Interior Department awards $187M for FKC Middle Reach Capacity Correction Project Phase 1

Contract Overview

Contract Amount: $186,849,112 ($186.8M)

Contractor: BWI TPC, a Joint Venture

Awarding Agency: Department of the Interior

Start Date: 2021-10-07

End Date: 2024-11-05

Contract Duration: 1,125 days

Daily Burn Rate: $166.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FKC MIDDLE REACH CAPACITY CORRECTION PROJECT PHASE 1

Place of Performance

Location: LINDSAY, TULARE County, CALIFORNIA, 93247

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $186.8 million to BWI TPC, A JOINT VENTURE for work described as: FKC MIDDLE REACH CAPACITY CORRECTION PROJECT PHASE 1 Key points: 1. Contract awarded to BWI TPC, A Joint Venture, for heavy and civil engineering construction. 2. Project aims to address capacity issues within the FKC Middle Reach. 3. The contract is a definitive contract with a firm fixed price. 4. Duration of the contract is 1125 days, ending November 5, 2024. 5. The project is located in California. 6. This project represents a significant investment in water infrastructure.

Value Assessment

Rating: good

The contract value of $186.8 million for a large-scale civil engineering project appears reasonable given the scope. Benchmarking against similar large-scale water infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair market pricing and encourage efficiency from the winning contractor. The presence of four bidders, as suggested by the data, points to a healthy level of interest and competition for this significant project.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through competitive bidding, ensuring the government receives the best value for its investment.

Public Impact

The project directly benefits the region by improving water management and capacity. Services delivered include heavy and civil engineering construction for water infrastructure. The geographic impact is focused on California, specifically the FKC Middle Reach area. The project will likely involve a significant construction workforce, creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in large civil engineering projects.
Ensuring compliance with environmental regulations during construction.
Managing the complexity of a joint venture as the primary contractor.

Positive Signals

Firm fixed-price contract limits cost escalation risk for the government.
Full and open competition suggests a competitive bidding process leading to potentially better pricing.
The project addresses a critical infrastructure need, indicating strong program justification.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of national infrastructure development. This sector encompasses large-scale projects such as dams, highways, bridges, and water systems. The market size for such projects is substantial, driven by ongoing needs for modernization and expansion of public infrastructure. This specific project aligns with federal investments in water resource management and capacity enhancement.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this large contract (ss: false, sb: false). While the prime contractor is a joint venture, the direct impact on small business subcontracting opportunities would depend on the joint venture's own subcontracting plans. Further analysis of the subcontracting plan would be needed to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this project will likely be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract, which places cost responsibility on the contractor. Transparency is expected through public reporting of project milestones and expenditures, though specific oversight mechanisms and IG jurisdiction would need further confirmation.

Related Government Programs

Bureau of Reclamation Water Infrastructure Projects
Central Valley Project
California Water Resources Management
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for schedule overruns in large civil projects
Environmental compliance risks
Geotechnical uncertainties

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $186.8 million to BWI TPC, A JOINT VENTURE. FKC MIDDLE REACH CAPACITY CORRECTION PROJECT PHASE 1

Who is the contractor on this award?

The obligated recipient is BWI TPC, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $186.8 million.

What is the period of performance?

Start: 2021-10-07. End: 2024-11-05.

What is the historical spending pattern for similar capacity correction projects by the Bureau of Reclamation?

Historical spending on similar capacity correction projects by the Bureau of Reclamation can vary significantly based on project scale, location, and specific engineering challenges. For instance, projects aimed at increasing water storage or improving conveyance efficiency in arid regions often involve substantial capital outlays. Analyzing past projects of comparable scope, such as those within the Central Valley Project or other major water infrastructure initiatives, would reveal trends in cost per mile of canal repaired or per acre-foot of capacity added. Without specific data on prior FKC Middle Reach projects, it's difficult to provide exact figures, but large-scale civil works of this nature typically run into tens or hundreds of millions of dollars. The current $186.8 million award suggests a significant undertaking, likely involving extensive earthwork, structural repairs, and potentially new construction to achieve the desired capacity improvements.

How does the awarded amount compare to the initial estimated cost for the FKC Middle Reach Capacity Correction Project?

The provided data does not include the initial estimated cost for the FKC Middle Reach Capacity Correction Project, making a direct comparison impossible. However, the awarded amount of $186,849,111.69 represents the final negotiated price. In large federal contracting, the awarded amount can sometimes differ from initial estimates due to various factors, including market conditions, contractor proposals, and refinements in project scope during the procurement process. A significant difference between the estimate and the award could indicate issues with the initial budgeting, a highly competitive bidding environment driving prices down, or conversely, a less competitive environment allowing for higher bids. To assess this, one would need access to the original solicitation documents and any pre-solicitation cost estimates.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators (KPIs) for a project like the FKC Middle Reach Capacity Correction Project Phase 1 would typically focus on schedule adherence, quality of construction, safety compliance, and achievement of the project's primary objective: correcting capacity issues. Performance measurement would likely involve regular site inspections, progress reports from the contractor (BWI TPC, A Joint Venture), milestone completion tracking, and potentially third-party quality assurance reviews. Specific metrics might include cubic yards of material moved, linear feet of canal repaired or constructed, adherence to design specifications, and incident rates. The firm fixed-price nature of the contract incentivizes the contractor to meet these KPIs efficiently to maximize profit, while the government's role is to monitor progress and ensure contractual requirements are met.

What is the track record of BWI TPC, A Joint Venture, on similar large-scale civil engineering projects?

Information regarding the specific track record of 'BWI TPC, A Joint Venture' on similar large-scale civil engineering projects is not detailed in the provided data. As a joint venture, its performance history would be a composite of its constituent members' experiences or the venture's own established history if it has undertaken prior projects. To assess their capability, one would typically review past performance evaluations, project completion records, and any history of litigation or contract disputes. Federal procurement processes often include a "past performance" evaluation as a significant factor in award decisions, suggesting that the Bureau of Reclamation would have assessed this joint venture's suitability for this project based on their prior work. Further investigation into federal contract databases or industry reports would be necessary for a comprehensive understanding of their track record.

What are the potential risks associated with the FKC Middle Reach Capacity Correction Project, and what mitigation strategies are in place?

Potential risks for the FKC Middle Reach Capacity Correction Project Phase 1 include environmental challenges (e.g., endangered species, water quality impacts), unforeseen geological conditions, weather delays impacting construction schedules, and potential labor or material shortages. Mitigation strategies would typically involve thorough environmental impact assessments and compliance plans, detailed geotechnical surveys prior to construction, flexible scheduling to account for weather, and robust supply chain management. The firm fixed-price contract also mitigates financial risk for the government, shifting cost overrun responsibility to the contractor. The Bureau of Reclamation's oversight would focus on ensuring the contractor effectively implements these mitigation measures and adheres to the project's environmental and safety protocols.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R2020R0009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15901 OLDEN ST, SYLMAR, CA, 91342

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $186,849,112

Exercised Options: $186,849,112

Current Obligation: $186,849,112

Actual Outlays: $186,647,559

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline