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Board awards major pipeline contracts after bids come in below estimate; approves change orders and construction-phase services
Summary
The board agreed to award combined pipeline contracts (6B/6C and 7A) to Carstensen/Carson’s with bids reported below engineer estimates, approved related change orders (including net reductions) and a construction-phase task order for inspection and engineering services.
The Lake Agassiz Water Authority board approved awards for major pipeline contracts and several change orders after staff reported competitive bids that came in lower than prior estimates.
Kip and staff presented a revised 2025–2027 work plan and explained that combined bidding of contracts 6B and 6C yielded a $3 million discount and reduced engineering costs, with the recommended award amounts referenced in board materials. Carstensen/Carson’s (contractor name as listed in staff materials) provided the lowest combined bids for the packages discussed; the technical advisory committee recommended award contingent on Series F funding closing.
The board also acted on contract change orders. For contract 5B (Garney) change order number 7, the engineering team recommended a final change order that reduced the contract by $738,856.45 after adjustments for delays and liquidated damages. Another change order (5C, Oscar Renda) was processed as a net zero change due to internal rebalancing of scope and budget.
Separately, the board approved a construction-phase task order to provide engineering inspection and administrative services in support of the recently awarded contracts; the task order totaled approximately $17,125,000, representing roughly 9.3% of construction costs as presented.
Why it matters: Approving these awards and change orders advances the construction schedule and commits the authority to multi-year contracts and inspection services. Staff emphasized that many contracts will run over multiple years and that the awards were made with confidence in contractor capacity.
What’s next: Staff will finalize bonds, insurance and signing once Series F financing is completed and contractors provide required surety and insurance documentation. The board authorized staff to proceed with award-related activities contingent on funding and documentation.
Direct quotes
"By combining those projects, we did get a $3,000,000 deduct," a staff member said, describing savings from combining contracts.
Ending
Contracts were awarded and change orders approved. Staff will return with finalized contract documents and proceed with procurement closing steps once financing and contractor assurances are complete.
