DoD's $17.9M construction contract for Louisiana civil engineering awarded to Cycle Construction Company, L.L.C

Contract Overview

Contract Amount: $17,943,828 ($17.9M)

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

Awarding Agency: Department of Defense

Start Date: 2009-10-19

End Date: 2013-02-22

Contract Duration: 1,222 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LPV 104.01A 70 A CONSTR PLACEMENT A3586

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to CYCLE CONSTRUCTION COMPANY, L.L.C. for work described as: LPV 104.01A 70 A CONSTR PLACEMENT A3586 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1222 days indicates a significant, long-term project. 3. Fixed-price contract type may offer cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 5. Awarded by the Department of the Army, indicating a focus on infrastructure supporting military operations or readiness. 6. The contract was a delivery order under a larger contract vehicle. 7. The base award amount was $14,684, with a total award of over $17.9 million.

Value Assessment

Rating: fair

The total award of $17.9 million for heavy civil engineering construction appears substantial. Without specific details on the project scope, it is difficult to benchmark against similar contracts. The fixed-price nature of the contract suggests an attempt to control costs, but the final value could fluctuate based on delivery orders. Further analysis would require understanding the specific deliverables and market rates for comparable construction services in Louisiana.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was open, certain sources may have been excluded based on specific criteria, which warrants further investigation. The number of bidders is not specified, but the designation suggests a competitive process was intended.

Taxpayer Impact: A competitive process, even with exclusions, generally aims to secure the best value for taxpayers by encouraging multiple bids and driving down prices.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially military personnel or operations requiring the constructed facilities. The services delivered involve heavy civil engineering construction, which could include infrastructure development, repairs, or new builds. The geographic impact is localized to Louisiana, as indicated by the state code 'LA'. The contract likely supports the construction workforce in Louisiana, creating jobs for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires clarification to understand potential limitations on competition.
The significant duration and value of the contract could present risks related to project management and potential cost overruns if not closely monitored.

Positive Signals

Awarded through a full and open competition process, indicating an effort to solicit a broad range of potential contractors.
The firm fixed-price contract type provides a degree of cost predictability for the government.
The contract was a delivery order, suggesting it was part of a pre-established contract vehicle, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical component of infrastructure development. The market for such services is often characterized by large project values, specialized equipment, and a skilled labor force. Comparable spending benchmarks would depend on the specific type of civil engineering project (e.g., roads, bridges, utilities) and the prevailing market conditions in the region.

Small Business Impact

The provided data does not indicate any small business set-aside provisions (ss: false, sb: false). Therefore, this contract was not specifically targeted towards small businesses. There is no information on subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, project managers, and potentially contracting officer's representatives (CORs) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which places the risk of cost overruns on the contractor. Transparency would be enhanced through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Military Construction
Civil Engineering Projects
Infrastructure Development Contracts
Department of Defense Procurement

Risk Flags

Competition Limitation: 'After exclusion of sources' requires further review.
Project Duration: Long duration increases risk of cost escalation and performance issues.
Contract Type Risk: Firm fixed-price carries risk for contractor if costs exceed estimates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to CYCLE CONSTRUCTION COMPANY, L.L.C.. LPV 104.01A 70 A CONSTR PLACEMENT A3586

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 $17.9 million.

What is the period of performance?

Start: 2009-10-19. End: 2013-02-22.

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

The provided data indicates the contract falls under NAICS code 237990, which covers 'Other Heavy and Civil Engineering Construction.' This broad category can encompass a wide range of projects such as the construction of tunnels, bridges, waterways, dams, highways, streets, and prime contractors that manage these types of projects. Without more specific line item details or project descriptions, the exact nature of the construction (e.g., road building, utility installation, site preparation) remains unspecified. Further details would likely be found in the contract's statement of work or delivery order documentation.

How does the $17.9 million award compare to typical spending for similar civil engineering projects by the Department of the Army?

Benchmarking the $17.9 million award requires detailed knowledge of the specific scope of work and the type of civil engineering project undertaken. The Department of the Army undertakes a variety of construction projects, ranging from barracks and training facilities to critical infrastructure supporting logistics and operations. A project of this magnitude suggests a significant undertaking, potentially involving large-scale earthmoving, structural work, or extensive utility systems. To provide a meaningful comparison, one would need to identify similar projects in terms of scale, complexity, and location, and analyze their awarded values. General industry data for heavy civil engineering projects can offer a broad perspective, but project-specific factors heavily influence cost.

What are the key risks associated with a 1222-day firm fixed-price contract for heavy civil engineering?

A 1222-day (approximately 3.3 years) firm fixed-price contract for heavy civil engineering presents several risks. For the contractor, the primary risk is underestimating costs, encountering unforeseen site conditions (e.g., soil instability, hazardous materials), or experiencing significant material price escalations over the long duration, all of which could lead to financial losses. For the government, risks include potential contractor default or performance issues, especially if the contractor faces financial difficulties due to cost overruns. There's also a risk that the fixed price may not reflect the most current market value if conditions change dramatically. Effective oversight, clear contract terms, and robust risk management plans are crucial to mitigate these potential issues.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the bidding process and potential cost savings?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates that the solicitation was made available to all responsible sources capable of meeting the requirements, but specific sources were intentionally excluded. The reasons for exclusion could range from security concerns, past performance issues, or specific technical capabilities not being met. While it aims for broad competition, the exclusion of certain entities might limit the overall number of bids received. This could potentially impact price discovery and the extent of cost savings achievable compared to a truly unrestricted full and open competition. The justification for excluding sources would be critical to understanding the implications for taxpayer value.

What is the significance of this contract being a 'DELIVERY ORDER'?

This contract being a 'DELIVERY ORDER' signifies that it was issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. Instead of a standalone contract for a specific project, a delivery order represents a specific task or order placed against a broader contract that allows for the procurement of goods or services over a period. This approach is often used to streamline the acquisition process for recurring needs or a range of potential projects. It implies that the initial contract vehicle itself underwent a competitive process, and this delivery order represents a specific call for services within the scope of that larger agreement.

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: 1

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

Financial Breakdown

Contract Ceiling: $17,943,828

Exercised Options: $17,943,828

Current Obligation: $17,943,828

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P809D0048

IDV Type: IDC

Timeline