Interior's $93.2M Arroyo Canal Fish Passage Contract Awarded to NW Construction, Inc

Contract Overview

Contract Amount: $93,200,068 ($93.2M)

Contractor: NW Construction, Inc

Awarding Agency: Department of the Interior

Start Date: 2025-07-15

End Date: 2028-07-09

Contract Duration: 1,090 days

Daily Burn Rate: $85.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IMPROVE OPERATIONS AT ARROYO CANAL FISH SCREEN/SACK DAM FISH PASSAGE PROJECT

Place of Performance

Location: DOS PALOS, MERCED County, CALIFORNIA, 93620

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $93.2 million to NW CONSTRUCTION, INC for work described as: IMPROVE OPERATIONS AT ARROYO CANAL FISH SCREEN/SACK DAM FISH PASSAGE PROJECT Key points: 1. The contract aims to improve operations at the Arroyo Canal Fish Screen/Sack Dam. 2. NW Construction, Inc. secured the award under full and open competition. 3. The project is located in California and is scheduled for completion in July 2028. 4. This is a significant investment in environmental infrastructure and operational efficiency.

Value Assessment

Rating: good

The contract value of $93.2 million appears reasonable for a large-scale civil engineering project of this nature. Benchmarking against similar dam and fish passage construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: Taxpayer funds are being used for a project aimed at improving environmental conditions and operational efficiency, which can have long-term benefits.

Public Impact

Enhances fish passage, supporting ecological health and biodiversity. Improves operational efficiency of the Arroyo Canal and Sack Dam. Creates jobs and economic activity in the construction sector. Addresses environmental regulations and conservation goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large civil engineering projects.
Schedule delays due to unforeseen site conditions or environmental factors.

Positive Signals

Awarded through full and open competition, promoting value.
Clear objectives for operational and environmental improvement.
Defined contract duration and completion date.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector. Spending in this sector is often driven by infrastructure needs, environmental regulations, and public works projects. Benchmarks vary widely based on project scope and location.

Small Business Impact

While the primary awardee is NW Construction, Inc., opportunities for small businesses may exist through subcontracting. The contract details do not explicitly mention small business participation goals.

Oversight & Accountability

The Bureau of Reclamation, under the Department of the Interior, is responsible for oversight. Regular progress reports and site inspections will be crucial for ensuring accountability and adherence to contract terms.

Related Government Programs

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

Risk Flags

Large contract value increases potential for significant financial impact if issues arise.
Long project duration (approx. 3 years) increases exposure to market fluctuations and unforeseen challenges.
Civil engineering projects can be susceptible to weather-related delays and site-specific complexities.
Dependence on a single prime contractor for successful execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $93.2 million to NW CONSTRUCTION, INC. IMPROVE OPERATIONS AT ARROYO CANAL FISH SCREEN/SACK DAM FISH PASSAGE PROJECT

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 $93.2 million.

What is the period of performance?

Start: 2025-07-15. End: 2028-07-09.

What are the specific performance metrics for 'improving operations' and how will success be measured?

Success will likely be measured by quantifiable improvements in fish passage rates, reduced operational downtime at the dam, and adherence to environmental flow requirements. The contract should detail specific performance indicators and monitoring protocols to ensure the project meets its stated operational and ecological objectives effectively.

What are the primary environmental risks associated with this project, and what mitigation strategies are in place?

Potential environmental risks include disruption to aquatic habitats during construction, sediment management, and potential impacts on endangered species. Mitigation strategies typically involve detailed environmental impact assessments, phased construction to minimize disturbance, strict erosion and sediment control plans, and compliance with all relevant environmental permits and regulations.

How does the fixed-price contract structure incentivize efficiency and cost control for NW Construction, Inc.?

A firm fixed-price contract incentivizes the contractor to manage costs effectively, as any expenses exceeding the agreed-upon price will reduce their profit margin. This structure encourages efficient project management, resource allocation, and timely completion to maximize profitability, while shifting most of the cost risk to the contractor.

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: 140R2024R0017

Offers Received: 4

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $93,200,068

Exercised Options: $93,200,068

Current Obligation: $93,200,068

Actual Outlays: $10,890,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline