Navajo-Gallup Water Project Reaches $79.9M, Awarded to S.J. Louis Construction
Contract Overview
Contract Amount: $79,890,509 ($79.9M)
Contractor: S.J. Louis Construction, Inc
Awarding Agency: Department of the Interior
Start Date: 2021-12-21
End Date: 2025-05-16
Contract Duration: 1,242 days
Daily Burn Rate: $64.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NAVAJO-GALLUP WATER SUPPLY PROJECT NAVAJO CODE TALKERS SUBLATERAL REACHES 12.1 & 12.2
Place of Performance
Location: FARMINGTON, SAN JUAN County, NEW MEXICO, 87401
Plain-Language Summary
Department of the Interior obligated $79.9 million to S.J. LOUIS CONSTRUCTION, INC for work described as: NAVAJO-GALLUP WATER SUPPLY PROJECT NAVAJO CODE TALKERS SUBLATERAL REACHES 12.1 & 12.2 Key points: 1. Project aims to provide clean water to Navajo Nation communities. 2. Significant investment in infrastructure development for underserved areas. 3. Contract awarded through full and open competition. 4. Potential for long-term economic and health benefits.
Value Assessment
Rating: good
The contract value of $79.9M appears reasonable for a large-scale water infrastructure project of this nature. Benchmarking against similar federal water supply projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, driving competitive pricing.
Taxpayer Impact: This project represents a substantial taxpayer investment aimed at improving public health and quality of life for the Navajo Nation.
Public Impact
Provides critical access to clean drinking water for thousands of Navajo residents. Addresses long-standing water infrastructure deficits in the region. Supports economic development through job creation and improved living conditions. Enhances public health outcomes by reducing waterborne illnesses.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Potential for project delays due to complexity and environmental factors.
- Ensuring long-term operational and maintenance sustainability.
- Monitoring cost overruns in large infrastructure projects.
Positive Signals
- Addresses a critical unmet need for clean water.
- Utilizes a competitive bidding process.
- Significant federal investment in tribal infrastructure.
Sector Analysis
This project falls under the construction sector, specifically water and sewer line construction. Federal spending in this area is crucial for maintaining and upgrading public infrastructure across the nation.
Small Business Impact
While the prime contractor is S.J. Louis Construction, Inc., the contract details do not specify subcontracting goals for small businesses. Further inquiry into potential small business participation is warranted.
Oversight & Accountability
The Bureau of Reclamation, under the Department of the Interior, is responsible for overseeing this project. Robust oversight is essential to ensure timely completion, quality, and adherence to budget.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Project complexity and potential for delays.
- Ensuring equitable distribution and access to water.
- Long-term maintenance and operational costs.
- Environmental impact mitigation during construction.
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 $79.9 million to S.J. LOUIS CONSTRUCTION, INC. NAVAJO-GALLUP WATER SUPPLY PROJECT NAVAJO CODE TALKERS SUBLATERAL REACHES 12.1 & 12.2
Who is the contractor on this award?
The obligated recipient is S.J. LOUIS 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 $79.9 million.
What is the period of performance?
Start: 2021-12-21. End: 2025-05-16.
What are the key performance indicators for this project and how will success be measured?
Success will likely be measured by the timely completion of the water supply infrastructure, adherence to quality standards, and ultimately, the provision of reliable clean drinking water to the targeted Navajo communities. Key performance indicators may include water quality metrics, system uptime, and community satisfaction surveys.
What are the primary risks associated with the construction of these water supply sublateral reaches?
Primary risks include potential environmental challenges during excavation and construction, unforeseen geological conditions, weather-related delays, and the logistical complexities of working in remote areas. Ensuring adequate contingency planning and risk mitigation strategies are in place is crucial for project success.
How does the cost of this project compare to similar water infrastructure projects funded by the federal government?
Without specific comparable project data, a direct cost comparison is difficult. However, the $79.9M contract value for 12.1 & 12.2 sublateral reaches suggests a significant investment. Benchmarking against other Bureau of Reclamation projects or similar Army Corps of Engineers water infrastructure contracts would provide a more accurate assessment.
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: 140R4021R0009
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1351 BROADWAY ST W, COLD SPRING, MN, 56320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,890,509
Exercised Options: $79,890,509
Current Obligation: $79,890,509
Actual Outlays: $78,982,005
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-21
Current End Date: 2025-05-16
Potential End Date: 2025-05-16 00:00:00
Last Modified: 2025-09-15
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