DoD's $55M Civil Engineering Contract Awarded to Cajun Industries LLC for Louisiana Projects

Contract Overview

Contract Amount: $55,155,818 ($55.2M)

Contractor: Cajun Industries LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-26

End Date: 2011-12-30

Contract Duration: 1,740 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: W912P8-07-D-0004, TASK ORDER #0001

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $55.2 million to CAJUN INDUSTRIES LLC for work described as: W912P8-07-D-0004, TASK ORDER #0001 Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The contract duration of 1740 days (approximately 4.7 years) suggests a significant, long-term project. 4. The contract was awarded to Cajun Industries LLC, a company with a substantial contract value. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction. 6. The contract was awarded by the Department of the Army, indicating a defense-related construction need.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed information on the specific services rendered and the scope of work. However, a $55 million contract over nearly five years for heavy civil engineering construction in Louisiana suggests a substantial investment. Without comparable project data or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a moderate level of competition for this significant civil engineering project. While four bidders is not exceptionally high for a contract of this magnitude, it does provide a basis for price comparison and suggests that the government received multiple proposals to consider.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces. The multiple bids received indicate that the government likely secured a reasonable price for the services.

Public Impact

The primary beneficiaries of this contract are likely the residents and infrastructure of Louisiana, through the construction or repair of heavy and civil engineering projects. The services delivered would encompass a range of heavy and civil engineering construction activities, potentially including roads, bridges, utilities, or other public works. The geographic impact is specifically focused on Louisiana, as indicated by the state code 'LA'. The contract would likely have implications for the construction workforce in Louisiana, creating jobs and demand for skilled labor in the civil engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates, despite the firm-fixed-price structure.
Ensuring timely completion within the 1740-day duration is critical to avoid project delays and associated costs.
Quality control and adherence to construction standards are paramount for the longevity and safety of the civil engineering projects.

Positive Signals

The firm-fixed-price contract type transfers cost risk to the contractor, potentially protecting the government from unexpected expenses.
Awarding under full and open competition suggests a robust process to select the most qualified and cost-effective bidder.
The substantial contract value indicates a significant project that could lead to substantial improvements in Louisiana's infrastructure.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the nation's infrastructure. This sector includes the construction of infrastructure such as highways, streets, bridges, tunnels, and public works. The market size for civil engineering construction is substantial, driven by government investment in infrastructure renewal and development. This specific contract, awarded by the Department of the Army, likely relates to military base infrastructure or other defense-related civil works projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Cajun Industries LLC, may choose to subcontract portions of the work to small businesses as part of their overall project management strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency would be facilitated through contract award databases and potentially through public reporting on project progress, depending on the nature of the work. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Infrastructure Projects
Louisiana Civil Engineering Projects
Federal Heavy Construction Contracts

Risk Flags

Contract Duration
Potential for Scope Creep
Quality Assurance Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.2 million to CAJUN INDUSTRIES LLC. W912P8-07-D-0004, TASK ORDER #0001

Who is the contractor on this award?

The obligated recipient is CAJUN INDUSTRIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $55.2 million.

What is the period of performance?

Start: 2007-03-26. End: 2011-12-30.

What specific types of heavy and civil engineering construction were performed under this contract?

The provided data identifies the contract under NAICS code 237990 (Other Heavy and Civil Engineering Construction) and specifies the awarding agency as the Department of the Army. However, it does not detail the specific types of construction performed. Typically, this NAICS code encompasses projects such as the construction of highways, streets, bridges, tunnels, waterways, and other infrastructure. Given the awarding agency, the projects could range from base infrastructure improvements (roads, utilities, drainage) to specialized defense-related civil engineering works. Further investigation into the task orders or contract modifications would be necessary to ascertain the precise nature of the construction activities undertaken.

How does the $55.16 million contract value compare to similar civil engineering projects awarded by the Department of the Army?

Comparing the $55.16 million value requires context regarding the scope, duration, and specific nature of the civil engineering work. Contracts of this magnitude are significant but not uncommon for major infrastructure projects undertaken by the Department of the Army, particularly those managed by the Army Corps of Engineers. For instance, large-scale base modernization, new facility construction, or significant environmental remediation projects can easily reach or exceed this value. To provide a precise comparison, one would need to analyze recent awards for similar types of construction (e.g., road construction, utility upgrades, airfield paving) within the Department of the Army or other federal agencies, considering factors like geographic location and project complexity. Without such a benchmark, it's challenging to definitively state if this represents a high, low, or average value.

What were the key performance indicators (KPIs) and success metrics for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this contract. However, for a firm-fixed-price construction contract of this nature, typical KPIs would likely include adherence to the project schedule (delivery by December 30, 2011, within the 1740-day duration), meeting quality standards and specifications outlined in the contract, staying within the awarded price of $55,155,817.82, and ensuring compliance with safety regulations. Performance would be evaluated based on the successful completion of defined construction milestones and the final acceptance of the completed work by the government.

What is Cajun Industries LLC's track record with federal contracts, particularly with the Department of Defense?

Cajun Industries LLC has a history of receiving federal contracts, including significant awards from the Department of Defense. The data shows this specific contract (W912P8-07-D-0004, TASK ORDER #0001) awarded in 2007 with a value of over $55 million. A comprehensive review of their federal contracting history would involve examining databases like the Federal Procurement Data System (FPDS) or USAspending.gov to identify the number, value, and types of contracts awarded to Cajun Industries LLC across various agencies. This would reveal their experience in different service areas, their performance history (e.g., any contract disputes or terminations), and their capacity to handle large-scale federal projects, particularly within the construction domain.

Were there any significant risks identified during the bidding or execution phases of this contract?

The provided data does not detail specific risks identified during the bidding or execution phases. However, for a large civil engineering construction project, common risks include unforeseen site conditions (e.g., soil instability, hazardous materials), weather delays, material price fluctuations (though mitigated by firm-fixed-price), labor shortages, and potential scope creep. The firm-fixed-price contract structure places the financial risk of cost overruns primarily on Cajun Industries LLC. The government's risk would be more related to potential delays, quality issues, or contractor performance failures, which would be managed through contract oversight and performance monitoring.

How has federal spending in heavy and civil engineering construction evolved since this contract was awarded?

Since this contract was awarded in 2007, federal spending in heavy and civil engineering construction has seen fluctuations influenced by economic conditions, infrastructure initiatives, and national priorities. Following the 2008 recession, stimulus packages often included infrastructure spending. More recently, significant infrastructure legislation, such as the Bipartisan Infrastructure Law (BIL) enacted in 2021, has allocated substantial funding towards modernizing roads, bridges, public transit, water systems, and the energy grid. This indicates a potential increase in federal investment in the sector compared to the period when this $55 million contract was active, reflecting a renewed focus on infrastructure development and repair.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P806R0183

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cajun Industries, LLC (UEI: 804422801)

Address: 15635 AIRLINE HWY, BATON ROUGE, LA, 70817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,155,818

Exercised Options: $55,155,818

Current Obligation: $55,155,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P807D0004

IDV Type: IDC

Timeline