Army's $23.8M flood control contract awarded to joint venture for vital river infrastructure

Contract Overview

Contract Amount: $23,818,889 ($23.8M)

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

Awarding Agency: Department of Defense

Start Date: 2012-06-29

End Date: 2013-06-08

Contract Duration: 344 days

Daily Burn Rate: $69.2K/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 $23.8 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 flood control infrastructure along major river systems. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Joint venture structure may indicate capacity or specialized expertise required. 4. Project duration of approximately one year suggests a focused scope of work. 5. Fixed-price contract type aims to control costs for the government. 6. Geographic focus on Louisiana highlights regional importance of flood control.

Value Assessment

Rating: fair

The total contract value of $23.8 million for flood control services appears to be within a reasonable range for large-scale civil engineering projects. However, without specific details on the scope of work for stone placement and the exact quantities involved, a precise value-for-money assessment is challenging. Benchmarking against similar indefinite delivery/indefinite quantity (IDIQ) contracts for riverine construction and maintenance would provide a clearer picture of cost-effectiveness. The firm fixed-price nature of the delivery orders is a positive indicator for cost control.

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 multiple bidders (implied by 'full and open') generally fosters price competition and allows the government to select the most advantageous offer. The specific number of bids received is not provided, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

Benefits residents and businesses in Louisiana by enhancing flood protection for critical river systems. Services delivered include stone placement for erosion control and structural integrity of river channels. Geographic impact is concentrated in Louisiana, specifically along the Mississippi, Atchafalaya, and Red Rivers. Workforce implications include employment for skilled labor in heavy construction and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess project success beyond completion.
Limited transparency on the breakdown of costs within the $23.8M contract value.
Potential for cost overruns if unforeseen site conditions arise, despite fixed-price orders.
Dependence on a joint venture could introduce coordination challenges between partners.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Focus on essential flood control infrastructure addresses a critical public safety need.
Project addresses vital waterways, indicating strategic importance for regional stability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water resource management and flood control. This sector is characterized by large-scale projects requiring specialized equipment and expertise. The market size for such infrastructure projects can be substantial, often driven by government funding for public works and disaster mitigation. Comparable spending benchmarks would involve looking at other Army Corps of Engineers projects or similar state-level flood control initiatives.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. This suggests the contract was likely awarded to larger firms or a joint venture capable of handling the scale and complexity of the project. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity for small business engagement in this significant infrastructure project.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, responsible for managing and executing civil works projects. Accountability measures are inherent in the contract's firm fixed-price delivery orders, requiring the contractor to complete the work within the agreed-upon price. Transparency is generally facilitated through contract award databases and public reporting, though detailed project-specific performance data may be less accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Mississippi River Maintenance Contracts
Flood Control Infrastructure Projects
Riverine Construction Services

Risk Flags

Potential for cost overruns if scope changes or unforeseen conditions arise.
Limited transparency on specific performance metrics and outcomes.
Dependence on joint venture partners could introduce coordination risks.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 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 $23.8 million.

What is the period of performance?

Start: 2012-06-29. End: 2013-06-08.

What specific types of stone placement were performed under this contract, and what was the primary objective (e.g., bank stabilization, channel deepening)?

The contract data specifies 'stone placement' for flood control along the Mississippi River and its tributaries. The primary objective is generally to prevent erosion, stabilize riverbanks, and maintain the structural integrity of flood control structures and navigation channels. Specific types of stone placement could include riprap installation, articulated concrete block mats, or other engineered solutions designed to withstand water flow and prevent scour. Without more detailed delivery order documentation, the exact technical specifications and precise objectives for each placement activity remain unspecified in the summary data.

How does the $23.8 million total contract value compare to similar flood control projects managed by the Army Corps of Engineers in the same region?

Comparing the $23.8 million total contract value requires access to a database of similar Army Corps of Engineers (USACE) projects in the Louisiana region. USACE manages numerous flood control and riverine maintenance contracts, with values varying significantly based on project scope, duration, and complexity. Projects involving large-scale stone placement for major river systems like the Mississippi can easily reach tens of millions of dollars. To provide a precise benchmark, one would need to identify comparable IDIQ contracts or specific project awards for bank stabilization, levee reinforcement, or channel maintenance in the Atchafalaya Basin or along the Mississippi River over the past decade. However, given the scale of the waterways involved, $23.8 million appears to be a moderate to significant investment for such critical infrastructure work.

What were the key performance indicators (KPIs) used to evaluate the success of the stone placement work under this contract?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) used to evaluate the success of the stone placement work. Typically, for such civil engineering projects, KPIs might include metrics related to the volume of material placed, the accuracy of placement according to design specifications, the durability and effectiveness of the placement in preventing erosion (measured through post-project surveys or monitoring), adherence to environmental regulations, and timely completion of delivery orders. The firm fixed-price nature of the contract implies that meeting the defined scope of work within budget is a primary success factor, but specific technical performance benchmarks are not detailed here.

Were there any notable challenges or risks encountered during the execution of this contract, and how were they mitigated?

The summary data does not explicitly list challenges or risks encountered during the execution of this contract. However, common risks in large-scale civil engineering projects involving riverine environments include adverse weather conditions (flooding, storms), unforeseen subsurface geological conditions, equipment failures, environmental compliance issues, and potential delays in material delivery. Mitigation strategies typically involve robust project management, contingency planning, flexible scheduling, thorough site investigations prior to work, and strong communication channels between the contracting agency (USACE) and the contractor. The joint venture structure might also imply a pre-identified risk mitigation strategy by combining expertise and resources.

What is the historical spending trend for flood control and riverine maintenance contracts awarded by the Department of the Army in Louisiana?

Analyzing historical spending trends for flood control and riverine maintenance contracts by the Department of the Army (specifically the USACE) in Louisiana would require access to historical contract databases and procurement records. Louisiana, with its extensive coastline and major river systems, consistently requires significant investment in flood control and waterway management. Annual spending can fluctuate based on federal appropriations, infrastructure needs, and the initiation of new large-scale projects or repairs following significant weather events. Generally, USACE's civil works budget, which includes flood control, is substantial, and Louisiana represents a key area of focus. A detailed trend analysis would likely show consistent, multi-million dollar annual expenditures in this category, potentially increasing after major hurricanes or floods.

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: $23,818,889

Exercised Options: $23,818,889

Current Obligation: $23,818,889

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P812D0006

IDV Type: IDC

Timeline