Forest Service awards $789K contract for campground water system upgrades in New Mexico

Contract Overview

Contract Amount: $789,358 ($789.4K)

Contractor: 358 Investments, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-03-01

End Date: 2026-09-30

Contract Duration: 213 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PROJECT WILL FACILITATE THE REPLACEMENT OF 2 DRINKING WATER SYSTEMS; ONE AT THE JACKS CREEK CAMPGROUND AND THE OTHER AT THE FIELD TRACT CAMPGROUND. BOTH SITE ARE HIGH USE RECREATION SITE. THE OTHER WATER SYSTEM TO BE REPLACED IS THE PANCHUELA ADM

Place of Performance

Location: PECOS, SAN MIGUEL County, NEW MEXICO, 87552

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $789,358 to 358 INVESTMENTS, LLC for work described as: THE PROJECT WILL FACILITATE THE REPLACEMENT OF 2 DRINKING WATER SYSTEMS; ONE AT THE JACKS CREEK CAMPGROUND AND THE OTHER AT THE FIELD TRACT CAMPGROUND. BOTH SITE ARE HIGH USE RECREATION SITE. THE OTHER WATER SYSTEM TO BE REPLACED IS THE PANCHUELA ADM Key points: 1. Contract focuses on essential infrastructure replacement at high-use recreation sites. 2. Competition was open, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. Project duration is relatively short, indicating a focused scope of work. 5. The awardee, 358 Investments, LLC, is a new entity in federal contracting. 6. The contract value appears modest for construction, warranting further value assessment.

Value Assessment

Rating: fair

The contract value of $789,358 for replacing two drinking water systems seems reasonable given the scope. However, without specific details on the complexity of the existing infrastructure and the required upgrades, a direct comparison to similar contracts is difficult. The Firm Fixed Price structure is generally favorable for the government in managing cost overruns. Benchmarking against average costs for similar water system replacements in recreational areas would provide a clearer picture of 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 typically means the solicitation was broadly advertised, but specific sources may have been excluded for defined reasons. The presence of 10 bids indicates a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and better value for the government.

Taxpayer Impact: The robust competition suggests that taxpayers are likely to benefit from a fair market price for these essential water system upgrades.

Public Impact

Campers and visitors at Jacks Creek and Field Tract Campgrounds will benefit from improved and reliable drinking water access. The project directly addresses critical infrastructure needs in recreational areas managed by the Forest Service. The geographic impact is localized to the specific campgrounds in New Mexico. The contract supports the construction workforce through employment opportunities during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The awardee, 358 Investments, LLC, appears to be a relatively new entity, raising questions about its track record and capacity for a federal project of this nature.
The specific reasons for excluding other sources in an otherwise 'full and open' competition warrant further investigation to ensure fairness and prevent potential anti-competitive practices.

Positive Signals

The project addresses a clear need for infrastructure improvement at high-use recreation sites, aligning with public service goals.
The Firm Fixed Price contract type shifts cost overrun risk to the contractor, protecting the government's budget.
The award was made after receiving 10 bids, indicating a competitive process that likely yielded a reasonable price.

Sector Analysis

This contract falls within the Construction (NAICS 237110 - Water and Sewer Line and Related Structures Construction) sector. The federal government frequently awards contracts for infrastructure development and maintenance in national parks and recreational areas. Spending in this sector is driven by the need to maintain and upgrade aging public facilities. Comparable spending benchmarks would typically involve analyzing costs for similar water system replacements in other federal or state recreational facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor's size is not specified, the absence of a small business set-aside means opportunities for small business subcontractors will depend on the prime contractor's procurement practices. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Forest Service contracting officer and project managers. The Firm Fixed Price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within budget. Transparency can be assessed through publicly available contract award data and performance reports, if published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Park Service Infrastructure Projects
Bureau of Land Management Recreation Site Improvements
Army Corps of Engineers Water Infrastructure Projects
General Services Administration Public Building Construction

Risk Flags

New Awardee: 358 Investments, LLC has limited federal contracting history.
Competition Method Nuance: 'Exclusion of Sources' requires careful review of justification.
Infrastructure Age: Replacement implies existing systems are nearing end-of-life or failing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $789,358 to 358 INVESTMENTS, LLC. THE PROJECT WILL FACILITATE THE REPLACEMENT OF 2 DRINKING WATER SYSTEMS; ONE AT THE JACKS CREEK CAMPGROUND AND THE OTHER AT THE FIELD TRACT CAMPGROUND. BOTH SITE ARE HIGH USE RECREATION SITE. THE OTHER WATER SYSTEM TO BE REPLACED IS THE PANCHUELA ADM

Who is the contractor on this award?

The obligated recipient is 358 INVESTMENTS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $789,358.

What is the period of performance?

Start: 2026-03-01. End: 2026-09-30.

What is the track record and experience of 358 Investments, LLC in completing federal construction contracts, particularly for water systems?

A review of federal contract databases reveals that 358 Investments, LLC is a relatively new entity. Information regarding its past performance on federal contracts, especially those involving water and sewer line construction, is limited. Further due diligence would be required to ascertain the company's capacity, technical expertise, and history of successful project completion. This includes examining any prior government performance evaluations or project portfolios. The lack of extensive historical data necessitates careful monitoring of this contract's progress and performance to mitigate potential risks associated with a less experienced contractor.

How does the awarded price of $789,358 compare to the average cost of similar water system replacement projects in federal recreational areas?

Benchmarking this contract's value requires comparing it to similar projects. While specific data on average costs for campground water system replacements is not readily available in the provided information, general construction cost indices can offer some context. The contract value appears modest for a project involving two distinct sites, suggesting either a simpler scope of work or potentially aggressive pricing from the contractor. A detailed cost breakdown of the awarded contract, if available, would allow for a more precise comparison against industry standards and historical data for similar federal infrastructure upgrades. Factors like site accessibility, complexity of existing utilities, and material costs significantly influence project pricing.

What are the specific risks associated with the 'Full and Open Competition after Exclusion of Sources' award method for this contract?

The 'Full and Open Competition after Exclusion of Sources' method, while intended to be competitive, introduces specific risks. The exclusion of certain sources, even if justified, can limit the pool of potential bidders, potentially reducing overall competition and potentially leading to higher prices than if all qualified sources were allowed to bid. The justification for exclusion must be robust to ensure fairness and prevent any appearance of impropriety. Risks include the possibility that a more qualified or cost-effective contractor was excluded, or that the exclusion criteria were applied inconsistently. Transparency in documenting the reasons for exclusion is crucial for accountability and to assure taxpayers that the most competitive outcome was sought.

What is the expected impact of these water system upgrades on the user experience and safety at Jacks Creek and Field Tract Campgrounds?

The replacement of aging drinking water systems at Jacks Creek and Field Tract Campgrounds is expected to significantly enhance the user experience and safety for visitors. Reliable access to clean drinking water is a fundamental amenity for recreational areas, directly impacting visitor satisfaction and health. Upgraded systems are less prone to contamination and service disruptions, ensuring a more consistent and positive experience for campers and day-use visitors. This infrastructure improvement supports the Forest Service's mission to provide safe and accessible recreational opportunities, potentially leading to increased visitation and positive public perception of the managed areas.

What is the historical spending pattern for water and sewer line construction within the Forest Service, and how does this contract fit?

Historical spending data for water and sewer line construction within the Forest Service would reveal trends in infrastructure investment. Typically, agencies like the Forest Service allocate funds for maintaining and upgrading aging infrastructure in national forests and grasslands, which often include campgrounds and recreational facilities. This $789K contract represents a specific investment in addressing critical needs at two high-use sites. Analyzing broader Forest Service spending patterns would indicate whether this contract is part of a larger, ongoing initiative to modernize facilities or an isolated project addressing immediate concerns. Such analysis helps contextualize the contract's significance within the agency's overall capital improvement strategy.

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: 127EAX26R0004

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12229 US HIGHWAY 160, DEL NORTE, CO, 81132

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

Financial Breakdown

Contract Ceiling: $789,358

Exercised Options: $789,358

Current Obligation: $789,358

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline