Interior's $21.3M Park Utility Rehab Contract Awarded to Southern Contracting, LLC

Contract Overview

Contract Amount: $21,339,436 ($21.3M)

Contractor: Southern Contracting, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-07-18

End Date: 2026-06-01

Contract Duration: 683 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CATO 250011 REHABILITATE PARKWIDE UTILITIES

Place of Performance

Location: THURMONT, FREDERICK County, MARYLAND, 21788

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $21.3 million to SOUTHERN CONTRACTING, LLC for work described as: CATO 250011 REHABILITATE PARKWIDE UTILITIES Key points: 1. Contract aims to improve aging park infrastructure, enhancing visitor experience and safety. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Contract duration of 683 days indicates a substantial scope of work. 5. Focus on water and sewer systems addresses critical utility needs in national parks. 6. Award to Southern Contracting, LLC, a company with a presence in Maryland.

Value Assessment

Rating: good

The contract value of $21.3 million for rehabilitating parkwide utilities appears reasonable given the scope and duration. Without specific benchmarks for similar park utility rehabilitation projects across the National Park Service, a direct comparison is difficult. However, the firm fixed-price nature of the contract provides cost certainty. The award amount should be assessed against the estimated costs and the number of bids received to fully gauge value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and quality. The presence of 3 bids suggests a moderate level of competition for this specific contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

National park visitors will benefit from improved water and sewer services, leading to a better overall experience. The project will ensure the continued operation and safety of essential utilities within national park boundaries. Work is concentrated in Maryland, potentially creating local employment opportunities during the contract period. The rehabilitation of park infrastructure supports the long-term preservation and usability of these public lands.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions in park environments could lead to scope creep or delays.
Dependence on specific materials or specialized labor could introduce supply chain or workforce availability risks.
Coordination with ongoing park operations and visitor access needs to be managed effectively to minimize disruption.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust bidding process.
Focus on essential utility infrastructure addresses critical operational needs.
Contract duration allows for thorough execution of rehabilitation tasks.

Sector Analysis

This contract falls within the construction sector, specifically focusing on utility infrastructure. The North American Industry Classification System (NAICS) code 237110, 'Water and Sewer Line and Related Structures Construction,' is relevant here. Spending on infrastructure maintenance and upgrades is a significant component of federal contracting, particularly within agencies managing large public lands like the National Park Service. Benchmarking this contract's value would require comparing it to similar utility construction projects in other federal or state park systems.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Southern Contracting, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities were offered or utilized, and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officers and program managers. 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 regarding contract performance and any modifications would typically be available through federal procurement data systems. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Park Service Infrastructure Improvement Projects
Federal Utility Construction Contracts
Department of the Interior Capital Improvement Programs

Risk Flags

Potential for unforeseen site conditions
Coordination with park operations and visitor access
Environmental compliance during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $21.3 million to SOUTHERN CONTRACTING, LLC. CATO 250011 REHABILITATE PARKWIDE UTILITIES

Who is the contractor on this award?

The obligated recipient is SOUTHERN CONTRACTING, 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 $21.3 million.

What is the period of performance?

Start: 2024-07-18. End: 2026-06-01.

What is the track record of Southern Contracting, LLC with federal contracts, particularly with the Department of the Interior?

A review of federal procurement data would be necessary to fully assess Southern Contracting, LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Understanding their experience with similar utility rehabilitation projects, especially within park environments or for agencies like the National Park Service, would provide crucial context for evaluating their capability to successfully execute this $21.3 million contract. Without specific historical data, it's difficult to definitively assess their reliability and past performance.

How does the awarded price of $21.3 million compare to similar park utility rehabilitation projects?

Benchmarking this contract's value requires comparing it to similar projects within the National Park Service or other federal land management agencies. Factors such as project scope (e.g., miles of pipe, types of utilities, complexity of terrain), geographic location, and the year of award significantly influence costs. A detailed analysis would involve identifying comparable contracts and adjusting for these variables. The firm fixed-price nature suggests the government sought cost certainty, but without a robust set of comparable data points, it's challenging to definitively state if this represents optimal value for money compared to potential alternatives or historical spending on similar infrastructure work.

What are the primary risks associated with rehabilitating park utilities, and how are they mitigated in this contract?

Key risks in park utility rehabilitation include encountering unforeseen subsurface conditions (e.g., buried utilities, unstable soil), environmental impacts, disruptions to park operations and visitors, and potential delays due to weather or site access limitations. This contract, being firm fixed-price, shifts much of the cost overrun risk to the contractor. Mitigation strategies likely involve detailed site assessments prior to work, careful planning for construction phasing to minimize visitor impact, and adherence to environmental protection protocols. The contract duration of 683 days also allows for a more measured approach, potentially reducing risks associated with rushing the project.

What is the expected impact of this contract on the specific national park(s) where the work will be performed?

The primary impact will be the modernization and improved reliability of essential water and sewer systems within the affected national park(s). This translates to enhanced visitor health and safety, a better overall visitor experience by ensuring consistent utility services, and reduced risk of service disruptions or environmental contamination from aging infrastructure. The rehabilitation efforts contribute to the long-term preservation and operational sustainability of the park's facilities, ensuring these resources can continue to serve the public effectively.

How does the level of competition (3 bidders) for this contract potentially influence its cost-effectiveness?

With three bidders participating in a full and open competition, there is a moderate level of price discovery. While more bidders generally lead to more competitive pricing, three offers suggest that the opportunity was attractive enough for multiple firms to invest in preparing proposals. This level of competition likely prevented excessively high bids but may not have achieved the absolute lowest price possible compared to a scenario with five or more competing offers. The government's evaluation process would have assessed not only price but also technical qualifications to ensure the best value was selected.

What is the historical spending pattern for utility rehabilitation within the National Park Service, and how does this contract fit?

The National Park Service consistently invests in infrastructure maintenance and upgrades, including utility systems, as part of its stewardship responsibilities. Historical spending data would reveal trends in the types of projects undertaken, average contract values, and the frequency of such rehabilitation efforts. This $21.3 million contract for parkwide utility rehabilitation appears to be a significant, but likely typical, investment in addressing deferred maintenance and ensuring the operational integrity of park facilities. It aligns with the agency's ongoing need to maintain and improve aging infrastructure across its vast network of parks.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2024R0026

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 767 JACKSON ST, BILOXI, MS, 39530

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,339,436

Exercised Options: $21,339,436

Current Obligation: $21,339,436

Actual Outlays: $18,239,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline