Interior Department awards $21.6M contract for NGWSP pumping plant to Moltz Constructors, Inc

Contract Overview

Contract Amount: $21,579,468 ($21.6M)

Contractor: Moltz Constructors, Inc.

Awarding Agency: Department of the Interior

Start Date: 2014-04-01

End Date: 2019-11-15

Contract Duration: 2,054 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF TOHLAKAI PUMPING PLANT (NGWSP)

Place of Performance

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

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $21.6 million to MOLTZ CONSTRUCTORS, INC. for work described as: IGF::OT::IGF TOHLAKAI PUMPING PLANT (NGWSP) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2054 days indicates a long-term project with significant resource commitment. 3. The firm-fixed-price structure aims to control costs for the government. 4. The project is located in New Mexico, potentially impacting local workforce and economy. 5. The nature of the work, heavy civil engineering, requires specialized expertise and equipment. 6. The award to a single contractor, Moltz Constructors, Inc., highlights their capacity for large-scale infrastructure projects.

Value Assessment

Rating: fair

The contract value of $21.6 million for a heavy civil engineering project of this scale and duration appears within a reasonable range, though specific benchmarks for pumping plant construction are not readily available. The firm-fixed-price contract type suggests that the government sought to cap its financial exposure. Without detailed cost breakdowns or comparisons to similar projects, a precise value-for-money assessment is challenging. However, the competitive award process may have contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. The presence of 5 bidders suggests a healthy level of competition for this significant infrastructure project. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award. The multiple bids indicate that taxpayer funds were used efficiently to secure the best value.

Public Impact

The primary beneficiaries are likely the users of the NGWSP (New Mexico-based water infrastructure), receiving improved or maintained pumping capabilities. The services delivered include the construction of a pumping plant, a critical component for water management and distribution. The geographic impact is concentrated in New Mexico, where the pumping plant will be located and operated. Workforce implications include the creation of jobs for skilled laborers, engineers, and construction professionals in the region during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price contract.
Dependence on a single contractor for a critical infrastructure component introduces risk if performance issues arise.
Long project duration increases the potential for delays due to weather, regulatory changes, or contractor performance issues.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The contractor, Moltz Constructors, Inc., likely possesses specialized expertise for this type of heavy civil engineering project.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a segment of the construction industry focused on large-scale public works projects such as water infrastructure, transportation, and utilities. The market for such projects is often characterized by a limited number of highly specialized firms capable of undertaking complex, multi-year endeavors. Spending in this sector is heavily influenced by government appropriations for infrastructure development and maintenance.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale and specialized nature of heavy civil engineering, it is common for prime contracts to be awarded to larger, established firms. The potential for small business involvement would likely be through subcontracting opportunities, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are inherent in the contract terms, particularly the firm-fixed-price structure and defined delivery schedule. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports from the Inspector General for this particular contract are not detailed here.

Related Government Programs

Bureau of Reclamation Water Infrastructure Projects
US Army Corps of Engineers Civil Works Programs
Department of Energy Civilian Infrastructure Investments
State-level Water Resource Management Projects

Risk Flags

Long contract duration increases risk of cost escalation and delays.
Dependence on a single contractor for critical infrastructure.
Potential for unforeseen site conditions impacting schedule and cost.
Limited public information on specific performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $21.6 million to MOLTZ CONSTRUCTORS, INC.. IGF::OT::IGF TOHLAKAI PUMPING PLANT (NGWSP)

Who is the contractor on this award?

The obligated recipient is MOLTZ CONSTRUCTORS, 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 $21.6 million.

What is the period of performance?

Start: 2014-04-01. End: 2019-11-15.

What is the track record of Moltz Constructors, Inc. on similar federal projects?

Moltz Constructors, Inc. has a history of undertaking significant construction projects, including those involving heavy civil engineering and infrastructure. While specific details on past federal projects of identical scope to the NGWSP pumping plant are not provided in this summary, their engagement on large-scale contracts suggests a capacity for managing complex projects. A deeper dive into their contract history with federal agencies, including performance reviews and any past disputes or challenges, would provide a more comprehensive understanding of their track record. Examining their portfolio for similar water infrastructure or pumping station projects would be particularly relevant for assessing their suitability and past performance in this specific domain.

How does the awarded price compare to industry benchmarks for similar pumping plant construction?

Benchmarking the $21.6 million contract value for the NGWSP pumping plant against industry standards is challenging without more specific project details and access to proprietary cost data. Factors such as project complexity, site conditions, specific equipment requirements, and regional labor costs significantly influence pricing in heavy civil engineering. Generally, firm-fixed-price contracts awarded through full and open competition are expected to yield prices that are competitive within the market. However, a precise comparison would require access to cost-estimating databases or analyses of comparable projects completed by other entities in similar geological and economic conditions. The duration of the contract (2054 days) also suggests a substantial scope of work, which would naturally correlate with a higher overall cost.

What are the primary risks associated with the long duration of this contract?

The 2054-day duration (approximately 5.6 years) of this contract presents several inherent risks. Firstly, there is an increased likelihood of encountering unforeseen site conditions, such as geological anomalies or environmental challenges, which could lead to delays and potential cost adjustments, even under a fixed-price contract. Secondly, extended project timelines elevate the risk of regulatory changes or evolving environmental standards that might necessitate design modifications or additional compliance measures. Thirdly, material and labor costs can fluctuate significantly over such a long period, potentially impacting the contractor's profitability and, indirectly, project continuity if financial strain occurs. Finally, the prolonged duration increases the potential for personnel turnover within the contractor's team and the government's oversight staff, potentially leading to knowledge gaps and inconsistencies in project management.

What is the expected effectiveness of the NGWSP pumping plant once completed?

The expected effectiveness of the NGWSP pumping plant hinges on its successful construction and integration into the larger New Mexico-ាត់ (NGWSP) system. As a critical component, its primary function will be to ensure the reliable and efficient movement of water to designated areas, supporting agricultural, municipal, or industrial needs within its service region. Its effectiveness will be measured by its operational uptime, pumping capacity meeting or exceeding design specifications, energy efficiency, and overall contribution to the NGWSP's water delivery goals. Proper maintenance and operational protocols post-construction will be crucial for sustained effectiveness. The project's success will ultimately be judged by its ability to fulfill its intended role in the water supply chain for New Mexico.

How does this contract's value compare to historical spending on similar Bureau of Reclamation projects?

Comparing the $21.6 million contract value to historical Bureau of Reclamation (BOR) projects requires access to detailed historical spending data and project specifics. The BOR manages numerous water infrastructure projects, including dams, canals, and pumping stations, with costs varying widely based on scale, complexity, and time of construction. A $21.6 million project for a pumping plant is a significant investment, but within the typical range for major infrastructure components managed by the BOR. To provide a precise comparison, one would need to identify similar pumping plant projects undertaken by the BOR in recent years, adjust for inflation, and analyze their scope and contract values. Without such granular data, it's difficult to definitively state whether this contract represents high, low, or average spending relative to historical precedents.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R14PS94302

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 63 RD 2 ABN, CODY, WY, 82414

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

Financial Breakdown

Contract Ceiling: $21,579,468

Exercised Options: $21,579,468

Current Obligation: $21,579,468

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline