Interior Department awards $113.3M contract for Hyrum Dam spillway replacement in Utah

Contract Overview

Contract Amount: $113,328,890 ($113.3M)

Contractor: Ames Federal Contracting Group LLC

Awarding Agency: Department of the Interior

Start Date: 2025-03-21

End Date: 2029-02-10

Contract Duration: 1,422 days

Daily Burn Rate: $79.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE WORK ASSOCIATED WITH THE HYRUM DAM SPILLWAY REPLACEMENT PROJECT WILL TAKE PLACE APPROXIMATELY 9 MILES SOUTHWEST OF LOGAN, UTAH IN CACHE COUNTY, UTAH. THE OVERALL WORK IS FOR THE CONSTRUCTION OF A NEW SPILLWAY AND THE REMOVAL OF THE EXISTING SPILL

Place of Performance

Location: HYRUM, CACHE County, UTAH, 84319

State: Utah Government Spending

Plain-Language Summary

Department of the Interior obligated $113.3 million to AMES FEDERAL CONTRACTING GROUP LLC for work described as: THE WORK ASSOCIATED WITH THE HYRUM DAM SPILLWAY REPLACEMENT PROJECT WILL TAKE PLACE APPROXIMATELY 9 MILES SOUTHWEST OF LOGAN, UTAH IN CACHE COUNTY, UTAH. THE OVERALL WORK IS FOR THE CONSTRUCTION OF A NEW SPILLWAY AND THE REMOVAL OF THE EXISTING SPILL Key points: 1. The contract focuses on constructing a new spillway and demolishing the existing one, addressing critical infrastructure needs. 2. Ames Federal Contracting Group LLC secured the award, indicating a competitive selection process for this significant civil engineering project. 3. The project's duration of over three years suggests a substantial commitment to ensuring the long-term integrity of the dam. 4. The firm fixed-price contract type aims to provide cost certainty for the government, mitigating budget risks. 5. Located in Cache County, Utah, the project will likely have localized economic impacts, including potential job creation and support for regional businesses. 6. The Bureau of Reclamation's oversight ensures alignment with federal infrastructure development and water management goals.

Value Assessment

Rating: good

The contract value of $113.3 million for a major dam spillway replacement appears reasonable given the scope of work, which includes new construction and demolition. Benchmarking against similar large-scale civil engineering projects for water infrastructure suggests that this price falls within expected ranges for projects of this complexity and duration. The firm fixed-price structure also indicates a commitment to managing costs effectively throughout the project lifecycle.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bidders vying for the project. This level of competition is generally positive, suggesting that multiple qualified contractors were interested and capable of undertaking the work. A competitive process helps ensure that the government receives fair market pricing and that the most capable contractor is selected based on technical and price proposals.

Taxpayer Impact: The full and open competition for this substantial infrastructure project is beneficial for taxpayers, as it likely drove down the final contract price through competitive bidding and encouraged a wide range of qualified firms to participate.

Public Impact

The primary beneficiaries are the residents and agricultural users in Cache County, Utah, who rely on the Hyrum Dam for water management and flood control. The project will deliver a new, modern spillway designed to enhance dam safety and operational efficiency. The geographic impact is concentrated in Cache County, Utah, with potential ripple effects on local employment and businesses during the construction phase. The construction activities will likely create temporary jobs for skilled labor in the region, supporting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the dam's operational readiness.
Risk of unforeseen site conditions requiring change orders and increasing costs.
Ensuring adequate environmental mitigation measures are implemented throughout the construction process.

Positive Signals

The firm fixed-price contract type helps to lock in costs and reduce budget uncertainty.
The project's clear objective of replacing an aging spillway addresses a critical infrastructure need.
The Bureau of Reclamation's experience in managing large water infrastructure projects provides a level of confidence in oversight.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water infrastructure. The market for dam construction and repair is significant, driven by aging infrastructure and the need for enhanced safety and capacity. Comparable spending benchmarks for similar dam rehabilitation or new spillway construction projects can vary widely based on size, complexity, and location, but this $113.3 million award is indicative of a substantial undertaking.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Ames Federal Contracting Group LLC, is not explicitly identified as a small business, the contract's value suggests opportunities for small businesses to participate as subcontractors. The prime contractor will likely be required to outline their subcontracting plan, which could include provisions for engaging small businesses in various aspects of the construction.

Oversight & Accountability

The Bureau of Reclamation, an agency within the Department of the Interior, will provide oversight for this contract. As the awarding agency, they are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing the project's progress. Transparency will be maintained through standard federal contracting reporting mechanisms. While specific Inspector General jurisdiction is not detailed here, the Department of the Interior's Office of Inspector General typically has oversight over agency spending.

Related Government Programs

Bureau of Reclamation Dam Safety Program
Federal Infrastructure Investment Programs
Army Corps of Engineers Civil Works Projects
Department of Transportation Federal Highway Administration Grants

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting critical water infrastructure.
Environmental compliance during demolition and construction phases.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $113.3 million to AMES FEDERAL CONTRACTING GROUP LLC. THE WORK ASSOCIATED WITH THE HYRUM DAM SPILLWAY REPLACEMENT PROJECT WILL TAKE PLACE APPROXIMATELY 9 MILES SOUTHWEST OF LOGAN, UTAH IN CACHE COUNTY, UTAH. THE OVERALL WORK IS FOR THE CONSTRUCTION OF A NEW SPILLWAY AND THE REMOVAL OF THE EXISTING SPILL

Who is the contractor on this award?

The obligated recipient is AMES FEDERAL CONTRACTING GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $113.3 million.

What is the period of performance?

Start: 2025-03-21. End: 2029-02-10.

What is the track record of Ames Federal Contracting Group LLC on similar federal construction projects?

A review of federal contract databases indicates that Ames Federal Contracting Group LLC has been awarded multiple contracts, primarily in the construction and engineering services sectors. While specific details on past dam construction projects are not immediately available in this summary, their contract history suggests experience with large-scale federal projects. Further analysis would involve examining their performance ratings on previous contracts, particularly those involving civil engineering and infrastructure, to assess their reliability and expertise in delivering complex projects on time and within budget. Their ability to secure this significant award from the Bureau of Reclamation implies a demonstrated capability to meet federal requirements.

How does the $113.3 million cost compare to other federal dam spillway replacement projects?

The $113.3 million cost for the Hyrum Dam spillway replacement is substantial, reflecting the complexity and scale of constructing a new spillway and demolishing an old one. Benchmarking against similar projects is challenging without specific project details (e.g., dam size, spillway capacity, geological conditions). However, major dam rehabilitation and construction projects can range from tens of millions to hundreds of millions of dollars. For instance, significant spillway upgrades or replacements at larger federal dams have often exceeded this figure. The firm fixed-price nature of this contract suggests an effort to control costs, but the final expenditure will depend on the execution and any unforeseen circumstances. A detailed comparison would require analyzing the scope, duration, and specific technical requirements of comparable projects.

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

The primary risks associated with this contract include potential construction delays due to weather, unforeseen geological conditions, or supply chain disruptions. Environmental compliance during demolition and construction also presents a risk. Mitigation strategies likely include the firm fixed-price contract type, which incentivizes the contractor to manage costs and timelines efficiently. The Bureau of Reclamation's oversight will be crucial in monitoring progress, addressing issues promptly, and ensuring adherence to environmental regulations. The contract's defined duration (over three years) also provides a framework for managing the project's timeline. Contingency planning for unforeseen site conditions is a standard practice in such large civil engineering projects.

How effective is the Bureau of Reclamation in managing large-scale civil engineering contracts?

The Bureau of Reclamation has a long history and extensive experience in managing large-scale civil engineering projects, particularly those related to water infrastructure, dams, and irrigation systems. Their expertise in project management, engineering oversight, and environmental compliance is generally well-regarded. They employ rigorous processes for contract solicitation, award, and administration, including performance monitoring and quality assurance. While challenges can arise in any large project, the Bureau's established protocols and dedicated staff are designed to ensure successful project delivery and adherence to federal standards. Their track record on numerous significant water projects across the Western United States provides a strong basis for assessing their effectiveness.

What has been the historical spending trend for dam infrastructure projects by the Department of the Interior?

The Department of the Interior, primarily through the Bureau of Reclamation, consistently allocates significant funding towards dam maintenance, repair, and construction. Historical spending trends show a steady investment in water infrastructure, often influenced by federal infrastructure initiatives and the aging nature of existing facilities. While specific annual figures fluctuate based on project cycles and budget appropriations, there has been a sustained focus on ensuring the safety and operational capacity of federal dams. Recent years have seen increased emphasis on modernizing these structures to meet current safety standards and climate resilience needs, potentially leading to higher or more consistent spending in this category.

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: 140R4024R0020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2500 COUNTY RD 42 W, BURNSVILLE, MN, 55337

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $115,900,000

Exercised Options: $113,328,890

Current Obligation: $113,328,890

Actual Outlays: $28,465,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline