AHTNA DESIGN-BUILD INC awarded $19.97M for facility maintenance, with a significant portion for construction

Contract Overview

Contract Amount: $19,965,775 ($20.0M)

Contractor: Ahtna Design-Build Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2025-04-30

Contract Duration: 943 days

Daily Burn Rate: $21.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LOCK UNWATERING & REWATERING

Place of Performance

Location: GRANITE CITY, MADISON County, ILLINOIS, 62040

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to AHTNA DESIGN-BUILD INC for work described as: LOCK UNWATERING & REWATERING Key points: 1. Contract value of $19.97M for facility maintenance and construction services. 2. Services include both routine maintenance and potential new construction or renovation. 3. The contract is a firm-fixed-price definitive contract, indicating clear cost expectations. 4. Performance period spans over two years, from September 2022 to April 2025. 5. The contract was not competed, raising questions about potential cost efficiencies. 6. The primary geographic location for services is Illinois.

Value Assessment

Rating: fair

The contract value of $19.97M for facility maintenance and construction is substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively benchmark the value for money. However, the firm-fixed-price structure suggests an attempt to control costs. The lack of competition, as noted below, could imply that the negotiated price may not reflect the most competitive market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when only one contractor is capable of performing the work, or in specific circumstances where competition is not feasible or advantageous. The lack of competition limits the government's ability to explore a wider range of pricing and technical solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

The Department of the Army benefits from the maintenance and potential construction services, ensuring operational readiness of facilities. Services delivered include upkeep of existing structures and potentially new construction or renovation projects. The primary geographic impact is within Illinois, supporting local infrastructure and potentially local employment. The contract supports the maintenance of federal facilities, indirectly benefiting military personnel and their families stationed in the area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Firm-fixed-price contracts can sometimes lead to scope creep if not managed carefully.
The duration of the contract (over two years) requires ongoing monitoring for performance and cost.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract addresses essential facility maintenance needs.
The contractor, AHTNA DESIGN-BUILD INC, is responsible for delivering the specified services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and maintenance of non-residential structures. The federal government is a significant consumer of construction and maintenance services to support its vast infrastructure. Benchmarking this contract's value against similar large-scale facility maintenance and construction projects for government entities would provide further insight into its market alignment.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless AHTNA DESIGN-BUILD INC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. Transparency is limited due to the sole-source nature of the award, but contract performance data should be available through federal procurement databases.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Army Corps of Engineers Construction Projects
Federal Building Operations and Maintenance
Commercial Building Construction Services

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns if scope is not well-defined

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to AHTNA DESIGN-BUILD INC. LOCK UNWATERING & REWATERING

Who is the contractor on this award?

The obligated recipient is AHTNA DESIGN-BUILD INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-04-30.

What is the track record of AHTNA DESIGN-BUILD INC with federal contracts, particularly in facility maintenance and construction?

AHTNA DESIGN-BUILD INC has a history of securing federal contracts, primarily with the Department of Defense. Their portfolio includes various construction and maintenance projects, often involving design-build capabilities. Analyzing their past performance on similar firm-fixed-price contracts, especially those awarded on a sole-source or limited-competition basis, would provide context for their ability to deliver on this $19.97M award. Examining contract close-out data, any modifications, and performance reviews from previous federal engagements can offer insights into their reliability and cost management.

How does the $19.97M contract value compare to similar facility maintenance and construction contracts awarded by the Department of the Army?

Benchmarking the $19.97M contract value requires comparing it against similar firm-fixed-price, sole-source (or limited competition) contracts for facility maintenance and construction services awarded by the Department of the Army or other federal agencies of comparable size and scope. Without access to a detailed breakdown of services (e.g., percentage for maintenance vs. new construction) and specific deliverables, a precise comparison is challenging. However, this value falls within the range of significant federal construction and maintenance awards, suggesting a substantial scope of work.

What are the primary risks associated with a sole-source award for facility maintenance and construction?

The primary risks associated with a sole-source award for facility maintenance and construction include potential overpricing due to the absence of competitive bidding, limited innovation from a single provider, and a reduced incentive for the contractor to achieve maximum efficiency. There's also a risk that the chosen contractor may not be the most technically capable or experienced for the specific needs, although this is mitigated if the sole-source justification is robust. Transparency is reduced, making it harder for external observers to assess value for money.

What is the expected effectiveness of this contract in ensuring facility readiness and operational capability for the Department of the Army?

The effectiveness of this contract hinges on the contractor's ability to deliver high-quality maintenance and construction services as specified in the contract. A firm-fixed-price structure, coupled with a clear statement of work, should ensure that facilities are maintained to required standards and that any necessary construction or renovation is completed within budget. The two-year duration allows for consistent upkeep. However, the sole-source nature means effectiveness is heavily reliant on the pre-selected contractor's capabilities and commitment to performance.

What are the historical spending patterns for facility maintenance and construction by the Department of the Army in Illinois?

Historical spending patterns for facility maintenance and construction by the Department of the Army in Illinois would reveal the typical scale and frequency of such contracts in the region. Analyzing past awards, including their values, competition levels, and durations, can indicate whether this $19.97M contract is an outlier or consistent with previous investments. Such analysis could also highlight trends in contracting methods (e.g., sole-source vs. competitive) and identify key contractors operating in the Illinois region for federal facility support.

What specific types of facilities or infrastructure does this contract cover, and what is the breakdown between maintenance and new construction?

The provided data indicates the contract covers 'LOCK UNWATERING & REWATERING' and falls under 'Commercial and Institutional Building Construction.' However, it does not specify the exact types of facilities or the precise allocation of funds between routine maintenance and new construction or renovation. 'Lock unwatering & rewatering' suggests a focus on water-related infrastructure, potentially locks, dams, or water treatment facilities, which would require specialized maintenance and construction expertise. A detailed breakdown would be necessary for a comprehensive value assessment.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DY22R0064

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ahtna, Incorporated

Address: 3100 BEACON BLVD, WEST SACRAMENTO, CA, 95691

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,984,627

Exercised Options: $19,965,775

Current Obligation: $19,965,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline