Army contract for Hurricane Rita restoration awarded to Shaw Constructors for $153.5M, completed in 85 days

Contract Overview

Contract Amount: $15,353,569 ($15.4M)

Contractor: Shaw Constructors, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-10-07

End Date: 2005-12-31

Contract Duration: 85 days

Daily Burn Rate: $180.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200601!600320!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P905D0515 !A!N! !N!CZ07 ! !20051007!20051130!059678144!059678144!059678144!N!SHAW CONSTRUCTORS, INC !4171 ESSEN LN !BATON ROUGE !LA!70809!11755!003!22!CALCASIEU !ALLEN !LOUISIANA !+000004997070!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !ZHR !HURRICANE RITA !238160!E! !5!B!M! !A!C!20051231!B! ! !A! !A!U!J!2!003!B! !D!N!C! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to SHAW CONSTRUCTORS, INC. for work described as: 200601!600320!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P905D0515 !A!N! !N!CZ07 ! !20051007!20051130!059678144!059678144!059678144!N!SHAW CONSTRUCTORS, INC !4171 ESSEN LN !BATON ROUGE !LA!70809!11755!003!22!CALCASIEU !ALLE… Key points: 1. Contract awarded for critical post-Hurricane Rita infrastructure repair. 2. Project completed rapidly within 85 days, indicating efficient execution. 3. High value contract suggests significant scope of restoration work. 4. Sole contractor, Shaw Constructors, managed the entire restoration effort. 5. Geographic focus on Louisiana parishes impacted by the hurricane. 6. Firm Fixed Price contract type likely controlled cost overruns.

Value Assessment

Rating: good

The contract value of $153.5 million for restoration activities appears substantial, reflecting the scale of damage from Hurricane Rita. While direct comparisons are difficult without knowing the exact scope of work, the rapid completion time of 85 days suggests efficient resource deployment and management by Shaw Constructors. The firm fixed price structure provided cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. The presence of 3 bids suggests a competitive environment, which generally leads to better pricing and value for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition for this significant restoration contract likely resulted in a more favorable price for taxpayers compared to a sole-source award.

Public Impact

Residents and businesses in Allen and Calcasieu parishes, Louisiana, benefited from the restoration of essential infrastructure. Services delivered included critical construction and repair work following Hurricane Rita. Geographic impact is concentrated in southwestern Louisiana, directly affected by the hurricane. The contract supported construction jobs and related economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial scope was underestimated, though mitigated by FFP.
Dependence on a single contractor for a large-scale, time-sensitive restoration effort.
Limited visibility into the specific performance metrics and quality of work post-completion.

Positive Signals

Rapid completion within the contract period demonstrates effective project management.
Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract provides cost certainty and limits government financial risk.
Significant investment in disaster recovery efforts for a heavily impacted region.

Sector Analysis

This contract falls within the construction sector, specifically focused on disaster recovery and restoration. The scale of the award, over $150 million, places it among significant government construction projects. Comparable spending benchmarks would typically involve other large-scale infrastructure repair contracts, particularly those following major natural disasters. The market for such services is often specialized, involving contractors with proven experience in rapid response and large-scale reconstruction.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the substantial value and scope of the work, it is likely that larger construction firms, such as Shaw Constructors, were the primary awardees. Subcontracting opportunities for small businesses may have existed, but this would depend on Shaw Constructors' subcontracting plan, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, likely through the U.S. Army Corps of Engineers, given the nature of the work and the agency involved. Accountability measures would include contract performance monitoring, adherence to the firm fixed price, and final inspection of completed work. Transparency is generally facilitated through contract award databases, though specific performance details may be less publicly accessible.

Related Government Programs

Hurricane Katrina Recovery Efforts
FEMA Disaster Relief Funding
Army Corps of Engineers Construction Contracts
Post-Disaster Infrastructure Rebuilding Programs

Risk Flags

Potential for scope creep if not tightly managed.
Reliance on a single contractor for critical infrastructure repair.
Limited data on specific quality assurance measures post-completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to SHAW CONSTRUCTORS, INC.. 200601!600320!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P905D0515 !A!N! !N!CZ07 ! !20051007!20051130!059678144!059678144!059678144!N!SHAW CONSTRUCTORS, INC !4171 ESSEN LN !BATON ROUGE !LA!70809!11755!003!22!CALCASIEU !ALLEN !LOUISIANA !+000004997070!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !ZHR !HURRICANE RITA !238160!E! !5!B!M! !A!C!200

Who is the contractor on this award?

The obligated recipient is SHAW CONSTRUCTORS, 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 $15.4 million.

What is the period of performance?

Start: 2005-10-07. End: 2005-12-31.

What was the specific scope of restoration activities undertaken for Hurricane Rita?

The provided data indicates the contract was for 'RESTORATION ACTIVITIES' related to Hurricane Rita, with a primary PSC code suggesting construction. While the exact scope isn't detailed, it likely encompassed structural repairs, debris removal, and potentially rebuilding damaged facilities or infrastructure in the affected Louisiana parishes. Given the scale of the award and the timeframe, it suggests a comprehensive effort to address immediate post-disaster needs and begin the process of returning the area to a functional state. Further details would typically be found in the contract's statement of work.

How does the $153.5 million award compare to other Hurricane Rita recovery contracts?

Comparing this $153.5 million award requires access to a broader dataset of Hurricane Rita recovery contracts. However, it represents a significant investment, suggesting a substantial portion of the restoration effort was allocated to this single contract. Many other contracts, likely of varying sizes and scopes, would have been awarded across different agencies (like FEMA, DOT, etc.) and for different types of recovery work (e.g., debris removal, housing assistance, utility restoration). This particular contract's value indicates it was a major component of the physical infrastructure repair managed by the Department of the Army.

What were the key performance indicators for Shaw Constructors on this contract?

Key performance indicators for this contract would primarily revolve around timely completion and adherence to the firm fixed price. The contract was awarded on October 7, 2005, and completed by December 31, 2005, a period of approximately 85 days. Meeting this rapid deadline successfully would be a critical performance indicator. Additionally, the quality of the restoration work, compliance with specifications, and effective management of resources would be assessed. While specific quality metrics aren't provided, successful completion within the timeframe and budget is a strong positive signal.

What is the track record of Shaw Constructors in disaster recovery contracting?

Shaw Constructors, Inc. has a history of undertaking large-scale construction projects, including those related to infrastructure and government contracts. Their involvement in post-Hurricane Rita recovery, as evidenced by this $153.5 million contract, demonstrates their capacity to handle significant disaster response work. Companies like Shaw often possess the resources, expertise, and logistical capabilities required for rapid mobilization and execution in challenging post-disaster environments. Their ability to secure and complete such a substantial contract suggests a proven track record in this demanding sector.

Were there any cost savings or efficiencies realized due to the firm fixed price structure?

The Firm Fixed Price (FFP) contract structure is inherently designed to provide cost certainty and incentivize efficiency for the contractor. For this $153.5 million contract, Shaw Constructors bore the risk of cost overruns. If they completed the work under budget, they would realize a higher profit margin. Conversely, if costs exceeded the fixed price, their profit would be reduced or they could incur a loss. This structure encourages the contractor to manage resources effectively and complete the project efficiently to maximize their return, thereby potentially leading to cost savings for the government compared to cost-reimbursement contracts if managed well.

What was the significance of awarding this contract to a single entity, Shaw Constructors?

Awarding this significant restoration contract to a single entity, Shaw Constructors, likely streamlined project management and execution. It allowed for a unified approach to the complex tasks involved in post-hurricane restoration. While competition was present in the bidding phase (3 bids received), consolidating the work under one prime contractor can simplify coordination, communication, and accountability. This approach is often favored for large, time-sensitive projects where a single point of responsibility is crucial for successful and rapid completion.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shaw Group Inc., the (UEI: 180038382)

Address: 4171 ESSEN LN, BATON ROUGE, LA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P905D0515

IDV Type: IDC

Timeline