Interior's $25M Minidoka Dam contract awarded to Record Steel and Construction for heavy civil engineering

Contract Overview

Contract Amount: $24,964,807 ($25.0M)

Contractor: Record Steel and Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2011-09-13

End Date: 2015-03-31

Contract Duration: 1,295 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MINIDOKA DAM MODIFICATIONS

Place of Performance

Location: RUPERT, MINIDOKA County, IDAHO, 83350

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $25.0 million to RECORD STEEL AND CONSTRUCTION, INC. for work described as: MINIDOKA DAM MODIFICATIONS Key points: 1. Contract value appears reasonable for the scope of heavy civil engineering work. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include project delays and cost overruns common in large infrastructure projects. 4. Performance context is crucial given the long duration and fixed-price nature. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' sector. 6. The award was made by the Bureau of Reclamation, a key agency for water infrastructure.

Value Assessment

Rating: good

The contract's value of approximately $25 million for dam modifications seems within a reasonable range for large-scale civil engineering projects. Benchmarking against similar dam repair or modification contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumed a significant portion of the cost risk, which can be a positive indicator if the scope was well-defined.

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 5 bidders participating, the competition level suggests a healthy market interest and potential for competitive pricing. This level of competition is generally favorable for price discovery and achieving a fair market price for the government.

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

Public Impact

The primary beneficiaries are the Bureau of Reclamation and the public relying on the Minidoka Dam's functionality. Services delivered include modifications to the Minidoka Dam, ensuring its structural integrity and operational efficiency. The geographic impact is localized to Idaho, where the Minidoka Dam is situated. Workforce implications include employment opportunities for skilled labor in heavy construction and engineering within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large civil engineering projects.
Risk of unforeseen site conditions impacting schedule and cost.
Contractor's past performance on similar large-scale projects needs review.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract shifts cost risk to the contractor.
Long contract duration allows for phased execution and potential learning curve benefits.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects including dams, bridges, and waterways. The market for such services is characterized by large, specialized firms capable of undertaking complex projects. Comparable spending benchmarks would involve analyzing other federal or state contracts for dam maintenance, repair, or modification.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and scale of dam modification projects, it is common for prime contracts to be awarded to larger, established firms. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Reclamation's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract structure, with penalties for non-performance or delays. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight mechanisms are internal.

Related Government Programs

Bureau of Reclamation Dam Safety Program
Army Corps of Engineers Civil Works Projects
Federal Highway Administration Infrastructure Grants
Department of Energy Power Marketing Administrations

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting project completion.
Contractor's capacity to manage large-scale civil engineering projects.
Adequacy of the firm fixed-price structure for complex modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25.0 million to RECORD STEEL AND CONSTRUCTION, INC.. MINIDOKA DAM MODIFICATIONS

Who is the contractor on this award?

The obligated recipient is RECORD STEEL AND 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 $25.0 million.

What is the period of performance?

Start: 2011-09-13. End: 2015-03-31.

What is the track record of Record Steel and Construction, Inc. on similar federal contracts?

A review of federal contract databases indicates that Record Steel and Construction, Inc. has a history of performing heavy and civil engineering construction work. Specific details on their performance on past Bureau of Reclamation or similar large-scale dam projects would require a deeper dive into contract performance reports and award histories. Examining their record for on-time delivery, adherence to budget, and quality of work on comparable projects is essential for assessing their capability to successfully execute the Minidoka Dam modifications.

How does the awarded price compare to industry benchmarks for dam modification projects of this scale?

Benchmarking the $25 million award for the Minidoka Dam modifications against industry standards requires access to detailed cost data for similar projects. Factors such as the specific type of dam, the extent of modifications needed (e.g., structural reinforcement, spillway upgrades, equipment replacement), and regional labor and material costs significantly influence pricing. Without specific comparable project data, it's challenging to definitively state if the price represents excellent value. However, the full and open competition suggests a market-driven price was likely achieved.

What are the primary risks associated with this firm fixed-price contract for dam modifications?

The primary risks associated with this firm fixed-price contract for dam modifications revolve around unforeseen conditions and potential scope creep. While the fixed price shifts cost overrun risk to the contractor, significant unexpected geological issues, material defects, or design ambiguities discovered during construction could lead to claims for equitable adjustments or contract disputes. The long duration (1295 days) also increases the risk of market fluctuations in material costs or labor availability, which the contractor must absorb. Effective project management and contingency planning by the contractor are crucial.

How effective are the Bureau of Reclamation's oversight mechanisms for ensuring project success?

The Bureau of Reclamation typically employs a multi-layered oversight approach for its construction projects. This includes the appointment of contracting officers' representatives (CORs) or construction representatives to monitor progress, quality, and compliance with contract terms on-site. Regular progress meetings, site inspections, and review of contractor submittals are standard procedures. The effectiveness of these mechanisms depends on the experience and diligence of the oversight personnel, the clarity of the contract requirements, and the contractor's commitment to quality and safety.

What has been the historical spending trend for dam modification and maintenance by the Department of the Interior?

Historical spending trends for dam modification and maintenance by the Department of the Interior, particularly through the Bureau of Reclamation, generally reflect a consistent need for infrastructure upkeep and upgrades. Funding levels can fluctuate based on congressional appropriations, the condition of aging infrastructure, and national priorities. Analyzing past budgets and contract awards for similar projects would reveal patterns of investment in dam safety and modernization, highlighting whether spending has been increasing, decreasing, or remaining stable over time.

Were there any significant performance issues or disputes on previous contracts awarded to Record Steel and Construction, Inc. by the federal government?

A comprehensive review of federal contract performance databases and dispute resolution records would be necessary to definitively answer whether there were significant performance issues or disputes on previous contracts awarded to Record Steel and Construction, Inc. General contract award data does not typically detail such issues. However, agencies maintain internal performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) which, if accessible, could provide insights into past performance. The absence of widely publicized major disputes does not preclude the existence of smaller issues or claims.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R11PS10003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1854 E LANARK ST, MERIDIAN, ID, 83642

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

Financial Breakdown

Contract Ceiling: $24,964,807

Exercised Options: $24,964,807

Current Obligation: $24,964,807

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,549,347

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline