Interior Department awards $4.1M contract for Romo Barn fire restoration, highlighting construction needs

Contract Overview

Contract Amount: $4,136,784 ($4.1M)

Contractor: Spectrum General Contractors, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-07-01

End Date: 2026-02-21

Contract Duration: 600 days

Daily Burn Rate: $6.9K/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: THIS PROJECT WILL RESTORE THE ROMO BARN AND SHED PREVIOUSLY DESTROYED BY FIRE.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80207

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $4.1 million to SPECTRUM GENERAL CONTRACTORS, INC. for work described as: THIS PROJECT WILL RESTORE THE ROMO BARN AND SHED PREVIOUSLY DESTROYED BY FIRE. Key points: 1. The contract addresses critical infrastructure repair following a fire, indicating a need for specialized construction services. 2. Competition dynamics for this contract are noted as 'full and open after exclusion of sources,' suggesting a potentially complex procurement process. 3. The firm-fixed-price contract type aims to control costs for the restoration project. 4. The project's scope focuses on rebuilding essential facilities, directly impacting operational capabilities. 5. The award to Spectrum General Contractors, Inc. positions them as a key player in this specific restoration niche.

Value Assessment

Rating: fair

The contract value of $4.1 million for the restoration of the Romo Barn and shed appears to be within a reasonable range for significant structural repairs and reconstruction. Benchmarking against similar commercial and institutional building construction projects of comparable scope and complexity would provide a more definitive assessment of value for money. The firm-fixed-price structure suggests an attempt to manage cost certainty, but the final value will depend on the execution and any unforeseen issues during the restoration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method indicates that while the competition was intended to be broad, specific circumstances or requirements led to the exclusion of certain potential bidders. The number of bids received (5) suggests a moderate level of competition, which is generally positive for price discovery, but the exclusion of sources might limit the full benefit of open competition.

Taxpayer Impact: The moderate competition level, despite source exclusions, likely resulted in a fair market price for taxpayers. However, a truly open competition without exclusions could potentially have yielded even more competitive pricing.

Public Impact

The National Park Service benefits from the restoration of vital facilities, ensuring continued operational capacity. The project delivers essential construction services to repair fire-damaged structures. The geographic impact is localized to the specific site of the Romo Barn and shed. The contract supports the construction workforce through employment opportunities during the restoration period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during reconstruction.
The 'exclusion of sources' in the competition process warrants further investigation into fairness and completeness of bidding.
Dependence on a single contractor for a critical restoration project carries inherent execution risk.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The project directly addresses a critical need for infrastructure repair.
Awarding to a contractor with experience in commercial and institutional building construction is a positive signal.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the repair and construction of various non-residential structures. The market for such services is substantial, driven by both new development and the ongoing need for maintenance and repair of existing facilities, particularly in public sectors like national parks. The value of this specific contract is moderate within the broader construction industry, but significant for the specific restoration need it addresses.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Spectrum General Contractors, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for the small business ecosystem. Further analysis would be needed to determine if any subcontracting goals were established.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service, a division of the Department of the Interior. The firm-fixed-price contract type provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards. Accountability will be measured by the successful completion of the restoration within the agreed-upon scope, timeline, and budget. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Fire Damage Restoration Contracts
National Park Service Infrastructure Projects
Commercial Building Construction Services
Post-Disaster Reconstruction Efforts

Risk Flags

Potential for scope creep due to unforeseen fire damage.
Limited competition due to source exclusion may impact price discovery.
Contractor performance risk on a critical restoration project.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.1 million to SPECTRUM GENERAL CONTRACTORS, INC.. THIS PROJECT WILL RESTORE THE ROMO BARN AND SHED PREVIOUSLY DESTROYED BY FIRE.

Who is the contractor on this award?

The obligated recipient is SPECTRUM GENERAL CONTRACTORS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-02-21.

What is the track record of Spectrum General Contractors, Inc. with federal contracts, particularly in restoration projects?

A review of federal contract databases would be necessary to fully assess Spectrum General Contractors, Inc.'s track record. Specifically, one would look for past performance on similar projects, including the size and scope of previous restoration work, adherence to schedules and budgets, and any reported performance issues or disputes. Experience with fire damage restoration and working with agencies like the Department of the Interior would be key indicators of their capability and suitability for this specific contract. Without access to detailed performance data, it's difficult to definitively gauge their reliability for this $4.1 million project.

How does the awarded price compare to similar fire restoration projects in the region or for similar facilities?

To benchmark the $4.1 million award, one would compare it against recently awarded federal or state contracts for the restoration of commercial or institutional buildings damaged by fire. Key comparison points include the square footage of the structures being repaired, the extent of damage (e.g., structural, smoke, water), the specific types of repairs needed (e.g., structural rebuilding, interior finishing, roofing), and the geographic location. The National Park Service's own historical data on similar repair projects would also be a valuable benchmark. A higher or lower price relative to comparable projects could indicate either exceptional value or potential overpricing.

What are the primary risks associated with this specific restoration contract, beyond standard construction risks?

Beyond typical construction risks like weather delays or material cost fluctuations, this contract's primary risks stem from the nature of fire damage. Unforeseen structural weaknesses or hidden damage not immediately apparent during the initial assessment could lead to scope creep and cost increases, despite the firm-fixed-price structure. The 'exclusion of sources' in the procurement process might indicate unique requirements or a limited pool of qualified contractors, potentially increasing reliance on the selected firm and posing a risk if they underperform. The historical significance or unique nature of the Romo Barn could also introduce complexities in restoration methods and materials.

How effective is the firm-fixed-price contract type in managing costs for a project involving potential hidden fire damage?

The firm-fixed-price (FFP) contract type is designed to provide cost certainty by fixing the total price for a well-defined scope of work. For a project like the Romo Barn restoration, where the full extent of fire damage might not be immediately clear, an FFP contract can be effective if the scope is meticulously defined with allowances or contingency clauses for unforeseen conditions. However, if significant hidden damage is discovered, it could lead to change orders, potentially increasing the contract's final cost and negating some of the FFP's cost-control benefits. Careful contract administration and clear definitions of 'concealed conditions' are crucial for managing costs effectively under an FFP.

What does the 'full and open competition after exclusion of sources' procurement method imply about the contract's value and competition?

This procurement method suggests that the agency initially intended broad competition but subsequently excluded certain sources based on specific criteria. This could be due to unique technical requirements, security clearances, or past performance issues with certain contractors. While it aims for a balance between broad competition and specific needs, it inherently limits the number of potential bidders compared to a purely 'full and open' process. The fact that 5 bids were received indicates some level of competition, but the exclusion of sources might have prevented potentially lower bids from the excluded entities, thus impacting the ultimate value realized by taxpayers.

What is the historical spending pattern for fire damage restoration by the Department of the Interior or National Park Service?

Analyzing historical spending patterns for fire damage restoration by the Department of the Interior (DOI) and the National Park Service (NPS) would provide context for the $4.1 million award. This would involve examining the frequency, average cost, and types of restoration projects undertaken in previous years. Understanding these patterns can help determine if this contract is an outlier in terms of cost or scope, or if it aligns with typical expenditures for similar incidents. It can also reveal trends in contractor selection and contract types used for such emergencies, offering insights into the agency's preparedness and resource allocation for disaster recovery.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5135 E 38TH AVE, DENVER, CO, 80207

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

Financial Breakdown

Contract Ceiling: $4,136,784

Exercised Options: $4,136,784

Current Obligation: $4,136,784

Actual Outlays: $3,042,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline