DoD's $15.8M civil engineering contract awarded to Aquaterra Contracting, LLC, spanning over 900 days

Contract Overview

Contract Amount: $15,827,404 ($15.8M)

Contractor: Aquaterra Contracting, LLC

Awarding Agency: Department of Defense

Start Date: 2002-10-21

End Date: 2005-04-15

Contract Duration: 907 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70001

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to AQUATERRA CONTRACTING, LLC for work described as: Key points: 1. Contract value appears reasonable for the duration and scope of heavy civil engineering work. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 907 days indicates a significant, long-term project. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded by the Department of the Army, aligning with defense infrastructure needs. 6. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction.

Value Assessment

Rating: good

The contract's value of $15.8 million over approximately 2.5 years for heavy civil engineering work seems within a reasonable range for large-scale construction projects. Benchmarking against similar large-scale civil engineering projects awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary financial risk, which can incentivize cost control.

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. This suggests a competitive marketplace for the services required. The presence of two bids, as indicated by the 'no' field, implies some level of competition, though more bidders would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, receiving critical infrastructure construction services. The contract supports the development and maintenance of heavy civil engineering projects, likely related to military installations or infrastructure. The geographic impact is localized to Louisiana, where the contract was performed. The contract likely supported a workforce of skilled construction laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen site conditions or material price fluctuations.
Risk of contractor performance issues impacting project timelines or quality, despite the fixed-price nature.
Limited competition with only two bidders could mean less aggressive pricing than a more crowded field.

Positive Signals

Firm fixed-price contract type effectively transfers cost overrun risk to the contractor.
Awarded under full and open competition, suggesting a fair and accessible bidding process.
The contract duration of over two years indicates a substantial project with potential for significant infrastructure improvement.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical component of the broader construction industry. This sector includes the building of infrastructure such as highways, bridges, tunnels, and utilities. The market for such services is often characterized by large project values, specialized equipment, and skilled labor requirements. Federal spending in this area is substantial, driven by the need to maintain and upgrade national infrastructure, including military facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Aquaterra Contracting, LLC, would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Performance monitoring, quality assurance, and payment approvals are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Highway Administration Contracts
Army Corps of Engineers Civil Works Projects

Risk Flags

Limited competition (2 bidders)
Long contract duration (907 days)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to AQUATERRA CONTRACTING, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AQUATERRA CONTRACTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2002-10-21. End: 2005-04-15.

What is Aquaterra Contracting, LLC's track record with federal contracts, particularly with the Department of Defense?

Analyzing Aquaterra Contracting, LLC's federal contract history reveals a portfolio primarily focused on construction and engineering services. While specific details on past performance quality require deeper investigation into contract close-out reports and any associated performance evaluations, the award of this $15.8 million Department of the Army contract suggests a level of capability and trust from the agency. Further examination of their award history, including the types of projects, agencies served, and contract values, would provide a more comprehensive understanding of their experience and reliability. It is important to cross-reference this information with any available past performance databases or agency feedback to assess their overall track record.

How does the awarded amount of $15.8 million compare to similar heavy civil engineering contracts awarded by the Department of Defense?

The $15.8 million contract value for heavy civil engineering work awarded to Aquaterra Contracting, LLC appears to be within a moderate range for federal infrastructure projects. Large-scale civil engineering projects, such as those involving significant earthmoving, structural construction, or utility installation, can range from tens of millions to hundreds of millions of dollars. Contracts of this size are common for upgrades or new construction at military installations. To provide a precise benchmark, one would need to compare this award against contracts with similar scopes of work (e.g., airfield construction, barracks renovation, road building) and durations awarded by the Department of Defense or other agencies like the Army Corps of Engineers within the last few years. Factors like location, specific technical requirements, and prevailing market rates significantly influence pricing.

What are the primary risks associated with this firm fixed-price contract for heavy civil engineering construction?

The primary risk for the government in a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to maximize profit if costs exceed initial estimates, although the FFP structure itself places most financial risk on the contractor. For Aquaterra Contracting, LLC, the risks include underestimating project costs, encountering unforeseen site conditions (e.g., soil instability, hazardous materials), material price escalations, or labor shortages, all of which could reduce their profit margin or lead to financial losses if not adequately managed. The 907-day duration also increases the potential for such risks to materialize over time. Robust project management, contingency planning, and clear performance standards are crucial for mitigating these risks.

What does the 'full and open competition' with two bidders imply for the effectiveness of the procurement process and taxpayer value?

Awarding this contract under 'full and open competition' signifies that the Department of the Army made efforts to solicit bids from all interested and capable sources, which is a cornerstone of effective federal procurement. However, the fact that only two bids were received suggests that the market for this specific type of heavy civil engineering service, or the specific requirements of this solicitation, may not have attracted a larger pool of competitors. While two bidders still provide a basis for price comparison, a more robust competition (e.g., 3-5 or more bidders) typically leads to more aggressive pricing and potentially better value for taxpayers. The limited number of bidders could indicate factors such as high barriers to entry, specialized requirements, or insufficient market research prior to solicitation.

How does the NAICS code 237990 (Other Heavy and Civil Engineering Construction) define the scope of work for this contract?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' encompasses establishments primarily engaged in the construction of infrastructure projects not classified elsewhere. This typically includes projects such as bridges, tunnels, dams, highways, streets, public sidewalks, pipelines, power lines, and marine construction (e.g., docks, piers). For this Department of the Army contract, it implies the work involved substantial civil engineering tasks, potentially related to base infrastructure, utility systems, or transportation networks within a military installation or supporting facility. The specific nature of the 'other' category means the exact scope could be diverse, ranging from site preparation and excavation to the installation of complex utility systems or structural components.

What are the potential workforce implications of a $15.8 million construction contract lasting over two years?

A federal contract valued at $15.8 million and spanning approximately 907 days (over two years) would likely necessitate a significant workforce. This would include a range of skilled trades such as heavy equipment operators, electricians, plumbers, concrete finishers, and general laborers, alongside project management, engineering, surveying, and administrative support staff. The employment generated would primarily benefit the local economy in Louisiana, where the contract was performed. The duration suggests a sustained need for these roles, contributing to job stability for the employed individuals and supporting businesses within the construction supply chain.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 405 INDUSTRIAL RD, ROBSTOWN, TX, 78380

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline