State Dept. Awards $58M for San Diego Wastewater Plant Upgrade to Arcadis U.S., Inc
Contract Overview
Contract Amount: $58,087,216 ($58.1M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of State
Start Date: 2024-09-11
End Date: 2032-03-09
Contract Duration: 2,736 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ---------- COMMENTS: PROJECT FOR SBIWTP (191BWC24R0001) IN SAN DIEGO, CA INCLUDES THE DESIGN AND CONSTRUCTION TO REHABILITATE AND EXPAND THE SBIWTP TO 50 MGD INCLUDING REHABILITATION TO ALLEVIATE THE DISCHARGE OF WASTEWATER INTO THE SOUTH BAY (PACIFI
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154
Plain-Language Summary
Department of State obligated $58.1 million to ARCADIS U.S., INC. for work described as: ---------- COMMENTS: PROJECT FOR SBIWTP (191BWC24R0001) IN SAN DIEGO, CA INCLUDES THE DESIGN AND CONSTRUCTION TO REHABILITATE AND EXPAND THE SBIWTP TO 50 MGD INCLUDING REHABILITATION TO ALLEVIATE THE DISCHARGE OF WASTEWATER INTO THE SOUTH BAY (PACIFI Key points: 1. Significant investment in critical infrastructure for wastewater treatment capacity expansion. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long project duration (2736 days) may present schedule and cost overrun risks. 4. Firm Fixed Price contract aims to control costs, but scope changes could impact budget.
Value Assessment
Rating: fair
The contract value of $58,087,216 for engineering services appears substantial, but without specific benchmarks for similar large-scale wastewater treatment plant rehabilitation and expansion projects, a precise value assessment is difficult. The firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for a critical public infrastructure project aimed at improving wastewater management and environmental protection in the San Diego region.
Public Impact
Improved wastewater treatment capacity to 50 MGD. Alleviation of wastewater discharge into the South Bay, benefiting the local environment. Long-term infrastructure development supporting regional growth and public health. Potential for job creation during the design and construction phases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2736 days) increases risk of cost escalation and scope creep.
- Potential for unforeseen site conditions in a rehabilitation project.
- Dependence on a single contractor for a multi-year, complex project.
Positive Signals
- Addresses critical environmental need for wastewater treatment.
- Firm Fixed Price contract offers cost control.
- Full and open competition promotes market fairness.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to large-scale civil infrastructure and environmental projects. Benchmarks for similar wastewater treatment plant upgrades vary widely based on project scope, location, and complexity.
Small Business Impact
The provided data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of State, through the International Boundary and Water Commission, is overseeing this project. Standard oversight mechanisms for large federal contracts, including progress reporting and quality assurance, are expected to be in place.
Related Government Programs
- Engineering Services
- Department of State Contracting
- International Boundary and Water Commission: U.S.-Mexico Programs
Risk Flags
- Long project duration (over 7 years).
- Complexity of rehabilitating and expanding an existing facility.
- Potential for unforeseen environmental or geological site conditions.
- Reliance on a single contractor for a multi-year effort.
- Scope creep risk despite fixed-price contract.
Tags
engineering-services, department-of-state, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $58.1 million to ARCADIS U.S., INC.. ---------- COMMENTS: PROJECT FOR SBIWTP (191BWC24R0001) IN SAN DIEGO, CA INCLUDES THE DESIGN AND CONSTRUCTION TO REHABILITATE AND EXPAND THE SBIWTP TO 50 MGD INCLUDING REHABILITATION TO ALLEVIATE THE DISCHARGE OF WASTEWATER INTO THE SOUTH BAY (PACIFI
Who is the contractor on this award?
The obligated recipient is ARCADIS U.S., 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 $58.1 million.
What is the period of performance?
Start: 2024-09-11. End: 2032-03-09.
What is the estimated cost per MGD of treatment capacity increase?
The total contract value is $58,087,216 for an expansion to 50 MGD. This equates to approximately $1.16 million per MGD of new capacity. However, this figure includes rehabilitation of existing facilities and is not solely for new capacity, making direct comparison difficult without a detailed cost breakdown.
What are the primary risks associated with the long project duration?
The 2736-day duration (over 7 years) presents significant risks including potential for inflation impacting material and labor costs, technological obsolescence, changes in regulatory requirements, and contractor performance degradation over an extended period. Unforeseen site conditions during rehabilitation can also cause delays and cost overruns.
How effectively will the firm fixed price contract manage potential cost overruns given the project's complexity?
A firm fixed price contract is designed to shift cost overrun risk to the contractor. However, for complex, long-duration projects like this, significant cost overruns can still occur if the initial scope is poorly defined or if substantial change orders are issued due to unforeseen circumstances or evolving requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 191BWC23R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 630 PLAZA DR, HIGHLANDS RANCH, CO, 80129
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $58,087,216
Exercised Options: $58,087,216
Current Obligation: $58,087,216
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,743,364
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 191BWC24D0003
IDV Type: IDC
Timeline
Start Date: 2024-09-11
Current End Date: 2032-03-09
Potential End Date: 2032-03-09 00:00:00
Last Modified: 2025-09-18
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