DOI Awards $131.8M Contract for Leadville Water Treatment Plant Construction

Contract Overview

Contract Amount: $131,870,410 ($131.9M)

Contractor: Oscar Renda Contracting Inc

Awarding Agency: Department of the Interior

Start Date: 2024-09-20

End Date: 2029-10-15

Contract Duration: 1,851 days

Daily Burn Rate: $71.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LEADVILLE WATER TREATMENT PLANT

Place of Performance

Location: LEADVILLE, LAKE County, COLORADO, 80461

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $131.9 million to OSCAR RENDA CONTRACTING INC for work described as: LEADVILLE WATER TREATMENT PLANT Key points: 1. Significant investment in critical water infrastructure. 2. OSCAR RENDA CONTRACTING INC secured the award. 3. Potential for cost overruns or delays in large construction projects. 4. Sector: Construction, specifically water and sewer infrastructure.

Value Assessment

Rating: good

The contract value of $131.8M for a 5-year construction project appears reasonable given the scope. Benchmarking against similar large-scale water treatment plant constructions would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified contractors to bid.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best value for public funds invested in essential infrastructure.

Public Impact

Ensures access to clean and safe drinking water for the Leadville community. Creates jobs and stimulates economic activity in the region during construction. Modernizes aging water infrastructure, improving reliability and resilience.

Waste & Efficiency Indicators

Waste Risk Score: 71 / 10

Warning Flags

Project duration of 1851 days (over 5 years) increases risk of cost escalation.
Reliance on a single contractor for a large, complex project.
Potential for unforeseen site conditions impacting schedule and budget.

Positive Signals

Awarded under full and open competition, indicating market responsiveness.
Firm Fixed Price contract provides cost certainty for the government.
Project addresses a critical public need for water treatment.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on water and sewer infrastructure. Spending in this area is often driven by federal and state mandates for public health and environmental protection.

Small Business Impact

The data indicates no specific set-aside for small businesses in this contract. Large infrastructure projects like this often involve prime contractors who may subcontract portions of the work, potentially creating opportunities for small businesses.

Oversight & Accountability

The Bureau of Reclamation, under the Department of the Interior, is responsible for overseeing this project. Robust oversight will be crucial to manage the project's complexity, timeline, and budget effectively.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Long project duration increases risk of cost escalation and schedule slippage.
Complexity of water treatment plant construction can lead to unforeseen challenges.
Potential for contractor performance issues on a large-scale project.
Dependence on a single prime contractor for critical infrastructure delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $131.9 million to OSCAR RENDA CONTRACTING INC. LEADVILLE WATER TREATMENT PLANT

Who is the contractor on this award?

The obligated recipient is OSCAR RENDA CONTRACTING 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 $131.9 million.

What is the period of performance?

Start: 2024-09-20. End: 2029-10-15.

What is the historical cost performance of OSCAR RENDA CONTRACTING INC on similar large-scale infrastructure projects?

Analyzing the contractor's past performance on comparable projects is essential. This includes reviewing their track record on budget adherence, schedule management, and quality of work. Understanding their history can help predict potential risks and inform oversight strategies for the Leadville Water Treatment Plant project, ensuring taxpayer funds are managed efficiently and the project is completed successfully.

How will potential environmental impacts during construction be mitigated and monitored?

Mitigation and monitoring of environmental impacts are critical for large construction projects. This involves adherence to environmental regulations, potential impact assessments, and ongoing monitoring of air quality, water runoff, and noise pollution. Clear protocols and regular reporting are necessary to ensure compliance and minimize any adverse effects on the surrounding environment and community.

What mechanisms are in place to ensure the long-term operational efficiency and maintenance of the new treatment plant?

Ensuring long-term operational efficiency requires a comprehensive plan beyond the initial construction phase. This includes contractor training, clear handover procedures, and potentially performance-based contracts for initial operations. The Bureau of Reclamation should establish clear performance metrics and maintenance schedules to guarantee the plant functions effectively and reliably for its intended lifespan.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R6024R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Southland Holdings LLC

Address: 1100 KUBOTA DR, GRAPEVINE, TX, 76051

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

Financial Breakdown

Contract Ceiling: $131,870,410

Exercised Options: $131,870,410

Current Obligation: $131,870,410

Actual Outlays: $16,405,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline