Interior's Bureau of Reclamation Awards $136.4M Contract for B.F. Sisk Dam Modifications Phase II

Contract Overview

Contract Amount: $136,401,809 ($136.4M)

Contractor: NW Construction, Inc

Awarding Agency: Department of the Interior

Start Date: 2025-03-20

End Date: 2029-02-07

Contract Duration: 1,420 days

Daily Burn Rate: $96.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE WORK REQUIRED IS FOR PHASE II OF B.F. SISK DAM SOD MODIFICATIONS.

Place of Performance

Location: LOS BANOS, MERCED County, CALIFORNIA, 93635

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $136.4 million to NW CONSTRUCTION, INC for work described as: THE WORK REQUIRED IS FOR PHASE II OF B.F. SISK DAM SOD MODIFICATIONS. Key points: 1. Significant investment in critical infrastructure, focusing on dam safety and modernization. 2. Contract awarded to NW Construction, Inc. under full and open competition. 3. Long-term project duration (1420 days) suggests complex scope and potential for cost escalation. 4. Project falls under 'Other Heavy and Civil Engineering Construction' sector, a vital but often high-cost area.

Value Assessment

Rating: fair

The contract value of $136.4 million for a 1420-day duration appears substantial. Benchmarking against similar large-scale civil engineering projects would be necessary to definitively assess its value, as costs can vary widely based on specific site conditions and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades. While competition aims for efficiency, the large contract value necessitates careful monitoring to ensure cost-effectiveness and prevent overruns.

Public Impact

Ensures the safety and operational integrity of the B.F. Sisk Dam, a critical water resource infrastructure. Supports regional water management and flood control capabilities in California. Creates construction jobs and stimulates economic activity in the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration increases risk of scope creep and cost overruns.
Potential for unforeseen site conditions impacting schedule and budget.
Reliance on a single prime contractor for a project of this magnitude.

Positive Signals

Awarded through full and open competition, promoting competitive pricing.
Focus on critical infrastructure improvement enhances public safety and resource management.
Firm Fixed Price contract provides cost certainty if scope is well-defined.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses large-scale infrastructure projects like dams, bridges, and tunnels. Spending in this sector is often driven by government investment in modernization and maintenance of public works.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, NW Construction, Inc., is not listed as a small business. Opportunities for small businesses may exist as subcontractors, but this was not explicitly stated in the provided data.

Oversight & Accountability

The Bureau of Reclamation, part of the Department of the Interior, is responsible for this project. Oversight will likely involve regular progress reviews, site inspections, and financial audits to ensure contract compliance and project success.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Long project duration (over 3.5 years) increases risk of cost escalation and scope creep.
Potential for unforeseen site conditions in large civil engineering projects.
Contractor's capacity and experience with similar large-scale dam modification projects.
Reliance on a single prime contractor for critical infrastructure work.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $136.4 million to NW CONSTRUCTION, INC. THE WORK REQUIRED IS FOR PHASE II OF B.F. SISK DAM SOD 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 $136.4 million.

What is the period of performance?

Start: 2025-03-20. End: 2029-02-07.

What specific modifications are included in Phase II, and how do they contribute to the dam's long-term viability and safety?

Phase II likely involves structural reinforcements, upgrades to operational systems, and potentially environmental mitigation measures. These modifications are crucial for ensuring the dam's continued safe operation, compliance with modern engineering standards, and its ability to fulfill its intended purposes for water storage, flood control, and power generation.

What are the primary risks associated with a 1420-day construction project of this scale, and what mitigation strategies are in place?

Key risks include potential for unforeseen geological conditions, material price fluctuations over the extended period, labor availability issues, and environmental compliance challenges. Mitigation strategies typically involve detailed site investigations, robust contingency planning, escalation clauses for materials where appropriate, and strong project management oversight.

How does the firm fixed price (FFP) structure impact the government's ability to manage costs versus potential contractor risk in this complex project?

An FFP contract provides cost certainty for the government, shifting the risk of cost overruns to the contractor. However, for a project with a long duration and potential for unforeseen issues, the contractor may have built in significant contingencies, potentially leading to a higher initial price. Effective scope definition is critical for FFP success.

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: 140R2024R0015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 904 WALLEYE RD, BOZEMAN, MT, 59718

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

Financial Breakdown

Contract Ceiling: $257,269,309

Exercised Options: $257,269,309

Current Obligation: $136,401,809

Actual Outlays: $50,224,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline