Interior Department Awards $858K for Mine Shaft Construction to Hurricane Industries, LLC

Contract Overview

Contract Amount: $85,865 ($85.9K)

Contractor: Hurricane Industries, LLC

Awarding Agency: Department of the Interior

Start Date: 2021-11-10

End Date: 2022-09-30

Contract Duration: 324 days

Daily Burn Rate: $265/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EO14042 WA-21-002 ELECTRIC MINE AIR SHAFT CONSTRUCTION

Place of Performance

Location: CARBONADO, PIERCE County, WASHINGTON, 98323

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $85,864.84 to HURRICANE INDUSTRIES, LLC for work described as: EO14042 WA-21-002 ELECTRIC MINE AIR SHAFT CONSTRUCTION Key points: 1. Contract awarded for electric mine air shaft construction. 2. Hurricane Industries, LLC is the sole contractor. 3. The contract is for remediation services. 4. The contract value is $858,648.84. 5. The contract duration is 324 days.

Value Assessment

Rating: questionable

The contract value of $858,648.84 for mine shaft construction appears high for a single firm fixed-price contract of this duration. Benchmarking against similar remediation projects is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about whether the government received the best possible price for these services.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The specific need for a sole-source award should be clearly justified. Environmental remediation projects are crucial for public safety and ecological health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract addresses critical remediation needs
Firm fixed-price contract limits cost overrun risk

Sector Analysis

This contract falls under the construction and remediation services sector. Spending in this area can vary significantly based on environmental regulations and infrastructure needs. Benchmarks for similar projects are essential for cost evaluation.

Small Business Impact

The contractor, Hurricane Industries, LLC, is not identified as a small business in the provided data. Further analysis would be needed to determine if small business participation was considered or achieved.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is performing effectively and that the pricing is justified. Documentation supporting the sole-source justification is critical.

Related Government Programs

Remediation Services
Department of the Interior Contracting
Office of Surface Mining, Reclamation and Enforcement Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $85,864.84 to HURRICANE INDUSTRIES, LLC. EO14042 WA-21-002 ELECTRIC MINE AIR SHAFT CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is HURRICANE INDUSTRIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Office of Surface Mining, Reclamation and Enforcement).

What is the total obligated amount?

The obligated amount is $85,864.84.

What is the period of performance?

Start: 2021-11-10. End: 2022-09-30.

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

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific technical requirements that cannot be met by other contractors. A thorough review of the agency's documentation is necessary to confirm the validity of this justification.

How does the $858,648.84 contract value compare to similar mine shaft remediation projects?

Without specific benchmark data for comparable electric mine air shaft construction and remediation projects, it is difficult to definitively assess the value. Factors such as project complexity, location, environmental conditions, and labor costs can significantly influence pricing. A detailed cost analysis and comparison with industry standards are required for a comprehensive evaluation.

What are the potential risks associated with a sole-source contract for this type of work?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competition. Additionally, there's a risk that the government might not be aware of or have access to more innovative or cost-effective solutions that could have emerged from a competitive bidding process. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140S0322B0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 64290 AIRWAY RD, JOSEPH, OR, 97846

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

Financial Breakdown

Contract Ceiling: $85,865

Exercised Options: $85,865

Current Obligation: $85,865

Actual Outlays: $85,865

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline