Port Angeles water treatment plant construction contract awarded for over $25 million

Contract Overview

Contract Amount: $25,396,296 ($25.4M)

Contractor: Watts-Korsmo a JV

Awarding Agency: Department of the Interior

Start Date: 2007-09-07

End Date: 2010-05-25

Contract Duration: 991 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT PORT ANGELES WATER TREATMENT PLANT

Place of Performance

Location: PORT ANGELES, CLALLAM County, WASHINGTON, 98362

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $25.4 million to WATTS-KORSMO A JV for work described as: CONSTRUCT PORT ANGELES WATER TREATMENT PLANT Key points: 1. Contract value appears reasonable for a large-scale water infrastructure project. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Project duration of nearly three years indicates a significant undertaking. 5. Awarded by the National Park Service, likely for a park facility. 6. Location in Washington state suggests regional economic impact.

Value Assessment

Rating: good

The contract value of approximately $25.4 million for the construction of a water treatment plant is within a typical range for such infrastructure projects. Benchmarking against similar federal construction contracts for water and sewer systems indicates that this award is competitive. The firm fixed-price structure provides cost certainty for the government, assuming no significant change orders arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bids received, the competition level suggests a healthy market interest in this type of federal construction work. This level of competition generally leads to more competitive pricing and better value for the government.

Taxpayer Impact: The robust competition for this project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Benefits the National Park Service by providing essential water treatment infrastructure. Delivers critical water and sewer line construction services. Geographic impact is concentrated in Port Angeles, Washington. Workforce implications include construction jobs in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm fixed-price contract type helps control costs.
Full and open competition suggests a competitive award process.
Awarded by a federal agency (National Park Service) for necessary infrastructure.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil construction related to water and sewer infrastructure. The market for such projects is driven by government funding for public works and infrastructure upgrades. Comparable spending benchmarks for water treatment plant construction can vary widely based on size, complexity, and location, but a $25 million award is substantial for a single facility.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit information on subcontracting plans for small businesses. Without further details, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

The firm fixed-price contract type provides a degree of oversight by locking in costs. Accountability measures would typically involve project milestones, quality control inspections, and adherence to contract specifications. Transparency is generally maintained through federal contract databases where award details are published. Oversight would likely fall under the purview of the National Park Service's contracting and project management offices.

Related Government Programs

Federal Construction Contracts
Water Infrastructure Projects
National Park Service Projects
Public Works Construction

Risk Flags

Potential for unforeseen site conditions impacting fixed-price contract.
Risk of material or labor cost escalation over the contract duration.
Need for robust government oversight to ensure quality and adherence to scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25.4 million to WATTS-KORSMO A JV. CONSTRUCT PORT ANGELES WATER TREATMENT PLANT

Who is the contractor on this award?

The obligated recipient is WATTS-KORSMO A JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2007-09-07. End: 2010-05-25.

What is the track record of the contractor, Watts-Korsmo A JV, on similar federal projects?

Watts-Korsmo A JV, as a joint venture, likely combines the resources and experience of its constituent companies. To assess their track record, one would need to examine past performance on similar federal construction projects, particularly those involving water and sewer infrastructure. Key indicators include on-time completion, adherence to budget (especially on fixed-price contracts), quality of work, and any history of disputes or contract modifications. A review of their past performance evaluations within federal procurement systems would provide the most direct insight into their reliability and capability for executing projects of this scale and complexity.

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

The provided data indicates the awarded amount is $25,396,296. Without access to the government's initial cost estimate or the detailed budget allocated for the Port Angeles water treatment plant construction, a direct comparison is not possible. However, the fact that it was awarded under full and open competition with five bids suggests the award price was likely competitive and potentially within the government's expected range. If the award was significantly higher than the estimate, it could indicate underestimation or increased market costs. Conversely, a lower award might suggest efficient bidding or potential risks if the scope was underestimated.

What are the potential risks associated with a firm fixed-price contract for this type of construction?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor. For a complex project like a water treatment plant, potential risks include unforeseen site conditions (e.g., soil issues, groundwater), material price escalations beyond what was anticipated, labor shortages, or design changes requested by the government. If the contractor encounters significant unexpected issues, they may incur losses if they cannot renegotiate terms or if change orders are not approved. Conversely, the government bears the risk of the contractor potentially cutting corners on quality to maintain profitability if issues arise.

What is the significance of the North American Industry Classification System (NAICS) code 237110?

The NAICS code 237110 specifically designates 'Water and Sewer Line and Related Structures Construction.' This classification indicates that the contract's primary scope of work involves the construction, repair, and maintenance of water mains, sewers, pipelines, and related infrastructure such as pumping stations and treatment facilities. For federal agencies like the National Park Service, this code signifies a need for specialized construction services to build or upgrade essential water and wastewater systems, often within park boundaries or associated facilities.

How does the duration of the contract (991 days) impact project management and cost?

A contract duration of 991 days, approximately 2.7 years, for constructing a water treatment plant is substantial and reflects the complexity and scale of the undertaking. Longer durations can increase the risk of material price fluctuations and labor market changes, although the firm fixed-price nature of this contract aims to mitigate this for the government. From a project management perspective, it requires sustained oversight, phased execution, and careful coordination of various construction activities. For taxpayers, a longer project duration means funds are committed over an extended period, and potential delays could lead to increased indirect costs or impact the intended benefits of the facility.

What does the 'AW: DCA' designation likely mean in the contract details?

The 'AW: DCA' designation likely refers to the 'Awarding Agency' or 'Agency' and potentially a specific office or contracting activity within the Department of the Interior, such as the 'Departmental Contracting Activity' or a similar internal designation. The 'DCA' part is less standard and might be an internal code or abbreviation specific to the awarding bureau or office responsible for managing this contract. It helps trace the administrative origin of the award within the larger federal structure.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 77 DIGITAL DR STE 100, NOVATO, CA, 02

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,396,296

Exercised Options: $25,396,296

Current Obligation: $25,396,296

Timeline