Interior Department awards $92M contract for Montana dam replacement, highlighting civil engineering needs

Contract Overview

Contract Amount: $92,177,122 ($92.2M)

Contractor: NW Construction, Inc

Awarding Agency: Department of the Interior

Start Date: 2024-06-03

End Date: 2028-07-25

Contract Duration: 1,513 days

Daily Burn Rate: $60.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ST. MARY CANAL DIVERSION WORKS DAM REPLACEMENT AND FISH MODIFICATION, MILK RIVER PROJECT, MONTANA

Place of Performance

Location: BABB, GLACIER County, MONTANA, 59411

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $92.2 million to NW CONSTRUCTION, INC for work described as: ST. MARY CANAL DIVERSION WORKS DAM REPLACEMENT AND FISH MODIFICATION, MILK RIVER PROJECT, MONTANA Key points: 1. Contract value of $92.18 million for dam replacement and fish modification. 2. Awarded to NW Construction, Inc. under a firm-fixed-price definitive contract. 3. Project duration is 1513 days, indicating a significant, long-term infrastructure undertaking. 4. Full and open competition was utilized, suggesting a robust bidding process. 5. The contract falls under 'Other Heavy and Civil Engineering Construction' NAICS code. 6. Geographic focus is Montana, specifically the Milk River Project. 7. The Bureau of Reclamation is the administering agency. 8. This project addresses critical infrastructure needs for water management and ecological considerations.

Value Assessment

Rating: good

The contract value of $92.18 million appears substantial for a dam replacement project. Benchmarking against similar large-scale civil engineering projects would provide further context on its value for money. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for the government if the scope is well-defined. Without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging, but the competitive award process likely contributed to a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a wider range of proposals and can foster price discovery. The fact that a single award was made suggests that NW Construction, Inc. was the most advantageous offer based on the evaluation criteria. The level of competition is a positive sign for achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a wider pool of bidders and encouraging more competitive proposals, leading to better value.

Public Impact

The primary beneficiaries are likely stakeholders of the Milk River Project, including agricultural users and communities relying on its water supply. The project will deliver critical infrastructure upgrades to the St. Mary Canal Diversion Works Dam. Ecological benefits are expected through fish modification components, potentially improving aquatic habitats. The geographic impact is concentrated in Montana, supporting regional infrastructure and potentially local employment during construction. Workforce implications include job creation for construction workers, engineers, and related support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, multi-year infrastructure projects, which could impact final costs if not managed tightly.
Dependency on weather and environmental conditions in Montana can introduce schedule risks.
Ensuring long-term durability and effectiveness of the dam replacement and fish modification requires rigorous quality control.

Positive Signals

Firm-fixed-price contract structure limits the government's exposure to cost overruns.
Full and open competition suggests a thorough evaluation process and potentially competitive pricing.
The project addresses essential water infrastructure, contributing to regional stability and resource management.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical component of national infrastructure development. This sector encompasses a wide range of projects, including dams, bridges, highways, and water treatment facilities. The market is characterized by large, complex projects often requiring specialized expertise and significant capital investment. Spending in this sector is driven by government infrastructure initiatives, maintenance needs, and upgrades to aging facilities. Comparable spending benchmarks would involve looking at other large dam construction or rehabilitation projects undertaken by federal agencies like the Army Corps of Engineers or the Bureau of Reclamation.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While NW Construction, Inc. may engage small businesses as subcontractors, the primary award is not directed towards small businesses. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the broader small business ecosystem in the construction sector.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Reclamation, a division of the Department of the Interior. Mechanisms would include regular progress reports, site inspections, and adherence to contract milestones. Accountability measures are embedded in the firm-fixed-price contract, linking payment to performance and completion. Transparency is generally maintained through contract award databases and public reporting, though specific project details and oversight reports may vary in accessibility.

Related Government Programs

Bureau of Reclamation Projects
Army Corps of Engineers Civil Works Projects
National Dam Safety Program
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Risk of cost escalation if scope changes significantly, despite firm-fixed-price structure.
Ensuring long-term structural integrity and performance of the new dam requires rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $92.2 million to NW CONSTRUCTION, INC. ST. MARY CANAL DIVERSION WORKS DAM REPLACEMENT AND FISH MODIFICATION, MILK RIVER PROJECT, 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 $92.2 million.

What is the period of performance?

Start: 2024-06-03. End: 2028-07-25.

What is the historical spending pattern of the Bureau of Reclamation on dam replacement and modification projects?

The Bureau of Reclamation has a long history of managing and funding dam construction, rehabilitation, and modification projects across the Western United States. Historical spending varies significantly year-to-year, influenced by appropriations, infrastructure needs assessments, and the lifecycle of existing facilities. For instance, major dam rehabilitation efforts often span multiple fiscal years and can involve contracts in the tens to hundreds of millions of dollars. Analyzing specific project categories like 'dam safety' or 'water infrastructure modernization' within Reclamation's budget over the past decade would reveal trends. The St. Mary Canal Diversion Works Dam Replacement project, valued at $92.18 million, aligns with the scale of significant infrastructure investments the Bureau undertakes to ensure water supply reliability and public safety.

How does the awarded price of $92.18 million compare to similar dam replacement projects in terms of cost per unit (e.g., per cubic yard of concrete, per acre-foot of storage capacity)?

Benchmarking the $92.18 million contract for the St. Mary Canal Diversion Works Dam Replacement requires detailed project specifications, such as the volume of concrete, excavation, structural components, and the dam's storage capacity. Without these granular details, a precise per-unit cost comparison is difficult. However, large-scale dam rehabilitation and replacement projects can range from tens of millions to over a billion dollars. Factors influencing cost per unit include the dam's age, complexity of repairs, environmental mitigation requirements, and site-specific geological conditions. For context, major dam upgrades can cost hundreds of dollars per cubic yard of concrete or thousands of dollars per acre-foot of storage capacity, depending on the scope. This contract's value suggests a substantial undertaking, likely involving significant structural work and potentially advanced fish passage systems.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract for NW Construction, Inc.?

While the specific KPIs and risk mitigation strategies are detailed within the contract document itself, typical indicators for such infrastructure projects include adherence to schedule milestones, quality of construction materials and workmanship, safety compliance, and environmental protection measures. For a dam replacement and fish modification project, KPIs might involve the successful installation of new structural elements, the functionality of fish passage facilities, and the achievement of specified water flow rates. Risk mitigation strategies commonly include detailed project management plans, contingency planning for unforeseen site conditions (e.g., unexpected soil stability issues, archaeological finds), robust quality assurance/quality control (QA/QC) programs, and strict safety protocols. The firm-fixed-price nature of the contract inherently shifts some financial risk to the contractor, incentivizing them to manage these risks effectively.

What is the track record of NW Construction, Inc. in undertaking similar large-scale civil engineering and dam construction projects?

Assessing NW Construction, Inc.'s track record involves reviewing their past performance on projects of similar scale, complexity, and type. Information typically available through federal contract databases (like FPDS or SAM.gov) can provide insights into their contract history, including past performance ratings, any past disputes or terminations, and the types of projects they have successfully completed. For a $92 million dam replacement project, the government would have likely evaluated NW Construction's experience with heavy civil engineering, concrete structures, water management systems, and potentially environmental modifications like fish passage. A positive past performance review is a critical factor in the award of such significant contracts, indicating their capability to deliver on time, within budget, and to required quality standards.

What are the potential long-term implications of this dam replacement for water management and ecological health in the Milk River Project area?

The replacement of the St. Mary Canal Diversion Works Dam is expected to have significant long-term implications for water management and ecological health. A new or significantly upgraded dam should ensure greater reliability and efficiency in water delivery for irrigation and other uses within the Milk River Project, potentially improving water security for agricultural communities. The 'fish modification' aspect specifically addresses ecological concerns, likely involving the implementation of fish passage systems (like ladders or bypasses) to restore or improve migratory routes for native fish populations. This can enhance biodiversity and the overall health of the river ecosystem. Furthermore, modern dam designs often incorporate improved safety features and resilience against extreme weather events, contributing to long-term infrastructure stability.

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: 140R6024R0002

Offers Received: 1

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: $92,177,122

Exercised Options: $92,177,122

Current Obligation: $92,177,122

Actual Outlays: $51,470,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline