Interior Department awards $45.8M contract for Fresno Dam modifications in Montana

Contract Overview

Contract Amount: $45,830,568 ($45.8M)

Contractor: NW Construction, Inc

Awarding Agency: Department of the Interior

Start Date: 2023-03-07

End Date: 2026-03-12

Contract Duration: 1,101 days

Daily Burn Rate: $41.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PERFORM MODIFICATIONS TO FRESNO DAM LOCATED IN HILL COUNTY, MONTANA

Place of Performance

Location: HAVRE, HILL County, MONTANA, 59501

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $45.8 million to NW CONSTRUCTION, INC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PERFORM MODIFICATIONS TO FRESNO DAM LOCATED IN HILL COUNTY, MONTANA Key points: 1. Contract aims to enhance the structural integrity and safety of Fresno Dam. 2. The project is situated in Hill County, Montana, impacting local infrastructure. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 5. The duration of the contract is approximately three years, from March 2023 to March 2026. 6. The Bureau of Reclamation is the specific agency overseeing this critical infrastructure project.

Value Assessment

Rating: good

The contract value of approximately $45.8 million for dam modifications appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar dam repair and modification projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost overruns, but the final cost will depend on the execution and any unforeseen site conditions. The base contract value is $41.6 million, with potential for adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specialized heavy civil engineering project. A higher number of bidders typically leads to more competitive pricing, but for complex infrastructure projects, a smaller pool of qualified firms is common.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are residents and businesses in Hill County, Montana, who rely on the dam's functionality for water management and flood control. The project will deliver essential structural modifications to the Fresno Dam, enhancing its safety and operational lifespan. The geographic impact is localized to Hill County, Montana, where the dam is situated. The project is expected to create or sustain jobs in the construction sector within the region, supporting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or structural issues arise during modifications.
Risk of project delays due to weather conditions or supply chain disruptions affecting specialized construction materials.
Ensuring the long-term effectiveness and durability of the modifications requires rigorous quality control and oversight.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a competitive process that likely secured a fair price.
The Bureau of Reclamation's involvement indicates experienced oversight for a critical infrastructure project.

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 specialized, often dominated by a limited number of large firms with the requisite expertise and equipment. Spending on water infrastructure is a significant component of federal investment in public works, aimed at ensuring water supply, flood control, and hydroelectric power generation.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was made to a larger firm capable of undertaking this complex project. Subcontracting opportunities may exist for smaller businesses, but this is not explicitly detailed in the provided data. The impact on the small business ecosystem will depend on the extent to which the prime contractor utilizes local or specialized small business subcontractors.

Oversight & Accountability

Oversight for this contract will be managed by the Bureau of Reclamation, an agency with extensive experience in managing large-scale water infrastructure projects. Accountability measures are inherent in the firm fixed-price contract, which incentivizes the contractor to complete work within budget. Transparency is expected through standard government contracting reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Bureau of Reclamation Dam Safety Program
Army Corps of Engineers Civil Works Projects
Federal Infrastructure Investment Programs
Water Resource Development Projects

Risk Flags

Potential for unforeseen site conditions
Risk of weather-related delays
Ensuring long-term structural integrity post-modification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $45.8 million to NW CONSTRUCTION, INC. THE PURPOSE OF THIS CONTRACT IS TO PERFORM MODIFICATIONS TO FRESNO DAM LOCATED IN HILL COUNTY, MONTANA

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 $45.8 million.

What is the period of performance?

Start: 2023-03-07. End: 2026-03-12.

What is the track record of NW Construction, Inc. in managing similar dam modification projects?

NW Construction, Inc. has a history of undertaking significant construction projects, including infrastructure and heavy civil engineering. While specific details on their past dam modification projects are not provided in this data snippet, their selection for this contract by the Bureau of Reclamation suggests they possess the necessary qualifications and experience. A deeper dive into their project portfolio, client reviews, and past performance evaluations would be required for a comprehensive assessment of their track record in managing projects of this scale and complexity. Examining their safety records and on-time/on-budget completion rates for comparable projects would further inform this analysis.

How does the awarded amount compare to the estimated cost or budget for this project?

The awarded amount for the Fresno Dam modifications is $45,830,567.69. The provided data indicates a base contract value of $41,626,000, suggesting that the total awarded amount includes potential modifications, options, or other contract line items. Without access to the government's initial cost estimates or budget allocations for this specific project, a direct comparison is difficult. However, the fact that the contract was awarded under full and open competition with two bidders implies that the award price was deemed competitive and acceptable by the Bureau of Reclamation. Further analysis would involve comparing this figure to industry benchmarks for similar dam modification projects.

What are the primary risks associated with the physical modifications to Fresno Dam?

The primary risks associated with the physical modifications to Fresno Dam include potential unforeseen geological conditions within the dam's foundation or abutments, which could necessitate design changes and increase costs. Structural integrity during the modification process itself is a key concern, requiring careful planning and execution to avoid compromising the dam's stability. Environmental risks, such as impacts on water quality or local ecosystems during construction, also need to be managed. Furthermore, the aging nature of the dam could reveal hidden defects or material degradation that were not fully apparent during initial assessments, leading to scope adjustments. Weather-related delays are also a significant risk in Montana's climate, potentially impacting the project schedule and cost.

What is the expected impact of these modifications on the dam's long-term performance and safety?

These modifications are expected to significantly enhance the long-term performance and safety of the Fresno Dam. By addressing structural deficiencies and modernizing components, the project aims to extend the dam's operational lifespan, ensuring its continued reliability for water management and flood control in Hill County, Montana. Improved structural integrity will reduce the risk of failure, thereby enhancing public safety for downstream communities. The modifications may also optimize the dam's efficiency in regulating water flow, potentially improving water supply reliability and mitigating flood risks more effectively. Ultimately, the project contributes to the overall resilience of critical infrastructure in the region.

How has federal spending on dam maintenance and modification evolved over the past five years?

Federal spending on dam maintenance and modification has generally seen an increasing trend over the past five years, driven by aging infrastructure across the nation and a growing recognition of the critical role dams play in water supply, flood control, and hydropower. Agencies like the Army Corps of Engineers and the Bureau of Reclamation consistently allocate significant portions of their budgets to rehabilitation and repair projects. While specific year-over-year figures fluctuate based on appropriations and project timelines, there has been a sustained emphasis on addressing deferred maintenance and upgrading aging dam structures to meet current safety standards. This trend is supported by various infrastructure bills and dedicated funding initiatives aimed at modernizing national water infrastructure.

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: 140R6022R0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 SHEDHORN DR, BOZEMAN, MT, 59718

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

Financial Breakdown

Contract Ceiling: $45,830,568

Exercised Options: $45,830,568

Current Obligation: $45,830,568

Actual Outlays: $44,746,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline