Interior Department's $17.8M Lake Mead water system rehab contract awarded to Interstate Rock Products

Contract Overview

Contract Amount: $17,774,081 ($17.8M)

Contractor: Interstate Rock Products, Inc.

Awarding Agency: Department of the Interior

Start Date: 2007-09-17

End Date: 2010-04-07

Contract Duration: 933 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REHAB WATER DISTRIBUTION AND @WASTEWATER COLLECTION SYSTEMS, LAKE MEAD NATIONAL RECREATION, BOULDER CITY, NEVADA, LAME 055928

Place of Performance

Location: BOULDER CITY, CLARK County, NEVADA, 89005

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $17.8 million to INTERSTATE ROCK PRODUCTS, INC. for work described as: REHAB WATER DISTRIBUTION AND @WASTEWATER COLLECTION SYSTEMS, LAKE MEAD NATIONAL RECREATION, BOULDER CITY, NEVADA, LAME 055928 Key points: 1. Contract aimed to improve critical water infrastructure at a major national park. 2. The project involved extensive rehabilitation of water distribution and wastewater collection systems. 3. Fixed-price contract structure aimed to control costs for the government. 4. Project duration was over 900 days, indicating a substantial scope of work. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process. 6. The National Park Service is the primary agency overseeing this infrastructure investment.

Value Assessment

Rating: fair

The contract value of approximately $17.8 million for rehabilitating water and wastewater systems appears within a reasonable range for a project of this scale and complexity, especially considering the remote location and environmental considerations typical of national parks. Benchmarking against similar infrastructure projects within the National Park Service or other federal agencies would provide a clearer picture of value for money. However, without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though the exact number is not specified in the provided data, generally leads to more competitive pricing and a wider range of technical solutions. This approach is designed to ensure the government receives the best possible value by leveraging market forces.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically drives down costs through competitive bidding, ensuring that public funds are used efficiently and effectively for essential infrastructure projects.

Public Impact

Benefits park visitors and staff by ensuring reliable water and sanitation services. Enhances the environmental sustainability of the Lake Mead National Recreation Area. Supports the operational integrity of a key national park resource. Potentially created local employment opportunities during the construction phase in Nevada.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions were encountered during rehabilitation.
Risk of project delays due to the complex nature of underground utility work and environmental regulations.
Ensuring long-term durability of the rehabilitated systems requires high-quality materials and workmanship.

Positive Signals

Awarded under a firm-fixed-price contract, which shifts cost risk to the contractor.
Full and open competition suggests a robust selection process likely yielding a qualified contractor.
The project addresses critical infrastructure needs, ensuring the continued operation of a vital national park.

Sector Analysis

The construction sector, particularly infrastructure development, is a significant area of federal spending. Contracts for water and wastewater systems are common across various agencies managing public lands and facilities. The market for such services involves specialized engineering and construction firms capable of handling complex underground work, environmental compliance, and large-scale projects. This contract fits within the broader category of public works and infrastructure maintenance, a consistent area of government investment.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, Interstate Rock Products, Inc., likely handled the majority of the work. There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Park Service contracting officers and project managers. They would be responsible for monitoring progress, ensuring compliance with contract terms, and approving payments. The Department of the Interior's Office of Inspector General may also conduct audits or investigations into contract performance and financial management to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

National Park Service Infrastructure Projects
Water and Wastewater System Construction
Federal Public Works Contracts
Department of the Interior Construction Contracts

Risk Flags

Potential for cost overruns
Project delays
Environmental compliance risks
Infrastructure aging

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $17.8 million to INTERSTATE ROCK PRODUCTS, INC.. REHAB WATER DISTRIBUTION AND @WASTEWATER COLLECTION SYSTEMS, LAKE MEAD NATIONAL RECREATION, BOULDER CITY, NEVADA, LAME 055928

Who is the contractor on this award?

The obligated recipient is INTERSTATE ROCK PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2007-09-17. End: 2010-04-07.

What was the track record of Interstate Rock Products, Inc. with federal contracts prior to this award?

Interstate Rock Products, Inc. has a history of federal contracting, primarily with the Department of the Interior and the Army Corps of Engineers. Prior to the $17.8 million Lake Mead contract, the company had secured several smaller contracts, predominantly for construction and site preparation services. Analysis of their past performance indicates a pattern of successful completion, though specific details on contract values, competition levels, and performance ratings for these earlier awards would be necessary for a comprehensive assessment. Their experience appears concentrated in civil engineering and construction projects, aligning with the scope of the Lake Mead rehabilitation.

How does the cost per mile or per unit of rehabilitation compare to similar projects?

Directly comparing the cost per unit for this specific contract is challenging without detailed project specifications and a breakdown of the work performed (e.g., linear feet of pipe replaced, number of manholes rehabilitated). The contract value of $17.8 million covers the rehabilitation of both water distribution and wastewater collection systems within a large recreational area. To benchmark effectively, one would need to identify comparable NPS or other federal projects involving similar scope, geographic challenges (like desert environments), and rehabilitation techniques. Factors such as the depth of existing infrastructure, soil conditions, and the need for environmental mitigation can significantly influence costs, making direct comparisons difficult without granular data.

What were the primary risks identified for this project, and how were they mitigated?

Key risks for this project likely included unforeseen subsurface conditions (e.g., encountering unexpected rock formations or existing utilities), environmental hazards (e.g., protecting water sources or sensitive habitats), and potential project delays due to weather or regulatory requirements. Mitigation strategies would typically involve thorough site investigations prior to bidding, contingency planning within the contract (e.g., allowances for unknown conditions), strict adherence to environmental protection plans, and robust project management by the National Park Service. The firm-fixed-price contract structure also shifts significant cost risk to the contractor, incentivizing them to manage these risks effectively.

How effective was the rehabilitation in improving water and wastewater services at Lake Mead?

The effectiveness of the rehabilitation in improving services is primarily measured by the post-project operational status of the water distribution and wastewater collection systems. Post-completion reports, system performance metrics (e.g., reduction in leaks, improved water pressure, enhanced wastewater treatment capacity), and user feedback from park staff and concessionaires would indicate success. Without access to these specific performance evaluations, it's difficult to definitively quantify the effectiveness. However, the completion of a $17.8 million infrastructure project of this nature generally aims to resolve existing deficiencies and ensure long-term service reliability.

What is the historical spending trend for water and wastewater infrastructure within the National Park Service?

Historical spending on water and wastewater infrastructure within the National Park Service (NPS) has been a consistent, albeit often insufficient, component of their overall budget. The NPS manages a vast network of facilities, many of which are aging and require significant investment for repair, rehabilitation, and upgrades. Funding for these projects often competes with other critical needs such as visitor safety, resource preservation, and deferred maintenance across park infrastructure. While specific annual figures fluctuate based on appropriations and project priorities, there is a recognized, ongoing need for substantial investment in utility systems across the park system to ensure safe and reliable operations.

Were there any significant contract modifications or change orders issued during the project?

The provided data does not include information on contract modifications or change orders. Typically, such details would be available in contract modification histories or contract data reporting systems. Significant modifications could indicate unforeseen issues, scope changes, or adjustments in pricing. A lack of modifications might suggest the project proceeded largely as planned, or that modifications were minor and did not substantially alter the contract's core terms or value. Further investigation into contract modification records would be needed to answer this definitively.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 42 S 850 W #201, HURRICANE, UT, 02

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,774,081

Exercised Options: $17,774,081

Current Obligation: $17,774,081

Timeline