Interior awards $55.8M contract for Cle Elum Dam fish passage, impacting Yakima River Basin

Contract Overview

Contract Amount: $55,802,987 ($55.8M)

Contractor: Garco Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-09-13

End Date: 2027-06-01

Contract Duration: 1,357 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CLE ELUM DAM FISH PASSAGE FACILITY ADULT FACILITY, YAKIMA RIVER BASIN WATER ENHANCEMENT PROJECT, WASHINGTON

Place of Performance

Location: CLE ELUM, KITTITAS County, WASHINGTON, 98922

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $55.8 million to GARCO CONSTRUCTION, INC. for work described as: CLE ELUM DAM FISH PASSAGE FACILITY ADULT FACILITY, YAKIMA RIVER BASIN WATER ENHANCEMENT PROJECT, WASHINGTON Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering and environmental restoration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Contract duration of over three years indicates a significant, long-term project. 4. Project is critical for ecological restoration and water management in the Yakima River Basin. 5. Geographic focus on Washington state highlights regional environmental priorities. 6. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs.

Value Assessment

Rating: good

The contract value of $55.8 million for the Cle Elum Dam Fish Passage Facility is substantial, reflecting the complexity of heavy civil engineering and environmental restoration. Benchmarking against similar large-scale dam modification and fish passage projects suggests this figure is within a reasonable range, considering the specific requirements of the Yakima River Basin Water Enhancement Project. The firm fixed-price structure provides cost certainty for the government, although it requires careful contractor performance monitoring to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The agency's commitment to open competition suggests a thorough evaluation process to select the most advantageous offer for the government.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for this significant infrastructure and environmental project. Open competition increases the likelihood that the awarded price reflects fair market value, preventing potential overpayment.

Public Impact

The primary beneficiaries are the fish populations in the Yakima River Basin, enabling passage and improving spawning grounds. The project delivers critical infrastructure improvements to the Cle Elum Dam, enhancing its ecological function. The geographic impact is concentrated in Washington state, specifically within the Yakima River Basin. The project will likely involve a skilled workforce in heavy construction, engineering, and environmental management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Ensuring long-term durability and effectiveness of the fish passage system requires rigorous oversight.
Coordination with multiple stakeholders in the Yakima River Basin could present logistical challenges.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The project addresses a significant environmental need, aligning with conservation goals.
The contractor, GARCO CONSTRUCTION, INC., will be responsible for delivering a complex engineering solution.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure related to water management and environmental restoration. The market for such projects is characterized by specialized firms capable of undertaking large-scale, complex undertakings. Comparable spending benchmarks for dam modifications and fish passage facilities vary widely based on project scope, location, and environmental regulations, but a $55.8 million investment indicates a project of considerable scale and importance.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses is likely through subcontracting opportunities. The prime contractor, GARCO CONSTRUCTION, INC., may engage small businesses for specialized services or labor, contributing to the small business ecosystem. However, without specific subcontracting plans, the extent of this impact remains to be determined.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Interior, Bureau of Reclamation. As a definitive contract with a fixed price, accountability measures are tied to the contractor's adherence to the specified scope of work, quality standards, and delivery schedule. Transparency is expected through contract reporting mechanisms. While no specific Inspector General jurisdiction is mentioned, the Department of the Interior's IG would likely have oversight authority over significant federal contracts.

Related Government Programs

Yakima River Basin Water Enhancement Project
Bureau of Reclamation Construction Projects
Fish Passage Infrastructure
Dam Safety and Modification Projects
Federal Environmental Restoration Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring long-term effectiveness and minimal environmental impact during construction.
Contractor performance risk on a complex, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $55.8 million to GARCO CONSTRUCTION, INC.. CLE ELUM DAM FISH PASSAGE FACILITY ADULT FACILITY, YAKIMA RIVER BASIN WATER ENHANCEMENT PROJECT, WASHINGTON

Who is the contractor on this award?

The obligated recipient is GARCO 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 $55.8 million.

What is the period of performance?

Start: 2023-09-13. End: 2027-06-01.

What is the track record of GARCO CONSTRUCTION, INC. on similar federal projects?

GARCO CONSTRUCTION, INC. has a history of performing federal construction contracts, primarily within the Department of the Interior and the Army Corps of Engineers. Their experience often includes heavy civil engineering, infrastructure repair, and environmental remediation projects. While specific details on past performance for fish passage facilities of this magnitude are not immediately available in this summary, their general portfolio suggests a capacity for complex construction. A deeper dive into their contract history, including past performance evaluations and any reported disputes or challenges, would provide a more comprehensive understanding of their suitability for this project. Analyzing their performance on projects with similar complexity and regulatory requirements would be key to assessing their reliability.

How does the awarded value compare to similar fish passage projects?

The $55.8 million award for the Cle Elum Dam Fish Passage Facility is a significant investment, placing it in the upper tier for such projects. Comparable projects, such as the fish passage improvements at the Bonneville Lock and Dam or the fish ladders at the Columbia River dams, have involved expenditures in the tens to hundreds of millions of dollars, depending on scale and complexity. Factors influencing cost include the specific environmental challenges, the type of fish being accommodated, the engineering solutions required (e.g., ladders, lifts, bypass channels), and the existing dam infrastructure. Given the scope of the Yakima River Basin Water Enhancement Project and the need for a robust, long-term solution, this contract value appears aligned with the market for large-scale ecological infrastructure.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns due to unforeseen geological or hydrological conditions during construction, despite the firm fixed-price nature. Schedule delays are also a risk, stemming from complex construction sequencing, weather impacts, or permitting issues. Environmental risks, such as unexpected impacts on aquatic life during construction or the long-term effectiveness of the passage system, require careful management. Furthermore, ensuring the long-term operational and maintenance effectiveness of the facility post-construction is a critical consideration. The contractor's ability to manage these risks effectively will be paramount to project success.

How effective is the Bureau of Reclamation in managing large-scale civil engineering contracts?

The Bureau of Reclamation has extensive experience managing large-scale civil engineering and water infrastructure projects, including dams, canals, and related facilities. Their track record generally indicates a strong capability in project planning, execution, and oversight. They are accustomed to navigating complex environmental regulations and stakeholder interests inherent in such projects. While specific contract performance can vary, the agency's mission is intrinsically tied to the successful delivery of these types of infrastructure projects. Their established processes for procurement, contract management, and technical oversight are designed to mitigate risks and ensure project objectives are met.

What is the historical spending trend for fish passage projects by the Department of the Interior?

Historical spending by the Department of the Interior on fish passage projects has been substantial and generally increasing, driven by federal mandates such as the Endangered Species Act and growing awareness of ecological impacts from water infrastructure. While specific aggregate data for all fish passage projects across the Department isn't readily available in this context, individual bureaus like the Bureau of Reclamation and the U.S. Fish and Wildlife Service consistently allocate significant funds towards habitat restoration and species protection, which often includes fish passage improvements. Funding levels can fluctuate based on appropriations, specific species recovery efforts, and the identification of critical infrastructure needs, but the trend reflects a sustained commitment to addressing these environmental challenges.

What are the potential long-term operational and maintenance costs associated with this facility?

The long-term operational and maintenance (O&M) costs for the Cle Elum Dam Fish Passage Facility are not detailed within the contract award information but are a critical consideration for the Bureau of Reclamation. These costs typically include energy for pumps (if applicable), regular inspections, cleaning of screens and channels, repairs to mechanical components, and monitoring of fish passage effectiveness. The design of the facility will aim to minimize O&M burdens, but ongoing investment will be necessary to ensure its continued functionality and compliance with environmental standards. These costs are usually budgeted separately from the initial construction contract and are factored into the long-term management plans for the dam and river system.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R1023R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 E BROADWAY, SPOKANE, WA, 99202

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

Financial Breakdown

Contract Ceiling: $59,308,231

Exercised Options: $59,308,231

Current Obligation: $55,802,987

Actual Outlays: $41,554,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline