Agriculture Dept. Awards $11.2M Construction Contract for Barataria Landbridge Project to Ercon Corporation

Contract Overview

Contract Amount: $11,197,149 ($11.2M)

Contractor: Ercon Corporation

Awarding Agency: Department of Agriculture

Start Date: 2007-02-02

End Date: 2009-02-28

Contract Duration: 757 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BARATARIA LANDBRIDGE CU5 - CONSTRUCTION CONTRACT; MIPR W42HEM50980240

Place of Performance

Location: THIBODAUX, LAFOURCHE County, LOUISIANA, 70302

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.2 million to ERCON CORPORATION for work described as: BARATARIA LANDBRIDGE CU5 - CONSTRUCTION CONTRACT; MIPR W42HEM50980240 Key points: 1. The contract, valued at $11.2 million, was awarded for construction services. 2. Competition was conducted under 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding some potential bidders. 3. The contract duration was 757 days, indicating a significant project timeline. 4. The awarding agency is the Department of Agriculture, specifically the Natural Resources Conservation Service. 5. The project is located in Louisiana.

Value Assessment

Rating: fair

The contract value of $11.2 million for heavy civil engineering construction appears within a reasonable range for a project of this nature and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be open, certain sources were excluded. This could potentially limit price discovery and may warrant further investigation into the justification for exclusions.

Taxpayer Impact: The $11.2 million expenditure represents taxpayer investment in infrastructure. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Environmental restoration and infrastructure development in Louisiana. Potential impact on local ecosystems and coastal resilience. Job creation and economic activity in the region during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Justification for exclusion of sources in competition needs review.
Potential for cost overruns given project complexity and duration.

Positive Signals

Awarded to a single firm, potentially streamlining project management.
Project addresses critical infrastructure needs in a vulnerable region.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector. Spending in this sector is often driven by infrastructure needs, environmental projects, and disaster recovery efforts. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data indicates the contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The awarding agency is the Department of Agriculture. Oversight would typically involve contract management, performance monitoring, and financial accountability to ensure the project meets its objectives and stays within budget.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Agriculture Contracting
Natural Resources Conservation Service Programs

Risk Flags

Limited competition due to source exclusion.
Long project duration increases risk of unforeseen costs.
Potential environmental sensitivities in the Barataria Landbridge area.
Lack of small business awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.2 million to ERCON CORPORATION. BARATARIA LANDBRIDGE CU5 - CONSTRUCTION CONTRACT; MIPR W42HEM50980240

Who is the contractor on this award?

The obligated recipient is ERCON CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Natural Resources Conservation Service).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2007-02-02. End: 2009-02-28.

What was the specific justification for excluding sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion impact the final price?

The justification for excluding sources is critical for understanding the competitive landscape. If specific capabilities or prior performance were required, it might limit the pool of bidders. A thorough review of the solicitation documents and award justification would reveal the reasons for exclusion and assess whether this led to a less competitive environment and potentially a higher price than could have been achieved through unrestricted full and open competition.

Are there any identified risks associated with the 'Other Heavy and Civil Engineering Construction' category for this specific project, such as environmental or geological challenges in the Barataria

Projects in coastal and landbridge areas often face unique risks, including environmental sensitivities, complex geological conditions, and potential impacts from weather events. For the Barataria Landbridge, specific risks could include soil instability, saltwater intrusion, and the need for specialized construction techniques. A detailed risk assessment by the agency would outline these potential challenges and mitigation strategies.

How effectively did the firm fixed price contract structure protect the government from cost overruns given the 757-day duration and potential for unforeseen issues?

A firm fixed price contract is generally advantageous for the government as it shifts cost overrun risk to the contractor. However, for long-duration projects like this (757 days), the initial price must be set conservatively. If unforeseen issues arise that were not adequately anticipated or covered by contingency, the contractor might seek change orders, potentially increasing the total cost, or face financial strain if they absorb unexpected costs.

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: SEALED BID

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 108 N PAT ST, SCOTT, LA, 03

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,197,149

Exercised Options: $11,197,149

Current Obligation: $11,197,149

Timeline