Desert Water Agency awards $3.4m summer pipeline replacement contract

Desert Water Agency awards $3.4m summer pipeline replacement contractBorden Excavating secured the 2024 pipeline replacement project with a bid roughly $800,000 below the engineer's estimate, prompting the agency to consider adding more streets to the replacement schedule.

The contract covers the installation of over 10,000 lineal feet of ductile iron pipeline across three project areas in Palm Springs.

Borden Excavating's winning bid of $3.44 million was approximately 20% lower than the second-lowest bid.

With the project tracking $1.2 million under its $5.27 million capital budget, staff plan to negotiate change orders to add additional pipeline segments currently under design.

The Desert Water Agency (DWA) board of directors has authorized a $3.44 million contract for its 2024 Summer Replacement Pipelines project, capitalizing on favorable bid pricing to potentially expand the scope of its infrastructure upgrades. During a July 7, 2026 meeting, the board unanimously awarded the construction contract to Borden Excavating, Inc. The project will replace aging infrastructure across three areas in Palm Springs, California. The scope includes the installation of approximately 9,000 lineal feet of 8-inch, 300 feet of 12-inch, and 1,500 feet of 16-inch ductile iron pipe, with construction estimated to last five months. The agency received six bids for the project in mid-June. Borden Excavating submitted the lowest responsive bid at $3,444,777, which was approximately 20% lower than the second-lowest bid and roughly $800,000 below the engineer's estimate. Agency staff noted that the engineer's estimate was calculated using average prices from previous replacement projects, and that the winning contractor has traditionally submitted significantly lower bids on district projects over the last decade. The favorable pricing leaves the agency with substantial financial headroom. The capital budget for the project was set at $5.27 million. With the total estimated project cost coming to $4.07 million, the agency is tracking approximately $1.2 million under budget. Agency staff informed the board that they intend to utilize the surplus funds to expand the project's footprint. Staff noted that the district has another five to six miles of pipeline currently under design in other parts of the city, and they hope to add additional street replacements to the current contract via a change order. Any substantial change orders will be brought back to the board for future updates or approval.