Board conditionally awards contract for Owyhee (Duck Valley) school to MGM Construction; trustees debate contingency and funding gap

The Elko County School District board voted to conditionally award the contract for the new Owyhee Combined School (Duck Valley) to MGM Construction Inc. The board accepted MGM’s base bid of $63,374,000 and attached conditions requiring MGM to submit a signed contract, proof of required insurance, and issued performance and payment bonds before the award is final. The board also accepted MGM’s eight alternate bids on the condition that the district secures additional state funding to pay for those alternates beyond the state funding provided under Assembly Bill 519.

Trustees and presenters described the long, multi‑year effort that produced the project. Duck Valley tribal leaders, Senator and Assembly advocates, and contractors spoke at the meeting to describe tribal contributions already made to prepare the site: land‑use studies and environmental work, about $1.5 million spent to date, another $3.4 million anticipated for surveys, planning and tiny homes, and a tribal‑sourced $2.5 million cost to move and construct access roads. The tribe also told the board it had purchased 10 tiny homes (about $1,000,000 cash) and contributed other materials and discounted services intended to lower overall project cost.

Board discussion focused on financial risk and contingency. Multiple trustees said the project is much needed and urged swift action but asked how the district would cover potential escalation or change orders. Presenters and legal counsel said the contract is a lump‑sum base bid without an escalation clause; however trustees argued the project’s remote location and market volatility warrant a larger contingency (some board members cited 5–10% as a prudent contingency for a project of this size). The district reported it has already spent roughly $4 million of preconstruction funds and is earning interest on the state advance; one board member asked staff to identify additional sources of funding and to pursue the options in the statutes and AB 519, including matching funds and tribal/rural‑school account credits.

Several contractors and Duck Valley project managers told the board construction pricing is volatile and that subs had reduced margins to keep the bid viable; one local contractor asked the board to approve the contract to keep material orders and mobilization on schedule. State legislators who have advocated for the project urged the board not to delay, saying a firm contract allows contractors to lock prices and that further delay likely will raise costs.

The board moved and passed the conditional award. Trustees asked staff to continue to identify and secure additional funding, to examine the contingency plan, and to publish the contract documents and bid details for board review prior to final signatures.