Reclamation Awards $81 Million Contract for Navajo-Gallup Pipeline Construction
The Bureau of Reclamation awarded an $81 million contract to Carstensen Contracting, Inc. for building the Block 2-3 pipeline. This work is part of the Navajo-Gallup Water Supply Project in northwest New Mexico.
The $81 million award to Carstensen Contracting, Inc. covers construction of the Block 2-3 pipeline, a component of the Navajo-Gallup Water Supply Project serving northwest New Mexico. Reclamation officials described this as the final large-scale contract needed before the project reaches completion.
The project falls under Reclamation's Upper Colorado Basin Region, which manages water infrastructure including dams, powerplants, and water operations across the western United States. The agency's broader mission includes addressing drought conditions throughout the region, with water supply reliability a central concern for communities and agriculture.
This contract award signals that the Navajo-Gallup Water Supply Project is approaching its final construction phase. When completed, the pipeline could provide more reliable water access for communities in northwest New Mexico, including Navajo Nation areas that have faced supply challenges. The project may benefit households, businesses, and agricultural operations in the region, while also supporting long-term water security amid ongoing drought conditions across the West. However, the full impact will depend on continued funding and successful completion of remaining work.