DOD awards $11.9M for water/sewer construction in Nevada, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $11,899,365 ($11.9M)

Contractor: Meadow Valley Contractors, Inc

Awarding Agency: Department of Defense

Start Date: 2001-01-29

End Date: 2008-04-30

Contract Duration: 2,648 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to MEADOW VALLEY CONTRACTORS, INC for work described as: Key points: 1. Contract value of $11.9 million indicates significant investment in essential infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Firm fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. Contract duration of over 2000 days points to a long-term project with sustained effort. 5. Awarded by the Department of the Army, suggesting a focus on military installation support. 6. The North American Industry Classification System (NAICS) code 237110 confirms the focus on water and sewer infrastructure.

Value Assessment

Rating: good

The contract value of $11.9 million for water and sewer line construction appears reasonable given the project's scope and duration. Without specific details on the exact scope of work, it's challenging to benchmark precisely against similar contracts. However, the firm fixed-price nature suggests that the initial pricing was deemed acceptable by the Army, with the contractor assuming cost overruns. The long duration implies a substantial project, making the overall value proposition dependent on the successful completion of all phases.

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. The presence of 7 bidders suggests a healthy level of competition for this project. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits military personnel and their families by ensuring reliable water and sewer services at installations. Delivers essential infrastructure construction services, crucial for public health and environmental protection. Geographic impact is concentrated in Nevada, supporting regional development and maintenance. Workforce implications include employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential scope creep or unforeseen cost increases if not managed tightly.
Firm fixed-price contracts can sometimes disincentivize contractors from seeking innovative cost-saving measures.
Dependence on a single contractor for an extended period might limit flexibility in adapting to changing needs.

Positive Signals

Full and open competition suggests a robust selection process, likely yielding a qualified contractor.
The firm fixed-price structure provides cost certainty for the government, assuming the contractor manages risks effectively.
The substantial value of the award indicates a significant project that will likely result in durable, essential infrastructure.

Sector Analysis

The construction sector, particularly heavy civil engineering like water and sewer systems, is a critical component of federal infrastructure spending. This contract falls within the broader category of public works construction. The Department of Defense is a significant investor in maintaining and upgrading infrastructure at its numerous bases, often requiring specialized construction services. Benchmarking this specific award against other federal water and sewer projects would require detailed scope analysis, but the $11.9 million figure suggests a mid-to-large scale project within this domain.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Meadow Valley Contractors, Inc., a firm that may or may not be a small business itself, means that opportunities for small business participation would depend on the prime contractor's subcontracting strategy. Without explicit set-aside clauses or reporting, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant project managers within the Department of the Army. The firm fixed-price nature of the contract places a significant responsibility on the contractor for managing costs and quality. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Public Works Construction
Water Infrastructure Projects
Sewer System Maintenance
Federal Infrastructure Grants

Risk Flags

Long contract duration may increase risk of cost overruns or scope creep.
Firm fixed-price contracts can sometimes lead to contractor reluctance to absorb unexpected costs.
Lack of specific small business subcontracting requirements may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to MEADOW VALLEY CONTRACTORS, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MEADOW VALLEY CONTRACTORS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2001-01-29. End: 2008-04-30.

What specific types of water and sewer infrastructure were included in this $11.9 million contract, and what was the geographic scope within Nevada?

The provided data indicates the contract (NAICS 237110) is for 'Water and Sewer Line and Related Structures Construction.' However, specific details regarding the exact scope of work, such as the length of lines, types of structures (e.g., treatment plants, pumping stations), or the precise geographic locations within Nevada, are not available in this summary. This level of detail is crucial for a comprehensive understanding of the project's value and impact. Typically, such contracts would be for new construction, repair, or upgrade of existing systems on or near military installations, or potentially for community infrastructure supporting these bases. Further analysis would require accessing the full contract documentation.

How does the per-unit cost of this contract compare to similar water and sewer construction projects awarded by the Department of Defense or other federal agencies?

Benchmarking the per-unit cost for this $11.9 million contract is challenging without specific details on the project's scope (e.g., linear feet of pipe laid, diameter of pipes, complexity of terrain, specific structures built). Federal contracts for water and sewer construction can vary widely in cost based on these factors. While the contract was awarded under full and open competition with 7 bidders, suggesting competitive pricing, a direct per-unit comparison would require access to detailed project specifications and cost breakdowns. Generally, firm fixed-price contracts aim to establish a clear price point, but the 'value for money' is ultimately determined by the quality and longevity of the delivered infrastructure relative to the cost.

What is Meadow Valley Contractors, Inc.'s track record with the Department of Defense and for similar infrastructure projects?

Meadow Valley Contractors, Inc. has been awarded this $11.9 million contract by the Department of the Army, indicating a prior relationship or qualification with the Department of Defense. To assess their track record thoroughly, one would need to examine their past performance on federal contracts, particularly those related to water and sewer construction. This would involve reviewing past performance evaluations, any history of contract disputes or terminations, and the successful completion of similar projects in terms of scale and complexity. A positive track record would suggest a lower risk for this current project, while a history of issues might raise concerns about execution and cost management.

Given the 2648-day duration, what are the primary risks associated with this long-term infrastructure project, and how are they mitigated?

The extended duration of 2648 days (approximately 7.25 years) for this water and sewer construction project presents several risks. These include potential cost escalation due to inflation or unforeseen site conditions, the risk of technological obsolescence in construction methods or materials over such a long period, and the challenge of maintaining consistent project management and quality control. Furthermore, changes in environmental regulations or project requirements could necessitate costly modifications. Mitigation strategies typically involve robust contract clauses for managing changes, contingency planning for unforeseen conditions, regular progress reviews, and potentially incorporating mechanisms for price adjustments if specified in the contract. The firm fixed-price nature, however, places the primary burden of managing these risks on the contractor.

How does this $11.9 million award compare to historical federal spending on water and sewer construction, particularly by the Department of Defense?

This $11.9 million award represents a significant, albeit singular, investment in water and sewer infrastructure. Federal spending in this category is substantial overall, encompassing numerous projects across various agencies and military branches. The Department of Defense, in particular, invests heavily in maintaining and upgrading infrastructure at its installations, which often includes extensive water and sewer systems. To contextualize this award, one would need to compare it against the total annual federal outlays for construction under NAICS code 237110, as well as specific DOD budgets allocated for facilities and infrastructure. This single contract is likely one of many contributing to the overall federal effort in maintaining critical water and wastewater systems.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 4411 S 40TH ST , SUITE D-, PHOENIX, AZ, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline