Army awards $20.3M floodwall contract to Creek Services, L.L.C. for Louisiana project

Contract Overview

Contract Amount: $20,318,196 ($20.3M)

Contractor: Creek Services, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2009-08-21

End Date: 2012-12-15

Contract Duration: 1,212 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WBV14.G2 - WBV, HPP ESTELLE PS AND VICINITY FLOODWALLS, JEFFERSON PARISH, LA

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to CREEK SERVICES, L.L.C. for work described as: WBV14.G2 - WBV, HPP ESTELLE PS AND VICINITY FLOODWALLS, JEFFERSON PARISH, LA Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Contract duration of over three years indicates a significant, long-term project. 4. Fixed-price contract type shifts risk to the contractor, potentially impacting final cost. 5. Project location in Jefferson Parish, Louisiana, highlights regional infrastructure needs. 6. The award to a single contractor implies specific capabilities were sought.

Value Assessment

Rating: fair

Benchmarking this specific contract's value is challenging without detailed project specifications and comparable floodwall construction costs in the region. However, the $20.3 million award for a multi-year heavy civil engineering project appears within a plausible range for such infrastructure work. The firm fixed-price nature suggests that the contractor assumed the primary cost risk, which can be a positive indicator for the government if the contractor's bid was competitive and accounted for potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, past performance, or other pre-qualification criteria. The number of bidders is not specified, but the exclusion of sources suggests a more tailored competition than a completely unrestricted process.

Taxpayer Impact: This procurement approach may limit the number of potential bidders, potentially impacting the breadth of price discovery. However, if the exclusion criteria were justified and led to qualified bidders, it could still result in a competitive price for taxpayers.

Public Impact

Residents and businesses in Jefferson Parish, Louisiana, benefit from improved flood protection. The project delivers critical heavy and civil engineering construction services. Geographic impact is concentrated in Louisiana, addressing specific regional vulnerabilities. The project likely supports local construction workforce employment during its multi-year duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on a single contractor for a critical infrastructure project.
Limited transparency on the specific reasons for excluding certain sources from competition.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Project addresses critical infrastructure needs for flood protection.
Awarded by the Department of the Army, indicating a significant federal investment.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the broader construction industry. This sector involves large-scale infrastructure projects such as flood control systems, bridges, and highways. The market is often characterized by significant capital investment, specialized equipment, and stringent regulatory requirements. Comparable spending benchmarks for similar floodwall projects would depend heavily on project scale, location, and specific engineering challenges.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests the contract was likely awarded to a larger firm capable of undertaking the scale and complexity of the project. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant infrastructure development.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed through the contracting officer's representative (COR) and program managers within the Army Corps of Engineers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may vary in public accessibility.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Emergency Management Agency (FEMA) Flood Mitigation Projects
Infrastructure Investment and Jobs Act Projects
Department of Homeland Security - Critical Infrastructure Protection

Risk Flags

Potential for cost increases if unforeseen site conditions arise.
Contractor performance risk on a large, multi-year project.
Limited competition may impact price optimization.
Dependence on specific contractor capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to CREEK SERVICES, L.L.C.. WBV14.G2 - WBV, HPP ESTELLE PS AND VICINITY FLOODWALLS, JEFFERSON PARISH, LA

Who is the contractor on this award?

The obligated recipient is CREEK SERVICES, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2009-08-21. End: 2012-12-15.

What is the track record of Creek Services, L.L.C. with similar large-scale civil engineering projects?

Assessing the track record of Creek Services, L.L.C. requires a deeper dive into their contract history, particularly with projects of similar scale and complexity to the WBV14.G2 floodwall construction. Publicly available data, such as the Federal Procurement Data System (FPDS), can reveal past performance on government contracts. Key indicators to examine would include on-time delivery, adherence to budget (especially on fixed-price contracts), quality of work, and any history of disputes or contract terminations. Without specific historical data on Creek Services, L.L.C.'s performance on comparable projects, it is difficult to definitively assess their capability and reliability for this particular floodwall initiative.

How does the $20.3 million award compare to the estimated cost of similar floodwall projects in Louisiana?

Directly comparing the $20.3 million award to similar floodwall projects in Louisiana is challenging without detailed project specifications, including linear footage, height, material requirements, and site-specific geological conditions. Floodwall construction costs can vary significantly based on these factors. However, for context, major levee and floodwall projects managed by the Army Corps of Engineers can range from tens of millions to hundreds of millions of dollars. The value of this contract suggests a substantial undertaking, likely involving significant engineering and construction efforts. A more precise comparison would necessitate access to cost estimates for comparable projects within Jefferson Parish or similar coastal Louisiana environments, considering factors like soil stability and hurricane protection standards.

What are the primary risks associated with this firm fixed-price contract for floodwall construction?

The primary risks associated with this firm fixed-price contract for floodwall construction, from the government's perspective, are minimized regarding cost overruns, as the contractor assumes most of that risk. However, risks can emerge if the contractor underbid the project or encounters unforeseen site conditions (e.g., unexpected soil instability, buried utilities, environmental hazards) that make completion exceedingly difficult or impossible under the fixed price. This could lead to contractor default, delays, or demands for contract modifications, potentially negating the cost-saving benefits of the fixed-price structure. Quality control is also a risk; the contractor might be tempted to cut corners to maintain profitability, necessitating robust government oversight to ensure adherence to specifications and standards.

What is the expected effectiveness of the HPP Estelle PS and Vicinity Floodwalls in mitigating flood risks for Jefferson Parish?

The expected effectiveness of the HPP Estelle PS and Vicinity Floodwalls in mitigating flood risks for Jefferson Parish hinges on the specific design, engineering standards employed, and the scope of the protection provided. Floodwalls are typically designed to withstand specific storm surge levels and rainfall intensities. The 'HPP ESTELLE PS' designation likely refers to a specific pumping station or area of concern within the parish. The effectiveness will be measured by the system's ability to prevent inundation during extreme weather events, thereby protecting lives, property, and critical infrastructure. A comprehensive assessment would require reviewing the project's design specifications, engineering reports, and the anticipated level of protection (e.g., 100-year flood event protection) it aims to achieve for the targeted area.

How has federal spending on heavy and civil engineering construction in Louisiana trended over the past five years?

Analyzing federal spending trends on heavy and civil engineering construction in Louisiana over the past five years requires access to detailed procurement data. Generally, federal spending in this sector is influenced by factors such as disaster recovery needs (especially relevant in Louisiana due to hurricanes and flooding), national infrastructure initiatives, and specific agency priorities (e.g., Army Corps of Engineers projects). Following major hurricanes, there is often an increase in federal funding allocated to coastal protection and infrastructure repair. Broader national infrastructure bills can also significantly boost spending. Without specific data queries, it's difficult to provide precise figures, but Louisiana's vulnerability to natural disasters suggests a consistent, and potentially increasing, need for federal investment in civil engineering projects.

What are the implications of 'Full and Open Competition After Exclusion of Sources' on contractor innovation?

The 'Full and Open Competition After Exclusion of Sources' procurement strategy can have mixed implications for contractor innovation. On one hand, by excluding certain sources, the government might be narrowing the field to contractors with highly specialized capabilities or proven performance in specific areas, potentially leading to more tailored and effective solutions. However, this exclusion inherently limits the pool of potential innovators. If the exclusion criteria are overly restrictive or not well-justified, it could stifle competition from emerging companies or those with novel approaches that don't fit the pre-defined mold. True open competition often fosters greater innovation as a wider array of companies vie for the contract, bringing diverse ideas and technologies to the table.

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: W912P808R0100

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1112 FIFTH ST, GRETNA, LA, 70053

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,318,196

Exercised Options: $20,318,196

Current Obligation: $20,318,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P809D0045

IDV Type: IDC

Timeline