LADWP awards $111.5m Western Trunk Line contract despite $4.5m bid dispute

LADWP awards $111.5m Western Trunk Line contract despite $4.5m bid disputeThe Los Angeles Department of Water and Power has approved a major pipeline replacement contract with Kiewit Infrastructure West Co., rejecting a lower bid to avoid jeopardizing a $37 million street beautification project ahead of the 2028 Olympics.

The board awarded the Western Trunk Line Phase 2A contract to Kiewit for an estimated $92.9 million, with a not-to-exceed value of $111.5 million.

Steve P. Rados, Inc. submitted a bid that was $4.5 million lower but was disqualified for failing to submit a mandatory Ethics Commission subcontractor form.

Rebidding the project was ruled out because delays would disrupt a $37 million grant-funded street improvement project set to be completed before the 2028 Olympics.

The project will replace 12,000 linear feet of 100-year-old prestressed concrete pipe with seismically resilient infrastructure to improve local groundwater distribution.

The Los Angeles Department of Water and Power (LADWP) Board of Commissioners voted on June 9, 2026, to award the Western Trunk Line Phase 2A replacement contract to Kiewit Infrastructure West Co. The contract carries an estimated expenditure of $92.9 million and a not-to-exceed limit of $111.5 million, which includes a 20 percent contingency. The approval followed a public dispute with Steve P. Rados, Inc. CEO Steve Rados testified that his firm was the lowest bidder by $4.5 million. Rados argued his company was unfairly deemed non-responsive for omitting a Form 55 subcontractor disclosure for a firm he categorized as a material handler and truck broker, which he claimed did not require the form. LADWP Director of Supply Chain Services Tanisha Smith clarified that all bidders must be evaluated against the same mandatory Ethics Commission requirements to protect the integrity of the bid process, noting that Rados had indicated the subcontractor would be performing hauling and disposal services. Director of Water Engineering and Technical Services Greg Reed explained that rebidding the contract to capture the $4.5 million difference was not feasible due to strict schedule constraints. The pipeline replacement must be completed before the city's Street Services department begins a $37 million grant-funded beautification project, "Western Our Way." That project must be finished ahead of the 2028 Olympics street moratorium. Reed noted that if LADWP had to tear up newly completed street improvements to lay the pipe later, the resulting costs would far exceed the $4.5 million delta. The Western Trunk Line project will replace 12,000 linear feet of 100-year-old, 36-inch prestressed concrete cylinder pipe—which poses a risk of sudden, catastrophic failure—with seismically resilient pipe. It also includes 9,000 linear feet of distribution mainline. The upgrade is designed to alleviate system choke points and allow LADWP to distribute local groundwater more broadly.