Interior's $5.8M Alaska water system replacement contract awarded to AMES 1, LLC under full and open competition

Contract Overview

Contract Amount: $5,848,096 ($5.8M)

Contractor: Ames 1, LLC

Awarding Agency: Department of the Interior

Start Date: 2025-09-18

End Date: 2027-12-31

Contract Duration: 834 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WRST 248940 - REPLACE DEFICIENT WATER TREATMENT SYSTEM IN ALASKA. *GLENNALLEN FACILITY*

Place of Performance

Location: COPPER CENTER, VALDEZ CORDOVA County, ALASKA, 99573

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $5.8 million to AMES 1, LLC for work described as: WRST 248940 - REPLACE DEFICIENT WATER TREATMENT SYSTEM IN ALASKA. *GLENNALLEN FACILITY* Key points: 1. Contract addresses critical infrastructure needs for water treatment in a remote Alaskan facility. 2. The award was made through full and open competition, suggesting a competitive bidding process. 3. The definitive contract type indicates a framework for multiple orders over its duration. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. Project duration of 834 days points to a significant construction undertaking. 6. The contract is for construction services related to water and sewer systems.

Value Assessment

Rating: good

The contract value of $5.85 million for replacing a water treatment system in Alaska appears reasonable given the scope and location. While direct comparisons are difficult without more specific project details, infrastructure projects in remote areas often incur higher costs due to logistics and specialized labor. The firm-fixed-price nature of the contract provides cost certainty for the government, assuming the contractor has accurately estimated all project expenses. Benchmarking against similar federal water system construction projects would provide further insight into value for money.

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,' which is a specific procurement method indicating that the agency sought proposals from all responsible sources but may have excluded certain sources for specific, documented reasons. However, the presence of two bids suggests a limited but present level of competition. The agency's justification for excluding other sources would be critical to fully understanding the competitive landscape and its impact on price discovery.

Taxpayer Impact: The use of full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing. However, the exclusion of certain sources warrants scrutiny to ensure it did not unduly limit competition and potentially inflate costs.

Public Impact

Residents and personnel at the Glennallen Facility in Alaska will benefit from improved water treatment and reliability. The contract delivers essential construction services for water and sewer infrastructure. The geographic impact is localized to the Glennallen Facility in Alaska. The project will likely create temporary construction jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's initial estimates did not fully account for remote logistics.
Risk of delays due to weather or supply chain issues common in Alaska.
Ensuring compliance with environmental regulations for water treatment system construction.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting a competitive process.
Contract addresses a critical infrastructure need, ensuring operational continuity.

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) indicates a specialized segment of the construction market. Federal spending in this area is crucial for maintaining and upgrading essential public services, particularly in remote or underserved regions. Comparable spending benchmarks would typically involve analyzing the cost per linear foot of pipe laid or per unit of treatment capacity installed for similar projects.

Small Business Impact

The contract was not set aside for small businesses, and the awarded contractor, AMES 1, LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. This means the direct impact on the small business ecosystem for this specific contract is likely minimal, unless AMES 1, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service, a division of the Department of the Interior. Accountability measures will be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

Federal Buildings Fund
Public Works and Economic Development Facilities
National Park Service Infrastructure Projects
Rural Water and Wastewater Systems Grants

Risk Flags

Potential for cost escalation due to remote location logistics.
Risk of schedule delays from weather or supply chain disruptions.
Need for robust quality assurance during construction.
Ensuring compliance with environmental standards for water treatment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.8 million to AMES 1, LLC. WRST 248940 - REPLACE DEFICIENT WATER TREATMENT SYSTEM IN ALASKA. *GLENNALLEN FACILITY*

Who is the contractor on this award?

The obligated recipient is AMES 1, 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 $5.8 million.

What is the period of performance?

Start: 2025-09-18. End: 2027-12-31.

What is the track record of AMES 1, LLC in performing similar water infrastructure construction projects for the federal government?

A review of federal procurement data would be necessary to fully assess AMES 1, LLC's track record. Specifically, searching contract databases for previous awards to this contractor for projects involving water treatment systems, sewer lines, or related structures would provide insight. Examining past performance evaluations, if publicly available, would reveal their history of meeting schedule, cost, and quality requirements. Understanding their experience with projects in remote or challenging environments like Alaska would also be crucial for evaluating their capability to successfully execute this contract.

How does the awarded price compare to similar water treatment system replacement projects in remote federal facilities?

Benchmarking this $5.85 million contract against similar projects is challenging without more granular data on the scope of work, system capacity, and specific site conditions. However, federal agencies often use cost estimating guides and historical data for similar construction types. Projects in remote locations like Alaska typically incur higher costs due to transportation, specialized labor, and logistical complexities. A detailed comparison would involve analyzing cost breakdowns per unit of capacity or per linear foot of related infrastructure, adjusted for geographic cost differences and project complexity.

What are the primary risks associated with constructing a water treatment system in Glennallen, Alaska, and how are they mitigated in this contract?

Key risks include the harsh Alaskan climate (extreme cold, limited daylight in winter), logistical challenges in transporting materials and equipment to a remote site, potential scarcity of skilled labor, and environmental considerations. The firm-fixed-price contract shifts some financial risk to the contractor. Mitigation strategies likely include detailed project planning, robust supply chain management, adherence to strict environmental permits, and potentially phased construction to account for seasonal limitations. The contract's duration (834 days) suggests an allowance for these challenges.

What is the expected impact of this water system replacement on the operational effectiveness of the Glennallen Facility?

The replacement of a deficient water treatment system is expected to significantly enhance the operational effectiveness of the Glennallen Facility. It will ensure a reliable supply of safe drinking water, crucial for personnel health and safety, and for the facility's core functions. Improved water quality and system reliability reduce the risk of operational disruptions, costly emergency repairs, and potential health code violations. This investment in critical infrastructure supports the long-term sustainability and mission readiness of the facility.

What has been the historical spending trend for water and sewer line construction by the National Park Service over the last five years?

Analyzing historical spending trends for the National Park Service (NPS) in the 'Water and Sewer Line and Related Structures Construction' category (NAICS 237110) would reveal patterns in investment in this type of infrastructure. This data, typically available through federal procurement databases, could show whether spending has been consistent, increasing, or decreasing. Such trends might indicate the agency's prioritization of infrastructure maintenance and upgrades, potential backlogs in projects, or shifts in funding allocations towards or away from utility systems.

Were there any specific justifications provided for excluding other potential sources in this 'full and open competition after exclusion of sources' award?

The designation 'full and open competition after exclusion of sources' implies that while the agency intended to compete the requirement broadly, specific sources were intentionally excluded. The Federal Acquisition Regulation (FAR) outlines strict criteria for such exclusions, often related to national security, specific technological requirements, or prior performance issues. A thorough review of the contract file or justification documents associated with this procurement would be necessary to understand the precise reasons for excluding other potential bidders and to assess whether these exclusions were appropriate and did not unduly restrict competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2025R0007

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ames 1 , LLC

Address: 3138 COMMERCIAL DR, ANCHORAGE, AK, 99501

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,848,096

Exercised Options: $5,848,096

Current Obligation: $5,848,096

Actual Outlays: $839,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline