FGUA advances Del Prado WWTF expansion with $6.1m Phase 2A progressive design-build award

FGUA advances Del Prado WWTF expansion with $6.1m Phase 2A progressive design-build awardThe Florida Governmental Utility Authority has greenlit final design and initial construction for the North Fort Myers plant expansion, synchronizing the progressive design-build contract with a newly secured $72 million Clean Water State Revolving Fund loan.

The FGUA board approved a $6.1 million Guaranteed Maximum Price (GMP) for Phase 2A with U.S. Water Services Corporation.

The project will expand the Del Prado facility's capacity from 4.25 MGD to 5.9 MGD to meet regulatory requirements and manage future growth.

To fund the expansion, FGUA was awarded a $72 million Clean Water SRF loan, with a $20 million segment cap draft agreement expected in August 2026.

The progressive design-build procurement relied entirely on qualifications rather than initial pricing, with contractor profit margins capped at 18%.

The Florida Governmental Utility Authority (FGUA) board has approved a $6.1 million contract price amendment to advance Phase 2A of the Del Prado Wastewater Treatment Facility (WWTF) expansion in North Fort Myers, Lee County. The July 16 decision moves the project into final design and initial construction under a progressive design-build (PDB) agreement with U.S. Water Services Corporation. The expansion project will increase the facility's permitted annual average daily flow capacity from 4.25 million gallons per day (MGD) to 5.9 MGD. The upgrades are required to manage increasing wastewater flows and ensure compliance with Florida Department of Environmental Protection (FDEP) regulations, including an existing settlement agreement. During the meeting, FGUA staff confirmed that the utility successfully secured a $72 million Clean Water State Revolving Fund (SRF) loan from the FDEP to finance the overarching expansion. "We're allowed to tap into the first $20 million segment cap, and that draft agreement is expected to be brought to the board and approved at the August board meeting," a staff member stated. To bridge the funding gap prior to SRF reimbursement, the board approved a budget amendment utilizing $2.65 million in existing wastewater capacity fees. The board also approved a companion $701,630 work authorization for Accenture Infrastructure and Capital Projects to provide general inspection and capital project administration services for Phase 2A. The use of the progressive design-build delivery method prompted discussion among board members regarding procurement and pricing controls. Staff clarified that U.S. Water Services Corporation was selected entirely based on a statement of qualifications, with pricing negotiated only after the initial design phase was completed. While U.S. Water Services Corporation will serve as the primary contractor, staff noted the firm is supported by a roster of subcontractors, including McClure for engineering and Aqua Store for membrane treatment technology. Staff confirmed the contractor is allowed a profit margin of up to 18%, though actual hourly rates may result in a lower blended margin. Phase 2A construction is scheduled for substantial completion within 150 days of the notice to proceed, with final completion expected within 180 days. Subsequent construction phases (2B through 2F) will be authorized as FDEP distributes the remaining SRF loan funds at future priority list meetings.