Interior Department awards $88.4M civil engineering contract to Garco Construction for Yakima River Basin projects

Contract Overview

Contract Amount: $88,350,971 ($88.4M)

Contractor: Garco Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2018-09-19

End Date: 2026-03-09

Contract Duration: 2,728 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CEFP INTAKE, GATE&HELIX PROJECT, YAKIMA RIVER BASIN ENHANCEMENT PROJECT, INTEGRATED YAKIMA PROJECT, WASHINGTON

Place of Performance

Location: CLE ELUM, KITTITAS County, WASHINGTON, 98922

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $88.4 million to GARCO CONSTRUCTION, INC. for work described as: IGF::OT::IGF CEFP INTAKE, GATE&HELIX PROJECT, YAKIMA RIVER BASIN ENHANCEMENT PROJECT, INTEGRATED YAKIMA PROJECT, WASHINGTON Key points: 1. Contract value appears reasonable given 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 critical for long-term infrastructure success. 5. This contract positions Garco Construction within the heavy civil engineering sector for federal projects. 6. The firm fixed-price structure shifts some cost risk to the contractor.

Value Assessment

Rating: good

The contract's value of approximately $88.4 million for extensive civil engineering work, including elements of the Yakima River Basin Enhancement Project, seems aligned with the scale and complexity of such infrastructure undertakings. Benchmarking against similar large-scale federal civil engineering projects indicates that the pricing is within a typical range, though specific cost breakdowns would be needed for a definitive value-for-money assessment. The firm fixed-price nature of the contract provides cost certainty for the government, assuming the contractor can manage its expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this significant civil engineering project. A competitive bidding process generally leads to more favorable pricing for the government and encourages contractors to offer their best value propositions.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured that the government received a competitive offer for the extensive civil engineering services required.

Public Impact

The primary beneficiaries are the residents and agricultural communities within the Yakima River Basin, who will see improvements to water management and infrastructure. Services delivered include heavy and civil engineering construction, crucial for maintaining and enhancing water resources. The geographic impact is concentrated in Washington state, specifically within the Yakima River Basin. Workforce implications include job creation for construction workers, engineers, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, multi-year infrastructure projects.
Risk of unforeseen site conditions impacting schedule and cost.
Dependence on contractor's ability to manage complex logistics and supply chains.
Environmental compliance challenges inherent in large-scale civil works.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Full and open competition suggests a competitive award process.
Contract duration of over 2700 days indicates a significant, long-term commitment to infrastructure improvement.
Awarded by the Bureau of Reclamation, an agency with extensive experience in water infrastructure.

Sector Analysis

The heavy and civil engineering construction sector is vital for national infrastructure development, encompassing projects like dams, bridges, and water management systems. Federal spending in this area is often driven by the need to maintain and upgrade aging infrastructure and to support regional development. This contract, focused on water resource enhancement in the Yakima River Basin, fits within the broader category of federal investments in water infrastructure, which is a significant segment of the civil engineering market. Comparable spending benchmarks for large-scale water projects can vary widely based on location, complexity, and specific engineering requirements.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Garco Construction, Inc., is not explicitly identified as a small business in the provided data, the contract's size suggests potential for significant subcontracting opportunities. The extent to which small businesses will participate as subcontractors will depend on Garco's subcontracting plan and the availability of specialized services required for the project. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Reclamation, an agency with established procedures for monitoring large construction projects. Accountability measures would include adherence to the firm fixed-price terms, project milestones, quality control, and environmental compliance. Transparency is generally maintained through contract award databases and public reporting of federal spending. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Yakima River Basin Water Management
Bureau of Reclamation Infrastructure Projects
Federal Civil Engineering Contracts
Water Resource Development Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns (contractor responsibility)
Environmental compliance challenges
Unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $88.4 million to GARCO CONSTRUCTION, INC.. IGF::OT::IGF CEFP INTAKE, GATE&HELIX PROJECT, YAKIMA RIVER BASIN ENHANCEMENT PROJECT, INTEGRATED YAKIMA PROJECT, WASHINGTON

Who is the contractor on this award?

The obligated recipient is GARCO 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 $88.4 million.

What is the period of performance?

Start: 2018-09-19. End: 2026-03-09.

What is the track record of Garco Construction, Inc. on similar federal civil engineering projects?

Garco Construction, Inc. has a history of performing civil engineering and construction services. While specific details on past federal projects of comparable scale and complexity to the Yakima River Basin Enhancement Project are not provided in this data snippet, a thorough review of their contract history with federal agencies, including performance ratings, past performance questionnaires, and any documented disputes or challenges, would be necessary to fully assess their track record. Examining their experience with water infrastructure, large-scale earthmoving, and concrete work would be particularly relevant for this contract. Their ability to manage complex project schedules and budgets on previous federal engagements would also be a key indicator of their suitability.

How does the awarded price compare to similar large-scale civil engineering projects managed by the Bureau of Reclamation or other federal agencies?

The awarded price of approximately $88.4 million for this definitive contract falls within the range expected for significant civil engineering undertakings. To benchmark this value effectively, comparisons should be made with other Bureau of Reclamation projects or similar large-scale water infrastructure and heavy civil construction contracts awarded by agencies like the Army Corps of Engineers. Factors such as geographic location, specific project scope (e.g., dam construction, canal lining, pipeline installation), material costs, labor rates, and the complexity of environmental mitigation measures will heavily influence price. Without detailed cost breakdowns and direct comparisons to projects with identical scopes, a precise value-for-money assessment is challenging, but the initial figure appears consistent with the magnitude of the work described.

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

The primary risks associated with this contract include potential project delays due to unforeseen site conditions (e.g., geological issues, environmental discoveries), weather disruptions, or supply chain interruptions. Cost overruns, although mitigated by the firm fixed-price structure, remain a risk if the contractor mismanages its expenses or if scope changes are introduced. Environmental compliance and permitting can also pose risks. Mitigation strategies typically involve robust project management by the Bureau of Reclamation, detailed site investigations prior to construction, contingency planning by the contractor, strict adherence to environmental regulations, and clear change order processes. The firm fixed-price nature itself is a risk mitigation tool for the government, transferring much of the cost overrun risk to the contractor.

What is the expected effectiveness of the Yakima River Basin Enhancement Project in achieving its stated goals, based on historical performance of similar federal water infrastructure projects?

The effectiveness of the Yakima River Basin Enhancement Project will depend on its specific objectives, which are not fully detailed here but generally relate to water management, supply, and ecological health. Historically, federal water infrastructure projects have a mixed record of effectiveness. Many have successfully improved water availability for agriculture and municipalities, enhanced flood control, and generated hydroelectric power. However, some have faced challenges related to environmental impacts, cost overruns, and failure to meet original projections for benefits. The success of this project will hinge on factors like community buy-in, adaptive management strategies to address changing environmental conditions, and the long-term maintenance and operational effectiveness of the constructed infrastructure.

How has federal spending on heavy and civil engineering construction, particularly by the Department of the Interior, trended over the past five years?

Federal spending on heavy and civil engineering construction, particularly by the Department of the Interior (DOI), has generally seen fluctuations influenced by infrastructure priorities, budget allocations, and specific agency missions. The Bureau of Reclamation, a key component of the DOI, consistently invests in water infrastructure projects. While specific year-over-year spending trends for DOI's civil engineering contracts require detailed analysis of historical budget data and contract awards, there has been a sustained federal focus on infrastructure renewal and development. This includes significant investments in water resource management, dam safety, and related infrastructure, suggesting a generally stable to increasing trend in relevant spending categories over recent years, often driven by legislative initiatives aimed at improving national infrastructure.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R1018R0016

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 E BROADWAY AVE, SPOKANE, WA, 99202

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

Financial Breakdown

Contract Ceiling: $88,350,971

Exercised Options: $88,350,971

Current Obligation: $88,350,971

Actual Outlays: $80,693,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline