Hoover Dam SRF Facility Renovation Awarded to KWR Construction for $4.9M, High Competition Expected

Contract Overview

Contract Amount: $4,912,683 ($4.9M)

Contractor: KWR Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2025-10-01

End Date: 2026-12-30

Contract Duration: 455 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF THE HOOVER DAM SECURITY RESPONSE FORCE (SRF) FACILITY PHASE 1

Place of Performance

Location: BOULDER CITY, CLARK County, NEVADA, 89005

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $4.9 million to KWR CONSTRUCTION INC for work described as: RENOVATION OF THE HOOVER DAM SECURITY RESPONSE FORCE (SRF) FACILITY PHASE 1 Key points: 1. Contract value appears reasonable for a facility renovation of this scope. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of 455 days is standard for construction projects of this nature. 5. Location in Nevada may influence labor and material costs. 6. The Bureau of Reclamation is the contracting agency, indicating a focus on infrastructure maintenance.

Value Assessment

Rating: good

The contract value of approximately $4.9 million for the Hoover Dam Security Response Force (SRF) Facility Phase 1 renovation seems aligned with typical costs for commercial and institutional building construction. Benchmarking against similar federal renovation projects of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for the government, as it shifts cost overrun risks to the contractor.

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 indicates a robust bidding process where all responsible sources were permitted to submit offers. With 5 bidders identified, the level of competition appears healthy, suggesting that the Bureau of Reclamation likely received competitive pricing. The exclusion of sources clause might relate to specific pre-qualification requirements or past performance considerations.

Taxpayer Impact: A competitive bidding process with multiple bidders generally leads to better price discovery and potentially lower costs for taxpayers. The presence of 5 bidders suggests that the government secured a fair market price for the renovation services.

Public Impact

The primary beneficiaries are the Hoover Dam's security response force, who will gain an improved and potentially more functional facility. The services delivered include the renovation of the SRF facility, enhancing its operational capabilities. The geographic impact is localized to the Hoover Dam area in Nevada. Workforce implications include employment opportunities for construction workers and related trades during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not clearly defined.
Risk of unforeseen site conditions impacting schedule and cost.
Dependence on contractor's ability to manage subcontractors effectively.

Positive Signals

Firm-fixed-price contract limits financial risk for the government.
Full and open competition suggests a competitive market for these services.
Experienced agency (Bureau of Reclamation) likely has established oversight processes.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The federal government is a significant consumer of construction services, particularly for infrastructure maintenance and upgrades at critical facilities like the Hoover Dam. Market size for federal construction is substantial, and this contract represents a specific investment in maintaining essential operational infrastructure. Comparable spending benchmarks would involve analyzing other federal building renovation contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, KWR Construction Inc., may still engage small businesses as subcontractors, depending on their own procurement practices and the availability of specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Reclamation, a division of the Department of the Interior, which has experience in managing large infrastructure projects. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to complete the work within the agreed-upon price. Transparency is generally facilitated through federal contract databases and reporting requirements. The Inspector General for the Department of the Interior may have jurisdiction for audits and investigations if any irregularities arise.

Related Government Programs

Hoover Dam Operations and Maintenance
Federal Building Renovations
Critical Infrastructure Security Upgrades
Bureau of Reclamation Construction Contracts

Risk Flags

Potential for unforeseen site conditions
Risk of schedule delays
Contractor performance variability
Cybersecurity implications for security facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.9 million to KWR CONSTRUCTION INC. RENOVATION OF THE HOOVER DAM SECURITY RESPONSE FORCE (SRF) FACILITY PHASE 1

Who is the contractor on this award?

The obligated recipient is KWR 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 $4.9 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-12-30.

What is the track record of KWR Construction Inc. on similar federal contracts?

A review of federal contract databases would be necessary to fully assess KWR Construction Inc.'s track record. Specifically, one would look for past performance on contracts of similar size, scope (facility renovation), and type (firm-fixed-price) within the Department of the Interior or other federal agencies. Analyzing past performance ratings, any instances of contract disputes, or performance issues would provide insight into their reliability and capability to execute this Hoover Dam project successfully. Without specific historical data, it's difficult to definitively state their experience level, but the award suggests they met the agency's pre-qualification criteria.

How does the awarded price compare to similar federal building renovations?

Benchmarking this $4.9 million contract against similar federal building renovations requires access to a broader dataset of comparable projects. Factors such as square footage, type of renovation (e.g., structural, MEP, finishes), location (influencing labor and material costs), and the specific functional requirements of the facility (like a Security Response Force facility) are crucial for a fair comparison. Generally, firm-fixed-price contracts awarded under full and open competition tend to reflect market rates. However, without specific project details for comparison, it's challenging to definitively state if this price is high or low. The Bureau of Reclamation's internal cost estimates and historical data for similar projects would offer the most accurate benchmark.

What are the primary risks associated with this renovation project?

The primary risks associated with this renovation project include potential unforeseen site conditions, which are common in older infrastructure like the Hoover Dam, potentially leading to scope changes and cost increases despite the fixed-price contract. Schedule delays could arise from logistical challenges at a high-security, operational facility, or from contractor performance issues. Another risk is the potential for inadequate quality of work if contractor oversight is insufficient. Finally, cybersecurity risks related to any new systems installed or integrated during the renovation must be considered, given the facility's security function.

How effective is the Bureau of Reclamation in managing construction contracts?

The Bureau of Reclamation (BOR) has a long history of managing complex construction and renovation projects, particularly related to water infrastructure and associated facilities. Their effectiveness is generally considered good, given their extensive experience and established project management processes. They typically employ rigorous oversight, including site inspections, progress reviews, and quality control measures. However, like any large agency, effectiveness can vary project by project, influenced by factors such as funding levels, staffing, and the specific complexity of the undertaking. The award of this contract suggests the BOR has confidence in its ability to oversee this particular renovation.

What is the historical spending trend for Hoover Dam facility maintenance and upgrades?

Analyzing historical spending trends for Hoover Dam facility maintenance and upgrades would require accessing detailed budget and expenditure data from the Department of the Interior and the Bureau of Reclamation over several fiscal years. This would likely reveal fluctuations based on infrastructure condition assessments, capital improvement plans, and available funding. Projects like this SRF facility renovation are typically part of a larger, ongoing program to ensure the dam's operational integrity and security. Understanding past spending patterns can help contextualize the current $4.9 million award and forecast future investment needs for the facility and the dam complex.

What are the implications of the 'after exclusion of sources' clause in the competition type?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the competition was intended to be open to all responsible sources, certain potential bidders were excluded based on specific criteria defined in the solicitation. This exclusion is typically justified by factors such as demonstrated capability, past performance, specific technical requirements, or security clearances necessary for the project. While it aims to ensure only qualified contractors participate, it could potentially limit the number of bidders compared to a purely 'full and open' competition. The justification for exclusion must be clearly documented by the agency to ensure fairness and prevent undue restriction of competition.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140R3025Q0090

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 76 N TEN POND PL, SIERRA VISTA, AZ, 85635

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

Financial Breakdown

Contract Ceiling: $4,912,683

Exercised Options: $4,912,683

Current Obligation: $4,912,683

Actual Outlays: $264,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140F0822D0068

IDV Type: IDC

Timeline