Interior Department awards $5.4M contract for reservoir revetment to Rehbein Enterprises Inc

Contract Overview

Contract Amount: $5,414,660 ($5.4M)

Contractor: Rehbein Enterprises Inc

Awarding Agency: Department of the Interior

Start Date: 2021-08-02

End Date: 2026-10-31

Contract Duration: 1,916 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SANDELIN, ROCK REVETMENT, CLE ELEM RESERVOIR, WASHINGTON

Place of Performance

Location: RONALD, KITTITAS County, WASHINGTON, 98940

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $5.4 million to REHBEIN ENTERPRISES INC for work described as: SANDELIN, ROCK REVETMENT, CLE ELEM RESERVOIR, WASHINGTON Key points: 1. Contract awarded for revetment work at a Washington reservoir. 2. The contract is a firm-fixed-price definitive contract. 3. The duration of the contract is 1916 days. 4. The contractor, Rehbein Enterprises Inc., has been awarded this contract. 5. The contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The contract is not subject to small business set-asides.

Value Assessment

Rating: fair

The contract value of $5.4 million for revetment work appears to be within a reasonable range for a project of this nature, though specific benchmarking is difficult without detailed project scope and material costs. The firm-fixed-price structure helps control costs for the government. However, the lack of competition raises questions about whether the best possible price was secured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This limits the government's ability to explore a range of pricing and technical solutions. The specific justification for the sole-source award is not provided in the data, which is a point of concern for ensuring fair market value.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent, and the government may not benefit from the most innovative or cost-effective solutions available in the market.

Public Impact

The primary beneficiaries are the residents and environment of Washington state, who will benefit from the improved safety and integrity of the reservoir. The services delivered include the installation of revetment to protect the reservoir's elements. The geographic impact is localized to Washington state, specifically where the Cle Elum Reservoir is located. Workforce implications may include employment opportunities for construction workers and related trades during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award justification needs further review to ensure necessity.
Project duration is lengthy, increasing exposure to potential cost overruns or scope creep if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract is for essential infrastructure protection, ensuring public safety and resource management.
The contractor, Rehbein Enterprises Inc., is responsible for delivering the specified revetment work.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to water infrastructure. The market for such specialized construction services can vary, but projects involving critical water resources often require specific expertise. Benchmarking against similar revetment projects at other federal reservoirs would provide a clearer picture of value for money, but such data is not readily available.

Small Business Impact

The contract data indicates that this was not a small business set-aside and that the contractor is not a small business. There is no information provided regarding subcontracting plans or goals for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified work within the agreed price. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed justifications.

Related Government Programs

Bureau of Reclamation Infrastructure Projects
Army Corps of Engineers Civil Works Projects
Department of the Interior Water Resource Management

Risk Flags

Sole-source award lacks competitive justification.
Extended contract duration increases risk of cost escalation.
Limited public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.4 million to REHBEIN ENTERPRISES INC. SANDELIN, ROCK REVETMENT, CLE ELEM RESERVOIR, WASHINGTON

Who is the contractor on this award?

The obligated recipient is REHBEIN ENTERPRISES INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2021-08-02. End: 2026-10-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without the official justification, it is difficult to assess the necessity and potential impact on cost-effectiveness for the taxpayer. Further investigation into the contract file or agency records would be required to understand the rationale behind bypassing the competitive bidding process.

How does the contract value of $5.4 million compare to similar revetment projects?

Direct comparison of the $5.4 million contract value for revetment work is challenging without detailed project specifications, material costs, labor rates, and geographic location factors for comparable projects. Revetment projects can vary significantly in scope, scale, and complexity. However, for a project of this magnitude and duration (over 5 years), the amount appears to be within a plausible range for heavy civil engineering construction. A more robust assessment would require access to a database of similar federal or state-funded revetment projects with detailed cost breakdowns to establish a reliable benchmark for value for money.

What are the potential risks associated with a sole-source award for this type of construction project?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may not secure the most cost-effective solution. Additionally, there's a risk that the chosen contractor may not possess the most innovative or efficient methods available in the market. For a long-duration project like this, there's also a risk of scope creep or unforeseen issues that could lead to cost increases if not managed meticulously, especially without the leverage that competition can provide in negotiating change orders.

What is the track record of Rehbein Enterprises Inc. with federal contracts, particularly with the Department of the Interior?

The provided data indicates that Rehbein Enterprises Inc. is the contractor for this $5.4 million definitive contract. However, it does not offer details on their past performance, track record with federal agencies, or specific experience with the Department of the Interior or similar revetment projects. To assess their reliability and past performance, one would need to consult federal procurement databases like SAM.gov for contract history, past performance reviews, and any reported issues or successes on previous government contracts.

What are the implications of the 1916-day contract duration for project management and cost control?

A contract duration of 1916 days, approximately 5.25 years, for revetment work signifies a long-term commitment. This extended timeline presents both opportunities and challenges. On the positive side, it allows for phased execution and potentially better integration with other reservoir maintenance schedules. However, it also increases the risk of cost escalation due to inflation, changes in material availability, and potential shifts in project requirements or environmental regulations over such a long period. Robust project management, regular performance reviews, and strict change control processes will be critical to ensure the project stays on schedule and within budget.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140R1020R0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 41448 RANCH RD, POLSON, MT, 59860

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,414,660

Exercised Options: $5,414,660

Current Obligation: $5,414,660

Actual Outlays: $5,122,379

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $473,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline