Department of Defense awards $33M for Herbert Hoover Dike Cutoff Wall construction

Contract Overview

Contract Amount: $33,024,940 ($33.0M)

Contractor: Keller North America, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-23

End Date: 2011-08-29

Contract Duration: 1,070 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HERBERT HOOVER DIKE CUTOFF WALL

Place of Performance

Location: CLEWISTON, HENDRY County, FLORIDA, 33440

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.0 million to KELLER NORTH AMERICA, INC. for work described as: HERBERT HOOVER DIKE CUTOFF WALL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which transfers risk to the contractor. 3. The project duration was 1070 days, indicating a significant construction timeline. 4. The contract was awarded by the Department of the Army, a major component of the DoD. 5. The work was performed in Florida, highlighting regional infrastructure investment. 6. The NAICS code 237990 points to heavy and civil engineering construction, a specialized field.

Value Assessment

Rating: fair

The contract value of approximately $33 million for the Herbert Hoover Dike Cutoff Wall construction appears to be within a reasonable range for a project of this scale and complexity. Without specific benchmarks for similar dike cutoff wall projects, a direct comparison is difficult. However, the firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable by the government, with the contractor assuming cost overruns. Further analysis would require benchmarking against similar Army Corps of Engineers projects or other large-scale civil engineering endeavors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a selection based on a combination of price and technical merit. This approach is intended to ensure the best value for the taxpayer.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by leveraging market forces to drive down costs. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining a fair market price.

Public Impact

The primary beneficiaries are likely the residents and ecosystems in the vicinity of Lake Okeechobee, benefiting from improved flood control and water management. The project delivers critical infrastructure improvements to the Herbert Hoover Dike, enhancing its structural integrity and safety. The geographic impact is concentrated in Florida, specifically around the Lake Okeechobee area. The project likely supported jobs in the heavy and civil engineering construction sector, including skilled labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Long project duration increases exposure to potential delays and material price fluctuations.
Environmental impact during construction needs careful management and monitoring.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition, suggesting competitive pricing.
Project addresses critical infrastructure needs for flood control and water management.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to water infrastructure and flood control. This sector is characterized by large-scale projects often undertaken by government entities. The market size for such specialized construction is significant, driven by ongoing needs for infrastructure maintenance, upgrades, and new development. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' historical project data for dike and levee construction.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. As this was a large-scale civil engineering project awarded under full and open competition, it is possible that large prime contractors were involved. Further investigation would be needed to determine if small businesses were utilized as subcontractors or if any portion of the work was specifically set aside for them.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for the Herbert Hoover Dike. Accountability measures would include contract performance monitoring, quality assurance inspections, and adherence to project milestones. Transparency is generally maintained through public reporting of contract awards and project progress, although specific details may be limited.

Related Government Programs

Herbert Hoover Dike Rehabilitation Project
Lake Okeechobee Water Management
Army Corps of Engineers Civil Works Projects
Flood Control Infrastructure

Risk Flags

Potential for schedule delays due to complex civil engineering requirements.
Risk of unforeseen site conditions impacting cost and timeline.
Environmental compliance during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.0 million to KELLER NORTH AMERICA, INC.. HERBERT HOOVER DIKE CUTOFF WALL

Who is the contractor on this award?

The obligated recipient is KELLER NORTH AMERICA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.0 million.

What is the period of performance?

Start: 2008-09-23. End: 2011-08-29.

What is the track record of Keller North America, Inc. on similar federal construction projects?

Keller North America, Inc. has a history of performing large-scale geotechnical and heavy civil construction projects for federal agencies, including the Department of Defense and the Army Corps of Engineers. Their expertise often lies in foundation work, earth retention systems, and specialized construction related to dams, levees, and other water infrastructure. Reviewing their past performance on projects with similar scope, complexity, and contract values would provide insight into their reliability and execution capabilities. Specific project details, including any past performance issues or commendations, would be available through federal procurement databases and agency performance reports.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates an awarded amount of $33,024,940.36. Without access to the government's initial cost estimates or the approved budget for the Herbert Hoover Dike Cutoff Wall construction, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition suggests that the bids received were considered competitive and offered good value. If the awarded amount was significantly lower than estimates, it could indicate strong competition or efficient bidding by the contractor. Conversely, if it was higher, it might suggest unforeseen complexities or a less competitive bidding environment than anticipated.

What are the primary risks associated with the construction of a cutoff wall for a large dike?

The primary risks associated with constructing a cutoff wall for a large dike like the Herbert Hoover Dike include geological and hydrological challenges. Unforeseen ground conditions, such as unstable soil layers, buried obstructions, or variations in groundwater pressure, can significantly impact construction methods, timelines, and costs. Hydrological risks involve managing water levels and flow around the construction site, which can be complex, especially in an active water management system. Environmental risks, such as disturbing sensitive habitats or managing construction runoff, also require careful attention. The firm fixed-price contract structure transfers much of the cost risk to the contractor, but schedule delays due to these risks can still impact project completion.

What is the historical spending trend for the Herbert Hoover Dike project over the years?

The provided data pertains to a specific delivery order for the Herbert Hoover Dike Cutoff Wall construction, awarded in 2008 and completed in 2011. To understand the historical spending trend for the overall Herbert Hoover Dike project, one would need to examine broader contract data from the Army Corps of Engineers over a longer period. This would include funding allocated for various rehabilitation efforts, maintenance, and upgrades to the dike system. Analyzing this broader dataset would reveal patterns of investment, identify periods of significant activity, and potentially highlight the cumulative cost of maintaining and improving this critical piece of infrastructure.

How does the competition level for this contract influence the overall value for taxpayers?

The contract was awarded under full and open competition, which generally enhances value for taxpayers. This process allows multiple qualified contractors to bid on the project, fostering a competitive environment that typically drives down prices and encourages innovation. When a contract is competed openly, the government is more likely to receive proposals that represent a fair market price for the goods or services required. The presence of multiple bidders also provides the government with a stronger basis for evaluating proposals and selecting the offer that provides the best overall value, considering both cost and technical factors, thereby maximizing the return on taxpayer investment.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: W912EP07R0006

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Keller Group P L C (UEI: 504599994)

Address: 6850 BENJAMIN RD, TAMPA, FL, 33634

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,024,940

Exercised Options: $33,024,940

Current Obligation: $33,024,940

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EP07D0009

IDV Type: IDC

Timeline