Interior's $23M Stampede Dam contract awarded to NW Construction Inc. for dam safety modifications

Contract Overview

Contract Amount: $23,055,018 ($23.1M)

Contractor: NW Construction, Inc

Awarding Agency: Department of the Interior

Start Date: 2016-05-13

End Date: 2019-12-01

Contract Duration: 1,297 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF R16PC00062 - STAMPEDE DAM - DAM SAFETY MODIFICATIONS

Place of Performance

Location: TRUCKEE, NEVADA County, CALIFORNIA, 96160

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $23.1 million to NW CONSTRUCTION, INC for work described as: IGF::CT::IGF R16PC00062 - STAMPEDE DAM - DAM SAFETY MODIFICATIONS Key points: 1. Contract value appears reasonable given the scope of dam safety modifications. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract duration of 1297 days indicates a significant, long-term project. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. Project located in California, a state with significant infrastructure needs. 6. The contractor, NW Construction, Inc., is a key player in heavy civil engineering.

Value Assessment

Rating: good

The contract value of $23,055,018.18 for dam safety modifications at Stampede Dam appears to be within a reasonable range for such specialized civil engineering work. Benchmarking against similar large-scale dam repair and maintenance projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable, with the contractor assuming cost overruns. However, without detailed 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: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, possibly due to pre-qualification requirements or prior performance issues. With 6 bidders, the competition level suggests a moderate level of market interest. The exclusion of certain sources might limit the full potential for price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, could potentially lead to a higher price for taxpayers than if all capable firms were allowed to compete without restriction.

Public Impact

The primary beneficiaries are the communities and ecosystems downstream of the Stampede Dam, who will benefit from enhanced safety and reduced flood risk. The services delivered include critical dam safety modifications, ensuring the structural integrity and operational reliability of the dam. The geographic impact is localized to the area surrounding the Stampede Dam in California. The project will likely involve a workforce of skilled engineers, construction workers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during complex dam modifications.
Dependence on a single contractor for a critical infrastructure safety project.
Risk associated with the 'exclusion of sources' potentially limiting competitive pricing.

Positive Signals

Firm Fixed Price contract transfers cost risk to the contractor.
Multiple bidders (6) indicate a degree of market interest and potential for competitive pricing.
Project addresses critical dam safety, a high-priority infrastructure concern.

Sector Analysis

The contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dam and reservoir construction and maintenance. This sector is characterized by large-scale projects, significant capital investment, and specialized engineering expertise. The market size for dam construction and repair is substantial, driven by aging infrastructure and the need for upgrades to meet current safety and environmental standards. This contract represents a significant investment in maintaining critical water infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the scale and specialized nature of the work were likely beyond the capacity of most small businesses. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant infrastructure project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Reclamation's project management team, ensuring compliance with contract terms and technical specifications. Accountability measures are embedded in the firm fixed-price contract, incentivizing the contractor to complete work within budget. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress and cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Dam Safety Programs
Army Corps of Engineers Civil Works Projects
Bureau of Reclamation Infrastructure Modernization
National Dam Safety Program

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Complexity of dam safety modifications requires specialized expertise.
Long contract duration increases risk of scope creep or performance degradation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $23.1 million to NW CONSTRUCTION, INC. IGF::CT::IGF R16PC00062 - STAMPEDE DAM - DAM SAFETY MODIFICATIONS

Who is the contractor on this award?

The obligated recipient is NW 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 $23.1 million.

What is the period of performance?

Start: 2016-05-13. End: 2019-12-01.

What is the track record of NW Construction, Inc. on similar federal contracts, particularly those involving dam safety or large civil engineering projects?

A thorough review of NW Construction, Inc.'s past performance on federal contracts would be necessary to assess their suitability for this project. This would involve examining contract databases for awards, completion records, and any past performance evaluations or disputes. Specifically, looking for experience with dam modifications, structural repairs, and projects of similar magnitude and complexity would be crucial. A positive track record with timely completion, adherence to budget, and quality work on comparable projects would increase confidence in their ability to execute the Stampede Dam modifications successfully. Conversely, a history of delays, cost overruns, or quality issues on similar projects would raise concerns about their capacity and reliability.

How does the awarded price of $23,055,018.18 compare to independent cost estimates or benchmarks for similar dam safety modification projects?

To assess the value for money, the awarded price of $23,055,018.18 needs to be benchmarked against independent cost estimates or data from comparable dam safety modification projects. Without access to the government's cost-estimating data or a database of similar projects with detailed cost breakdowns, a precise comparison is challenging. However, general industry knowledge suggests that large-scale civil engineering projects, especially those involving critical infrastructure like dams, are complex and costly. Factors such as the specific nature of the modifications required (e.g., structural reinforcement, spillway upgrades, seepage control), the dam's age and condition, and site-specific challenges in California would influence the cost. If this price falls within the expected range for similar projects of comparable scope and complexity, it indicates fair pricing. Significant deviations, either much higher or lower, would warrant further investigation into the underlying cost drivers or potential risks.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential unforeseen geological or structural issues discovered during the modification work, which could lead to scope creep and cost overruns, despite the firm fixed-price structure. Environmental compliance and permitting challenges in California can also pose risks, potentially causing delays. Furthermore, the contractor's capacity to manage a project of this scale and complexity over its 1297-day duration is a consideration. Mitigation strategies likely include robust project management by the Bureau of Reclamation, detailed site investigations prior to and during work, contingency planning for unforeseen conditions, and strict adherence to environmental regulations. The firm fixed-price contract itself mitigates financial risk for the government by capping the contractor's potential profit and incentivizing efficient execution.

How effective are the oversight mechanisms for ensuring the quality and timely completion of the dam safety modifications?

The effectiveness of oversight mechanisms for this contract hinges on the Bureau of Reclamation's project management capabilities and the specific protocols established. Typically, oversight involves regular site inspections, progress reviews, quality assurance checks, and adherence to a detailed work plan. The firm fixed-price nature of the contract provides a strong incentive for the contractor to meet deadlines and quality standards to maximize profit. However, the long duration of the project (1297 days) necessitates sustained oversight to prevent scope creep or quality degradation over time. The presence of contract specialists and engineers dedicated to monitoring the project's progress and ensuring compliance with technical specifications is crucial for its success. Independent reviews or audits could further enhance oversight effectiveness.

What is the historical spending pattern for dam safety and maintenance projects by the Department of the Interior or the Bureau of Reclamation?

Analyzing historical spending patterns for dam safety and maintenance by the Department of the Interior and the Bureau of Reclamation would provide context for the $23 million awarded for the Stampede Dam modifications. This would involve examining annual budgets allocated to infrastructure repair, specific dam maintenance expenditures, and the frequency and cost of similar large-scale projects over the past decade or more. Understanding these patterns can reveal trends in investment, identify periods of increased or decreased spending, and highlight common challenges or cost drivers. It can also help determine if the current contract represents a typical investment or an outlier in terms of scale or cost relative to historical norms. Such analysis is vital for long-term infrastructure planning and budget justification.

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: R16PS00018

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12645 KELLY CANYON RD, BOZEMAN, MT, 59715

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

Financial Breakdown

Contract Ceiling: $23,055,018

Exercised Options: $23,055,018

Current Obligation: $23,055,018

Actual Outlays: $82,815

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline