State Department awards $6.3M for urgent sewage treatment facility replacement in California

Contract Overview

Contract Amount: $6,289,712 ($6.3M)

Contractor: Veolia Water West Operating Services Inc

Awarding Agency: Department of State

Start Date: 2023-08-10

End Date: 2026-04-30

Contract Duration: 994 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: URGENT THAT THE REPLACEMENT CONSTRUCTION OF JB1 BE STARTED AND COMPLETED AS QUICKLY AS POSSIBLE SO CONTROL OF FLOWS INTO TH

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of State obligated $6.3 million to VEOLIA WATER WEST OPERATING SERVICES INC for work described as: URGENT THAT THE REPLACEMENT CONSTRUCTION OF JB1 BE STARTED AND COMPLETED AS QUICKLY AS POSSIBLE SO CONTROL OF FLOWS INTO TH Key points: 1. Contract awarded for critical infrastructure repair, highlighting potential risks from aging facilities. 2. Sole-source award raises questions about cost-effectiveness and potential for better pricing through competition. 3. Long contract duration suggests a complex project or potential for scope creep. 4. Fixed-price contract shifts risk to the contractor, but requires careful oversight to ensure quality. 5. Focus on sewage treatment indicates a public health and environmental priority for the agency.

Value Assessment

Rating: fair

The contract value of $6.3 million for sewage treatment facility replacement appears to be within a reasonable range for such infrastructure projects, though a direct comparison is difficult without more specific project details. The firm fixed-price structure suggests an attempt to control costs, but the lack of competition means there's no benchmark to assess if this price represents optimal value for the government. Further analysis would require understanding the scope of work and comparing it to similar, competitively bid projects.

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 vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It also raises concerns about whether alternative solutions or more cost-effective options were fully explored.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall costs for the government.

Public Impact

The primary beneficiaries are the residents and environment of California, who will receive improved sewage treatment services. The contract ensures the continued operation and upgrade of essential public health infrastructure. Geographic impact is localized to the specific facility in California requiring replacement. The project may involve local construction workforce, contributing to regional employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Long contract duration (994 days) could indicate project complexity or risk of cost overruns if not managed tightly.
Lack of detailed scope of work in the provided data makes it difficult to fully assess value for money.

Positive Signals

Firm fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
Award addresses an urgent need for infrastructure replacement, mitigating potential public health or environmental risks.
Contracting for essential sewage treatment facilities demonstrates commitment to public service delivery.

Sector Analysis

This contract falls within the Construction and Engineering sector, specifically related to environmental infrastructure. The market for specialized sewage treatment facility construction and maintenance is often characterized by a limited number of qualified firms, which can sometimes lead to sole-source or limited competition awards. Benchmarking this contract's value would ideally involve comparing it to other similar municipal or federal projects for sewage treatment plant upgrades or replacements, considering factors like capacity, technology, and location.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses. Further investigation into the contractor's subcontracting plan would be necessary to determine any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given the critical nature of sewage treatment facilities, regular site inspections, progress reports, and performance reviews would be expected. Transparency could be enhanced by making detailed project milestones and performance data publicly available. The Inspector General's office may also have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

Environmental Protection Agency (EPA) grants for water infrastructure
Army Corps of Engineers civil works projects
Public Works and Infrastructure Development Programs

Risk Flags

Sole-source award may indicate lack of competition, potentially leading to higher costs.
Urgent need for replacement could imply existing infrastructure is in critical condition, posing risks.
Long contract duration requires diligent oversight to manage costs and timelines effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.3 million to VEOLIA WATER WEST OPERATING SERVICES INC. URGENT THAT THE REPLACEMENT CONSTRUCTION OF JB1 BE STARTED AND COMPLETED AS QUICKLY AS POSSIBLE SO CONTROL OF FLOWS INTO TH

Who is the contractor on this award?

The obligated recipient is VEOLIA WATER WEST OPERATING SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2023-08-10. End: 2026-04-30.

What is the specific scope of work for the replacement of JB1 sewage treatment facility?

The provided data indicates an urgent need for the 'REPLACEMENT CONSTRUCTION OF JB1' to ensure control of sewage flows. However, the specific technical details, capacity requirements, and components involved in the replacement are not detailed. A comprehensive understanding of the scope would involve assessing the existing facility's condition, the required upgrades in treatment technology, the expected operational lifespan, and any environmental compliance standards that must be met. This information is crucial for evaluating the contract's value and ensuring the contractor delivers the necessary improvements effectively.

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

The contract was awarded on a sole-source basis, as indicated by 'CT: NOT COMPETED'. While the data doesn't explicitly state the justification, common reasons for sole-source awards include urgent and compelling needs where only one responsible source can be identified, or when the required services are highly specialized and only one contractor possesses the necessary expertise or unique capabilities. For a sewage treatment facility replacement, it's possible that Veolia Water West Operating Services Inc. holds specific patents, unique operational knowledge of the existing system, or possesses specialized equipment essential for the urgent repair, making competition impractical or detrimental to the timeline.

How does the contract value of $6.3 million compare to similar sewage treatment facility projects?

Directly comparing the $6.3 million contract value without a detailed scope of work is challenging. However, sewage treatment facility projects can vary significantly in cost based on size, complexity, technology employed, and location. Smaller upgrades or repairs might fall within this range, while complete overhauls or construction of new, large-capacity plants can cost tens or hundreds of millions. Given this is a 'replacement' and described as 'urgent,' it suggests a critical need, but the exact value proposition depends heavily on the specific deliverables. Competitively bid projects of similar scope would provide a better benchmark for assessing value for money.

What are the potential risks associated with a sole-source award for this type of project?

The primary risk of a sole-source award is the potential for inflated pricing, as the government lacks the benefit of competitive bidding to drive down costs. There's also a risk that the chosen contractor may not be the most innovative or efficient provider available. Furthermore, without competition, there might be less incentive for the contractor to maintain the highest standards of quality and performance throughout the project lifecycle, necessitating robust government oversight. The urgency cited could also be a factor that limited the time available for a competitive process, potentially masking underlying issues.

What is the track record of Veolia Water West Operating Services Inc. with federal contracts, particularly for infrastructure?

Veolia Water West Operating Services Inc. has a history of federal contracts, often related to water and wastewater management. While specific details on their performance for this particular agency or project type require deeper database searches, their presence in the market suggests experience in operating and maintaining water infrastructure. Analyzing past performance metrics, contract modifications, and any past disputes or awards related to similar federal projects would provide a clearer picture of their reliability and capability in executing critical infrastructure work like sewage treatment facility replacements.

What are the implications of the long contract duration (994 days) for project management and cost control?

A contract duration of 994 days (approximately 2.7 years) for a sewage treatment facility replacement suggests a project of significant scale or complexity. This extended timeline allows for detailed planning, phased construction, and thorough testing. However, it also increases the potential for cost escalation due to inflation, changes in material costs, or unforeseen site conditions. Effective project management, clear milestones, and rigorous oversight are crucial to ensure the project stays on track, within budget, and meets its objectives without unnecessary delays or scope creep over the nearly three-year period.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 53 STATE ST, BOSTON, MA, 02109

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,289,712

Exercised Options: $6,289,712

Current Obligation: $6,289,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline