Department of Defense awards $14.96M contract for civil engineering construction, including dike raising and road access

Contract Overview

Contract Amount: $14,957,732 ($15.0M)

Contractor: Three Oaks Construction, Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-27

End Date: 2026-11-18

Contract Duration: 387 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EARTHWORK ON THIS TASK ORDER WILL INCLUDE DIKE RAISING OF THE NORTH, EAST, SOUTH, AND PORTIONS OF THE WEST PERIMETER DIKES, NORTH AND SOUTH DIVISION DIKES, AND ACCESS ROADS TO SPILLBOXES 2 AND 5.

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to THREE OAKS CONSTRUCTION, INC for work described as: EARTHWORK ON THIS TASK ORDER WILL INCLUDE DIKE RAISING OF THE NORTH, EAST, SOUTH, AND PORTIONS OF THE WEST PERIMETER DIKES, NORTH AND SOUTH DIVISION DIKES, AND ACCESS ROADS TO SPILLBOXES 2 AND 5. Key points: 1. The contract focuses on critical infrastructure maintenance and improvement, specifically dike raising and access road construction. 2. The project duration of 387 days suggests a focused scope of work within a defined timeframe. 3. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 4. The award was made under full and open competition after exclusion of sources, suggesting a competitive bidding process. 5. The small value of the contract relative to the broader civil engineering sector suggests it is a specific task order rather than a large-scale program.

Value Assessment

Rating: good

The contract value of $14.96 million for heavy civil engineering construction, including dike raising and road access, appears reasonable for the described scope. Without specific benchmarks for similar dike raising projects in the region or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be favorable for the government. The contract was awarded to Three Oaks Construction, Inc., whose past performance and pricing would be key factors in a deeper value analysis.

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.' This typically means that the agency initially considered excluding certain sources but ultimately opened the competition to all eligible bidders. The number of bidders is not specified, but the designation implies a competitive process was intended and executed, which generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process, even with initial source exclusions, is generally beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the Department of Defense and potentially surrounding communities or ecosystems that rely on the integrity of the dikes for flood control or environmental protection. The services delivered include significant earthwork, specifically raising perimeter and division dikes, and constructing access roads. The geographic impact is localized to the specific military installation or area where the dikes are located, likely within Virginia given the 'VA' state code. The contract supports the heavy and civil engineering construction workforce, potentially creating short-term employment opportunities for skilled laborers, equipment operators, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen geological or environmental conditions are encountered during dike raising.
Dependence on specialized heavy equipment and skilled labor, which could be subject to availability and cost fluctuations.
Risk of delays due to weather or site-specific challenges inherent in civil engineering projects.

Positive Signals

Firm-fixed-price contract structure transfers cost overrun risk to the contractor.
Awarded after full and open competition, suggesting a competitive market and potentially favorable pricing.
Defined project duration (387 days) indicates a clear timeline and manageable scope.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a broad category encompassing infrastructure projects like roads, bridges, dams, and levees. The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' further specifies its niche. Spending in this sector is often driven by government infrastructure investment needs, military base maintenance, and disaster preparedness. Comparable spending benchmarks would typically be found in large-scale civil works projects, though this specific task order appears to be a component of a larger facility maintenance or upgrade program.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Three Oaks Construction, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting strategy, which is not detailed here. This could limit direct opportunities for small businesses in this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. The firm-fixed-price nature provides a degree of financial oversight by locking in costs. Performance monitoring would likely involve regular site inspections and progress reports to ensure work aligns with specifications and timelines. Transparency is facilitated by the contract award being publicly available, though detailed cost breakdowns or internal performance reviews may not be public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Military Base Infrastructure Modernization
Flood Control and Levee Maintenance Programs
Heavy Construction Services Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Weather dependency inherent in earthwork and construction projects.
Availability and cost fluctuations of specialized heavy equipment and materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to THREE OAKS CONSTRUCTION, INC. EARTHWORK ON THIS TASK ORDER WILL INCLUDE DIKE RAISING OF THE NORTH, EAST, SOUTH, AND PORTIONS OF THE WEST PERIMETER DIKES, NORTH AND SOUTH DIVISION DIKES, AND ACCESS ROADS TO SPILLBOXES 2 AND 5.

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 $15.0 million.

What is the period of performance?

Start: 2025-10-27. End: 2026-11-18.

What is the track record of Three Oaks Construction, Inc. with Department of Defense contracts?

Information regarding the specific track record of Three Oaks Construction, Inc. with the Department of Defense is not provided in the given data snippet. A comprehensive analysis would require accessing contract databases (like SAM.gov or FPDS) to review their past performance ratings, previous contract awards, and any history of disputes or performance issues. Understanding their experience with similar civil engineering projects, particularly dike construction and maintenance, would be crucial for assessing their capability and reliability on this current task order. Without this historical data, it's difficult to gauge their suitability beyond the fact they were selected through a competitive process.

How does the $14.96 million cost compare to similar dike raising projects?

Benchmarking the $14.96 million cost against similar dike raising projects is challenging without more specific data on the scope, scale, and location of comparable projects. Factors influencing cost include the volume of earthwork, length and height of dikes, soil conditions, environmental mitigation requirements, and labor/material costs in the specific geographic region. The provided data indicates the project involves perimeter and division dikes, along with access roads, within a 387-day timeframe. A detailed comparison would necessitate identifying projects with similar cubic yardage of fill, linear footage of dike construction, and complexity. Publicly available data on smaller, localized civil engineering tasks can be sparse, making direct comparisons difficult.

What are the primary risks associated with this specific civil engineering task order?

The primary risks associated with this civil engineering task order include potential environmental challenges, such as encountering unexpected soil conditions, groundwater issues, or protected species habitats that could necessitate design changes or delays. Weather-related disruptions are also a significant risk in construction, particularly for earthmoving operations. Furthermore, the availability and cost of specialized heavy equipment and skilled labor could pose risks, especially if market demand is high. Given the nature of dike construction, ensuring structural integrity and long-term stability under various load and environmental conditions is a critical performance risk. Finally, adherence to the firm-fixed-price contract requires the contractor to manage these risks effectively to avoid cost overruns.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for money?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of broad competition with the need to potentially streamline the initial bidder pool. By excluding specific sources, an agency might be targeting firms with particular capabilities or past performance relevant to a specialized requirement. However, opening it to 'full and open' competition thereafter means that any responsible source can bid. This approach can be effective if the initial exclusion criteria were justified and did not unduly restrict competition. The ultimate effectiveness in ensuring value for money depends on the number of responsive bids received, the competitiveness of the proposals, and the agency's evaluation process. If the exclusion significantly limits the pool of capable bidders, it could potentially reduce competitive pressure and impact value.

What is the historical spending pattern for similar heavy and civil engineering construction contracts by the Department of Defense?

Historical spending patterns for similar heavy and civil engineering construction contracts by the Department of Defense are substantial, reflecting the vast infrastructure needs of military installations worldwide. The Department of Defense consistently ranks among the largest federal government clients for construction services. Spending often fluctuates based on military readiness requirements, base realignment and closure initiatives, and modernization programs. Contracts under NAICS code 237990, specifically, cover a wide range of projects from airfield construction and repair to utility infrastructure and specialized earthworks like levees and dams. Analyzing historical data would reveal trends in contract values, average durations, and the prevalence of different contract types (e.g., firm-fixed-price vs. cost-plus) for similar scopes of work.

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

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: $14,957,732

Exercised Options: $14,957,732

Current Obligation: $14,957,732

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