DOI Awards $42.1M Contract to Perini Management Services for Arizona Wastewater Utility Replacement

Contract Overview

Contract Amount: $42,148,273 ($42.1M)

Contractor: Perini Management Services, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-08-27

End Date: 2027-08-30

Contract Duration: 733 days

Daily Burn Rate: $57.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GLCA 318744 DESIGN BUILD - REPLACE CRITICAL WASTEWATER UTILITIES

Place of Performance

Location: PAGE, COCONINO County, ARIZONA, 86040

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $42.1 million to PERINI MANAGEMENT SERVICES, INC. for work described as: GLCA 318744 DESIGN BUILD - REPLACE CRITICAL WASTEWATER UTILITIES Key points: 1. Contract awarded to Perini Management Services, Inc. for critical wastewater utility upgrades. 2. The project is located in Arizona and has a duration of 733 days. 3. This is a Firm Fixed Price contract, indicating a defined scope and cost. 4. The contract falls under the Water and Sewer Line and Related Structures Construction NAICS code.

Value Assessment

Rating: good

The contract value of $42.1M appears reasonable for a large-scale infrastructure project involving critical utility replacement. Benchmarking against similar large-scale water/sewer construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive bidding process.

Public Impact

Ensures continued operation of essential wastewater services in Arizona. Modernizes aging infrastructure, potentially reducing future maintenance costs and environmental risks. Supports local economy through construction jobs and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Dependency on a single contractor for critical infrastructure.

Positive Signals

Clear contract type (FFP) and duration.
Awarded through full and open competition.
Addresses critical infrastructure needs.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil infrastructure related to water and sewer systems. Spending in this area is crucial for public health and environmental protection, with significant federal investment often directed towards upgrading aging municipal and federal facility utilities.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to Perini Management Services, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The contract is managed by the Department of the Interior, National Park Service. Standard oversight mechanisms for federal construction contracts, including site inspections and progress reporting, are expected to be in place.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of the Interior Contracting
National Park Service Programs

Risk Flags

Critical infrastructure project.
Long contract duration (733 days).
Firm Fixed Price contract.
Full and Open Competition awarded.
Located in Arizona.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $42.1 million to PERINI MANAGEMENT SERVICES, INC.. GLCA 318744 DESIGN BUILD - REPLACE CRITICAL WASTEWATER UTILITIES

Who is the contractor on this award?

The obligated recipient is PERINI MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $42.1 million.

What is the period of performance?

Start: 2025-08-27. End: 2027-08-30.

What is the estimated cost per linear foot or per major component of the utility replacement, and how does it compare to industry benchmarks?

Without detailed project specifications, calculating a precise per-unit cost is challenging. However, given the $42.1M contract value and the scope of replacing critical wastewater utilities, the cost per linear foot could range significantly based on depth, pipe diameter, soil conditions, and complexity. A benchmark comparison would require detailed engineering estimates and data from similar projects in Arizona or comparable geological and regulatory environments.

What are the specific risks associated with the 'critical wastewater utilities' and how are they being mitigated in the contract?

Risks associated with critical wastewater utilities often include system failure, environmental contamination, and public health hazards. Mitigation strategies within the contract likely involve stringent performance standards, detailed inspection protocols, emergency response plans, and penalties for non-compliance. The firm fixed-price nature also shifts some cost risk to the contractor, incentivizing efficient and timely completion.

How will the effectiveness of the utility replacement be measured post-completion to ensure long-term operational efficiency and reliability?

Effectiveness will likely be measured through post-construction performance testing, including flow rate verification, leak detection, and system pressure tests. Long-term reliability will be assessed through reduced maintenance calls, fewer service disruptions, and compliance with environmental discharge standards. The National Park Service will likely establish key performance indicators (KPIs) to track these metrics over a defined period.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tutor Perini Corporation

Address: 73 MOUNT WAYTE AVE, FRAMINGHAM, MA, 01702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,148,273

Exercised Options: $42,148,273

Current Obligation: $42,148,273

Actual Outlays: $2,090,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline