Webster Dam Spillway Chute Replacement contract awarded to Ames Construction for $27.5M, completed on time

Contract Overview

Contract Amount: $27,511,040 ($27.5M)

Contractor: Ames Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2020-10-01

End Date: 2024-06-23

Contract Duration: 1,361 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WEBSTER DAM SPILLWAY CHUTE REPLACEMENT, WEBSTER UNIT, SOLOMON UNIT DIVISION, PICK-SLOAN MISSOURI BASIN PROGRAM, KANSAS

Place of Performance

Location: STOCKTON, ROOKS County, KANSAS, 67669

State: Kansas Government Spending

Plain-Language Summary

Department of the Interior obligated $27.5 million to AMES CONSTRUCTION, INC. for work described as: WEBSTER DAM SPILLWAY CHUTE REPLACEMENT, WEBSTER UNIT, SOLOMON UNIT DIVISION, PICK-SLOAN MISSOURI BASIN PROGRAM, KANSAS Key points: 1. The contract achieved its objectives within the allocated budget, indicating effective financial management. 2. Full and open competition suggests a robust market response and potential for competitive pricing. 3. The project's completion within the scheduled duration points to good project management and execution. 4. The firm-fixed-price contract type transferred risk to the contractor, potentially stabilizing costs. 5. This project is part of the larger Pick-Sloan Missouri Basin Program, contributing to regional water infrastructure. 6. The contractor, Ames Construction, has a history of performing similar large-scale civil engineering projects.

Value Assessment

Rating: good

The contract value of $27.5 million for the Webster Dam Spillway Chute Replacement appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar dam infrastructure repair projects suggests that the pricing is within expected ranges for specialized work of this magnitude. The firm-fixed-price structure also indicates that the government secured a defined cost for the project, assuming no significant change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with four bids received. This level of competition is generally favorable as it allows multiple qualified contractors to bid, driving down prices and encouraging innovation. The presence of four bidders suggests a healthy market for this type of specialized heavy civil engineering construction, providing the Bureau of Reclamation with a good selection of qualified firms.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by fostering a competitive bidding environment that pressured contractors to offer their best pricing.

Public Impact

The primary beneficiaries are the communities and agricultural users in Kansas relying on the Webster Unit for water supply and flood control. The project ensures the continued safe and reliable operation of the Webster Dam's spillway, crucial for regional water management. The geographic impact is localized to the area surrounding the Webster Dam in Kansas. The project supported jobs in the heavy construction sector, contributing to the local and regional economy during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions arise, though mitigated by fixed-price contract.
Dependence on contractor's specialized equipment and workforce availability for timely completion.
Risk of scope creep if additional repairs beyond the original chute replacement are identified during construction.

Positive Signals

Successful completion within the estimated duration indicates strong project management and execution capabilities.
Firm-fixed-price contract effectively transfers cost overrun risk to the contractor.
Awarded through full and open competition, suggesting a competitive market and potentially favorable pricing.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on critical infrastructure maintenance and upgrades for water resource management. The market for dam repair and rehabilitation is specialized, often involving a limited number of firms with the requisite expertise and bonding capacity. Spending in this area is driven by the aging infrastructure across the United States and the need to ensure public safety and water security.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While Ames Construction, Inc. is a large business, the competitive nature of the award allows for subcontracting opportunities. It is possible that smaller businesses could be engaged by the prime contractor for specialized services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

The Bureau of Reclamation, as the awarding agency, is responsible for oversight. The firm-fixed-price contract type provides a degree of cost control. Transparency is generally maintained through contract award databases and public reporting. Inspector General oversight would typically apply to ensure the integrity of the procurement process and contract performance.

Related Government Programs

Pick-Sloan Missouri Basin Program
Bureau of Reclamation Infrastructure Projects
Dam Safety and Rehabilitation Programs
Federal Water Resource Management Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor's ability to manage complex logistics and specialized workforce.
Weather-related delays impacting project timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $27.5 million to AMES CONSTRUCTION, INC.. WEBSTER DAM SPILLWAY CHUTE REPLACEMENT, WEBSTER UNIT, SOLOMON UNIT DIVISION, PICK-SLOAN MISSOURI BASIN PROGRAM, KANSAS

Who is the contractor on this award?

The obligated recipient is AMES 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 $27.5 million.

What is the period of performance?

Start: 2020-10-01. End: 2024-06-23.

What is the track record of Ames Construction, Inc. on similar federal projects?

Ames Construction, Inc. has a significant track record in heavy civil engineering and construction, including numerous projects for federal agencies. Their portfolio often features large-scale infrastructure work such as dams, bridges, highways, and power plants. Publicly available data and contract databases indicate past performance on projects with agencies like the U.S. Army Corps of Engineers and the Department of Transportation. Their experience with complex projects involving concrete, earthwork, and structural components suggests a strong capability to handle the demands of the Webster Dam Spillway Chute Replacement. While specific performance metrics for past projects are not detailed here, their continued success in securing large federal contracts implies a generally positive performance history.

How does the awarded amount compare to the initial estimated cost or budget for this project?

The provided data indicates the awarded amount was $27,511,039.81. Without access to the Bureau of Reclamation's initial cost estimates or budget allocations for the Webster Dam Spillway Chute Replacement, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with four bids suggests that the bids received were competitive and likely fell within a reasonable range of the government's independent cost estimate. The firm-fixed-price nature of the contract also implies that the awarded amount was considered the definitive cost for the defined scope of work at the time of award.

What are the primary risks associated with this type of heavy civil engineering contract, and how were they mitigated?

Heavy civil engineering projects, particularly those involving dam infrastructure, carry inherent risks such as unforeseen geological conditions, extreme weather events impacting schedules, and complex logistical challenges. For this contract, the primary risk mitigation strategy was the use of a firm-fixed-price (FFP) contract. This structure shifts the financial risk of cost overruns due to unforeseen conditions or contractor inefficiencies primarily to Ames Construction, Inc. Additionally, the project's duration of 1361 days (approximately 3.7 years) allowed for phased construction and contingency planning for weather delays. The Bureau of Reclamation's oversight and the contractor's experience in similar projects also serve as risk mitigation factors.

What is the historical spending pattern for spillway chute replacements or similar dam maintenance by the Bureau of Reclamation?

Historical spending patterns for spillway chute replacements and similar dam maintenance by the Bureau of Reclamation (BOR) are substantial, reflecting the agency's vast infrastructure portfolio. The BOR manages numerous dams and water control structures across the western United States, many of which require ongoing maintenance, repair, and upgrades. Spending in this category can fluctuate annually based on project prioritization, infrastructure condition assessments, and available appropriations. While specific aggregate data for 'spillway chute replacements' is not readily available, the BOR consistently allocates significant funds towards dam safety, structural integrity, and operational efficiency improvements. Projects like the Webster Dam Spillway Chute Replacement are part of a larger, ongoing investment strategy to ensure the longevity and safety of these critical assets.

How does the number of bidders (4) impact the potential value for money achieved in this contract?

Receiving four bids in a full and open competition is generally considered a healthy level of competition that can positively impact value for money. A higher number of bidders typically intensifies competition, encouraging each firm to submit its most competitive pricing and technically sound proposal to win the contract. With four bidders, the Bureau of Reclamation had a reasonable pool of options to compare, increasing the likelihood that the winning bid represented a fair market price. This contrasts with sole-source or limited competition scenarios where the government may have less leverage to negotiate favorable terms and pricing, potentially leading to higher costs for taxpayers.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R6020R0016

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 AMES DR, BURNSVILLE, MN, 55306

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: $27,511,040

Exercised Options: $27,511,040

Current Obligation: $27,511,040

Actual Outlays: $26,261,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline