DoD awards $101.5M contract for Moose Creek Dam Modification, highlighting significant civil engineering investment

Contract Overview

Contract Amount: $101,464,291 ($101.5M)

Contractor: Bauer Foundation Corp

Awarding Agency: Department of Defense

Start Date: 2021-08-23

End Date: 2026-01-06

Contract Duration: 1,597 days

Daily Burn Rate: $63.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOOSE CREEK DAM MODIFICATION

Place of Performance

Location: NORTH POLE, FAIRBANKS NORTH STAR County, ALASKA, 99705

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $101.5 million to BAUER FOUNDATION CORP for work described as: MOOSE CREEK DAM MODIFICATION Key points: 1. The contract's value suggests a substantial project requiring specialized heavy civil engineering expertise. 2. The use of a firm-fixed-price contract indicates a defined scope and cost, transferring risk to the contractor. 3. A single award for this amount warrants scrutiny regarding the competitive landscape and potential for cost efficiencies. 4. The project's duration of nearly four years points to a complex undertaking with long-term implications. 5. Geographic concentration in Alaska may indicate specific regional needs or limited contractor availability. 6. The absence of small business set-asides suggests the prime contract is likely beyond typical small business capacity.

Value Assessment

Rating: fair

Benchmarking this $101.5 million contract against similar heavy civil engineering projects is challenging without more specific scope details. However, the firm-fixed-price structure aims for cost certainty. The number of bidders (7) is a positive sign for competition, but the final price relative to the estimated value or market rates for comparable dam modification projects would be needed for a definitive value assessment. The long duration suggests potential for cost escalation if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 7 bids received. This indicates a broad outreach to potential contractors. The number of bidders suggests a reasonable level of competition for this type of specialized heavy civil engineering work. The agency's ability to attract multiple bids is a positive indicator for price discovery, though the final award price relative to the bids would provide further insight.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and potentially local communities in Alaska relying on the dam's infrastructure. The contract will deliver critical modifications and upgrades to the Moose Creek Dam, ensuring its structural integrity and operational capacity. The geographic impact is concentrated in Alaska, specifically where the Moose Creek Dam is located. The project will likely involve a significant workforce of engineers, construction workers, and support staff, potentially creating local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental issues arise during the multi-year construction.
Risk of schedule delays due to the remote Alaskan location and potential weather-related disruptions.
Dependence on a single prime contractor for a large, complex project could lead to performance issues if not closely monitored.
Limited visibility into the specific technical specifications and performance metrics without further documentation.

Positive Signals

Awarded under full and open competition, suggesting a robust vetting of potential contractors.
Firm-fixed-price contract structure transfers significant cost risk to the contractor.
The project addresses critical infrastructure needs for the Department of Defense.
The contractor, Bauer Foundation Corp, likely possesses specialized expertise for this type of heavy civil engineering work.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dam modification. This sector is characterized by large-scale, complex projects often requiring specialized equipment and expertise. The market size for such infrastructure projects is substantial, driven by government investment in maintaining and upgrading aging public works and military facilities. This specific contract represents a significant investment in critical infrastructure within this sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them mentioned. Given the substantial dollar value and specialized nature of heavy civil engineering and dam modification, it is common for prime contracts of this magnitude to be awarded to large, established firms. The absence of set-asides suggests that the primary focus was on securing the most capable contractor for the complex task, rather than specifically fostering small business participation at the prime contract level.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and project managers responsible for ensuring adherence to contract terms, specifications, and timelines. Transparency is facilitated by the contract award notice, which provides basic details. Further oversight mechanisms would include regular progress reports from the contractor, site inspections, and potentially audits. The Inspector General's office for the Department of Defense would have jurisdiction over investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Program
Military Construction Projects
Infrastructure Modernization Initiatives
Federal Dam Safety Programs

Risk Flags

Potential for cost overruns due to project complexity and duration.
Risk of schedule delays due to remote location and environmental factors.
Need for detailed performance monitoring given the large contract value.
Limited public information on specific technical scope and success metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.5 million to BAUER FOUNDATION CORP. MOOSE CREEK DAM MODIFICATION

Who is the contractor on this award?

The obligated recipient is BAUER FOUNDATION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $101.5 million.

What is the period of performance?

Start: 2021-08-23. End: 2026-01-06.

What is the track record of Bauer Foundation Corp on similar large-scale civil engineering projects, particularly dam modifications?

Bauer Foundation Corp is a well-established entity in the heavy civil engineering and construction sector, known for its work on complex projects including foundations, tunneling, and infrastructure. While specific details on their dam modification portfolio require deeper research, their general expertise in large-scale civil works suggests a capacity to handle such projects. A review of their past performance on government contracts, particularly those with the Department of Defense or Army Corps of Engineers, would be crucial to assess their reliability, on-time delivery, and adherence to budget on similar undertakings. Examining any past disputes, contract modifications, or performance reviews would provide a more comprehensive understanding of their track record.

How does the awarded price of $101.5 million compare to the estimated cost or market benchmarks for dam modification projects of this scale?

Without access to the original bid data or a detailed cost breakdown, a precise comparison of the $101.5 million award to market benchmarks is difficult. However, the firm-fixed-price nature of the contract implies that this amount was determined to be a fair and reasonable price based on the bids received and the government's cost estimates. To assess value for money, one would need to compare this figure against the cost of similar dam modification projects undertaken by other federal agencies or state/local governments, adjusting for project complexity, location, and scope. The number of bidders (7) suggests competitive pressure, which typically drives prices towards market efficiency. Further analysis would involve examining the contractor's proposed cost structure and profit margins.

What are the primary risks associated with undertaking a dam modification project in Alaska, and how are they mitigated in this contract?

Projects in Alaska often face unique risks including extreme weather conditions, permafrost, remote logistics, and potentially challenging geological formations. These factors can lead to schedule delays and increased costs. In this contract, the firm-fixed-price structure shifts much of the financial risk of unforeseen conditions to Bauer Foundation Corp. However, the contract likely includes clauses for differing site conditions or force majeure events that could allow for adjustments. The long duration (nearly four years) suggests that the project plan has accounted for seasonal work limitations and potential weather impacts. Robust project management, detailed site investigations prior to award, and contingency planning by the contractor are critical mitigation strategies.

What is the expected impact of these dam modifications on the operational capacity and safety of the Moose Creek Dam?

The specific details of the 'modification' are not provided in the summary data, but dam modification projects typically aim to enhance structural integrity, improve water management capabilities, increase safety margins, and potentially extend the dam's service life. For Moose Creek Dam, these modifications are likely intended to address aging infrastructure, meet updated seismic or environmental standards, or improve its resilience against extreme weather events. The expected impact is a more reliable and safer dam, ensuring its continued function for its intended purpose, which could include flood control, water supply, or supporting military operations. The project's substantial investment underscores its importance to the dam's long-term viability and safety.

How does historical spending on dam maintenance and modification by the Department of Defense compare to this single contract award?

Historical spending data on dam maintenance and modification by the Department of Defense is not readily available in the provided summary. However, the Department of Defense, through entities like the Army Corps of Engineers, is responsible for a vast portfolio of infrastructure, including numerous dams. Annual budgets for military construction and infrastructure sustainment are in the billions of dollars. A single contract of $101.5 million for a specific dam modification, while significant, represents a portion of the overall defense infrastructure investment. To provide context, one would need to analyze historical Army Corps of Engineers budgets for civil works and military construction, specifically looking at allocations for dam repair, rehabilitation, and new construction over several fiscal years.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB21R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bauer Aktiengesellschaft

Address: 13203 BYRD LEGG DR, ODESSA, FL, 33556

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

Financial Breakdown

Contract Ceiling: $101,464,291

Exercised Options: $101,464,291

Current Obligation: $101,464,291

Actual Outlays: $16,244,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline