Project Overview
Why Build a Dam?
Before the Hoover Dam was built, the Colorado River was dangerous and unpredictable. Towns and Farms were often flooded during the late spring and early Summer due to runoff from snow melting in the mountains. Flash floods could occur in any season. By mid-summer, the Colorado River's flow was barely enough to provide irrigation to farms in southern California and Arizona. The purpose of the Hoover Dam is to prevent floods, make it easier to navigate the river, store and deliver the river's water, and to generate electric power.
The Colorado River Compact
Before the Boulder Canyon Project Act could be passed, the seven states that the Colorado River flows through needed to agree on the allocation of water rights. This agreement is called the Colorado River Compact. The compact divided the river basin into two areas, the Upper Division and the Lower Division. The bill was signed by President Calvin Coolidge on December 21st, 1928, authorizing the construction of the Hoover Dam.
Six Companies
In order to secure the contract to build the Hoover Dam, a $2 million bid bond was required, as well as a $5 million performance bond. No one company had the resources to submit a bid, so eight companies joined together and pooled their resources to win the contract. They called themselves Six Companies, Inc.
They included:
Six Companies won the contract in 1931, after a bid of $48,890,955. That would be $711,604,200 today. Their bid was $5 million less than the next bidder. |
What Shall We Call It?
The Hoover Dam was named after President Herbert Hoover on September 30th, 1930. President Hoover was instrumental in deciding where the dam would be built, as well as securing power and water contracts necessary to finance the project. After President Hoover left office, the Department of Interior began referring to the Hoover Dam as the Boulder Canyon Dam, or Boulder Dam. Congress Passed a resolution to officially name it Hoover Dam, and it was signed by President Truman on April 23rd, 1947.
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