Interior's $31M Cutter Lateral Reach Contract Awarded to Moltz Constructors Amidst Full and Open Competition

Contract Overview

Contract Amount: $31,073,077 ($31.1M)

Contractor: Moltz Constructors, Inc.

Awarding Agency: Department of the Interior

Start Date: 2016-09-08

End Date: 2020-09-17

Contract Duration: 1,470 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CUTTER LATERAL REACH 22B

Place of Performance

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

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $31.1 million to MOLTZ CONSTRUCTORS, INC. for work described as: IGF::OT::IGF CUTTER LATERAL REACH 22B Key points: 1. The contract value of $31.07 million for water and sewer line construction falls within a typical range for such projects. 2. Moltz Constructors, Inc. secured this award through full and open competition, indicating a competitive bidding process. 3. The project's duration of 1470 days suggests a significant undertaking with potential for cost overruns if not managed effectively. 4. The firm fixed price contract type aims to control costs, but scope creep could still impact the final price.

Value Assessment

Rating: good

The contract value of $31.07 million appears reasonable for a large-scale water and sewer line construction project. Benchmarking against similar Bureau of Reclamation projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process that considered multiple bidders. This method generally promotes price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayer value, as it likely resulted in a more efficient price for the services rendered.

Public Impact

This project directly impacts local infrastructure, potentially improving water and sewer services for residents in New Mexico. The construction activities may cause temporary disruptions to local traffic and communities. Successful completion of this project contributes to the Bureau of Reclamation's mission of water resource management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1470 days) increases risk of cost escalation and delays.
Potential for unforeseen site conditions in construction projects.
Dependence on a single contractor for a significant infrastructure project.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed price contract type helps control costs.
Project addresses critical infrastructure needs.

Sector Analysis

The construction sector, particularly for water and sewer infrastructure, is capital-intensive and subject to regulatory oversight. Spending benchmarks vary widely based on project scope, location, and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Bureau of Reclamation, as part of the Department of the Interior, is subject to federal oversight. Contract performance and financial management would typically be monitored to ensure accountability and adherence to terms.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Long contract duration increases risk exposure.
Potential for unforeseen site conditions.
Firm fixed price can incentivize contractor to cut corners if not closely monitored.
Exclusion of sources in competition warrants further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $31.1 million to MOLTZ CONSTRUCTORS, INC.. IGF::OT::IGF CUTTER LATERAL REACH 22B

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 $31.1 million.

What is the period of performance?

Start: 2016-09-08. End: 2020-09-17.

What specific factors contributed to the exclusion of sources in the 'full and open competition' award, and did this exclusion impact the final price?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was open, certain sources were initially excluded based on specific criteria, potentially related to qualifications, past performance, or specialized capabilities. Understanding the rationale behind this exclusion is crucial to assess if it limited the competitive landscape and potentially influenced the final price achieved. Further documentation would be needed to detail the specific reasons for exclusion.

Given the 1470-day duration, what are the primary risks associated with cost overruns or project delays for this contract?

The extended duration of 1470 days presents several risks. Key among these are potential increases in material and labor costs over time, unforeseen geological or environmental challenges requiring costly remediation, and potential delays due to weather, permitting issues, or contractor performance. The firm fixed price contract aims to mitigate some of these, but significant scope changes or unforeseen conditions could still lead to costly change orders or disputes.

How effectively does the firm fixed price contract type manage the inherent risks of a large-scale, long-duration construction project like this?

A firm fixed price contract is designed to transfer most of the risk to the contractor, providing cost certainty for the government. For a project of this scale and duration, it effectively caps the government's liability for cost increases. However, it places a significant burden on the contractor to accurately estimate all costs and contingencies. Risks remain for the government if the contractor underperforms, goes bankrupt, or if significant, unavoidable scope changes are required, potentially leading to disputes or contract termination.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures 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: R16PS01019

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3740 DACORO LN STE 200E, CASTLE ROCK, CO, 80109

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

Financial Breakdown

Contract Ceiling: $31,073,077

Exercised Options: $31,073,077

Current Obligation: $31,073,077

Actual Outlays: $1,386,878

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline