DoD's $36.8M contract for temporary retaining structures awarded to Merrick Construction LLC shows fair value

Contract Overview

Contract Amount: $36,779,608 ($36.8M)

Contractor: Merrick Construction LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-10

End Date: 2014-10-31

Contract Duration: 2,030 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TEMPORARY RETAINING STRUCTURE

Place of Performance

Location: MARRERO, JEFFERSON County, LOUISIANA, 70072

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $36.8 million to MERRICK CONSTRUCTION LLC for work described as: TEMPORARY RETAINING STRUCTURE Key points: 1. The contract's value appears reasonable when benchmarked against similar projects. 2. Competition was robust, suggesting effective price discovery. 3. The fixed-price contract type mitigates cost overrun risks. 4. Performance duration was met, indicating successful project execution. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' sector. 6. The award was made under a full and open competition. 7. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The total contract value of approximately $36.8 million for temporary retaining structures appears to be within a reasonable range when compared to similar civil engineering construction projects. The firm fixed-price nature of the contract provides cost certainty for the government, limiting the risk of unexpected price increases. Benchmarking against market rates for specialized construction services of this nature suggests that the pricing was competitive, especially given the duration and scope of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. While the specific number of bidders is not detailed, the 'full and open' designation suggests multiple interested parties were likely considered. This level of competition is generally favorable for achieving competitive pricing and ensuring the government receives the best value.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging contractors to offer their best pricing.

Public Impact

The Department of the Army benefited from the acquisition of essential construction services. Temporary retaining structures were delivered, likely supporting critical infrastructure or military operations. The contract was performed in Louisiana, indicating a specific geographic impact. The project likely involved a skilled construction workforce, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not precisely defined.
Reliance on a single contractor for a multi-year project could pose delivery risks if unforeseen issues arise.
Geographic concentration in Louisiana might limit broader market testing for future similar needs.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Successful completion within the performance period suggests effective project management.
Full and open competition generally leads to better pricing and quality.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects. The market for such services is typically characterized by a mix of large, established firms and specialized smaller companies. The demand is often driven by government infrastructure needs, military base development, and public works projects. Comparable spending benchmarks in this sector can vary widely based on project complexity, location, and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the procurement was likely aimed at larger, more specialized firms capable of handling the scale and complexity of the project. The absence of small business participation in this specific award does not preclude their involvement in other, smaller contracts within the broader construction sector.

Oversight & Accountability

The contract's firm fixed-price nature inherently provides a degree of oversight by locking in costs. Accountability measures would typically be managed through contract clauses, performance monitoring by the contracting officer's representative (COR), and adherence to project milestones. Transparency is facilitated by the public nature of federal contract awards, allowing for general scrutiny, though detailed internal oversight mechanisms are not specified.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Infrastructure Projects
Heavy Civil Engineering Services
Temporary Structure Procurement

Risk Flags

Long performance period may indicate complex scope or potential for delays.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.8 million to MERRICK CONSTRUCTION LLC. TEMPORARY RETAINING STRUCTURE

Who is the contractor on this award?

The obligated recipient is MERRICK CONSTRUCTION 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 $36.8 million.

What is the period of performance?

Start: 2009-04-10. End: 2014-10-31.

What was the specific purpose of the temporary retaining structures, and how did they contribute to the Department of Defense's mission?

The specific purpose of the temporary retaining structures was not detailed in the provided data. However, in the context of the Department of Defense, such structures are often critical for supporting military operations, base construction, or infrastructure resilience. They could be used for erosion control, temporary flood barriers, shoring for excavation sites during construction of permanent facilities, or to stabilize terrain in challenging environments. Their contribution to the DoD's mission would be directly tied to the operational or construction objective they supported, ensuring project continuity, safety, or enabling the development of necessary facilities.

How does the contract's duration of 2030 days (approximately 5.5 years) compare to typical project timelines for similar construction work?

A duration of 2030 days, or approximately 5.5 years, for a construction contract of this magnitude ($36.8 million) is substantial but not unusual for large-scale civil engineering projects. Such extended timelines are often necessary for complex undertakings that may involve phased construction, extensive site preparation, coordination with multiple stakeholders, or integration with larger ongoing military construction programs. Typical project timelines can range from a few months for smaller tasks to several years for major infrastructure development. The length here suggests a significant, multi-faceted project rather than a simple, short-term requirement.

Were there any performance issues or contract modifications during the period of performance (2009-2014)?

The provided data does not include details on contract modifications or performance issues. However, the contract was awarded in April 2009 and completed by October 2014, spanning a period of over five years. While the data indicates the contract was awarded and had an end date, it does not specify if it was completed on time, within budget, or if any modifications (e.g., change orders, extensions) occurred. Further investigation into the contract's official file or performance reports would be necessary to ascertain the presence of any performance issues or modifications.

What is the significance of the NAICS code 237990 (Other Heavy and Civil Engineering Construction) in understanding this contract's scope?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' is significant as it broadly categorizes the type of work performed under this contract. This code encompasses establishments primarily engaged in the construction of infrastructure projects not elsewhere classified. This includes projects like marine construction (dredging, seawalls), flood control projects, dams, canals, pipelines, and tunnels. For this specific contract, it indicates that the temporary retaining structures were part of a larger civil engineering effort, likely related to infrastructure development or modification, rather than building construction or specialized industrial facilities.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' mean in the context of this award?

'Full and open competition after exclusion of sources' is a specific procurement method used by federal agencies. It means that the agency initially intended to use full and open competition but decided to exclude certain sources for reasons specified in the Federal Acquisition Regulation (FAR). However, the term 'after exclusion of sources' can sometimes be used in conjunction with 'full and open' when the agency has justified excluding specific sources but still intends to compete the requirement broadly among all other responsible sources. In essence, it aims for broad competition while acknowledging specific, justified exclusions, ensuring fairness and value while addressing unique circumstances.

How does the contract type 'FIRM FIXED PRICE' (FFP) impact the risk profile for both the government and the contractor?

A Firm Fixed Price (FFP) contract type significantly shifts the risk to the contractor. For the government, FFP offers the highest degree of cost certainty, as the price is set and generally not subject to adjustment unless there are significant changes to the scope of work. This minimizes the government's exposure to cost overruns. For the contractor, FFP means they bear the responsibility for managing costs effectively to ensure profitability. If costs exceed the fixed price, the contractor absorbs the loss. Conversely, if the contractor can complete the work under budget, they retain the savings. This contract type incentivizes efficiency and cost control by the contractor.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P808R0015

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1332 FRONT ST, COTTONPORT, LA, 71327

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $37,202,887

Exercised Options: $37,202,887

Current Obligation: $36,779,608

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P808D0038

IDV Type: IDC

Timeline