Department of Defense awards $27.7M for levee construction, highlighting infrastructure needs in Iowa
Contract Overview
Contract Amount: $27,688,450 ($27.7M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2012-03-27
End Date: 2014-06-30
Contract Duration: 825 days
Daily Burn Rate: $33.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: SRT / ER - CONSTRUCT SETBACK LEVEE (NEAR HWY 2) - PN: 332148
Place of Performance
Location: PERCIVAL, FREMONT County, IOWA, 51648
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to WESTON SOLUTIONS INC for work described as: SRT / ER - CONSTRUCT SETBACK LEVEE (NEAR HWY 2) - PN: 332148 Key points: 1. Contract value represents a significant investment in regional infrastructure resilience. 2. Competition dynamics suggest a robust market for heavy civil engineering services. 3. Performance period indicates a multi-year commitment to project completion. 4. Project location in Iowa points to specific regional environmental or security concerns. 5. Contract type (Cost Plus Fixed Fee) may allow for flexibility but requires careful cost oversight. 6. The North American Industry Classification System (NAICS) code 237990 signifies specialized construction services.
Value Assessment
Rating: fair
Benchmarking the value of this specific levee construction contract against similar projects is challenging without more granular data on scope and materials. However, the total award amount of approximately $27.7 million for a project spanning over two years suggests a substantial undertaking. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for unforeseen issues, can sometimes lead to higher final costs compared to fixed-price contracts if not managed diligently. Further analysis would require comparing the cost per linear foot or cubic yard of materials against regional construction cost indices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. With 12 bids received, this suggests a healthy level of interest and competition for this type of heavy civil engineering work. A competitive bidding process generally leads to more favorable pricing for the government, as contractors strive to offer their best terms to secure the award. The presence of numerous bidders also implies a mature market with sufficient capacity to meet the government's needs.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the overall cost of the project and ensured the government received competitive pricing for essential infrastructure work.
Public Impact
The primary beneficiaries are likely residents and businesses in the vicinity of the levee, gaining enhanced protection against flooding. The project delivers critical civil engineering services focused on environmental protection and infrastructure resilience. Geographic impact is concentrated in Iowa, addressing specific local needs. The project supports the construction workforce, including skilled laborers, engineers, and project managers in the civil engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
- The duration of the contract (825 days) requires sustained project management and oversight to ensure timely completion.
- Specific details on the environmental impact mitigation measures are not readily available, posing potential ecological risks.
Positive Signals
- Awarded under full and open competition, ensuring a competitive pricing environment.
- The project addresses critical infrastructure needs, enhancing public safety and resilience.
- The contractor, Weston Solutions Inc., has a track record in environmental and infrastructure projects.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on projects like levees and flood control. This sector is crucial for national infrastructure development and resilience against environmental challenges. The market size for such specialized construction can be substantial, particularly in regions prone to natural disasters. Comparable spending benchmarks would involve analyzing other federal and state contracts for similar flood control or levee reinforcement projects, considering factors like project scale, materials used, and geographic location.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses through set-asides appears minimal for this particular award. However, the prime contractor, Weston Solutions Inc., may engage small businesses as subcontractors for specialized services or materials, contributing indirectly to the small business ecosystem. Further investigation into subcontracting plans would be necessary to fully assess the impact.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- US Army Corps of Engineers Civil Works Projects
- Federal Emergency Management Agency (FEMA) Hazard Mitigation Grants
- Environmental Protection Agency (EPA) Infrastructure Funding
- Department of the Interior Bureau of Reclamation Projects
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Need for detailed oversight of contractor's cost accounting and project management.
- Environmental impact assessment and mitigation effectiveness require scrutiny.
- Ensuring timely completion within the specified duration.
Tags
construction, department-of-defense, iowa, full-and-open-competition, delivery-order, cost-plus-fixed-fee, heavy-and-civil-engineering, infrastructure, flood-control, weston-solutions-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to WESTON SOLUTIONS INC. SRT / ER - CONSTRUCT SETBACK LEVEE (NEAR HWY 2) - PN: 332148
Who is the contractor on this award?
The obligated recipient is WESTON SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $27.7 million.
What is the period of performance?
Start: 2012-03-27. End: 2014-06-30.
What is the track record of Weston Solutions Inc. in completing similar large-scale civil engineering projects, particularly those involving flood control or levee construction?
Weston Solutions Inc. has a significant history of undertaking complex environmental and infrastructure projects. While specific details on levee construction projects awarded under CPFF contracts are not immediately available in this dataset, the company's portfolio often includes remediation, construction, and engineering services for government and private sector clients. Their experience typically spans areas like water resources, coastal protection, and hazardous waste management. A deeper dive into their past performance reports and project history, particularly with the Department of Defense or Army Corps of Engineers, would provide a more precise assessment of their capabilities and success rates in delivering similar projects on time and within budget.
How does the awarded amount of $27.7 million compare to the estimated cost or budget for similar levee construction projects in the Midwest region?
Comparing the $27.7 million award to similar projects requires detailed project specifications, such as the length of the levee, height, materials, and specific site conditions. However, large-scale civil engineering projects like levee construction are inherently expensive. For context, major flood control projects managed by the Army Corps of Engineers can range from tens of millions to hundreds of millions of dollars. The cost per linear foot can vary significantly based on terrain and engineering requirements. Without specific benchmarks for Iowa or the Midwest for projects of comparable scope and complexity, it's difficult to definitively state if this award is high or low. However, the competitive bidding process suggests the price was deemed fair and reasonable by the procuring agency at the time of award.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a project of this nature, and what mitigation strategies are in place?
The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can incentivize less cost-conscious behavior if not managed properly. Risks include scope creep, inefficient resource allocation, and unforeseen site conditions that drive up costs. Mitigation strategies typically involve robust government oversight of all incurred costs, detailed review of invoices, clear definition of contract scope, and strong project management by the government's technical team. Regular progress meetings and audits are crucial to ensure costs remain reasonable and the project stays aligned with its objectives. The fixed fee component provides some incentive for the contractor to complete the work efficiently to maximize their profit margin.
What is the expected impact of this levee construction project on local flood risk and community resilience in Iowa?
The construction of a levee is intended to significantly reduce the risk of flooding in the protected area, thereby enhancing community resilience. By providing a physical barrier against rising water levels, the levee aims to safeguard homes, businesses, infrastructure, and agricultural land from flood damage. The specific impact will depend on the design capacity of the levee (e.g., the level of flood event it is engineered to withstand) and the geographic area it encompasses. This project likely addresses a known vulnerability in the region, contributing to long-term safety and economic stability by preventing costly flood-related disruptions and recovery efforts.
How has federal spending on heavy and civil engineering construction, particularly for infrastructure resilience, trended in recent years, and does this contract align with those trends?
Federal spending on heavy and civil engineering construction, especially for infrastructure resilience, has generally seen an upward trend, driven by aging infrastructure, increasing climate change impacts (like more severe weather events), and legislative initiatives aimed at modernization. Programs like the Bipartisan Infrastructure Law have allocated significant funds towards improving roads, bridges, water systems, and resilience projects. This $27.7 million contract for levee construction aligns with this broader trend of investing in critical infrastructure and enhancing resilience against natural hazards. It reflects a continued federal commitment to addressing infrastructure deficits and mitigating risks associated with environmental factors.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9128F07R0022
Offers Received: 12
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)
Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Agricultural Cooperative, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $27,688,450
Exercised Options: $27,688,450
Current Obligation: $27,688,450
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F08D0031
IDV Type: IDC
Timeline
Start Date: 2012-03-27
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2021-04-29
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