Interior Department awards $31.7M contract for Truckee Canal lining and repairs to Central Environmental Inc

Contract Overview

Contract Amount: $31,658,561 ($31.7M)

Contractor: Central Environmental Inc

Awarding Agency: Department of the Interior

Start Date: 2022-08-16

End Date: 2025-01-31

Contract Duration: 899 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO LINE A SECTION OF THE TRUCKEE CANAL WITH CONCRETE OVER A GEOMEMBRANE BARRIER AND REPAIR/REPLACE TWO CHECK STRUCTURES, AND GENERAL REPAIRS TO THE SITE AND SUPPORTING STRUCTURES.

Place of Performance

Location: FERNLEY, LYON County, NEVADA, 89408

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $31.7 million to CENTRAL ENVIRONMENTAL INC for work described as: TO LINE A SECTION OF THE TRUCKEE CANAL WITH CONCRETE OVER A GEOMEMBRANE BARRIER AND REPAIR/REPLACE TWO CHECK STRUCTURES, AND GENERAL REPAIRS TO THE SITE AND SUPPORTING STRUCTURES. Key points: 1. Contract value of $31.7 million for canal lining and repairs. 2. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price, suggesting cost certainty. 4. Performance period spans from August 2022 to January 2025, covering approximately 2.5 years. 5. The project involves concrete lining, geomembrane barrier installation, and structural repairs. 6. The Bureau of Reclamation is the awarding agency, overseeing critical water infrastructure.

Value Assessment

Rating: good

The contract value of $31.7 million appears reasonable for a project of this scale involving significant civil engineering work on a critical water conveyance system. Benchmarking against similar canal lining projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost risks for the government. The number of bids received (though not explicitly stated, implied by 'full and open competition') would further inform the pricing 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.' This suggests that while the competition was open, there might have been specific criteria or reasons for excluding certain potential sources initially. The fact that it was open competition implies multiple bidders were likely considered, which generally promotes competitive pricing and innovation. The number of bids received would be a key factor in determining the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value. This approach minimizes the risk of overpayment and maximizes the return on investment for public funds.

Public Impact

Benefits water users in the Truckee River service area by ensuring reliable water delivery. Delivers essential infrastructure maintenance and repair services for a vital water canal. Geographic impact is concentrated in Nevada, where the Truckee Canal is located. Supports the construction and engineering workforce through employment opportunities. Enhances water conservation and reduces water loss through seepage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise beyond the scope of 'general repairs'.
Risk of delays if specialized materials or equipment become unavailable.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Long-term performance period allows for thorough execution and quality assurance.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water infrastructure. The market for such projects is often characterized by specialized firms capable of undertaking large-scale, complex construction. The Bureau of Reclamation frequently procures services for maintaining and upgrading its extensive network of dams, canals, and related facilities. Comparable spending benchmarks would involve looking at other large-scale canal lining or repair projects managed by federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false) and does not explicitly mention subcontracting goals for small businesses (sb: false). This suggests that the primary award went to a larger entity, and the potential for small business participation would likely be through subcontracting opportunities offered by the prime contractor, Central Environmental Inc. Further analysis would be needed to determine if subcontracting plans include provisions for small businesses.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Bureau of Reclamation, a division of the Department of the Interior. Mechanisms likely include regular progress reports, site inspections, and milestone reviews. Accountability is ensured through the firm fixed-price contract terms and the definitive contract structure. Transparency is typically facilitated through contract award databases and public reporting, though specific oversight details are not provided in the summary data.

Related Government Programs

Bureau of Reclamation Water Infrastructure Projects
US Army Corps of Engineers Civil Works Projects
Department of Agriculture Rural Development Water Programs
Federal Highway Administration Infrastructure Grants

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Dependence on specialized materials and construction techniques.
Contract duration extends over multiple fiscal years, subject to appropriations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $31.7 million to CENTRAL ENVIRONMENTAL INC. TO LINE A SECTION OF THE TRUCKEE CANAL WITH CONCRETE OVER A GEOMEMBRANE BARRIER AND REPAIR/REPLACE TWO CHECK STRUCTURES, AND GENERAL REPAIRS TO THE SITE AND SUPPORTING STRUCTURES.

Who is the contractor on this award?

The obligated recipient is CENTRAL ENVIRONMENTAL 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 $31.7 million.

What is the period of performance?

Start: 2022-08-16. End: 2025-01-31.

What is the track record of Central Environmental Inc. with federal contracts, particularly with the Bureau of Reclamation?

Central Environmental Inc. has a history of federal contracting, though specific details on their performance with the Bureau of Reclamation require deeper investigation. A review of their contract history would reveal the types of projects they have undertaken, their performance ratings on past federal awards, and any instances of contract disputes or terminations. Understanding their experience with similar civil engineering and water infrastructure projects is crucial for assessing their capability to successfully execute this $31.7 million contract. Their past performance can serve as a key indicator of their reliability and efficiency in delivering projects on time and within budget.

How does the awarded price of $31.7 million compare to similar canal lining projects in terms of value for money?

Benchmarking the $31.7 million contract against similar canal lining projects is essential for a comprehensive value-for-money assessment. Factors such as the length and depth of the canal section being lined, the type of lining material used (concrete over geomembrane in this case), the complexity of the terrain, and the scope of associated repairs (check structures, general site repairs) all influence project costs. Without specific data on comparable projects, it's difficult to definitively state if this price is high or low. However, the 'full and open competition' aspect suggests that the pricing was likely vetted against multiple bids, which typically leads to more competitive rates.

What are the primary risks associated with this specific contract, and how are they being mitigated?

The primary risks associated with this contract likely include unforeseen geological or hydrological conditions encountered during excavation and lining, potential delays in material procurement or delivery, and the possibility of scope creep if additional repairs are identified as necessary. Mitigation strategies are likely embedded within the contract terms. The firm fixed-price nature of the contract shifts some cost risk to the contractor. The Bureau of Reclamation's oversight, including regular site inspections and progress reviews, aims to identify and address issues proactively. The definitive contract structure may also allow for adjustments if unforeseen conditions significantly impact the project scope, though this would typically involve formal change orders.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for this project?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with the need to ensure only qualified and capable bidders participate. By excluding sources, the agency might be pre-qualifying based on specific technical capabilities, past performance, or security requirements. This can lead to a more manageable pool of bidders, potentially resulting in higher quality proposals. However, the effectiveness in ensuring competitive pricing hinges on the number of bidders that remain after exclusions. If the exclusion significantly limits the number of viable competitors, it could inadvertently reduce price pressure. The ideal scenario is a robust competition among several highly qualified firms.

What is the historical spending pattern for canal lining and repair projects by the Bureau of Reclamation?

Historical spending patterns for canal lining and repair projects by the Bureau of Reclamation typically show consistent investment in maintaining and upgrading its vast water infrastructure network. The agency regularly allocates funds for projects aimed at reducing water loss, improving conveyance efficiency, and ensuring the structural integrity of its facilities. Spending levels can fluctuate based on the age of the infrastructure, the urgency of repairs needed, and overall budget appropriations. Analyzing past expenditures on similar projects would reveal average contract values, typical project durations, and the frequency of such procurements, providing context for the current $31.7 million award.

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: SEALED BID

Solicitation ID: 140R2022B0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 229 E WHITNEY RD, ANCHORAGE, AK, 99501

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,658,561

Exercised Options: $31,658,561

Current Obligation: $31,658,561

Actual Outlays: $31,658,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline