DOD awards $2.4M bridge construction contract to LORR CONSTRUCTION, INC. for Ohio project

Contract Overview

Contract Amount: $2,434,862 ($2.4M)

Contractor: Lorr Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-03

End Date: 2026-05-14

Contract Duration: 496 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MKW SERVICE BRIDGE-CONTRACT-TSWO H121

Place of Performance

Location: WARSAW, COSHOCTON County, OHIO, 43844

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to LORR CONSTRUCTION, INC. for work described as: MKW SERVICE BRIDGE-CONTRACT-TSWO H121 Key points: 1. Contract value appears reasonable for a bridge construction project of this duration and scope. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. Project duration of 496 days indicates a significant construction undertaking. 5. Geographic focus on Ohio suggests localized economic and workforce impact. 6. The contract's value falls within typical ranges for infrastructure projects of this nature.

Value Assessment

Rating: good

The contract value of $2.43 million for a 496-day bridge construction project appears to be within a reasonable range for similar infrastructure undertakings. Benchmarking against other federal bridge construction contracts of comparable size and complexity would provide further validation. The firm-fixed-price structure suggests that the contractor has assumed the primary cost risk, which can be beneficial for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded for reasons not detailed in the provided data. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. The exclusion of sources warrants further investigation into the justification.

Taxpayer Impact: The exclusion of certain sources, even within a full and open competition framework, could potentially limit the number of competitive bids received, possibly impacting the final price achieved for taxpayers.

Public Impact

The primary beneficiaries are the residents and businesses in Ohio who will gain improved transportation infrastructure. The contract will deliver essential highway, street, and bridge construction services. The geographic impact is concentrated in Ohio, specifically within the jurisdiction of the Department of the Army's project. The project will likely create or sustain jobs in the construction sector within the local Ohio workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the exclusion of specific sources in the competition process.
Potential for reduced price competition due to the exclusion of certain bidders.
Limited insight into the specific technical requirements and potential for scope creep.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Project duration is clearly defined, allowing for planning and oversight.
Awarded by the Department of Defense, suggesting adherence to established procurement standards.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering projects like bridge construction. The North American Industry Classification System (NAICS) code 237310, 'Highway, Street, and Bridge Construction,' represents a significant segment of the infrastructure market. Federal spending in this area is often driven by the need to maintain and upgrade aging transportation networks. Comparable spending benchmarks would involve analyzing the average cost per mile or per bridge for similar federal projects across different regions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. This suggests that the primary focus was on full and open competition. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether LORR CONSTRUCTION, INC. utilizes small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, a component of the Department of Defense. Accountability measures would include contract performance monitoring, adherence to specifications, and timely delivery. Transparency is generally facilitated through federal procurement databases like SAM.gov, where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Highway Administration Bridge Program
Department of Transportation Infrastructure Grants
Military Construction Projects
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed justification for source exclusion.
Need for further analysis of contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to LORR CONSTRUCTION, INC.. MKW SERVICE BRIDGE-CONTRACT-TSWO H121

Who is the contractor on this award?

The obligated recipient is LORR 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 $2.4 million.

What is the period of performance?

Start: 2025-01-03. End: 2026-05-14.

What is the track record of LORR CONSTRUCTION, INC. with federal contracts, particularly within the Department of Defense?

Information regarding LORR CONSTRUCTION, INC.'s specific track record with federal contracts, especially within the Department of Defense, is not provided in the data. A comprehensive analysis would require accessing historical contract databases to review past performance, any reported issues, and the types of projects they have successfully completed for federal agencies. Understanding their experience with similar bridge construction projects and their performance metrics on those contracts would be crucial for assessing their reliability and capability for this current award.

How does the awarded price of $2.43 million compare to similar bridge construction projects awarded by the Department of Defense in the last two years?

To benchmark the $2.43 million award, a comparative analysis with similar bridge construction contracts awarded by the Department of Defense over the past two years is necessary. This would involve identifying contracts with comparable scope, size (e.g., square footage, length of bridge), complexity, and geographic location. Factors such as the contract type (firm-fixed-price vs. cost-plus) and the duration of the project also need to be considered. Without this comparative data, it is difficult to definitively state whether the price is high, low, or average for the market.

What are the specific risks associated with a firm-fixed-price contract for a project of this nature and duration?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor, LORR CONSTRUCTION, INC. For a project of this nature and duration (496 days), potential risks include the contractor underestimating material costs, labor expenses, or encountering unforeseen site conditions that could lead to financial losses for them. If the contractor faces significant cost overruns, they might be incentivized to cut corners on quality or safety, although contract specifications and oversight aim to prevent this. Conversely, if the contractor accurately estimates costs and manages the project efficiently, they stand to make a higher profit margin, which is the intended benefit of the FFP structure for the government in terms of cost certainty.

What does 'Full and Open Competition After Exclusion of Sources' imply for the overall effectiveness of the competition?

The term 'Full and Open Competition After Exclusion of Sources' suggests a procurement process that initially aimed for broad competition but subsequently excluded specific potential bidders. The reasons for exclusion are critical and could range from non-responsiveness in a prior stage to specific technical qualifications or past performance issues. While it implies that multiple sources were considered, the exclusion of any potential bidders inherently limits the breadth of competition. The effectiveness of the competition hinges on whether the remaining pool of bidders was sufficiently diverse and competitive to drive optimal pricing and value for the government. Without knowing who was excluded and why, it's challenging to fully assess the competitive outcome.

What are the potential workforce implications in Ohio resulting from this $2.43 million bridge construction contract?

This $2.43 million bridge construction contract is likely to have positive workforce implications in Ohio. It will create demand for skilled labor within the construction trades, including engineers, project managers, equipment operators, carpenters, and laborers. The duration of the project (496 days) suggests sustained employment opportunities. Depending on the location within Ohio, it could also stimulate indirect employment in related industries such as material supply, equipment rental, and transportation services. The extent of local hiring and the utilization of local subcontractors will further determine the precise economic impact on the Ohio workforce.

Are there any historical spending patterns for bridge construction within the Department of the Army that this contract aligns with or deviates from?

Analyzing historical spending patterns for bridge construction within the Department of the Army is essential for context. This would involve examining the frequency, value, and types of bridge construction contracts awarded by the Army over several fiscal years. Understanding whether this $2.43 million award is typical, an outlier, or part of an increasing/decreasing trend in Army infrastructure investment would provide valuable insight. It would also be useful to see if the Army typically uses firm-fixed-price contracts for such projects and what the average project durations have been. Deviations from historical norms might warrant further investigation into the specific project requirements or market conditions.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: W9123724B0008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 214 S ALFRED ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $2,533,582

Exercised Options: $2,434,862

Current Obligation: $2,434,862

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline