State Dept. Awards $93M Wastewater Plant Contract to PCL Construction Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $93,144,220 ($93.1M)

Contractor: PCL Construction Inc

Awarding Agency: Department of State

Start Date: 2008-11-14

End Date: 2011-08-31

Contract Duration: 1,020 days

Daily Burn Rate: $91.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF SOUTH BAY INTERNATIONAL WASTEWATER TREATMENT PLANT, SECONDARY TREATMENT

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173

State: California Government Spending

Plain-Language Summary

Department of State obligated $93.1 million to PCL CONSTRUCTION INC for work described as: CONSTRUCTION OF SOUTH BAY INTERNATIONAL WASTEWATER TREATMENT PLANT, SECONDARY TREATMENT Key points: 1. Contract awarded for a significant wastewater treatment plant construction project. 2. PCL Construction Inc. secured the deal through full and open competition. 3. The project falls under the construction sector, specifically water and sewer infrastructure. 4. The contract value is substantial at over $93 million.

Value Assessment

Rating: good

The contract value of $93.14 million for the South Bay International Wastewater Treatment Plant aligns with the scale of similar large-scale public infrastructure projects. Benchmarking against comparable wastewater treatment plant constructions would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to competitive pricing as multiple qualified contractors vied for the project.

Taxpayer Impact: Taxpayer funds are being utilized for essential environmental infrastructure, with the competitive bidding process aiming to maximize the value received for the investment.

Public Impact

Enhances wastewater treatment capacity, improving environmental quality and public health in the border region. Supports binational cooperation between the U.S. and Mexico on environmental issues. Creates construction jobs and stimulates economic activity in Southern California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large-scale construction projects.
  • Dependency on timely completion to meet environmental compliance deadlines.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Addresses critical environmental infrastructure needs.
  • Binational cooperation aspect is a positive signal for regional stability.

Sector Analysis

This contract falls within the construction sector, specifically focusing on water and sewer infrastructure. Spending in this area is often driven by regulatory requirements, population growth, and the need to upgrade aging facilities. Benchmarks for similar projects vary widely based on size, complexity, and location.

Small Business Impact

While the primary contractor is PCL Construction Inc., the contract details do not specify any set-aside goals or participation requirements for small businesses. Further investigation would be needed to determine the extent of small business involvement as subcontractors.

Oversight & Accountability

The Department of State, through the International Boundary and Water Commission, is responsible for overseeing this binational infrastructure project. Oversight would typically involve monitoring project progress, quality control, and adherence to contract terms to ensure taxpayer funds are used effectively.

Related Government Programs

  • Water and Sewer Line and Related Structures Construction
  • Department of State Contracting
  • International Boundary and Water Commission: U.S.-Mexico Programs

Risk Flags

  • Potential for construction delays impacting project completion.
  • Risk of cost overruns in large-scale infrastructure projects.
  • Ensuring long-term operational efficiency and maintenance of the facility.
  • Dependency on binational cooperation for ongoing success.

Tags

water-and-sewer-line-and-related-structu, department-of-state, ca, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $93.1 million to PCL CONSTRUCTION INC. CONSTRUCTION OF SOUTH BAY INTERNATIONAL WASTEWATER TREATMENT PLANT, SECONDARY TREATMENT

Who is the contractor on this award?

The obligated recipient is PCL CONSTRUCTION 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 $93.1 million.

What is the period of performance?

Start: 2008-11-14. End: 2011-08-31.

What were the key performance indicators used to evaluate bids during the full and open competition process?

During a full and open competition, bids are typically evaluated based on a combination of factors including price, technical approach, past performance, and schedule. For a construction project of this magnitude, technical expertise in building complex wastewater treatment facilities and a proven track record of delivering similar projects on time and within budget would be critical evaluation criteria.

What are the potential risks associated with the construction timeline and potential delays?

Construction projects of this scale, especially those involving complex infrastructure like wastewater treatment plants, face inherent risks of delays due to unforeseen site conditions, weather, supply chain disruptions, or labor issues. Delays could lead to increased costs, potential penalties, and failure to meet environmental compliance deadlines, impacting public health and regulatory standing.

How effectively does this project address the long-term wastewater treatment needs of the South Bay region?

The construction of the secondary treatment facility is designed to significantly enhance the region's wastewater treatment capabilities, likely meeting current and future regulatory standards. Its effectiveness will depend on the quality of construction, the operational efficiency of the plant, and its capacity to handle projected population growth and industrial discharge.

Industry Classification

NAICS: ConstructionUtility System ConstructionWater and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PCL U.S. Holdings Inc (UEI: 245222591)

Address: 1711 W GREENTREE DR STE 201, TEMPE, AZ, 04

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

Financial Breakdown

Contract Ceiling: $93,144,220

Exercised Options: $93,144,220

Current Obligation: $93,144,220

Timeline

Start Date: 2008-11-14

Current End Date: 2011-08-31

Potential End Date: 2011-08-31 00:00:00

Last Modified: 2011-09-21

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