Army's $210M Flood Control Contract Awarded to Joint Venture for Mississippi River Stone Placement

Contract Overview

Contract Amount: $20,979,201 ($21.0M)

Contractor: Luhr Bros., Inc/Pine Bluff Sand and Gravel Company, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2012-05-24

End Date: 2013-01-23

Contract Duration: 244 days

Daily Burn Rate: $86.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT, 2012 STONE PLACEMENT, MISSISSIPPI, ATCHAFALAYA AND RED RIVERS, OLD RIVER CONTROL CHANNELS AND BAPTISTE COLLETTE BAYOU

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70160

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to LUHR BROS., INC/PINE BLUFF SAND AND GRAVEL COMPANY, A JOINT VENTURE for work described as: FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT, 2012 STONE PLACEMENT, MISSISSIPPI, ATCHAFALAYA AND RED RIVERS, OLD RIVER CONTROL CHANNELS AND BAPTISTE COLLETTE BAYOU Key points: 1. Contract focused on critical infrastructure for flood control in the Mississippi River system. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration was relatively short, indicating a specific project phase or task. 4. The joint venture structure may indicate a need for specialized capabilities or capacity. 5. Fixed-price contract type aims to control costs for the government. 6. Geographic focus on Louisiana highlights regional importance of flood control efforts.

Value Assessment

Rating: fair

The contract value of $209,792,010 is substantial for heavy civil engineering construction. Benchmarking this specific stone placement contract is challenging without more granular data on unit costs and project scope. However, the fixed-price nature suggests an attempt to manage costs. The relatively short performance period (244 days) for such a large sum warrants scrutiny to ensure efficient execution and value delivery.

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 bids. The presence of two bidders (no) suggests a moderate level of competition for this specific requirement. While competition is generally positive, the exact number of potential bidders and the specific bidding dynamics are not detailed, making it difficult to fully assess the price discovery achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to lower overall costs for the government.

Public Impact

Benefits residents and businesses in Louisiana by enhancing flood protection infrastructure. Delivers essential services related to riverine flood control and stabilization. Geographic impact is concentrated in Louisiana, specifically along the Mississippi, Atchafalaya, and Red Rivers. Supports the construction and engineering workforce involved in heavy civil projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price structure.
Dependence on a joint venture may introduce coordination challenges or risks if one partner underperforms.
Limited performance period could create pressure for rapid execution, potentially impacting quality if not managed well.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a fair market approach.
Focus on critical flood control infrastructure addresses a significant public safety need.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to water infrastructure and flood control. The market for such specialized construction services is often characterized by a limited number of large, experienced firms capable of undertaking complex, large-scale projects. Spending in this sector is driven by government infrastructure investment needs, particularly in areas prone to natural disasters like flooding.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the primary award was not targeted towards small businesses. There is no information provided on subcontracting plans, so the extent to which small businesses may be involved in fulfilling parts of this contract remains unknown. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is likely minimal for the prime contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to perform the work for a set price. Transparency is generally facilitated through contract award databases, though detailed performance and cost reporting may be less accessible to the public.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
Mississippi River Maintenance and Operations
Flood Mitigation Projects
Riverine Ecosystem Restoration

Risk Flags

Potential for cost overruns
Contractor performance risk
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to LUHR BROS., INC/PINE BLUFF SAND AND GRAVEL COMPANY, A JOINT VENTURE. FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT, 2012 STONE PLACEMENT, MISSISSIPPI, ATCHAFALAYA AND RED RIVERS, OLD RIVER CONTROL CHANNELS AND BAPTISTE COLLETTE BAYOU

Who is the contractor on this award?

The obligated recipient is LUHR BROS., INC/PINE BLUFF SAND AND GRAVEL COMPANY, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2012-05-24. End: 2013-01-23.

What specific types of stone placement were performed under this contract, and what was the unit cost per ton or cubic yard?

The provided data does not specify the exact types of stone placement or offer unit cost breakdowns (e.g., per ton or cubic yard). The contract description mentions 'stone placement' for flood control along various river systems. To determine unit costs, one would need access to the detailed delivery orders issued under this IDIQ contract, which would specify the quantities, types of stone, and associated pricing. Without these details, a precise unit cost analysis is not possible from the summary data.

How does the $209.8 million total contract value compare to similar flood control stone placement projects managed by the Army Corps of Engineers?

Comparing the $209.8 million value requires context on the scale and duration of similar projects. Large-scale riverine stone placement for flood control can range significantly. Projects involving extensive bank stabilization, levee reinforcement, or channel modification can easily reach hundreds of millions of dollars. The relatively short performance period (244 days) for this contract suggests it might have been for a concentrated effort or a specific phase of a larger program. Without specific project comparisons detailing scope, location, and duration, it's difficult to definitively state if this contract's value is high, low, or average relative to its peers.

What were the key performance indicators (KPIs) for this contract, and did the contractor meet them?

The provided summary data does not include specific Key Performance Indicators (KPIs) established for this contract or details on the contractor's performance against them. Typically, for construction contracts, KPIs might relate to schedule adherence, quality of work (e.g., material specifications, placement accuracy), safety compliance, and environmental protection measures. Assessing whether the contractor met these would require reviewing contract performance reports, inspection records, and final acceptance documentation, which are not available in the provided dataset.

What is the track record of Luhr Bros., Inc./Pine Bluff Sand and Gravel Company joint venture on similar federal contracts?

Information on the specific track record of the Luhr Bros., Inc./Pine Bluff Sand and Gravel Company joint venture on similar federal contracts is not detailed in the provided summary. Luhr Bros. and Pine Bluff Sand and Gravel are known entities in the heavy civil construction and marine services industry. To assess their joint venture's track record, one would need to examine past performance evaluations, contract completion history, and any past performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS) for projects undertaken together or individually by these companies, particularly those involving large-scale riverine construction or flood control.

Were there any significant challenges or disputes encountered during the performance of this contract?

The summary data does not indicate any significant challenges, disputes, or contract modifications that occurred during the performance of this contract. Standard contract management involves tracking change orders, claims, and dispute resolutions. Information regarding such issues would typically be found in more detailed contract files or performance reports. The absence of mention in the summary suggests either a smooth execution or that such details are not publicly surfaced in this abbreviated format.

How does the $209.8 million spending on this single contract compare to the overall Army budget for flood control in FY2012-2013?

The $209.8 million awarded for this specific stone placement contract represents a significant portion of the Army Corps of Engineers' Civil Works budget, which is the primary vehicle for flood control spending. In Fiscal Year 2012, the Army Corps of Engineers' Civil Works budget was approximately $5.5 billion, with a substantial portion allocated to navigation and flood damage reduction projects. While this single contract is large, it is one of many projects undertaken annually. To provide a precise comparison, one would need to isolate the flood control-specific allocations within the FY2012-2013 Civil Works budget and compare it to the total value of all flood control contracts awarded during that period.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912P812B0025

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 250 W SAND BANK RD, COLUMBIA, IL, 62236

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,979,201

Exercised Options: $20,979,201

Current Obligation: $20,979,201

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P812D0006

IDV Type: IDC

Timeline