DOI Awards $51.3M for San Juan Pumping Plants, Highlighting Infrastructure Needs
Contract Overview
Contract Amount: $51,280,013 ($51.3M)
Contractor: Archer Western Construction, LLC
Awarding Agency: Department of the Interior
Start Date: 2020-09-14
End Date: 2025-04-04
Contract Duration: 1,663 days
Daily Burn Rate: $30.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SAN JUAN LATERAL PUMPING PLANTS NO. 4 & 7
Place of Performance
Location: FARMINGTON, SAN JUAN County, NEW MEXICO, 87401
Plain-Language Summary
Department of the Interior obligated $51.3 million to ARCHER WESTERN CONSTRUCTION, LLC for work described as: SAN JUAN LATERAL PUMPING PLANTS NO. 4 & 7 Key points: 1. Significant investment in critical water infrastructure for New Mexico. 2. Archer Western Construction, LLC secured a large contract, indicating strong capabilities. 3. The project addresses essential water and sewer line construction needs. 4. Fixed-price contract aims to control costs for this substantial project.
Value Assessment
Rating: good
The contract value of $51.3M for water and sewer line construction appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified contractors to bid.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this essential infrastructure upgrade.
Public Impact
Enhances water and sewer infrastructure reliability in New Mexico. Supports regional economic development through construction jobs. Addresses long-term water management needs for the San Juan region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term construction projects.
- Dependency on a single contractor for critical infrastructure.
Positive Signals
- Clear contract type (Firm Fixed Price) for cost control.
- Full and open competition promotes competitive pricing.
- Addresses vital public infrastructure needs.
Sector Analysis
This contract falls within the construction sector, specifically water and sewer infrastructure. Spending in this area is often driven by aging systems, population growth, and regulatory requirements. Benchmarks vary widely based on project complexity and location.
Small Business Impact
The contract was awarded to Archer Western Construction, LLC, a large business. There is no explicit indication of small business participation in this specific award, which could be an area for future analysis.
Oversight & Accountability
The Bureau of Reclamation, under the Department of the Interior, is responsible for oversight. The firm fixed-price contract and defined duration provide a framework for accountability.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Long project duration increases risk of cost escalation.
- Potential for unforeseen site conditions.
- Weather-related delays impacting schedule.
- Contractor performance over extended period.
Tags
water-and-sewer-line-and-related-structu, department-of-the-interior, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $51.3 million to ARCHER WESTERN CONSTRUCTION, LLC. SAN JUAN LATERAL PUMPING PLANTS NO. 4 & 7
Who is the contractor on this award?
The obligated recipient is ARCHER WESTERN CONSTRUCTION, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Reclamation).
What is the total obligated amount?
The obligated amount is $51.3 million.
What is the period of performance?
Start: 2020-09-14. End: 2025-04-04.
What is the projected impact of this project on water service reliability for the San Juan region?
This project is expected to significantly improve water and sewer infrastructure reliability by replacing or upgrading aging systems. Enhanced pumping capacity and modernized lines should reduce the risk of service disruptions and ensure consistent water delivery to residents and businesses in the San Juan region, contributing to public health and safety.
What are the primary risks associated with the long duration of this contract?
The 1663-day duration presents risks such as potential material cost escalation, unforeseen site conditions requiring change orders, and contractor performance degradation over time. Weather delays in New Mexico could also impact the schedule. Mitigation strategies include robust contract management and contingency planning.
How does the firm fixed-price structure ensure cost-effectiveness for taxpayers?
The firm fixed-price (FFP) structure shifts most of the cost risk to the contractor, Archer Western Construction, LLC. This means the government pays a set price regardless of the contractor's actual costs, incentivizing efficient project execution and cost control by the contractor. It provides budget certainty for the Department of the Interior.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 140R4020R0008
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Archer Western Construction LLC
Address: 1411 GREENWAY DR, IRVING, TX, 75038
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,280,013
Exercised Options: $51,280,013
Current Obligation: $51,280,013
Actual Outlays: $50,950,761
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-14
Current End Date: 2025-04-04
Potential End Date: 2025-04-04 00:00:00
Last Modified: 2026-04-03
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