Department of the Army awards $16.3M contract for Louisiana levee construction, highlighting civil engineering needs

Contract Overview

Contract Amount: $16,295,570 ($16.3M)

Contractor: Creek Services, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2009-12-16

End Date: 2012-12-31

Contract Duration: 1,111 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAKE PONTCHARTRAIN AND VICINITY, NORTH OF AIRLINE HIGHWAY, ST. CHARLES PARISH, LEVEE - REACH 1B FROM I-310 TO WALKER DRAINAGE STRUCTURE - PHASE 2.

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to CREEK SERVICES, L.L.C. for work described as: LAKE PONTCHARTRAIN AND VICINITY, NORTH OF AIRLINE HIGHWAY, ST. CHARLES PARISH, LEVEE - REACH 1B FROM I-310 TO WALKER DRAINAGE STRUCTURE - PHASE 2. Key points: 1. Contract value of $16.3M suggests significant investment in critical infrastructure. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Project duration of over 3 years points to a complex and lengthy construction effort. 4. Fixed-price contract type shifts risk to the contractor, encouraging cost control. 5. Geographic focus on St. Charles Parish, Louisiana, addresses specific regional needs. 6. The nature of the work aligns with ongoing civil engineering and disaster preparedness efforts.

Value Assessment

Rating: good

The contract value of $16.3 million for levee construction appears reasonable for a project of this scale and duration. Benchmarking against similar heavy civil engineering projects in the region would provide a more precise assessment of value for money. The firm fixed-price structure suggests the government sought to control costs, but the final price is dependent on the contractor's efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was sought, certain sources may have been excluded for specific reasons. The presence of 4 bidders indicates a degree of competition, but the exclusion of sources might limit the full potential for price discovery compared to truly unrestricted full and open competition.

Taxpayer Impact: The limited competition, even with multiple bidders, may mean taxpayers did not benefit from the absolute lowest possible price achievable in an unrestricted market. However, the exclusion of sources might have been justified by specific technical requirements or past performance considerations.

Public Impact

Residents and businesses in St. Charles Parish, Louisiana, benefit from enhanced flood protection. The project delivers critical civil engineering services for levee reinforcement and maintenance. Geographic impact is concentrated in the Lake Pontchartrain and vicinity area. The construction effort likely supports local employment in the civil engineering and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on contractor's ability to meet complex engineering and environmental standards.
Risk of schedule delays due to weather or logistical challenges in construction.
Limited transparency on the specific reasons for excluding certain sources from competition.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Multiple bidders (4) suggest a competitive environment was established.
Project addresses critical infrastructure needs for flood control.
Contract awarded to a specific entity (CREEK SERVICES, L.L.C.) implies a selection based on qualifications.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a vital part of the nation's infrastructure development and maintenance. This sector is characterized by large-scale projects, significant capital investment, and specialized expertise. Spending in this area is often driven by government initiatives for disaster preparedness, environmental protection, and transportation networks. Comparable spending benchmarks would involve looking at other federal or state contracts for levee construction, flood control, and similar civil works.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CREEK SERVICES, L.L.C., is likely a larger entity. There is no direct information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified work within the agreed price. Transparency is generally provided through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
Hurricane Protection Projects
Flood Control Infrastructure
Coastal Resilience Initiatives

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting critical flood protection timelines.
Environmental compliance challenges in sensitive coastal areas.
Contract awarded under a method that excluded some potential bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to CREEK SERVICES, L.L.C.. LAKE PONTCHARTRAIN AND VICINITY, NORTH OF AIRLINE HIGHWAY, ST. CHARLES PARISH, LEVEE - REACH 1B FROM I-310 TO WALKER DRAINAGE STRUCTURE - PHASE 2.

Who is the contractor on this award?

The obligated recipient is CREEK SERVICES, 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 $16.3 million.

What is the period of performance?

Start: 2009-12-16. End: 2012-12-31.

What is the track record of CREEK SERVICES, L.L.C. in performing similar civil engineering and construction contracts for the federal government?

Analyzing the track record of CREEK SERVICES, L.L.C. requires accessing historical contract data. A review of their past performance, particularly on projects of similar scale and complexity (e.g., levee construction, heavy civil engineering), would reveal their ability to meet deadlines, stay within budget, and adhere to quality standards. Past performance evaluations, if available, are crucial indicators. A history of successful project completion suggests a lower risk profile for this current contract. Conversely, a pattern of delays, cost overruns, or quality issues would raise concerns about their capacity to execute the Lake Pontchartrain project effectively.

How does the awarded amount of $16.3 million compare to the estimated cost or benchmark for similar levee construction projects in Louisiana?

To assess the value for money, the $16.3 million award needs to be benchmarked against similar projects. This involves researching the cost per linear foot or per cubic yard of material for levee construction in the Gulf Coast region, considering factors like soil conditions, environmental regulations, and labor costs. If comparable projects in Louisiana or similar coastal areas have been completed at a significantly lower cost, it might indicate that this contract is priced at a premium. Conversely, if the cost aligns with or is below market rates for comparable work, it suggests a reasonable value. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 4 bidders provides some context, but a detailed cost analysis is needed for a definitive value assessment.

What are the primary risks associated with this specific levee construction project in St. Charles Parish, and how are they being mitigated?

Key risks for this levee project include unforeseen subsurface conditions (e.g., unstable soil, buried debris), environmental compliance challenges (e.g., wetlands impact, endangered species), and potential impacts from severe weather events common to the region. Mitigation strategies are likely embedded in the contract's technical specifications and performance requirements. The firm fixed-price structure shifts some financial risk to the contractor, incentivizing them to manage these risks proactively. The 'exclusion of sources' might also relate to specific environmental or technical expertise required, indirectly mitigating certain risks by selecting contractors with proven capabilities in those areas. A thorough review of the contract's risk management plan and contingency measures would provide further insight.

What is the historical spending pattern for levee and flood control projects in the Lake Pontchartrain region by the Department of the Army?

Examining historical spending patterns for levee and flood control projects in the Lake Pontchartrain region by the Department of the Army (specifically the Army Corps of Engineers) is crucial for understanding the scale and frequency of such investments. This analysis would reveal trends in contract values, types of work performed (construction, maintenance, repair), and the number of contracts awarded over time. Significant increases or decreases in spending could indicate shifts in federal priorities, responses to recent environmental events (like hurricanes), or the progress of long-term infrastructure improvement programs. Understanding this historical context helps in evaluating whether the $16.3 million award is consistent with past investment levels or represents a notable change.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the potential for cost savings for taxpayers?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents a nuanced impact on taxpayer savings. While it aims for competition by allowing all responsible sources to submit offers, the explicit exclusion of certain sources means the pool of potential bidders is smaller than in unrestricted full and open competition. This limitation could potentially reduce the intensity of price competition, leading to higher bids than might have been achieved otherwise. However, the exclusion might be based on critical technical requirements or security needs, where ensuring the right capabilities are present is paramount, even at a potentially higher cost. The presence of 4 bidders suggests a reasonable level of interest, but the specific rationale for excluding sources is key to understanding the trade-off between competition and specialized capability.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1112 FIFTH ST, GRETNA, LA, 70053

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $16,295,570

Exercised Options: $16,295,570

Current Obligation: $16,295,570

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P809D0045

IDV Type: IDC

Timeline