to a complex, long-term undertaking. 6. Located in New Mexico, impacting a significant national park facility.

Value Assessment

Rating: fair

The contract value of $28.8 million for elevator replacement at Carlsbad Caverns National Park appears substantial. Without specific details on the scope of work, number of elevators, and complexity of the existing infrastructure, a direct value-for-money assessment is challenging. However, elevator modernization projects in large public facilities can be costly due to specialized labor, materials, and the need to maintain operational continuity. Benchmarking against similar large-scale elevator replacement projects in national parks or comparable federal buildings would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. This method is generally preferred as it allows for the widest possible range of potential contractors to participate, fostering a competitive environment. The number of bids received and the range of proposed prices would provide further insight into the effectiveness of the competition in driving down costs and ensuring fair market pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the services rendered, minimizing the risk of overpayment.

Public Impact

Visitors to Carlsbad Caverns National Park will benefit from improved accessibility and safety due to modernized elevators. The project ensures the continued operation and maintenance of critical infrastructure within a major national park. The geographic impact is localized to Carlsbad Caverns National Park in New Mexico. The project will likely involve skilled labor in construction, electrical, and mechanical trades, potentially creating short-term employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (nearly 4 years) could introduce risks of cost overruns or delays if not managed effectively.
Reliance on a single large contractor for a multi-year project may limit flexibility in adapting to unforeseen circumstances.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
Full and open competition suggests a robust selection process.
Award to an established company like Tutor Perini Corporation may indicate a higher likelihood of successful project completion.

Sector Analysis

This contract falls within the construction and building equipment sector, specifically focusing on infrastructure upgrades for public facilities. The market for specialized elevator modernization in large, complex environments like national parks is niche, often requiring contractors with specific expertise and experience. The value of this contract is significant within this sub-sector, reflecting the scale and importance of maintaining visitor access and safety in a high-profile national park.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Tutor Perini Corporation is a large entity, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Park Service, likely through a contracting officer's representative (COR) and contracting officer (CO). The firm fixed price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon budget. Transparency would be enhanced through contract award databases and potentially through public reporting on project milestones, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

National Park Service Infrastructure Projects
Federal Building Modernization Contracts
Elevator and Escalator Repair and Maintenance

Risk Flags

Long contract duration
Potential for cost overruns
Infrastructure modernization complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.8 million to TUTOR PERINI CORPORATION. CAVE 219342 MOD 3 ELEVATOR 1&2 REPLACEME

Who is the contractor on this award?

The obligated recipient is TUTOR PERINI CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2020-09-23. End: 2024-08-30.

What is Tutor Perini Corporation's track record with similar federal elevator replacement projects?

Tutor Perini Corporation is a large, diversified construction company with a broad portfolio of projects, including significant federal contracts. While specific details on their past elevator replacement projects within national parks or similar federal facilities are not immediately available from this data, their general experience in large-scale construction and infrastructure suggests they possess the capacity to undertake such work. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar projects, would be necessary to fully assess their suitability and track record for this specific elevator modernization contract.

How does the $28.8 million contract value compare to similar elevator modernization projects in national parks?

Benchmarking the $28.8 million contract value requires comparing it to similar projects in terms of scope, complexity, number of elevators, and geographic location. Elevator modernization in large, high-traffic public facilities like national parks can be significantly more expensive than standard commercial replacements due to stringent safety regulations, accessibility requirements, and the need to minimize disruption to park operations. Without data on comparable projects, it's difficult to definitively state if this value represents excellent, fair, or concerning pricing. However, given the scale of Carlsbad Caverns and the duration of the project, the figure suggests a comprehensive undertaking.

What are the primary risks associated with a nearly four-year contract for elevator replacement?

A contract duration of 1437 days (nearly four years) for elevator replacement presents several potential risks. These include the possibility of scope creep, where additional unforeseen issues arise during the extensive renovation period, potentially leading to cost increases if not managed tightly. Material cost inflation over such a long period could impact the contractor's profitability or necessitate change orders. Furthermore, extended project timelines increase the risk of technological obsolescence in the new systems by the time of completion, and there's a greater chance of personnel turnover within the contractor's team, potentially affecting project continuity and quality. Effective project management, clear change order processes, and robust risk mitigation strategies are crucial.

How does the 'Full and Open Competition' impact price discovery for this contract?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that ideally leads to better price discovery. When multiple qualified contractors submit bids, they are incentivized to offer their most competitive pricing to win the contract. This process allows the government to gauge the market rate for the services required. The effectiveness of this price discovery depends on the number of bids received, the clarity of the solicitation requirements, and the evaluation criteria used. A robust competition generally results in a price that is closer to the true market value, benefiting taxpayers.

What is the historical spending pattern for elevator maintenance and replacement at Carlsbad Caverns National Park?

Historical spending data for elevator maintenance and replacement at Carlsbad Caverns National Park is not provided in the current data extract. To understand spending patterns, one would need to analyze past contracts awarded for similar services at this specific park or other National Park Service facilities. This analysis would reveal the frequency of such contracts, their values over time, and the contractors typically involved. Such historical context is crucial for assessing whether the current $28.8 million award represents an anomaly, a continuation of a trend, or a significant escalation in costs for elevator modernization.

What are the implications of the 'Firm Fixed Price' contract type for this project?

The 'Firm Fixed Price' (FFP) contract type offers significant advantages for the government in terms of cost certainty. Under an FFP contract, the contractor agrees to a set price for the work, and is responsible for absorbing any cost overruns that may occur. This shifts the risk of cost escalation from the government to the contractor. For a project like elevator replacement, where the scope can be well-defined, an FFP contract is generally preferred. It simplifies budgeting and financial management for the awarding agency, as the final cost is known upfront, barring any approved contract modifications.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2020R0112

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15901 OLDEN ST, SYLMAR, CA, 91342

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

Financial Breakdown

Contract Ceiling: $28,780,502

Exercised Options: $28,780,502

Current Obligation: $28,780,502

Actual Outlays: $28,780,502

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline