Interior Department awards $7M contract for Medicine Creek Dam repairs and access road construction

Contract Overview

Contract Amount: $7,015,411 ($7.0M)

Contractor: Firelake Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2025-01-21

End Date: 2027-05-31

Contract Duration: 860 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIRS TO CONCRETE DAMAGE ON MEDICINE CREEK DAM AND ADDITION OF SITE ACCESS ROAD.

Place of Performance

Location: CAMBRIDGE, RED WILLOW County, NEBRASKA, 69022

State: Nebraska Government Spending

Plain-Language Summary

Department of the Interior obligated $7.0 million to FIRELAKE CONSTRUCTION INC for work described as: REPAIRS TO CONCRETE DAMAGE ON MEDICINE CREEK DAM AND ADDITION OF SITE ACCESS ROAD. Key points: 1. Contract value appears reasonable for dam repair and road construction, though specific benchmarks are needed. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. Contract duration of approximately 2.5 years suggests a substantial scope of work. 4. The firm-fixed-price structure shifts risk to the contractor. 5. This contract supports critical infrastructure maintenance within the Bureau of Reclamation's purview.

Value Assessment

Rating: fair

The contract value of $7,015,410.59 for dam repairs and site access road construction is a significant investment. Without specific details on the scope of repairs (e.g., square footage of concrete, length of road, complexity of dam issues), it is difficult to benchmark against similar projects. However, the firm-fixed-price nature suggests that the contractor has assessed the risks and costs associated with the project. Further analysis would require comparing this cost to similar dam repair projects in the region or nationally, considering factors like material costs, labor rates, and the specific engineering challenges involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potential limitation on the number of bidders. The presence of 3 bidders, as indicated by the 'no' field, shows some level of competition, but the exclusion of sources raises questions about whether the most competitive pricing was achieved. A truly full and open competition typically involves a broader outreach to all potential qualified contractors.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a wider range of contractors had been able to bid. It is important to understand the rationale behind the exclusion of sources to ensure fair market access and optimal value.

Public Impact

The primary beneficiaries are the Department of the Interior and the Bureau of Reclamation, ensuring the structural integrity and accessibility of the Medicine Creek Dam. The services delivered include essential repairs to concrete damage and the construction of a new site access road. The geographic impact is localized to the area surrounding the Medicine Creek Dam in Nebraska. The contract will likely involve a workforce of construction laborers, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after exclusion of sources could lead to suboptimal pricing.
The firm-fixed-price contract places the burden of cost overruns on the contractor, which could incentivize cutting corners if not closely monitored.
The scope of 'concrete damage' is broad and may encompass unforeseen issues requiring change orders.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The contract duration allows for a thorough and potentially high-quality execution of the repair and construction work.
The Bureau of Reclamation's involvement suggests adherence to established engineering and safety standards for dam infrastructure.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on infrastructure repair and development. The market for dam maintenance and construction is specialized, often involving a limited number of firms with the requisite expertise and bonding capacity. Spending in this sector is driven by the need to maintain aging infrastructure, improve water management, and ensure public safety. Comparable spending benchmarks would typically be found in reports on federal infrastructure spending or specific agency procurement data for similar civil engineering projects.

Small Business Impact

The data indicates that small business participation is not a primary focus for this contract, as 'sb' is false and 'ss' is false. There is no explicit small business set-aside. This suggests that the prime contractor, Firelake Construction Inc., is likely a larger entity. Subcontracting opportunities for small businesses may exist, but they are not mandated by the contract terms provided. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out small business subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are published. The Inspector General of the Department of the Interior would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Bureau of Reclamation Infrastructure Projects
Federal Dam Maintenance and Repair Programs
Army Corps of Engineers Civil Works Projects
Department of Transportation Infrastructure Grants

Risk Flags

Limited competition may impact price.
Potential for unforeseen issues in dam repair.
Contractor performance history not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $7.0 million to FIRELAKE CONSTRUCTION INC. REPAIRS TO CONCRETE DAMAGE ON MEDICINE CREEK DAM AND ADDITION OF SITE ACCESS ROAD.

Who is the contractor on this award?

The obligated recipient is FIRELAKE CONSTRUCTION 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 $7.0 million.

What is the period of performance?

Start: 2025-01-21. End: 2027-05-31.

What is the specific nature and extent of the 'concrete damage' on Medicine Creek Dam?

The provided data does not detail the specific nature or extent of the concrete damage on Medicine Creek Dam. This information is crucial for a comprehensive understanding of the project's scope and potential risks. Factors such as the type of damage (e.g., cracking, spalling, erosion), the affected areas (e.g., spillway, foundation, embankment), and the severity of the deterioration would significantly influence the complexity and cost of the repairs. Without this granular detail, it is challenging to accurately assess the value-for-money of the $7.015 million contract or to compare it effectively with other dam repair projects. Further investigation into the contract's statement of work or technical specifications would be necessary to obtain this critical information.

How does the $7.015 million contract price compare to similar dam repair projects managed by the Bureau of Reclamation or other federal agencies?

Benchmarking the $7.015 million contract price against similar dam repair projects requires access to detailed cost data for comparable federal contracts. The Bureau of Reclamation manages numerous water infrastructure projects, and the Army Corps of Engineers also undertakes significant dam construction and repair work. Factors such as the size and type of dam, the specific repair methodologies required, regional labor and material costs, and the overall complexity of the project (including site access) heavily influence pricing. A preliminary assessment suggests the amount is substantial, indicative of significant repair work. However, without specific comparable project data, a definitive value-for-money assessment is difficult. A thorough analysis would involve querying federal procurement databases for similar projects awarded within the last 3-5 years, adjusting for inflation and regional cost differences.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' with 3 bidders ultimately participating. The specific reasons for excluding certain sources are not detailed in the provided data. Typically, such exclusions might occur if potential bidders failed to meet mandatory pre-qualification criteria, such as specific technical capabilities, past performance requirements, security clearances, or financial stability thresholds. In some cases, exclusions might be related to national security concerns or specific regulatory requirements. Understanding the rationale behind these exclusions is important for assessing the fairness of the competition and whether it potentially limited the number of qualified bidders, which could impact price competitiveness and taxpayer value. Further review of the solicitation documents and any pre-award notices would be necessary to ascertain the precise grounds for exclusion.

What is the track record of Firelake Construction Inc. in performing similar heavy civil engineering and dam repair contracts for the federal government?

The provided data identifies Firelake Construction Inc. as the contractor but does not offer details on its track record. To assess the contractor's reliability and past performance, a review of their contract history with federal agencies, particularly the Department of the Interior and the Bureau of Reclamation, would be necessary. This would involve examining past awards, contract values, performance evaluations (if publicly available), and any history of disputes or contract terminations. A contractor with a strong history of successfully completing similar projects on time and within budget would reduce the risk associated with this current $7.015 million contract. Conversely, a history of performance issues could indicate a higher risk for potential delays or cost overruns, despite the firm-fixed-price structure.

What are the potential risks associated with the firm-fixed-price (FFP) contract type for this dam repair project?

While a firm-fixed-price (FFP) contract is generally favored for providing cost certainty to the government, it carries specific risks for complex infrastructure projects like dam repair. The primary risk is that the contractor, Firelake Construction Inc., may face unforeseen challenges or cost increases during the project (e.g., discovering more extensive concrete damage than initially assessed, encountering unexpected geological conditions, or facing significant material price hikes). Under an FFP contract, the contractor bears the financial responsibility for these overruns. This could incentivize the contractor to cut corners on quality or safety to maintain profitability, or potentially lead to disputes and claims if they believe the scope has changed significantly. Effective government oversight and a clearly defined scope of work are crucial to mitigate these risks and ensure the project's successful completion according to specifications.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: 140R6024R0020

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Firelake Construction, Inc.

Address: 1011 E 31ST ST, LAWRENCE, KS, 66046

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $7,015,411

Exercised Options: $7,015,411

Current Obligation: $7,015,411

Actual Outlays: $2,559,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline