DOI's $137M Dam Safety Project Awarded to NW Construction, Inc. for Critical Infrastructure Upgrades

Contract Overview

Contract Amount: $136,823,625 ($136.8M)

Contractor: NW Construction, Inc

Awarding Agency: Department of the Interior

Start Date: 2022-04-27

End Date: 2025-12-31

Contract Duration: 1,344 days

Daily Burn Rate: $101.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BF SISK SAFETY OF DAMS (SOD) MODIFICATIONS, PHASE I, THIS PHASE INCLUDES CONSTRUCTION OF SHEAR KEYS, STABILITY BERMS, AND SPILLWAY MODIFICATION. THE PROJECT WILL ADDRESS ISSUES WITH THE SELECT FOUNDATION MATERIALS THAT THE DAM WAS BUILT UPON AND WILL

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93721

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $136.8 million to NW CONSTRUCTION, INC for work described as: BF SISK SAFETY OF DAMS (SOD) MODIFICATIONS, PHASE I, THIS PHASE INCLUDES CONSTRUCTION OF SHEAR KEYS, STABILITY BERMS, AND SPILLWAY MODIFICATION. THE PROJECT WILL ADDRESS ISSUES WITH THE SELECT FOUNDATION MATERIALS THAT THE DAM WAS BUILT UPON AND WILL Key points: 1. Value-for-money assessment pending detailed cost breakdown and comparison to similar dam modification projects. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators include the complexity of foundation material issues and the multi-year duration of the project. 4. Performance context relies on NW Construction's ability to execute large-scale civil engineering projects. 5. Sector positioning places this contract within the critical infrastructure and civil engineering domain.

Value Assessment

Rating: fair

The contract value of approximately $137 million for dam safety modifications appears substantial. A direct comparison to similar large-scale dam repair and upgrade projects is necessary to benchmark its value. Factors such as the specific scope of work, including shear keys, stability berms, and spillway modifications, along with the complexity of addressing foundation material issues, will influence the cost-effectiveness. Without detailed cost breakdowns and benchmarks against comparable projects, a definitive assessment of value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with seven bidders participating. This level of competition is generally positive for price discovery and suggests that multiple firms were interested in undertaking the project. The presence of seven bidders indicates a healthy market for this type of specialized civil engineering work, which should have encouraged competitive pricing.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the required services, minimizing potential cost overruns.

Public Impact

The primary beneficiaries are the communities and ecosystems downstream of the dam, who will experience enhanced safety. The project will deliver critical infrastructure upgrades to ensure the long-term stability and safety of the dam. The geographic impact is concentrated in California, where the dam is located. Workforce implications include job creation for skilled construction labor, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the complexity of foundation material issues.
Risk of schedule delays due to unforeseen site conditions during construction.
Dependency on the contractor's specialized expertise in dam engineering and construction.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The project addresses critical safety concerns for public infrastructure.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on critical infrastructure like dams. The market for dam safety and repair is significant, driven by aging infrastructure and increasing regulatory scrutiny. This project represents a substantial investment in maintaining and upgrading essential public works, aligning with broader government initiatives to ensure the resilience of national infrastructure.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion for this large-scale project. While NW Construction, Inc. may engage small businesses as subcontractors, the primary award was not directed towards small business set-asides. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem in this sector.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are embedded in the firm fixed-price contract, which shifts cost risk to the contractor. Transparency will be facilitated through contract reporting mechanisms and potentially public updates on project milestones. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Federal Dam Safety Programs
Army Corps of Engineers Civil Works Projects
Bureau of Reclamation Infrastructure Modernization
National Dam Safety Program

Risk Flags

Potential for unforeseen site conditions related to foundation materials.
Complexity of large-scale civil engineering and dam construction.
Long project duration increases exposure to changing economic conditions or regulatory requirements.
Dependency on specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $136.8 million to NW CONSTRUCTION, INC. BF SISK SAFETY OF DAMS (SOD) MODIFICATIONS, PHASE I, THIS PHASE INCLUDES CONSTRUCTION OF SHEAR KEYS, STABILITY BERMS, AND SPILLWAY MODIFICATION. THE PROJECT WILL ADDRESS ISSUES WITH THE SELECT FOUNDATION MATERIALS THAT THE DAM WAS BUILT UPON AND WILL

Who is the contractor on this award?

The obligated recipient is NW 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 $136.8 million.

What is the period of performance?

Start: 2022-04-27. End: 2025-12-31.

What is the track record of NW Construction, Inc. in managing large-scale civil engineering and dam construction projects?

NW Construction, Inc. has a history of undertaking significant civil engineering projects. While specific details on their dam construction experience require further investigation, their ability to secure a contract of this magnitude from the Bureau of Reclamation suggests they possess the necessary qualifications and capacity. A deeper dive into their past performance on similar projects, including their safety records, on-time delivery rates, and budget adherence, would provide a more comprehensive understanding of their capabilities and potential risks associated with this contract.

How does the $137 million cost compare to similar dam modification projects nationwide?

Benchmarking the $137 million cost requires comparing it to projects with similar scope, complexity, and geographic location. Dam modification projects can vary widely in price based on factors such as the size of the dam, the nature of the structural issues (e.g., foundation stability vs. spillway capacity), and the specific engineering solutions required. Projects involving significant foundation remediation, as indicated in this contract, tend to be more costly. A comprehensive analysis would involve reviewing data from the Army Corps of Engineers, Bureau of Reclamation, and other agencies on comparable dam repair and upgrade contracts over the past five to ten years to establish a relevant cost range.

What are the primary risks associated with the 'select foundation materials' mentioned in the project description?

The mention of 'select foundation materials' suggests that the dam was built upon materials that may not provide adequate long-term stability or may be susceptible to erosion, seepage, or seismic activity. These materials could be problematic due to their composition, permeability, or shear strength. Risks associated with such materials include potential for dam failure, increased seepage leading to instability, and difficulties in achieving proper compaction during construction of stability berms. Addressing these issues often requires complex geotechnical investigations and specialized engineering solutions, which can increase project duration and cost, and introduce a higher risk of unforeseen site conditions.

What is the expected impact of this contract on the Bureau of Reclamation's overall dam safety program effectiveness?

This contract is crucial for enhancing the effectiveness of the Bureau of Reclamation's dam safety program by directly addressing critical structural deficiencies at a specific facility. By undertaking these Phase I modifications, the project aims to mitigate immediate risks and lay the groundwork for future long-term safety improvements. Successful completion will bolster the agency's reputation for responsible infrastructure management and contribute to the overall reliability and safety of its water storage and management systems. It also serves as a model for how the agency tackles complex foundation-related issues, potentially informing future project planning and execution.

How has federal spending on dam safety and repair evolved over the past decade?

Federal spending on dam safety and repair has generally seen an increasing trend over the past decade, driven by the aging infrastructure crisis and heightened awareness of potential risks. Agencies like the Army Corps of Engineers and the Bureau of Reclamation consistently allocate significant portions of their budgets to maintaining and upgrading their vast portfolio of dams. Funding levels can fluctuate based on congressional appropriations, emergency needs following natural disasters, and the prioritization of specific infrastructure projects. There has been a growing emphasis on proactive maintenance and risk reduction, moving beyond solely reactive repairs, which is reflected in the types of projects being funded, such as this comprehensive safety modification.

What is the significance of the 'definitive contract' award type for this project?

A definitive contract, in this context, typically refers to a contract that is awarded after a period of negotiation and is fully detailed, outlining all terms, conditions, and specifications. For a project of this scale and complexity, a definitive contract provides a clear framework for execution. It signifies that the government and the contractor have agreed upon the scope of work, pricing (firm fixed-price), delivery schedule, and other critical aspects. This award type suggests that the initial stages of procurement, including proposal evaluation and negotiation, have been completed, and the project is ready for full implementation, offering a high degree of certainty regarding the contractual obligations.

Industry Classification

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

Solicitation ID: 140R2021R0004

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 SHEDHORN DR, BOZEMAN, MT, 59718

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

Financial Breakdown

Contract Ceiling: $136,823,625

Exercised Options: $136,823,625

Current Obligation: $136,823,625

Actual Outlays: $133,822,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline