DHS awards $30M for Illinois waterway bridge replacement, impacting navigation and regional infrastructure

Contract Overview

Contract Amount: $30,037,955 ($30.0M)

Contractor: Canadian National Railway Company

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-21

End Date: 2011-05-30

Contract Duration: 616 days

Daily Burn Rate: $48.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::70 0618::TAS REPLACE EXISTING VERTICAL LIFT BRIDGE WITH ANOTHER AND WIDER VERTICAL LIFT BRIDGE PROVIDING 300 FT HORIZONTAL CLEARANCE OF THE ELGIN, JOLIET, & EASTERN BRIDGE (EJ&E) OVER ILLINOIS WATERWAY, MILE 270.6

Place of Performance

Location: JOLIET, WILL County, ILLINOIS, 60431

State: Illinois Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.0 million to CANADIAN NATIONAL RAILWAY COMPANY for work described as: TAS::70 0618::TAS REPLACE EXISTING VERTICAL LIFT BRIDGE WITH ANOTHER AND WIDER VERTICAL LIFT BRIDGE PROVIDING 300 FT HORIZONTAL CLEARANCE OF THE ELGIN, JOLIET, & EASTERN BRIDGE (EJ&E) OVER ILLINOIS WATERWAY, MILE 270.6 Key points: 1. Contract value of $30M for bridge construction indicates significant investment in critical infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The project's focus on replacing a vertical lift bridge highlights the need for modernizing aging transportation assets. 4. The geographic location in Illinois positions the project to benefit regional commerce and transportation networks. 5. The definitive contract type suggests a clear scope of work and established terms for the project. 6. The project duration of 616 days points to a substantial construction timeline.

Value Assessment

Rating: good

The contract value of $30,037,955 for bridge construction appears reasonable given the scope of replacing a vertical lift bridge with enhanced clearance. Benchmarking against similar large-scale infrastructure projects, particularly those involving waterway navigation and complex engineering, would provide a more precise value assessment. However, the fixed-price nature of the contract offers cost certainty to the government, assuming the scope is well-defined.

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 approach generally fosters a competitive environment, potentially leading to more favorable pricing and innovative solutions for the government. The number of bidders is not specified, but the open competition is a positive signal for price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers and encourages contractors to submit competitive bids.

Public Impact

The primary beneficiaries are users of the Illinois Waterway, including commercial shipping and recreational boaters, who will experience improved navigation. The project delivers a critical infrastructure upgrade by replacing an aging vertical lift bridge with a wider, more modern structure. The geographic impact is concentrated in Illinois, specifically along Mile 270.6 of the Illinois Waterway. The project will likely involve a significant construction workforce, including engineers, laborers, and specialized trades, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or construction complexities arise during the project.
Risk of schedule delays due to weather, supply chain issues, or contractor performance.
Ensuring the long-term durability and maintenance requirements of the new bridge are adequately addressed post-construction.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process that could lead to competitive pricing.
The project addresses a critical infrastructure need, enhancing navigation and safety on the waterway.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a vital part of the nation's infrastructure. The market for large-scale bridge construction is characterized by specialized engineering firms and significant capital investment. The $30 million award is substantial for a single project, reflecting the complexity and scale of replacing a vertical lift bridge over a navigable waterway. Comparable spending benchmarks would involve other major bridge replacement or construction projects, particularly those over significant water bodies or involving complex lifting mechanisms.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the specialized nature and scale of a vertical lift bridge replacement, it is possible that the prime contractor is a large firm. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within specific trades or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability measures would be embedded in the contract's terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases and public reporting requirements for federal spending.

Related Government Programs

Federal Highway Administration Bridge Programs
Army Corps of Engineers Civil Works Projects
Department of Transportation Infrastructure Grants

Risk Flags

Potential for schedule delays
Risk of cost overruns
Complexity of waterway construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.0 million to CANADIAN NATIONAL RAILWAY COMPANY. TAS::70 0618::TAS REPLACE EXISTING VERTICAL LIFT BRIDGE WITH ANOTHER AND WIDER VERTICAL LIFT BRIDGE PROVIDING 300 FT HORIZONTAL CLEARANCE OF THE ELGIN, JOLIET, & EASTERN BRIDGE (EJ&E) OVER ILLINOIS WATERWAY, MILE 270.6

Who is the contractor on this award?

The obligated recipient is CANADIAN NATIONAL RAILWAY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2009-09-21. End: 2011-05-30.

What is the track record of Canadian National Railway Company in performing large-scale federal infrastructure projects?

Canadian National Railway Company (CN) is primarily a freight railway company, not typically a direct contractor for large federal infrastructure projects like bridge construction. Their involvement in this contract as the awardee, rather than a construction firm, suggests they may be the owner or operator of the bridge and are receiving funds for its replacement, possibly through a grant or agreement. CN has a vast network and experience in managing large-scale operations and maintenance of their own infrastructure, but direct experience as a prime federal construction contractor would need separate verification. Their role here is likely as the entity responsible for the bridge's upkeep and replacement, coordinating with actual construction firms.

How does the $30 million cost compare to similar vertical lift bridge replacement projects?

The $30 million cost for replacing a vertical lift bridge with 300 ft horizontal clearance is within a plausible range for such complex infrastructure projects. However, a precise comparison is difficult without more specific project details. Factors influencing cost include the bridge's length, height, material, complexity of the lift mechanism, foundation requirements, and the specific environmental and site conditions of the Illinois Waterway. Projects involving significant navigation channel requirements and extensive engineering often run into tens or even hundreds of millions of dollars. For instance, major bridge replacements in urban areas or over large bodies of water can significantly exceed this figure. This $30 million award suggests a project of considerable scale but perhaps not the most complex or extensive type of vertical lift bridge replacement.

What are the primary risks associated with this specific bridge replacement project?

The primary risks associated with this bridge replacement project include: 1. **Construction Complexity:** Replacing a vertical lift bridge over an active waterway presents significant engineering and logistical challenges. Ensuring uninterrupted navigation during construction phases is critical and complex. 2. **Environmental Factors:** Working over a waterway can introduce environmental risks, such as potential spills or impacts on aquatic life, requiring stringent mitigation measures. 3. **Schedule Delays:** Weather, unforeseen subsurface conditions, or issues with specialized equipment (like the lift mechanism) can lead to delays, increasing costs. 4. **Contractor Performance:** While competition was open, the performance of the selected contractor and subcontractors is always a risk factor in large construction projects. 5. **Scope Creep:** Changes or additions to the original scope of work during the project can lead to cost overruns and schedule slippage.

What is the historical spending pattern for bridge construction by the U.S. Coast Guard?

The U.S. Coast Guard (USCG), as part of the Department of Homeland Security, is responsible for the safety and security of U.S. navigable waters, which includes the oversight and regulation of bridges. While the USCG does not typically fund or execute large-scale bridge construction projects directly in the same way as the Department of Transportation or Army Corps of Engineers, they do play a role in bridge permitting, safety inspections, and ensuring navigation clearances. Therefore, direct historical spending on bridge *construction* by the USCG might be limited and often tied to specific security or operational infrastructure needs rather than broad transportation initiatives. Their spending is more commonly associated with aids to navigation, vessels, and shore facilities. This particular contract, awarded by DHS/USCG for a bridge replacement, might represent a unique situation or a specific funding mechanism related to waterway infrastructure critical for navigation safety.

How does the 'definitive contract' type impact project oversight and flexibility?

A 'definitive contract' is the final contract awarded after a contract action notice (like a letter of intent or basic ordering agreement) has been issued. In the context of a large construction project like this bridge replacement, a definitive contract typically outlines the full scope of work, price, schedule, and terms and conditions. This provides a clear framework for project oversight, as the government has a detailed agreement to hold the contractor accountable against. It offers more certainty than an indefinite-delivery/indefinite-quantity (IDIQ) contract. However, it can also imply less flexibility for changes compared to more adaptable contract types. Modifications to a definitive contract usually require formal change orders, which can be a more involved process, potentially impacting project timelines if scope adjustments are needed mid-project.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DES Chemins DE FER Nationaux DU Canada

Address: 935 RUE DE LA GAUCHITIERE O 16 ETAGE, MONTREAL

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,037,955

Exercised Options: $30,037,955

Current Obligation: $30,037,955

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline