The Franklin County Water District took a major step toward rehabilitating the Franklin County Dam Tuesday evening, unanimously approving a resolution awarding the construction contract to Forgen, LLC for $18,449,050.
The action came during the board's July 28 meeting after representatives from engineering firm Schnabel presented the results of the competitive bidding process and recommended awarding the contract to Forgen, the lowest responsive bidder.
The rehabilitation project addresses erosion that developed on the downstream side of the dam following the installation of a buttress around 2011. According to Schnabel, the erosion created large "jug holes" and underground tunnels within the earthen materials. While engineers emphasized the condition does not present an immediate dam safety concern, they explained that it makes long-term maintenance and inspection more difficult.
The Texas Commission on Environmental Quality (TCEQ) directed the district to address the issue around 2019, leading the Water District to retain Schnabel to investigate the problem, perform geotechnical studies, and develop a rehabilitation plan. That design received TCEQ approval in 2025.
During Tuesday's presentation, Schnabel explained that the project will remove the existing dispersive soils within the buttress, treat those materials with lime, and reinstall them to reduce the erosion that has caused the tunneling. The work also includes constructing a deep engineered sand filter beneath portions of the dam to prevent fine soils in the foundation from washing away and creating underground voids.
The bidding process began in May, when Schnabel invited contractors with experience in dam construction, while the district published public notices in the Mount Pleasant Tribune on May 20 and May 27. Nine contractors attended the mandatory pre-bid meeting and site visit on May 28, a requirement for submitting a proposal.
Schnabel reported that contractors submitted 76 written questions during the bidding period, all of which were answered in writing before bids were due on July 3.
Two companies ultimately submitted bids. Southern Infrastructure Group proposed $22,969,969, while Forgen, LLC submitted the lower bid of $18,449,050.
The district's original construction estimate, prepared during the design process in 2023 and used in planning the bond program, was approximately $14.5 million, prompting discussion about why the bids came in higher than anticipated.
Schnabel cited several contributing factors, including increased construction costs, inflation, volatility in diesel fuel prices, higher lime costs, and significantly higher pricing for specialized geotechnical work required to construct the engineered filter beneath the dam. Representatives also noted that today's construction market differs considerably from the environment when the original estimate was prepared several years ago.
Engineers explained that while price is an important consideration, the district's evaluation also examined each contractor's technical approach, experience on similar projects, references, claims history, and the quality of the bid submission.
After reviewing both proposals, Schnabel determined that each bidder was qualified and had submitted responsive bids. Based on its evaluation, the engineering firm recommended awarding the contract to Forgen, LLC.
The board unanimously approved Resolution No. 2026-R5, authorizing the award of the contract, issuance of a Notice of Award, and preparation of a construction agreement that will return to the board for consideration at a future meeting.
Tuesday's action represents another significant milestone in the long-planned rehabilitation effort, which is designed to strengthen the long-term integrity of the county's primary water supply infrastructure. Although construction has not yet begun, approving the contract moves the project one step closer to that phase as the district prepares the final construction agreement with Forgen.
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