Army awards $13.4M contract for fill material placement, with delivery expected by January 2026

Contract Overview

Contract Amount: $13,394,115 ($13.4M)

Contractor: Three Oaks Construction, Inc

Awarding Agency: Department of Defense

Start Date: 2024-08-27

End Date: 2026-01-10

Contract Duration: 501 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PLACEMENT OF FILL MATERIAL

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to THREE OAKS CONSTRUCTION, INC for work described as: PLACEMENT OF FILL MATERIAL Key points: 1. Contract value appears reasonable for the scope of heavy civil engineering construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger contract vehicle. 4. Fixed-price contract type mitigates cost overrun risk for the government. 5. The project is located in Virginia, potentially impacting local workforce and resources. 6. The North American Industry Classification System (NAICS) code 237990 covers specialized construction services.

Value Assessment

Rating: good

The contract value of $13.4 million for fill material placement is within a typical range for large-scale civil engineering projects. Benchmarking against similar Army Corps of Engineers projects for earthwork and fill operations suggests this pricing is competitive. The firm fixed-price structure further enhances value by locking in costs, assuming the scope is well-defined. Without specific details on the volume and type of fill material, a precise per-unit cost comparison is difficult, but the overall award seems to represent fair market value for the anticipated services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The specific exclusion of sources suggests a pre-qualification or a specific requirement that narrowed the field, but the 'full and open' aspect implies a broad solicitation. The presence of competition is generally positive for price discovery and ensuring the government receives competitive bids. The number of bidders would provide further insight into the intensity of the competition.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it drives down prices through market forces. It ensures that the government is not limited to a single provider, increasing the likelihood of securing the best possible price for the fill material placement services.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential fill material for its infrastructure projects. Services delivered include the placement of fill material, crucial for construction and land development. The geographic impact is concentrated in Virginia, where the project is located. Potential workforce implications include employment opportunities for construction workers and related trades in the Virginia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the exact volume of fill material is not precisely defined.
Dependence on weather conditions could impact project timelines and potentially lead to delays.
Logistical challenges in transporting and placing large volumes of fill material.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a robust bidding process, likely yielding competitive pricing.
Delivery order structure implies it's part of a pre-established contract vehicle, potentially streamlining execution.

Sector Analysis

The construction sector, particularly heavy and civil engineering, is characterized by large-scale projects requiring specialized equipment and expertise. The North American Industry Classification System (NAICS) code 237990 specifically covers the 'Other Heavy and Civil Engineering Construction' industry, which includes activities like dredging, landfill construction, and the placement of fill material. This contract fits within this sector by addressing a fundamental need for land preparation and infrastructure development. Comparable spending benchmarks for similar earthmoving and fill operations by government agencies can range widely based on project complexity, material type, and location.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) or specific small business subcontracting goals (sb=false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Three Oaks Construction, Inc., chooses to engage them. Without explicit set-asides, large businesses are eligible to compete, and the prime contractor has discretion over subcontracting. This could limit direct opportunities for small businesses unless they are actively sought out by the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract type, which incentivizes the contractor to complete the work within the agreed-upon budget. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Construction Contracts
Civil Works Projects
Infrastructure Development Contracts
Heavy Construction Services
Material Procurement and Placement

Risk Flags

Potential for weather-related delays impacting schedule.
Unforeseen site conditions could affect material requirements or placement methods.
Logistical challenges in sourcing and transporting large volumes of fill material.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to THREE OAKS CONSTRUCTION, INC. PLACEMENT OF FILL MATERIAL

Who is the contractor on this award?

The obligated recipient is THREE OAKS CONSTRUCTION, 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 $13.4 million.

What is the period of performance?

Start: 2024-08-27. End: 2026-01-10.

What is the historical spending pattern for Three Oaks Construction, Inc. with the Department of Defense?

Analyzing the historical spending patterns of Three Oaks Construction, Inc. with the Department of Defense (DoD) is crucial for assessing their track record and capacity. While the provided data focuses on a single contract, a deeper dive into FPDS or other federal procurement databases would reveal the total value and number of contracts awarded to this entity by the DoD over several fiscal years. This analysis would identify trends in contract types (e.g., construction, services), agencies within the DoD they've worked with, and their performance history, including any past issues or commendations. Understanding their past engagement with the DoD provides context for their current award and their reliability as a contractor for similar projects.

How does the per-unit cost of fill material placement compare to industry benchmarks for similar projects in Virginia?

To benchmark the per-unit cost of fill material placement, we would need to ascertain the specific type and volume of fill material, as well as the complexity of the placement operations (e.g., required compaction, distance of transport). The contract value of $13.4 million for an estimated duration of 501 days (approximately 1.6 years) provides a total project cost. Dividing this by the estimated volume of fill material (if available) would yield a per-unit cost. This figure would then be compared against industry cost guides (e.g., RSMeans) or data from similar, publicly available government contracts for earthwork and fill operations in the Virginia region. Factors like material sourcing, labor rates, and equipment utilization significantly influence these costs, making precise comparisons challenging without detailed project specifications.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

Key performance indicators (KPIs) and deliverables for this contract, 'PLACEMENT OF FILL MATERIAL,' would typically revolve around the quality, quantity, and timeliness of the fill material placement. Specific deliverables would likely include detailed progress reports, material testing and certification (ensuring the fill meets specified engineering properties), and final acceptance documentation. KPIs might focus on adherence to project schedules, meeting specified compaction densities, maintaining environmental compliance during placement, and ensuring the final grade and elevation meet design requirements. The firm fixed-price nature of the contract implies that meeting these defined deliverables and performance standards is paramount for the contractor to receive full payment.

What is the risk profile associated with this specific contract, considering its scope and duration?

The risk profile for this contract involves several factors. The primary risks include potential delays due to weather, unforeseen site conditions impacting excavation or placement, and logistical challenges in material delivery and handling. The duration of 501 days (over 1.5 years) increases the exposure to these risks. However, the firm fixed-price contract type mitigates financial risk for the government, as the contractor assumes the burden of cost overruns. The use of 'full and open competition' suggests a vetted contractor, potentially reducing performance risk. The specific nature of 'fill material placement' is generally considered a lower technical risk compared to complex technological procurements, but execution quality remains critical.

Are there any known past performance issues with Three Oaks Construction, Inc. on similar government contracts?

Assessing past performance issues with Three Oaks Construction, Inc. on similar government contracts requires access to performance evaluation data, often found in Contractor Performance Assessment Reporting System (CPARS) or similar databases. Without direct access to these records, it's impossible to definitively state whether they have encountered significant problems. However, the fact that they were awarded this contract, especially under full and open competition, suggests that their past performance, as evaluated by the contracting agency, was deemed satisfactory or better. Agencies typically review past performance as a significant factor in source selection, particularly for larger or more critical contracts.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9123624B5001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S FLYNN ST, NORTH SIOUX CITY, SD, 57049

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,394,115

Exercised Options: $13,394,115

Current Obligation: $13,394,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123624D5001

IDV Type: IDC

Timeline