DOD awards $14.3M for Florida reservoir engineering, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $14,343,040 ($14.3M)

Contractor: Hdr-Gannett Fleming JV

Awarding Agency: Department of Defense

Start Date: 2021-09-09

End Date: 2024-10-02

Contract Duration: 1,119 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INDIAN RIVER LAGOON SOUTH, C-23/24 SOUTH RESERVOIR, ST LUCIE COUNTY, FLORIDA

Place of Performance

Location: PORT SAINT LUCIE, SAINT LUCIE County, FLORIDA, 34952

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to HDR-GANNETT FLEMING JV for work described as: INDIAN RIVER LAGOON SOUTH, C-23/24 SOUTH RESERVOIR, ST LUCIE COUNTY, FLORIDA Key points: 1. Contract addresses critical environmental and water management needs in the Indian River Lagoon. 2. Engineering services are essential for complex infrastructure projects, indicating a focus on technical expertise. 3. The firm-fixed-price structure aims to control costs for the Department of Defense. 4. A single award suggests a focused approach to a specific engineering challenge. 5. The contract duration of nearly three years points to a substantial and ongoing project. 6. Geographic focus on St. Lucie County, Florida, targets a specific regional environmental concern.

Value Assessment

Rating: good

The contract value of $14.3 million for engineering services appears reasonable given the scope of work involving reservoir design and environmental considerations in Florida. Benchmarking against similar large-scale civil engineering projects managed by the Department of Defense suggests that costs are within expected ranges for complex, multi-year undertakings. The firm-fixed-price contract type provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. The specific number of bidders is not provided, but the open competition process generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach suggests the agency sought the best technical solution and value from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of proposals, potentially driving down costs and ensuring the government receives high-quality services at a competitive price.

Public Impact

Benefits residents and ecosystems of the Indian River Lagoon region through improved water management. Delivers essential engineering and design services for critical water infrastructure. Geographic impact is concentrated in St. Lucie County, Florida. Supports specialized engineering jobs within the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term engineering projects if not managed tightly.
Reliance on a single contractor for a critical phase of infrastructure development.
Environmental regulations and permitting can introduce unforeseen delays and costs.

Positive Signals

Clear definition of engineering services required for reservoir construction.
Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting market-driven value.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting civil and environmental engineering for public infrastructure. The market for such services is characterized by specialized firms capable of handling large-scale, complex projects. Spending in this area is often driven by government initiatives for water resource management, environmental protection, and infrastructure upgrades. Comparable spending benchmarks would typically involve other large civil works projects, such as dam construction, flood control systems, or water treatment facilities.

Small Business Impact

The contract data indicates that this was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the specialized nature and scale of the engineering services required for a reservoir project, it is likely that the prime contractor is a large firm or joint venture. The absence of specific small business set-aside information suggests that opportunities for small businesses may be limited to indirect support roles or may not have been a primary focus of this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified engineering services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project progress reports may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Environmental Protection Agency Water Infrastructure Projects
Florida Statewide Water Management Initiatives
Indian River Lagoon Restoration Projects

Risk Flags

Potential for environmental permitting delays.
Risk of scope expansion in complex engineering projects.
Long contract duration increases exposure to market volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to HDR-GANNETT FLEMING JV. INDIAN RIVER LAGOON SOUTH, C-23/24 SOUTH RESERVOIR, ST LUCIE COUNTY, FLORIDA

Who is the contractor on this award?

The obligated recipient is HDR-GANNETT FLEMING JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2021-09-09. End: 2024-10-02.

What is the track record of HDR-GANNETT FLEMING JV in delivering similar large-scale civil engineering projects for the Department of Defense or other federal agencies?

The contractor, HDR-GANNETT FLEMING JV, is a joint venture formed by two established engineering firms, HDR Engineering, Inc. and Gannett Fleming, Inc. Both parent companies have extensive experience in designing and managing complex civil infrastructure projects, including water resources, transportation, and environmental engineering. They have a history of successfully executing large contracts with federal agencies, including the Department of Defense and the Army Corps of Engineers. While specific details of past performance on identical projects are not provided in this data, their combined expertise suggests a strong capability to handle the scope and technical demands of the Indian River Lagoon reservoir project. A deeper dive into their past performance ratings and project portfolios would offer more granular insights into their reliability and success rates.

How does the awarded amount of $14.3 million compare to the estimated cost or budget for this specific reservoir engineering project?

The provided data indicates an award amount of $14,343,039.87. Without access to the government's initial cost estimates or the detailed budget allocated for the C-23/24 South Reservoir project, a direct comparison is challenging. However, the fact that the contract was awarded under full and open competition suggests that the bids received were evaluated against the government's expectations. If the award is significantly lower than initial estimates, it could indicate strong competition or efficient bidding. Conversely, if it aligns closely or exceeds estimates, it might suggest the complexity or market rates for specialized engineering services are high. Further analysis would require access to the agency's pre-solicitation cost estimates and any subsequent budget adjustments.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential scope creep, as engineering projects of this magnitude can encounter unforeseen technical challenges or design modifications. Environmental permitting and regulatory compliance also pose risks, as changes in environmental laws or discovery of sensitive habitats could lead to delays and increased costs. Furthermore, the long duration (nearly three years) increases the risk of contractor performance issues or economic fluctuations impacting material and labor costs, despite the firm-fixed-price structure. Mitigation strategies likely include robust project management by the Army Corps of Engineers, clear contract specifications, phased reviews, contingency planning for environmental factors, and performance monitoring throughout the contract lifecycle. The firm-fixed-price nature itself is a risk mitigation tool for the government regarding cost overruns, provided the scope is well-defined.

What is the expected impact of this contract on the local economy and workforce in St. Lucie County, Florida?

This $14.3 million contract for engineering services is expected to have a positive impact on the local economy and workforce in St. Lucie County, Florida. The project will likely create or sustain jobs for engineers, drafters, environmental scientists, surveyors, and administrative staff, both directly with the prime contractor and potentially through local subcontractors. The influx of spending on professional services can also benefit local businesses through contractor expenditures on supplies, equipment, and potentially lodging or services for visiting personnel. Furthermore, the successful completion of the reservoir project is intended to improve water management and environmental conditions in the Indian River Lagoon, yielding long-term benefits for the region's ecosystem, tourism, and overall quality of life.

How does this contract align with broader federal or state initiatives related to water resource management and environmental restoration in Florida?

This contract directly aligns with broader federal and state initiatives focused on water resource management and environmental restoration, particularly concerning the Indian River Lagoon. The lagoon has faced significant environmental challenges, including water quality degradation and habitat loss, often linked to water management practices and runoff. Federal agencies like the Army Corps of Engineers and the Environmental Protection Agency, along with state agencies in Florida, have prioritized projects aimed at improving water flow, reducing pollution, and restoring ecological balance. The construction of the C-23/24 South Reservoir is a key component of these efforts, designed to provide water storage, potentially improve water quality through controlled releases, and mitigate harmful algal blooms. This contract represents a tangible investment in addressing these critical environmental issues.

What is the significance of the 'Delivery Order' (AW: DELIVERY ORDER) contract type in this context?

The 'Delivery Order' (AW: DELIVERY ORDER) designation typically implies that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the overall framework, terms, and conditions were likely established previously, possibly through a competitive process. The delivery order then specifies the exact scope, quantity, delivery schedule, and price for a particular segment of work. In this case, it suggests that the Department of Defense has a broader need for engineering services related to water infrastructure or similar projects, and this specific order fulfills a defined portion of that need for the Indian River Lagoon reservoir. This approach allows for flexibility and efficiency in procuring services over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9123718R0007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HDR, Inc

Address: 2517 SIR BARTON WAY, LEXINGTON, KY, 40509

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

Financial Breakdown

Contract Ceiling: $14,343,040

Exercised Options: $14,343,040

Current Obligation: $14,343,040

Actual Outlays: $2,263,981

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $145,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W9123719D0012

IDV Type: IDC

Timeline