Interior Department awards $33.6M contract for El Vado Seepage Reduction, facing limited competition

Contract Overview

Contract Amount: $33,585,511 ($33.6M)

Contractor: C.a.r.p.i., U.S.A., Inc.

Awarding Agency: Department of the Interior

Start Date: 2020-05-12

End Date: 2024-09-30

Contract Duration: 1,602 days

Daily Burn Rate: $21.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EL VADO SEEPAGE REDUCTION MODIFICATION TO DAM

Place of Performance

Location: CHAMA, RIO ARRIBA County, NEW MEXICO, 87520

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $33.6 million to C.A.R.P.I., U.S.A., INC. for work described as: EL VADO SEEPAGE REDUCTION MODIFICATION TO DAM Key points: 1. Contract value of $33.6 million for seepage reduction at El Vado Dam. 2. The contract was awarded on a non-competitive basis. 3. Performance period spans over four years, from May 2020 to September 2024. 4. The contract type is Firm Fixed Price, indicating defined costs. 5. The project is located in New Mexico, impacting local infrastructure. 6. This contract falls under Other Heavy and Civil Engineering Construction. 7. The Bureau of Reclamation is the administering agency. 8. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract value of $33.6 million for seepage reduction at El Vado Dam appears substantial. Without comparable project data or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. The firm fixed-price nature suggests cost certainty for the government, but the lack of competition raises concerns about whether the most competitive pricing was achieved. Further analysis of the scope of work and historical maintenance costs for similar dams would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential bidders. This approach is typically used when only one contractor possesses the unique capabilities or resources required for the specific task, or in emergency situations. The lack of competition limits the government's ability to solicit and compare multiple proposals, potentially leading to higher costs than if a competitive bidding process had been employed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government did not benefit from the price discovery mechanism inherent in a competitive procurement.

Public Impact

The primary beneficiaries are the Department of the Interior and the Bureau of Reclamation, ensuring the structural integrity and safety of the El Vado Dam. The services delivered involve critical modifications to reduce seepage, thereby enhancing dam safety and operational efficiency. The geographic impact is localized to New Mexico, where the El Vado Dam is situated, potentially affecting water management and agricultural resources in the region. Workforce implications may include employment opportunities for skilled construction and engineering professionals in the New Mexico area during the contract performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises questions about the availability of qualified contractors.
Long performance period could introduce cost escalation risks if not managed tightly.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Focus on critical infrastructure maintenance and safety.
Contract awarded to a known entity (C.A.R.P.I., U.S.A., INC.) which may imply prior experience or capability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dam modification and maintenance. This sector is crucial for national infrastructure, involving large-scale projects often requiring specialized engineering expertise. The market for such services can be concentrated, with a limited number of firms possessing the necessary qualifications and bonding capacity. Comparable spending benchmarks would typically involve analyzing other dam repair or modification contracts awarded by federal or state agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The absence of small business participation goals means that opportunities for smaller firms in this specific procurement are limited. This could potentially reduce the overall economic impact on the small business ecosystem within the heavy civil engineering construction sector for this particular project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Reclamation, a sub-agency of the Department of the Interior. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract details and performance reports are typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Bureau of Reclamation Dam Safety Program
Army Corps of Engineers Civil Works Projects
Federal Highway Administration Infrastructure Grants
Department of Energy Dam Infrastructure Modernization

Risk Flags

Sole-source award
Potential for uncompetitive pricing
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $33.6 million to C.A.R.P.I., U.S.A., INC.. EL VADO SEEPAGE REDUCTION MODIFICATION TO DAM

Who is the contractor on this award?

The obligated recipient is C.A.R.P.I., U.S.A., 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 $33.6 million.

What is the period of performance?

Start: 2020-05-12. End: 2024-09-30.

What is the specific scope of work for the El Vado Seepage Reduction modification?

The provided data indicates the contract is for the 'EL VADO SEEPAGE REDUCTION MODIFICATION TO DAM'. While the exact technical specifications are not detailed here, the objective is to address and mitigate seepage issues within the El Vado Dam. This typically involves activities such as installing or improving drainage systems, reinforcing dam structures, or applying sealant materials to prevent water infiltration. The modification aims to enhance the dam's structural integrity, prevent potential failures, and ensure its long-term operational safety. The Bureau of Reclamation would have detailed engineering plans and requirements associated with this modification.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For a project like the El Vado Seepage Reduction modification, potential justifications could include highly specialized engineering knowledge unique to C.A.R.P.I., U.S.A., INC., prior successful work on this specific dam that makes them the only logical choice for continuity, or a critical, time-sensitive need that precludes a full competitive process. The specific justification would be documented by the Bureau of Reclamation in accordance with federal acquisition regulations, often involving a Justification and Approval (J&A) document.

How does the $33.6 million contract value compare to similar dam modification projects?

Benchmarking the $33.6 million contract value against similar dam modification projects requires access to a broader dataset of federal and state contracts for comparable infrastructure work. Factors influencing cost include the size and type of the dam, the complexity of the seepage issues, the specific engineering solutions required, and the geographic location. Without specific details on the scope of work and comparable project costs, it's challenging to definitively state if this value represents excellent, fair, or concerning pricing. However, large-scale civil engineering projects of this nature often run into the tens of millions of dollars.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may not achieve the most cost-effective solution. Other risks include a potential lack of innovation that might arise from competition, and a reduced incentive for the contractor to perform exceptionally if they perceive less risk of losing future business to competitors. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.

What is the track record of C.A.R.P.I., U.S.A., INC. with the Bureau of Reclamation or similar agencies?

Information regarding C.A.R.P.I., U.S.A., INC.'s specific track record with the Bureau of Reclamation or similar agencies is not detailed in the provided data. However, the fact that they were awarded a sole-source contract of this size suggests they likely have prior experience and demonstrated capabilities relevant to heavy civil engineering and dam construction/modification. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to review their past performance, contract history, and any reported performance issues or successes with government projects.

What are the long-term implications for dam safety and water management in New Mexico?

The successful completion of the El Vado Seepage Reduction modification is crucial for the long-term safety and reliability of the El Vado Dam. By addressing seepage issues, the contract directly contributes to preventing potential structural weaknesses that could compromise the dam's integrity. This, in turn, ensures the continued safe storage and management of water resources in New Mexico, which are vital for agriculture, municipal use, and environmental needs. The project safeguards a critical piece of infrastructure, supporting regional water security and resilience.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOIRFBO200019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vinci

Address: 4370 STARKEY RD STE 4D, ROANOKE, VA, 24018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $33,585,511

Exercised Options: $33,585,511

Current Obligation: $33,585,511

Actual Outlays: $17,762,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline