Delta Conveyance Design and Construction Authority (DCA) Market Research Report

Background

Mission and Vision

The Delta Conveyance Design and Construction Authority (DCA) is dedicated to planning, permitting, designing, and constructing a modernized, sustainable, resilient, and cost-effective Delta Conveyance Project. This initiative aims to ensure the long-term reliability of the State Water Project, serving future generations of Californians while respecting the unique characteristics of the Delta and its communities.

Primary Area of Focus and Industry Significance

DCA focuses on modernizing California's water conveyance infrastructure, specifically addressing the challenges posed by sea-level rise, climate change, and seismic threats. By enhancing the State Water Project, DCA plays a crucial role in securing a reliable water supply for 27 million residents and nearly a million acres of farmland, thereby supporting California's economy and environmental sustainability.

Key Strategic Focus

Core Objectives

Infrastructure Modernization: Developing new facilities to modernize the State Water Project, ensuring its resilience against environmental challenges.

Environmental Responsiveness: Designing and implementing solutions that are environmentally sustainable and responsive to the unique characteristics of the Delta.

Community Engagement: Incorporating feedback from local communities to minimize construction impacts and enhance project acceptance.

Specific Areas of Specialization

Water Conveyance Engineering: Expertise in designing and constructing advanced water transport systems, including tunnels and pumping plants.

Environmental Planning: Conducting comprehensive environmental reviews and implementing mitigation strategies to protect local ecosystems.

Stakeholder Coordination: Engaging with a diverse range of stakeholders, including public water agencies, local communities, and environmental groups, to ensure project alignment with various interests.

Key Technologies Utilized

Tunnel Boring Machines (TBMs): Employing state-of-the-art TBMs for efficient and safe tunnel construction.

Geotechnical Analysis Tools: Utilizing advanced software and methodologies for soil and rock analysis to inform design decisions.

Environmental Monitoring Systems: Implementing real-time monitoring technologies to assess and mitigate environmental impacts during construction.

Primary Markets and Conditions Targeted

Water Supply Reliability: Ensuring a consistent and safe water supply for urban and agricultural needs.

Climate Change Adaptation: Addressing the challenges posed by changing precipitation patterns and sea-level rise.

Seismic Risk Mitigation: Protecting water infrastructure from potential earthquake-induced disruptions.

Financials and Funding

Funding History and Total Funds Raised

As a public agency, DCA's funding is primarily sourced from member public water agencies and state allocations. The project is estimated to cost approximately $20.1 billion in 2023 dollars. An initial cost assessment in 2020 estimated the project at $16 billion, with the increase attributed to inflation and project scope refinements.

Recent Funding Rounds and Notable Investors

Funding is provided by 17 public water agencies across California, including:

Metropolitan Water District of Southern California

Kern County Water Agency

Santa Clara Valley Water District

San Bernardino Valley Municipal Water District

Coachella Valley Water District

San Gabriel Valley Municipal Water District

San Gorgonio Pass Water Agency

Santa Clarita Valley Water Agency

Zone 7 Water Agency

Alameda County Water District

Desert Water Agency

Crestline-Lake Arrowhead Water Agency

Mojave Water Agency

Antelope Valley-East Kern Water Agency

San Juan Water District

San Luis & Delta-Mendota Water Authority

Westlands Water District

Intended Utilization of Capital

The funds are allocated towards:

Design and Engineering: Developing detailed plans and specifications for the project.

Environmental Review and Permitting: Conducting environmental impact assessments and obtaining necessary approvals.

Construction: Building the infrastructure components, including tunnels, shafts, and pumping plants.

Community Engagement: Implementing programs to inform and involve local communities in the project.

Pipeline Development

Key Pipeline Candidates and Stages of Development

The Delta Conveyance Project involves the construction of a 45-mile underground tunnel designed to modernize water delivery infrastructure. The project is currently in the design and engineering phase, with construction anticipated to begin following the completion of environmental reviews and permitting processes.

Target Conditions and Relevant Timelines

Environmental Review Completion: December 2023

Construction Start: Anticipated in 2025, contingent upon permitting and regulatory approvals

Project Completion: Estimated by 2030

Technological Platform and Innovation

Proprietary Technologies

DCA employs advanced tunnel boring machines (TBMs) and geotechnical analysis tools to ensure efficient and safe construction. Innovations in tunnel design and construction methods are continually explored to optimize project outcomes.

Significant Scientific Methods

Geotechnical Analysis: Utilizing advanced software and methodologies for soil and rock analysis to inform design decisions.

Environmental Monitoring: Implementing real-time monitoring technologies to assess and mitigate environmental impacts during construction.

Leadership Team

Executive Profiles

Graham Bradner: Executive Director of DCA, responsible for overseeing project development and implementation.

Martin Milobar: President of the DCA Board of Directors, representing member agencies and guiding strategic direction.

Carrie Buckman: Environmental Program Manager for the Delta Conveyance Project, overseeing environmental compliance and community engagement.

Competitor Profile

Market Insights and Dynamics

The water infrastructure sector in California is characterized by significant investment in modernization projects aimed at enhancing water supply reliability and resilience. The Delta Conveyance Project is a pivotal initiative within this landscape, addressing critical challenges such as climate change, seismic risks, and aging infrastructure.

Competitor Analysis

While DCA operates as a public agency, it collaborates with various private contractors and engineering firms specializing in large-scale infrastructure projects. Notable collaborators include Parsons Corporation, which provides program management services for the Delta Conveyance Project.

Strategic Collaborations and Partnerships

Significant Collaborations

Parsons Corporation: Provides program management services, including overall management, technical consulting, and project controls.

VMA Communications: Assists with outreach and communications, developing social media channels, print and digital collateral, and informational videos.

Operational Insights

Strategic Considerations

DCA's strategic approach involves close coordination with public water agencies, private contractors, and local communities to ensure project success. By leveraging expertise from various stakeholders and maintaining a focus on environmental sustainability and community engagement, DCA aims to deliver a project that meets the needs of all involved parties.

Strategic Opportunities and Future Directions

Future Business Directions

DCA is focused on advancing the Delta Conveyance Project through the design and permitting phases, with construction slated to begin upon completion of these processes. Future opportunities include exploring additional infrastructure projects to further enhance California's water supply resilience and engaging in innovative solutions to address emerging environmental challenges.