Army awards $156M contract for Hurricane Rita restoration, highlighting construction needs post-disaster

Contract Overview

Contract Amount: $15,603,531 ($15.6M)

Contractor: LJC Defense Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2005-10-07

End Date: 2005-12-31

Contract Duration: 85 days

Daily Burn Rate: $183.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200601!600057!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P905D0521 !A!N! !N!CZ08 ! !20051007!20051104!967972324!967972324!967972324!N!LJC DEFENSE CONTRACTING INC !110 N BELL ST !DOTHAN !AL!36303!11755!003!22!CALCASIEU !ALLEN !LOUISIANA !+000004999505!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !ZHR !HURRICANE RITA !238160!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!J!2!005!A! !D!N!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to LJC DEFENSE CONTRACTING INC for work described as: 200601!600057!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P905D0521 !A!N! !N!CZ08 ! !20051007!20051104!967972324!967972324!967972324!N!LJC DEFENSE CONTRACTING INC !110 N BELL ST !DOTHAN !AL!36303!11755!003!22!CALCASIEU !ALLE… Key points: 1. Contract awarded for critical post-hurricane restoration activities, addressing infrastructure damage. 2. Full and open competition suggests a robust bidding process for construction services. 3. Contract duration of 85 days indicates a focused effort on immediate recovery. 4. The award to LJC Defense Contracting Inc. signifies a specific capability in disaster recovery construction. 5. Geographic focus on Louisiana underscores the impact of natural disasters on regional infrastructure. 6. Firm fixed-price contract type provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $156 million for restoration activities appears reasonable given the scale of Hurricane Rita's impact. While specific benchmarks for post-hurricane construction of this magnitude are difficult to establish without detailed project scope, the firm fixed-price nature suggests a negotiated price that the government deemed acceptable. The award amount is within a typical range for large-scale construction contracts following major natural disasters.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 5 bids were received, suggesting a healthy level of competition for this significant restoration project. This competitive environment likely contributed to achieving a fair market price for the construction services required.

Taxpayer Impact: A competitive bidding process for disaster recovery ensures that taxpayer funds are used efficiently, securing the best possible value for essential reconstruction efforts.

Public Impact

Residents and businesses in Louisiana, particularly in areas affected by Hurricane Rita, benefit from the restoration of essential infrastructure. Services delivered include construction and restoration activities crucial for rebuilding communities. The geographic impact is concentrated in Louisiana, specifically Calcasieu and Allen parishes. Workforce implications include employment opportunities for construction labor and related trades in the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during restoration.
Dependence on contractor's ability to mobilize and complete work within the specified timeframe.
Risk of quality issues if not adequately supervised during extensive construction.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a competitive pricing environment.
Award to a specific contractor indicates a known entity for defense contracting.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on disaster recovery and restoration. The market for post-disaster construction is often characterized by urgent needs and significant government investment. Comparable spending benchmarks would typically be assessed against other large-scale infrastructure repair projects following major natural disasters, where costs can fluctuate based on material availability, labor, and the extent of damage.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large dollar value and the nature of disaster recovery construction, it is possible that larger firms were primary bidders. However, the prime contractor may engage small businesses as subcontractors for specialized tasks, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for managing construction contracts. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver the specified work within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Hurricane Recovery Programs
Army Corps of Engineers Construction Contracts
Disaster Relief and Infrastructure Repair
Federal Emergency Management Agency (FEMA) Support Contracts

Risk Flags

Potential for schedule delays due to post-disaster conditions.
Risk of scope creep if additional damage is discovered.
Contractor performance and capacity under pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to LJC DEFENSE CONTRACTING INC. 200601!600057!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P905D0521 !A!N! !N!CZ08 ! !20051007!20051104!967972324!967972324!967972324!N!LJC DEFENSE CONTRACTING INC !110 N BELL ST !DOTHAN !AL!36303!11755!003!22!CALCASIEU !ALLEN !LOUISIANA !+000004999505!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !ZHR !HURRICANE RITA !238160!E! !5!B!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is LJC DEFENSE CONTRACTING 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 $15.6 million.

What is the period of performance?

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

What was the specific scope of 'Restoration Activities' covered under this contract?

The contract, identified by NAICS code 238160 (Roofing Contractors), and associated with Hurricane Rita, likely encompassed a range of repair and reconstruction services. Given the nature of hurricane damage, this could include roof repairs, structural stabilization, debris removal related to damaged structures, and potentially other building envelope repairs. The specific details would be outlined in the contract's Statement of Work (SOW), which is not provided in the abbreviated data. However, the focus on roofing suggests a primary need for addressing water ingress and structural integrity of buildings affected by high winds and flooding.

How does the $156 million award compare to other Hurricane Rita recovery contracts?

Comparing this $156 million award to other Hurricane Rita recovery contracts requires access to a broader dataset of disaster relief spending. However, for a single contract focused on restoration activities, particularly roofing, this represents a substantial investment. Major hurricanes often necessitate numerous contracts across various categories like debris removal, temporary housing, infrastructure repair (roads, bridges, utilities), and building reconstruction. This contract likely represents a significant portion of the funding allocated to rebuilding damaged structures in specific parishes like Calcasieu and Allen, Louisiana.

What are the potential risks associated with a short contract duration (85 days) for such a large sum?

A short contract duration of 85 days for a $156 million restoration project presents several risks. The primary risk is the contractor's ability to mobilize resources, procure materials, and execute the required work within such a compressed timeline, especially in a disaster-stricken area where infrastructure may be compromised. This could lead to rushed work, potentially impacting quality and safety. There's also a risk of cost escalation if unforeseen issues require more time or resources than initially planned, although the firm fixed-price nature aims to mitigate this. The government's oversight capacity also needs to be robust to ensure progress and compliance within the tight schedule.

What is the significance of the contractor, LJC Defense Contracting Inc., in the context of this award?

LJC Defense Contracting Inc. was awarded this significant contract. While the abbreviated data does not provide a detailed history of the contractor's performance or specialization, their involvement suggests they possess the necessary qualifications and capacity to undertake large-scale construction and restoration projects, particularly those funded by the Department of Defense. Their ability to win a full and open competition bid for a post-disaster recovery contract indicates a level of experience and competitiveness within the federal contracting landscape. Further investigation into their past performance and contract history would provide deeper insights into their reliability for such critical missions.

How does the geographic focus on Louisiana parishes (Calcasieu, Allen) inform the contract's purpose?

The specific geographic focus on Calcasieu and Allen parishes in Louisiana directly links this contract to the immediate aftermath of Hurricane Rita. These areas were significantly impacted by the storm's landfall and subsequent surge and winds. Awarding the contract for restoration activities in these specific parishes indicates a targeted effort to rebuild and repair damaged homes, businesses, and potentially public facilities within the most affected communities. This localized approach ensures that federal recovery funds are directed to where the damage was most severe, aiding in the recovery and resilience of these particular regions.

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: SEALED BID

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 N BELL ST, DOTHAN, AL, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P905D0521

IDV Type: IDC

Timeline