DoD Awards $142.8M Construction Contract to CAJUN INDUSTRIES LLC for Heavy Engineering

Contract Overview

Contract Amount: $142,784,386 ($142.8M)

Contractor: Cajun Industries LLC

Awarding Agency: Department of Defense

Start Date: 2008-02-01

End Date: 2010-03-05

Contract Duration: 763 days

Daily Burn Rate: $187.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WBV-1, PLCMT

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $142.8 million to CAJUN INDUSTRIES LLC for work described as: WBV-1, PLCMT Key points: 1. Significant contract value of $142.8 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category. 4. The award was a delivery order against a larger contract, indicating phased execution.

Value Assessment

Rating: good

The contract value of $142.8 million is substantial. Benchmarking against similar heavy civil engineering construction contracts would be necessary to fully assess pricing, but the use of full and open competition suggests a reasonable price discovery mechanism.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces.

Public Impact

Supports infrastructure development within the Department of Defense. Provides employment opportunities through CAJUN INDUSTRIES LLC and its subcontractors. Impacts the heavy and civil engineering construction sector in Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 763 days is relatively long.
  • The 'Other Heavy and Civil Engineering Construction' NAICS code is very broad.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector. Spending in this sector can fluctuate based on government infrastructure needs and economic conditions. The $142.8 million award is a significant investment within this category.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of Defense, which typically has robust oversight mechanisms. However, the specific oversight for this delivery order would depend on internal DoD procedures and the contracting officer's responsibilities.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Broad NAICS code limits specificity.
  • Contract duration is lengthy.
  • No explicit mention of small business participation.
  • Delivery order structure requires understanding of the parent contract.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, la, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $142.8 million to CAJUN INDUSTRIES LLC. WBV-1, PLCMT

Who is the contractor on this award?

The obligated recipient is CAJUN INDUSTRIES 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 $142.8 million.

What is the period of performance?

Start: 2008-02-01. End: 2010-03-05.

What specific type of heavy and civil engineering construction was performed under this contract?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' is very broad and encompasses a wide range of projects such as bridges, tunnels, dams, and marine construction. Without further details from the contract award or performance reports, the precise nature of the construction work remains unspecified. This lack of specificity can make it challenging to benchmark effectively against similar projects.

What was the basis for the $187,135 bid bond amount relative to the contract value?

The bid bond amount of $187,135 appears to be a standard percentage of the bid price, often around 10-20%, required to ensure the bidder enters into a contract if awarded. Its relationship to the final contract value of $142.8 million suggests it was a preliminary measure during the bidding phase. The exact percentage would depend on the specific solicitation requirements set by the Department of the Army.

How effectively did the full and open competition process ensure optimal value for this large construction project?

Full and open competition is designed to maximize value by encouraging multiple bids and driving down prices. For a $142.8 million contract, this process likely led to a competitive landscape. However, the true measure of effectiveness lies in the final cost compared to independent cost estimates and the quality of work delivered. Post-award performance reviews and cost audits would provide a clearer picture of the value achieved.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P806R0183

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cajun Industries, LLC (UEI: 804422801)

Address: 15635 AIRLINE HWY, BATON ROUGE, LA, 70817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $142,784,386

Exercised Options: $142,784,386

Current Obligation: $142,784,386

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P807D0004

IDV Type: IDC

Timeline

Start Date: 2008-02-01

Current End Date: 2010-03-05

Potential End Date: 2010-03-05 00:00:00

Last Modified: 2021-02-26

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