Department of Defense awards $24.2M contract for Herbert Hoover Dike Cutoff Wall, highlighting infrastructure resilience

Contract Overview

Contract Amount: $24,248,686 ($24.2M)

Contractor: Bauer Foundation Corp

Awarding Agency: Department of Defense

Start Date: 2010-07-09

End Date: 2013-02-14

Contract Duration: 951 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HERBERT HOOVER DIKE CUTOFF WALL T.O. F

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to BAUER FOUNDATION CORP for work described as: HERBERT HOOVER DIKE CUTOFF WALL T.O. F Key points: 1. Contract value of $24.2 million for critical infrastructure repair. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. Project duration of 951 days points to a significant, multi-year undertaking. 5. Geographic focus on Florida for essential civil engineering work. 6. Contractor Bauer Foundation Corp selected for this specialized construction task.

Value Assessment

Rating: good

The contract value of $24.2 million for the Herbert Hoover Dike Cutoff Wall project appears reasonable given the scope of civil engineering work required for critical infrastructure. Benchmarking against similar large-scale dike and levee repair projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, suggesting a degree of confidence in the initial cost estimations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of 3 bids suggests a healthy level of competition for this specialized construction project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition for this project likely resulted in a more competitive price, saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

Enhances the structural integrity and safety of the Herbert Hoover Dike, a critical piece of national infrastructure. Protects surrounding communities and ecosystems in Florida from potential flooding risks. Supports the U.S. Army Corps of Engineers' mission to manage water resources and infrastructure. Contributes to the local economy through construction-related employment and resource utilization in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions impacting project timeline or cost, despite fixed-price nature.
Dependence on specialized construction equipment and expertise, which could be a bottleneck.
Environmental compliance during construction activities requires careful monitoring.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded through full and open competition, indicating market validation of proposed costs.
Contractor has a track record in heavy civil engineering projects.
Project addresses a critical national infrastructure need, ensuring long-term safety and security.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water management infrastructure. The market for such projects is characterized by specialized firms capable of undertaking large-scale, complex engineering tasks. Spending in this sector is often driven by government needs for infrastructure repair, upgrades, and new construction, particularly for flood control and water resource management. Comparable spending benchmarks would involve other large dike, levee, or dam construction and repair contracts managed by agencies like the Army Corps of Engineers.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Bauer Foundation Corp, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for specialized services.

Oversight & Accountability

The contract is managed by the Department of the Army, which has established oversight mechanisms for construction projects. The firm fixed-price contract type inherently includes accountability for delivering the specified work within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting. The Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Herbert Hoover Dike Rehabilitation Projects
Army Corps of Engineers Civil Works Programs
National Flood Control Infrastructure
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for unforeseen site conditions
Environmental compliance during construction
Weather-related delays impacting schedule

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to BAUER FOUNDATION CORP. HERBERT HOOVER DIKE CUTOFF WALL T.O. F

Who is the contractor on this award?

The obligated recipient is BAUER FOUNDATION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2010-07-09. End: 2013-02-14.

What is the historical spending pattern for the Herbert Hoover Dike Cutoff Wall project and similar infrastructure projects by the Department of Defense?

The provided data represents a single delivery order valued at $24.2 million for the Herbert Hoover Dike Cutoff Wall, awarded in 2010. Historical spending on the Herbert Hoover Dike itself is extensive, involving numerous contracts over decades for repairs, upgrades, and maintenance, particularly following Hurricane Irma. Analyzing specific cutoff wall projects requires deeper dives into Army Corps of Engineers databases. Generally, large-scale civil works projects like this are multi-year endeavors with significant cumulative investment. For instance, the overall dike rehabilitation program has seen billions allocated over time. Comparing this $24.2M delivery order to other large dike construction or repair contracts within the DoD or Army Corps of Engineers would reveal if this specific award falls within typical spending ranges for such critical infrastructure work.

How does the contractor, Bauer Foundation Corp, perform on similar federal contracts in terms of cost, schedule, and quality?

Bauer Foundation Corp has a history of performing federal contracts, particularly in heavy civil engineering and construction. To assess their performance on similar projects, one would need to analyze their past contract awards, including delivery orders and prime contracts, within the Department of Defense and other federal agencies. Key performance indicators to examine would include on-time delivery, adherence to budget (especially for fixed-price contracts), quality of work (measured by inspections, acceptance rates, and any claims or disputes), and any past performance ratings or CPARS (Contractor Performance Assessment Reporting System) scores. Without access to specific performance data for Bauer Foundation Corp on comparable projects, a definitive assessment is challenging. However, their selection for a significant project like the Herbert Hoover Dike suggests they met the government's pre-qualification criteria.

What are the primary risks associated with the Herbert Hoover Dike Cutoff Wall project, and how are they being mitigated?

Primary risks for the Herbert Hoover Dike Cutoff Wall project include unforeseen subsurface geological conditions, extreme weather events impacting construction schedules, environmental compliance challenges, and potential material or labor shortages. Mitigation strategies typically involve thorough geotechnical investigations prior to construction, incorporating contingency time into the schedule, adhering to strict environmental management plans, and securing reliable supply chains. The firm fixed-price contract structure also incentivizes the contractor to manage costs effectively and mitigate risks to avoid financial losses. Furthermore, the Army Corps of Engineers provides ongoing oversight and technical expertise to address emergent issues and ensure project success.

What is the long-term impact of this contract on the structural integrity and flood protection capabilities of the Herbert Hoover Dike?

The Herbert Hoover Dike Cutoff Wall project is designed to significantly enhance the structural integrity and flood protection capabilities of the dike. Cutoff walls are typically installed to reduce seepage through or under an embankment, thereby improving stability and preventing internal erosion. By addressing seepage pathways, this contract directly contributes to the dike's ability to withstand hydrostatic pressure from Lake Okeechobee, especially during high water events or storms. This improved performance is crucial for protecting surrounding communities, agricultural lands, and ecosystems from catastrophic flooding. The long-term impact is a more resilient and reliable flood control system, reducing the risk of dike failure and its associated environmental and economic consequences.

How does the $24.2 million award compare to the total estimated cost of the Herbert Hoover Dike rehabilitation program?

The $24.2 million award for the Herbert Hoover Dike Cutoff Wall represents a specific component within the broader Herbert Hoover Dike rehabilitation program. The overall rehabilitation effort has been a multi-year, multi-billion dollar undertaking, driven by extensive risk assessments and the need to upgrade the aging structure to modern safety standards. For example, the U.S. Army Corps of Engineers has allocated significant funding over many years for various aspects of the dike's improvement, including seepage control, structural enhancements, and vegetation management. Therefore, this $24.2 million delivery order is a substantial but singular investment within a much larger, ongoing program aimed at ensuring the long-term safety and effectiveness of the entire dike system.

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 Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EP07R0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bauer AG (UEI: 312613391)

Address: 13203 BYRD LEGG DR, ODESSA, FL, 33556

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

Financial Breakdown

Contract Ceiling: $24,248,686

Exercised Options: $24,248,686

Current Obligation: $24,248,686

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EP07D0011

IDV Type: IDC

Timeline