DoD's $26.8M Army contract for heavy engineering construction awarded to Cycle Construction Company, L.L.C

Contract Overview

Contract Amount: $26,864,545 ($26.9M)

Contractor: Cycle Construction Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2011-04-06

End Date: 2012-09-13

Contract Duration: 526 days

Daily Burn Rate: $51.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HPO OSP-05 DPS #5

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70160

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to CYCLE CONSTRUCTION COMPANY, L.L.C. for work described as: HPO OSP-05 DPS #5 Key points: 1. Contract value of $26.8M represents a significant investment in civil engineering infrastructure. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. Duration of 526 days indicates a substantial project scope. 5. The contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. Awarded by the Department of the Army, highlighting defense infrastructure needs.

Value Assessment

Rating: good

The contract value of $26.8M for heavy and civil engineering construction appears reasonable given the project's scope and duration. Without specific project deliverables or comparable project data, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an effort to manage costs effectively. Benchmarking against similar large-scale civil engineering projects would provide further insight into its cost-effectiveness.

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 that multiple potential bidders were allowed to submit proposals. The specific number of bidders is not provided, but this competitive approach generally leads to better pricing and service selection for the government. The exclusion of sources clause might warrant further investigation into its necessity and impact on the competitive landscape.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of Defense and the Army, receiving critical infrastructure development. Services delivered include heavy and civil engineering construction, likely for base improvements or operational facilities. The geographic impact is focused on Louisiana, where the project is being executed. The contract supports the construction workforce, creating jobs in the engineering and labor sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the exclusion of sources in the 'full and open competition' process.
Absence of data on the number of bidders limits a full assessment of competitive intensity.
The broad NAICS code 'Other Heavy and Civil Engineering Construction' could encompass a wide range of project types, making direct comparisons difficult.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
Firm fixed-price contract type provides cost certainty for the government.
The contract duration of over a year suggests a significant and potentially impactful project.

Sector Analysis

The 'Other Heavy and Civil Engineering Construction' sector (NAICS 237990) encompasses a wide array of projects, including the construction of tunnels, bridges, dams, highways, and other infrastructure. Federal spending in this sector is crucial for national development, military readiness, and public works. This contract, valued at $26.8M, represents a substantial investment within this category, likely contributing to the modernization or expansion of military facilities or related infrastructure. Comparable spending benchmarks would typically be found within large-scale infrastructure development programs managed by agencies like the Army Corps of Engineers or the Department of Transportation.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value construction contract, it is unlikely that small businesses would be the primary awardees. However, there may be opportunities for small businesses to participate as subcontractors to Cycle Construction Company, L.L.C., depending on the project's specific requirements and the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which places the cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Construction Projects
Military Construction (MILCON)
Department of Defense Infrastructure Modernization
Federal Highway Administration Projects
Public Works and Infrastructure Development

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Risk of cost overruns for contractor impacting project quality.
Contractor's past performance history is unknown.
Broad NAICS code makes specific project scope and value comparison difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to CYCLE CONSTRUCTION COMPANY, L.L.C.. HPO OSP-05 DPS #5

Who is the contractor on this award?

The obligated recipient is CYCLE CONSTRUCTION COMPANY, 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 $26.9 million.

What is the period of performance?

Start: 2011-04-06. End: 2012-09-13.

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

The provided data identifies the North American Industry Classification System (NAICS) code as 237990, which covers 'Other Heavy and Civil Engineering Construction.' This broad category can include a wide range of projects such as the construction of tunnels, bridges, dams, highways, streets, airports, and other infrastructure projects not classified elsewhere. Without more specific contract details or project descriptions, it is impossible to determine the exact nature of the construction performed. However, given the awarding agency is the Department of the Army, it is plausible the project involved infrastructure critical to military operations, base support, or readiness, such as airfield improvements, port facilities, or specialized construction within a military installation.

How does the $26.8M contract value compare to similar Army civil engineering projects?

Benchmarking the $26.8M contract value against similar Army civil engineering projects requires access to a database of comparable contracts. The 'Other Heavy and Civil Engineering Construction' category is broad, making direct comparisons challenging without knowing the specific project scope (e.g., bridge repair, new facility construction, road building). However, for large-scale infrastructure projects, $26.8M is a significant but not exceptionally large sum. The Department of the Army, particularly through the Army Corps of Engineers, manages numerous projects that can range from millions to billions of dollars. This contract's value suggests a substantial undertaking, likely involving complex engineering and a considerable duration, as indicated by the 526-day period.

What are the key risks associated with a firm fixed-price contract of this magnitude and duration?

A firm fixed-price (FFP) contract of $26.8M over 526 days carries several key risks. For the contractor, the primary risk is cost overrun; if actual costs exceed the fixed price due to unforeseen issues, scope creep, or poor management, the contractor absorbs the loss. This can lead to financial strain or even bankruptcy. For the government, the risk is that the contractor may cut corners on quality or safety to protect profit margins if costs escalate. Additionally, if the fixed price was set too high due to inadequate market research or competitive bidding, the government may overpay. The long duration increases the risk of material price fluctuations or labor availability issues impacting the contractor's ability to meet the fixed price without compromising quality.

What is the significance of 'full and open competition after exclusion of sources' for this contract?

The term 'full and open competition after exclusion of sources' is somewhat contradictory and requires careful interpretation. Typically, 'full and open competition' means all responsible sources are permitted to submit an offer. The addition of 'after exclusion of sources' suggests that while the competition was intended to be broad, certain potential sources were deliberately excluded. The reasons for exclusion must be justified and documented, often based on specific capabilities, past performance, or regulatory requirements. This clause implies that the initial pool of potential bidders might have been narrowed down before the main solicitation, which could potentially limit the breadth of competition and may warrant scrutiny to ensure it was necessary and did not unduly restrict market access for qualified firms.

How does the contractor, Cycle Construction Company, L.L.C., perform on federal contracts?

Information regarding the specific track record and performance history of Cycle Construction Company, L.L.C. on federal contracts is not provided in the initial data. A thorough assessment would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past awards, performance evaluations (Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Without this data, it's impossible to evaluate their reliability, quality of work, or adherence to schedules and budgets on previous government projects. This is a critical piece of information for understanding the overall risk profile of this specific contract award.

What are the potential workforce implications of this $26.8M construction contract in Louisiana?

A $26.8M heavy and civil engineering construction contract is likely to have a notable positive impact on the workforce in Louisiana. Such projects typically require a substantial number of skilled laborers, equipment operators, engineers, project managers, and support staff. This can lead to direct job creation for residents in the immediate area and potentially attract workers from surrounding regions. Furthermore, the demand for materials and services associated with the construction project can stimulate indirect employment in related industries, such as manufacturing, transportation, and logistics. The duration of 526 days suggests sustained employment opportunities over an extended period.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 E THIRD ST, KENNER, LA, 70062

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

Financial Breakdown

Contract Ceiling: $26,864,545

Exercised Options: $26,864,545

Current Obligation: $26,864,545

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P811D0009

IDV Type: IDC

Timeline