Interior's $11.8M China Beach Bath House Rehab Awarded to Arana Group Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $11,843,587 ($11.8M)
Contractor: Arana Group Inc
Awarding Agency: Department of the Interior
Start Date: 2025-02-07
End Date: 2027-01-03
Contract Duration: 695 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GOGA 253655 REHABILITATE DETERIORATED CHINA BEACH BATH HOUSE AND TERRACE
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124
Plain-Language Summary
Department of the Interior obligated $11.8 million to ARANA GROUP INC for work described as: GOGA 253655 REHABILITATE DETERIORATED CHINA BEACH BATH HOUSE AND TERRACE Key points: 1. The contract aims to rehabilitate a deteriorated bathhouse and terrace, addressing critical infrastructure needs. 2. Arana Group Inc. secured the $11.8M contract, indicating competitive pricing within the construction sector. 3. Potential risks include project delays or cost overruns common in large-scale construction. 4. The project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $11.8M for a significant building rehabilitation project appears reasonable when benchmarked against similar large-scale construction contracts. The firm-fixed-price structure suggests a defined scope and budget.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for necessary infrastructure improvements.
Public Impact
Enhances public access and usability of a popular recreational facility. Preserves historic structures and improves visitor experience at a National Park. Creates local construction jobs and stimulates economic activity in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for unforeseen site conditions impacting schedule and cost.
- Reliance on a single contractor for a complex rehabilitation project.
Positive Signals
- Clear project scope and firm-fixed-price contract.
- Awarded under full and open competition, suggesting competitive pricing.
- Addresses critical infrastructure needs at a public facility.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, which involves the building of non-residential structures. Spending in this sector can fluctuate based on government infrastructure priorities and economic conditions.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation in this particular award. Future solicitations could explore subcontracting opportunities for small businesses.
Oversight & Accountability
The National Park Service is responsible for overseeing this contract. Oversight will be crucial to ensure adherence to the schedule, budget, and quality standards throughout the rehabilitation process.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of the Interior Contracting
- National Park Service Programs
Risk Flags
- Potential for unforeseen site conditions.
- Contract duration of nearly two years.
- Reliance on a single prime contractor.
- Scope complexity in rehabilitating deteriorated structures.
Tags
commercial-and-institutional-building-co, department-of-the-interior, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $11.8 million to ARANA GROUP INC. GOGA 253655 REHABILITATE DETERIORATED CHINA BEACH BATH HOUSE AND TERRACE
Who is the contractor on this award?
The obligated recipient is ARANA GROUP 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 $11.8 million.
What is the period of performance?
Start: 2025-02-07. End: 2027-01-03.
What is the estimated impact of the rehabilitation on the long-term operational costs of the bathhouse and terrace?
The rehabilitation is expected to reduce long-term operational costs by addressing current deterioration and implementing modern, efficient building systems. This includes improved water management, energy efficiency, and reduced maintenance needs associated with aging infrastructure. A detailed analysis of the new systems' lifecycle costs would provide a clearer picture of the operational savings.
What are the primary risks associated with the 'exclusion of sources' clause in the competition method?
The 'exclusion of sources' clause, while part of a full and open competition strategy, typically means that certain potential sources were initially excluded based on specific criteria before the main competition began. The primary risk is that this exclusion might inadvertently limit the pool of highly qualified bidders, potentially impacting the final price or innovation. However, it's often used to ensure specialized capabilities are considered.
How will the effectiveness of the rehabilitation be measured post-completion?
Effectiveness will be measured through several key performance indicators. These include user satisfaction surveys, reduction in reported maintenance issues, adherence to the project's sustainability goals (e.g., energy and water efficiency), and the overall structural integrity and aesthetic improvement of the facilities. Post-occupancy evaluations and regular inspections will track these metrics.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 140P2024R0058
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1168 JAMESTOWN AVE, SAN FRANCISCO, CA, 94124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,843,587
Exercised Options: $11,843,587
Current Obligation: $11,843,587
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-07
Current End Date: 2027-01-03
Potential End Date: 2027-01-03 00:00:00
Last Modified: 2026-02-04
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