Interior's $73M Pumping Plant Contract Awarded to Archer Western Construction for New Mexico Project
Contract Overview
Contract Amount: $73,268,469 ($73.3M)
Contractor: Archer Western Construction, LLC
Awarding Agency: Department of the Interior
Start Date: 2022-09-23
End Date: 2026-04-30
Contract Duration: 1,315 days
Daily Burn Rate: $55.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Construction
Official Description: NGWSP PUMPING PLANTS 2&3
Place of Performance
Location: FARMINGTON, SAN JUAN County, NEW MEXICO, 87401
Plain-Language Summary
Department of the Interior obligated $73.3 million to ARCHER WESTERN CONSTRUCTION, LLC for work described as: NGWSP PUMPING PLANTS 2&3 Key points: 1. Contract value of $73.3M for pumping plant construction. 2. Archer Western Construction, LLC is the sole awardee. 3. Project spans over 3 years, indicating significant scope. 4. Construction falls under the Water and Sewer Line sector.
Value Assessment
Rating: fair
The contract value of $73.3M appears substantial for pumping plant construction. Benchmarking against similar projects is needed to assess if this price is competitive, especially given the fixed-price with economic price adjustment structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is Archer Western Construction, LLC, and the price discovery mechanism (fixed price with EPA) warrants scrutiny for potential cost overruns.
Taxpayer Impact: Taxpayer funds are allocated for critical infrastructure development. The fixed-price with economic price adjustment clause could lead to increased costs if material and labor prices escalate significantly.
Public Impact
Enhances water infrastructure in New Mexico, potentially improving water supply and management. Supports construction jobs and economic activity in the region. The project's success is crucial for meeting regional water needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may increase final cost.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Addresses critical water infrastructure needs.
Sector Analysis
This contract falls within the Construction sector, specifically Water and Sewer Line construction. Spending in this area is often driven by infrastructure upgrades and maintenance needs, with project costs varying widely based on scale and complexity.
Small Business Impact
The data indicates that small businesses were not involved in this contract award (ss: false, sb: false). Opportunities for small business subcontracting should be explored to promote broader economic participation.
Oversight & Accountability
Oversight by the Bureau of Reclamation is essential to ensure the project adheres to specifications, timelines, and budget, especially with the economic price adjustment clause in place.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Potential for cost escalation due to EPA clause.
- No small business participation identified.
- Contract duration is lengthy, increasing exposure to market volatility.
- Dependence on a single prime contractor.
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 $73.3 million to ARCHER WESTERN CONSTRUCTION, LLC. NGWSP PUMPING PLANTS 2&3
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 $73.3 million.
What is the period of performance?
Start: 2022-09-23. End: 2026-04-30.
What is the expected impact of the economic price adjustment on the final contract cost?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specific economic factors, such as labor and material costs. Without specific indices or caps defined in the contract, the final cost could significantly exceed the initial $73.3M if inflation or supply chain issues are severe, potentially impacting the overall value for taxpayers.
What are the specific risks associated with Archer Western Construction's performance on this project?
While awarded through full and open competition, risks associated with Archer Western Construction's performance could include project delays, cost overruns (exacerbated by the EPA clause), or quality issues. A review of their past performance on similar large-scale infrastructure projects would provide a clearer picture of potential risks and their mitigation strategies.
How effectively will this contract contribute to the Bureau of Reclamation's long-term water management goals in New Mexico?
The effectiveness hinges on the successful completion of the pumping plants and their integration into the existing water infrastructure. If the plants operate efficiently and reliably, they will significantly contribute to water conveyance and management. However, the long-term effectiveness also depends on ongoing maintenance, operational costs, and alignment with evolving water resource strategies.
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: 140R4022R0010
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $73,268,469
Exercised Options: $73,268,469
Current Obligation: $73,268,469
Actual Outlays: $71,238,216
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-23
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-30
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