Folsom Dam safety modifications contract awarded to Shimick Construction for over $45 million

Contract Overview

Contract Amount: $45,067,254 ($45.1M)

Contractor: Shimmick Construction Company, Inc.

Awarding Agency: Department of the Interior

Start Date: 2010-09-13

End Date: 2013-01-04

Contract Duration: 844 days

Daily Burn Rate: $53.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FOLSOM DAM - SAFETY OF DAMS MODIFICATION - MIAD KEY-BLOCK CONSTRUCTION

Place of Performance

Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $45.1 million to SHIMMICK CONSTRUCTION COMPANY, INC. for work described as: FOLSOM DAM - SAFETY OF DAMS MODIFICATION - MIAD KEY-BLOCK CONSTRUCTION Key points: 1. Contract value appears reasonable for a large-scale civil engineering project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of 844 days indicates a significant undertaking requiring substantial contractor resources. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Location in California suggests potential for higher labor and material costs compared to other regions. 6. The contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category encompassing critical infrastructure.

Value Assessment

Rating: good

The contract value of approximately $45 million for dam safety modifications is substantial. Benchmarking against similar large-scale civil engineering projects for critical infrastructure, this amount appears within a reasonable range, considering the complexity and scope of work. The firm fixed-price nature of the contract suggests that the initial bid was considered a fair reflection of the expected costs and risks. Without specific cost breakdowns or detailed comparisons to identical projects, a precise value-for-money assessment is challenging, but the competitive bidding process likely contributed to a fair price.

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. With 5 bidders participating, the level of competition was moderate. This suggests that while multiple companies were interested, the market may not be saturated with potential bidders for this specialized type of work. The presence of several bidders generally promotes price discovery and encourages competitive pricing, benefiting the government.

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

Public Impact

The primary beneficiaries are the residents and businesses in the Folsom, California area who rely on the dam's safety and flood control capabilities. The services delivered include critical safety modifications to the Folsom Dam, ensuring its structural integrity and operational reliability. The geographic impact is localized to the Folsom Dam and its surrounding watershed in California. Workforce implications include employment opportunities for skilled construction labor, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or structural issues arise during construction, despite the fixed-price contract.
Risk of schedule delays due to weather, material availability, or complex construction challenges inherent in dam modification projects.
Ensuring adequate quality control and oversight to guarantee the long-term effectiveness and safety of the modifications.

Positive Signals

Firm fixed-price contract structure transfers significant cost risk to the contractor.
Awarded under full and open competition, suggesting a robust market evaluation and competitive pricing.
The contractor, Shimick Construction Company, Inc., likely has experience in heavy civil engineering projects.
Project duration is clearly defined, allowing for structured planning and resource allocation.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which is a critical component of national infrastructure development and maintenance. This sector includes a wide range of projects such as highways, bridges, dams, and utilities. Spending in this sector is often driven by government investment in public works and the need to maintain and upgrade aging infrastructure. Comparable spending benchmarks would involve looking at other large-scale dam construction or rehabilitation projects undertaken by federal agencies like the Army Corps of Engineers or the Bureau of Reclamation.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large contractor capable of handling the scale of the project. The impact on the small business ecosystem would depend on whether Shimick Construction Company, Inc. utilizes small businesses for specialized subcontracting work, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified modifications within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting of federal spending. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Folsom Dam Powerhouse Rehabilitation
Army Corps of Engineers Civil Works Projects
Bureau of Reclamation Infrastructure Projects
Federal Dam Safety Programs
California Infrastructure Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor's past performance on similar complex infrastructure projects.
Adequacy of government oversight to ensure quality and safety standards.
Long-term effectiveness and durability of the implemented safety modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $45.1 million to SHIMMICK CONSTRUCTION COMPANY, INC.. FOLSOM DAM - SAFETY OF DAMS MODIFICATION - MIAD KEY-BLOCK CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is SHIMMICK CONSTRUCTION COMPANY, 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 $45.1 million.

What is the period of performance?

Start: 2010-09-13. End: 2013-01-04.

What is Shimick Construction Company, Inc.'s track record with similar large-scale civil engineering and dam modification projects?

Shimick Construction Company, Inc. has a history of undertaking significant civil engineering projects. While specific details on dam modification projects are not provided in this summary, their portfolio often includes heavy construction, infrastructure, and public works. A deeper dive into their past performance, including project complexity, budget adherence, and safety records on comparable projects, would be necessary for a comprehensive assessment of their suitability and risk profile for the Folsom Dam modifications. Reviewing past performance evaluations and any debriefs from previous federal contracts would offer further insight into their capabilities and reliability.

How does the awarded amount compare to the estimated cost or budget for the Folsom Dam safety modifications?

The awarded amount of $45,067,253.90 represents the final contract value. To assess value for money, this figure should be compared against the government's initial cost estimates or budget allocated for this project. If the awarded amount is significantly lower than the estimate, it could indicate successful competition and cost savings. Conversely, if it is higher, it might suggest an underestimation of project complexity or scope. Without access to the government's pre-bid estimates, it's difficult to definitively state whether this represents excellent or fair value solely based on the award price.

What are the primary risks associated with the 'Other Heavy and Civil Engineering Construction' category for dam modification projects?

Projects in the 'Other Heavy and Civil Engineering Construction' category, particularly dam modifications, carry inherent risks. These often include unforeseen geological conditions (e.g., unstable soil, unexpected rock formations), complex structural engineering challenges, environmental compliance issues, and potential impacts from weather or natural disasters during construction. Furthermore, the aging nature of much of the nation's infrastructure means that discovering hidden defects or deterioration during modification work is common. Managing these risks requires robust project planning, contingency budgeting, experienced engineering oversight, and effective risk mitigation strategies from the contractor.

What is the historical spending pattern for dam safety and modification projects by the Bureau of Reclamation?

Historical spending on dam safety and modification projects by the Bureau of Reclamation (USBR) typically fluctuates based on infrastructure needs, funding appropriations, and the lifecycle of its extensive portfolio of dams. The USBR manages numerous dams across the western United States, many of which require ongoing maintenance, upgrades, and safety enhancements. Annual spending can range from tens of millions to hundreds of millions of dollars, depending on the scale and number of concurrent projects. Analyzing multi-year spending trends can reveal patterns in investment priorities, the average cost of specific types of modifications, and the typical duration of such projects.

How does the number of bidders (5) impact the potential for price discovery and cost efficiency in this contract?

Having 5 bidders for this contract suggests a reasonably competitive environment. A higher number of bidders generally leads to more robust price discovery, as companies are incentivized to offer their most competitive pricing to win the contract. With 5 bidders, there is a good chance that the government received a range of proposals, allowing for comparison and selection of the best value. While more bidders could potentially drive prices lower, 5 is often considered a healthy number that balances competition with the specialized nature of heavy civil engineering, ensuring that qualified contractors are present without being so few as to suggest a lack of market interest.

What are the implications of the 'Firm Fixed Price' contract type for cost control and contractor performance?

A Firm Fixed Price (FFP) contract type is generally favored for projects where the scope of work is well-defined, as it is with construction modifications. This structure places the primary responsibility for cost overruns on the contractor, incentivizing them to manage their expenses efficiently and accurately estimate project costs. For the government, FFP offers the most cost certainty, as the final price is established at the outset, barring any contract modifications. However, it can also lead to contractors being less willing to accommodate changes or potentially cutting corners if they miscalculated risks, necessitating strong government oversight to ensure quality and adherence to specifications.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R10PS20114

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8201 EDGEWATER DR STE 202, OAKLAND, CA, 12

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

Financial Breakdown

Contract Ceiling: $45,067,254

Exercised Options: $45,067,254

Current Obligation: $45,067,254

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,650,000

Contract Characteristics

Cost or Pricing Data: NO

Timeline