National Park Service awards $18.1M contract for housing construction in Glacier Bay National Park

Contract Overview

Contract Amount: $18,107,351 ($18.1M)

Contractor: Ahtna-Unit JV LLC

Awarding Agency: Department of the Interior

Start Date: 2022-12-16

End Date: 2025-01-17

Contract Duration: 763 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GLBA 266667 - REPLACE CONCESSIONER HOUSING & MAINTENANCE BUILDING (GAOA PROJECT) - GLACIER BAY NATIONAL PARK AND PRESERVE IN GUSTAVUS, ALASKA

Place of Performance

Location: GUSTAVUS, SKAGWAY HOONAH ANGOON County, ALASKA, 99826

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $18.1 million to AHTNA-UNIT JV LLC for work described as: GLBA 266667 - REPLACE CONCESSIONER HOUSING & MAINTENANCE BUILDING (GAOA PROJECT) - GLACIER BAY NATIONAL PARK AND PRESERVE IN GUSTAVUS, ALASKA Key points: 1. Contract addresses critical infrastructure needs for park housing. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration of 763 days indicates a substantial project scope. 4. Fixed-price contract type shifts risk to the contractor. 5. Project is part of the Great American Outdoors Act (GAOA) initiative. 6. Geographic location in Alaska may present logistical challenges and cost implications.

Value Assessment

Rating: good

The contract value of $18.1 million for multifamily housing construction appears reasonable given the project's scope and location. While direct comparisons are difficult without more specific project details, the National Park Service often undertakes complex infrastructure projects in remote areas. The firm fixed-price structure suggests the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively. Benchmarking against similar construction projects in remote or challenging environments would provide further insight into the pricing's competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, certain sources were excluded. The presence of 4 bids suggests a reasonable level of competition. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The exclusion of sources warrants further investigation to understand its impact on the competitive landscape and potential cost savings.

Taxpayer Impact: The full and open competition, despite source exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. The multiple bids received indicate that the government had options, driving down the potential for inflated costs.

Public Impact

Park staff and their families will benefit from improved housing conditions. The project will deliver new multifamily housing units within Glacier Bay National Park. The geographic impact is concentrated in Gustavus, Alaska, near the park. The construction project will likely create temporary jobs in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the remote Alaskan location and logistical complexities.
Risk of project delays due to weather or unforeseen site conditions in a national park.
The exclusion of certain sources in the competition process could limit overall price discovery.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Multiple bids received indicate a competitive bidding process.
Project is part of the Great American Outdoors Act, suggesting strategic importance and funding.
Contractor AHTNA-UNIT JV LLC is a joint venture, potentially bringing diverse expertise.

Sector Analysis

This contract falls within the construction sector, specifically new multifamily housing. The market for federal construction contracts is substantial, with agencies like the National Park Service frequently awarding projects for infrastructure development and maintenance. Projects in national parks often command higher costs due to unique environmental considerations, remote locations, and specialized requirements. The Great American Outdoors Act has significantly increased federal investment in park infrastructure, driving demand for such construction services.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is a joint venture, AHTNA-UNIT JV LLC. While this specific contract may not directly benefit small businesses through a set-aside, joint ventures can sometimes include small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this project, which could provide them with valuable experience and revenue.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within budget. Transparency regarding project progress and any potential issues may be available through federal contract databases and NPS reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Great American Outdoors Act Projects
National Park Service Infrastructure
Federal Housing Construction
Multifamily Housing Development

Risk Flags

Potential for cost overruns due to remote location
Logistical challenges in Alaska
Environmental impact considerations
Contract duration and potential for delays

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.1 million to AHTNA-UNIT JV LLC. GLBA 266667 - REPLACE CONCESSIONER HOUSING & MAINTENANCE BUILDING (GAOA PROJECT) - GLACIER BAY NATIONAL PARK AND PRESERVE IN GUSTAVUS, ALASKA

Who is the contractor on this award?

The obligated recipient is AHTNA-UNIT JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2022-12-16. End: 2025-01-17.

What is the track record of AHTNA-UNIT JV LLC in completing similar federal construction projects, particularly in remote or challenging environments?

Assessing the track record of AHTNA-UNIT JV LLC is crucial for understanding their capability to successfully execute this project. As a joint venture, its performance history would be a composite of its constituent entities or its own prior project completions. Information on past performance, including adherence to schedule, budget, and quality standards on similar federal contracts, can typically be found in federal procurement databases like SAM.gov or through agency performance evaluations. Specific attention should be paid to projects involving new multifamily housing construction in remote locations, as these present unique logistical and environmental challenges. A review of their past projects would help identify any recurring issues or demonstrated strengths in managing complex construction endeavors for government agencies.

How does the awarded price of $18.1 million compare to similar multifamily housing construction projects undertaken by the National Park Service or other federal agencies in comparable locations?

Benchmarking the $18.1 million contract value against similar projects is essential for evaluating value for money. This comparison should ideally focus on multifamily housing construction projects of comparable size and complexity, particularly those in remote or environmentally sensitive areas like national parks. Data from federal procurement records (e.g., FPDS, SAM.gov) can be analyzed to identify projects with similar scope, location, and contract type (firm fixed-price). Factors such as square footage, number of units, and specific construction materials should be considered. Adjustments for inflation and regional cost differences (e.g., Alaska's higher construction costs) are necessary for an accurate comparison. If this contract's per-unit cost or cost per square foot is significantly higher than benchmarks, it may indicate potential overpricing or unique project challenges.

What are the specific risks associated with constructing housing in Glacier Bay National Park, and how are they mitigated in this contract?

Constructing housing in Glacier Bay National Park presents several inherent risks, including extreme weather conditions, limited access for materials and personnel, potential environmental impacts, and the need to adhere to strict park regulations. The remote Alaskan location exacerbates logistical challenges, potentially increasing costs and timelines. The contract's firm fixed-price structure mitigates financial risk for the government by placing the burden of cost overruns on the contractor, AHTNA-UNIT JV LLC. However, the contractor must have robust risk management plans to address potential delays due to weather, supply chain disruptions, or unforeseen site conditions. The National Park Service's oversight will be critical in monitoring environmental compliance and ensuring adherence to park-specific construction standards. The contract's duration of 763 days allows for potential weather-related delays.

What is the expected impact of this housing project on the operational capacity and workforce retention of Glacier Bay National Park?

The construction of new multifamily housing is expected to significantly enhance the operational capacity and workforce retention at Glacier Bay National Park. Adequate and modern housing is a critical factor in attracting and retaining qualified park staff, especially in remote locations like Glacier Bay. Improved living conditions can lead to higher morale and productivity among employees, thereby supporting the park's mission of conservation and visitor services. The availability of new housing units can alleviate current shortages or substandard conditions, potentially allowing the park to accommodate more personnel or offer more competitive living arrangements. This, in turn, can bolster the park's ability to manage its resources effectively, conduct research, and provide essential visitor services, especially during peak seasons.

How does this contract align with the goals of the Great American Outdoors Act (GAOA), and what is the overall federal spending trend for similar infrastructure projects?

This contract directly aligns with the goals of the Great American Outdoors Act (GAOA), which aims to address the deferred maintenance backlog and improve infrastructure in national parks and public lands. The GAOA provides significant funding for projects like the replacement of concessioner housing and maintenance buildings, as seen in this contract for Glacier Bay National Park. Federal spending on similar infrastructure projects has seen a notable increase since the passage of the GAOA in 2020. Agencies like the National Park Service are prioritizing projects that enhance visitor experience, improve employee housing, and protect natural and cultural resources. Tracking spending under GAOA initiatives reveals a trend towards substantial investment in critical infrastructure across various federal land management agencies, addressing decades of underfunding.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 140P2022R0105

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 W 38TH AVE, ANCHORAGE, AK, 99503

Business Categories: 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: $18,107,351

Exercised Options: $18,107,351

Current Obligation: $18,107,351

Actual Outlays: $18,107,351

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $6,410,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline