Interior Department awards $67.7M contract for NGWSP intake and river pumping plant construction in New Mexico

Contract Overview

Contract Amount: $67,726,344 ($67.7M)

Contractor: Ames Federal Contracting Group LLC

Awarding Agency: Department of the Interior

Start Date: 2026-04-03

End Date: 2028-10-20

Contract Duration: 931 days

Daily Burn Rate: $72.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NGWSP INTAKE & RIVER PUMPING PLANT

Place of Performance

Location: FARMINGTON, SAN JUAN County, NEW MEXICO, 87401

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $67.7 million to AMES FEDERAL CONTRACTING GROUP LLC for work described as: NGWSP INTAKE & RIVER PUMPING PLANT Key points: 1. Contract value represents a significant investment in water infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Project duration of over 2.5 years indicates a substantial construction undertaking. 4. The firm-fixed-price structure aims to control costs for the government. 5. Geographic focus on New Mexico highlights regional infrastructure needs. 6. The specific NAICS code points to specialized construction services.

Value Assessment

Rating: good

The contract value of $67.7 million for the NGWSP intake and river pumping plant appears reasonable given the scope of water infrastructure construction. Benchmarking against similar large-scale water and sewer line projects, the price per unit (if calculable from provided data) would be compared to industry averages. The firm-fixed-price nature of the contract suggests an effort to establish a clear cost ceiling, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders participating, the competition level appears moderate. While more bidders could potentially drive prices lower, two bidders still provide a basis for price discovery and comparison, suggesting a reasonable outcome for price negotiation.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives proposals from qualified contractors.

Public Impact

The primary beneficiaries are likely residents and industries in New Mexico relying on the NGWSP for water supply. The project will deliver critical infrastructure for water intake and pumping, enhancing water management capabilities. The geographic impact is concentrated in New Mexico, addressing specific regional water needs. Construction activities will likely create temporary employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on timely delivery of specialized equipment and materials.
Risk of schedule delays due to weather or permitting issues in New Mexico.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Experienced contractor likely selected through a competitive bidding process.

Sector Analysis

This contract falls within the construction sector, specifically focusing on water and sewer infrastructure. The market for such projects is driven by government investment in public works and the need for maintaining and upgrading aging water systems. Comparable spending benchmarks would involve analyzing other large-scale water treatment, pumping, and distribution projects awarded by federal, state, and local agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract 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 terms, requiring the contractor to deliver the specified infrastructure within the agreed budget and timeline. Transparency is generally maintained through federal contract databases and reporting requirements.

Related Government Programs

Bureau of Reclamation Water Infrastructure Projects
National Water Resources Development Programs
Federal Water Management and Conservation Initiatives

Risk Flags

Moderate competition level (2 bidders) could potentially limit price reduction.
Firm-fixed-price contracts can sometimes lead to scope limitations if not carefully managed.
Construction projects inherently carry risks of unforeseen site conditions and delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $67.7 million to AMES FEDERAL CONTRACTING GROUP LLC. NGWSP INTAKE & RIVER PUMPING PLANT

Who is the contractor on this award?

The obligated recipient is AMES FEDERAL CONTRACTING GROUP 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 $67.7 million.

What is the period of performance?

Start: 2026-04-03. End: 2028-10-20.

What is the historical spending pattern of the Bureau of Reclamation on similar water infrastructure projects in New Mexico?

Analyzing historical spending by the Bureau of Reclamation on water infrastructure in New Mexico would involve reviewing past contract awards for projects of similar scale and complexity. This would include examining the types of facilities constructed (e.g., dams, canals, pumping stations), the average contract values, and the duration of these projects. Understanding past spending patterns can help contextualize the $67.7 million award for the NGWSP intake and river pumping plant, indicating whether this represents a typical investment or an outlier. It would also reveal trends in contractor selection and the success rates of previous projects in terms of cost and schedule adherence.

How does the per-unit cost of this pumping plant construction compare to national benchmarks for similar infrastructure?

To compare the per-unit cost of this pumping plant construction to national benchmarks, specific metrics would need to be extracted or estimated from the contract details. For instance, if the pumping capacity (e.g., gallons per minute or cubic feet per second) or the volume of excavation/concrete work is known, these could be used as units. Benchmarking would then involve consulting industry reports, construction cost databases (like RSMeans), or data from similar federal projects to determine average costs per unit of capacity or per cubic yard of material. A significant deviation from these benchmarks, either higher or lower, would warrant further investigation into the specific project's complexities, location-specific costs, or the efficiency of the contractor.

What is the track record of AMES FEDERAL CONTRACTING GROUP LLC on federal contracts, particularly in water infrastructure?

Assessing the track record of AMES FEDERAL CONTRACTING GROUP LLC requires reviewing their past performance on federal contracts, accessible through databases like SAM.gov or FPDS. Key indicators include the number and value of previously awarded contracts, the types of services rendered (especially in water and sewer construction), and any performance ratings or past performance evaluations. A history of successful project completion, adherence to schedules and budgets, and positive client feedback would indicate a reliable contractor. Conversely, a record of contract disputes, delays, or cost overruns would raise concerns about their capacity to execute this $67.7 million project effectively.

What are the primary risks associated with the construction of the NGWSP intake and river pumping plant, and how are they being mitigated?

The primary risks associated with constructing a large-scale water intake and pumping plant include unforeseen geological conditions at the site, potential environmental impacts requiring extensive mitigation, supply chain disruptions for specialized equipment, and labor availability issues. The firm-fixed-price contract structure inherently mitigates cost overrun risks for the government, placing that burden on the contractor. However, schedule risks remain. Mitigation strategies likely involve thorough site investigations prior to construction, robust environmental impact assessments, contingency planning for material procurement, and proactive workforce recruitment. The contract's duration and the competitive bidding process also suggest that potential risks were factored into the proposals submitted.

How does the competition level (2 bidders) for this contract potentially impact the final price and quality of the delivered infrastructure?

A competition level of two bidders for this $67.7 million contract presents a moderate level of competition. While more bidders could theoretically drive prices down further, two bidders still provide a basis for price discovery and comparison, preventing a sole-source scenario. This level of competition suggests that AMES FEDERAL CONTRACTING GROUP LLC likely submitted a competitive bid to secure the contract. The impact on quality is also influenced by the pre-qualification process; assuming both bidders were qualified, the competition likely incentivized both to offer competitive pricing while maintaining acceptable quality standards to win the award. However, with fewer bidders, there's a slightly reduced pressure to innovate on price compared to a more crowded field.

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: 140R4025R0023

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2500 COUNTY RD 42 W, BURNSVILLE, MN, 55337

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,726,344

Exercised Options: $67,726,344

Current Obligation: $67,726,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline