Army awards $21M contract for Sacramento River levee erosion repair to D D-M Leasing Company

Contract Overview

Contract Amount: $21,008,778 ($21.0M)

Contractor: D D-M Leasing Company, Inc

Awarding Agency: Department of Defense

Start Date: 2006-07-13

End Date: 2009-12-31

Contract Duration: 1,267 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR THREE CRITICAL EROSION SITES ALONG THE SACRAMENTO RIVER LEVEE. WORK REQUIREMENTS INCLUDE RIPRAP ROCK PLACED BANK PROTECTION, RE-BUILDING OF THE TOE BENCH TO INCLUDE ANCHORING IN-STREAM WOODY MATERIAL, SEEDING OF ALL DISTURBED AREAS WITH NATIVE GRASSES, AND THE PLANTING OF TREES AND SHRUBS ON THE BENCH AND WATERSIDE SLOPE. A 3-YEAR ESTABLISHMENT AND MAINTENANCE PERIOD FOR THE TREES AND SHRUBS IS ALSO REQUIRED.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to D D-M LEASING COMPANY, INC for work described as: REPAIR THREE CRITICAL EROSION SITES ALONG THE SACRAMENTO RIVER LEVEE. WORK REQUIREMENTS INCLUDE RIPRAP ROCK PLACED BANK PROTECTION, RE-BUILDING OF THE TOE BENCH TO INCLUDE ANCHORING IN-STREAM WOODY MATERIAL, SEEDING OF ALL DISTURBED AREAS WITH NATIVE GRASSES, AND THE PLANTING OF… Key points: 1. Contract addresses critical erosion control needs along the Sacramento River levee system. 2. Work includes substantial riprap placement, bench rebuilding, and native vegetation establishment. 3. A three-year maintenance period ensures long-term success of planted trees and shrubs. 4. The contract was awarded using full and open competition, suggesting a competitive bidding process. 5. The firm-fixed-price structure shifts cost risk to the contractor. 6. The project duration of 1267 days indicates a significant undertaking in scope and complexity.

Value Assessment

Rating: fair

The contract value of $21 million for levee repair and maintenance appears to be within a reasonable range for a project of this scale and complexity, especially considering the inclusion of a three-year establishment and maintenance period. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment of value for money. The firm-fixed-price contract type generally aims for cost efficiency by incentivizing the contractor to manage expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. While the number of bidders is not explicitly stated, this procurement method typically fosters a competitive environment, which can lead to better pricing and service offerings for the government. The presence of multiple bids would generally be expected in such a scenario.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, potentially driving down costs and improving the quality of services through competitive pressure.

Public Impact

The primary beneficiaries are residents and businesses in areas protected by the Sacramento River levee system, ensuring continued flood protection. Services delivered include critical infrastructure repair, environmental restoration through native plantings, and long-term maintenance. The geographic impact is focused on the Sacramento River corridor in California. The project likely involves a workforce skilled in heavy civil engineering, environmental restoration, and landscaping.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions are encountered, despite the firm-fixed-price structure.
Ensuring the long-term survival and effectiveness of the planted native vegetation requires diligent monitoring and maintenance.
Coordination with various stakeholders along the river may present logistical challenges.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The inclusion of a 3-year establishment and maintenance period demonstrates a commitment to long-term project success.
Awarding under full and open competition suggests a robust and fair bidding process.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure repair and environmental restoration. The market for such services is driven by government needs for maintaining critical infrastructure like levees, particularly in regions prone to environmental challenges. Comparable spending benchmarks would involve other large-scale levee repair, flood control, or civil works projects undertaken by federal or state agencies.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the scale and specialized nature of the work, it is possible that larger firms with the requisite expertise and bonding capacity were the primary bidders. Subcontracting opportunities may exist for specialized services, potentially benefiting small businesses in areas like landscaping or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. The firm-fixed-price nature of the contract implies that the contractor bears primary responsibility for cost control. Transparency is generally maintained through contract award databases and reporting. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
Federal Disaster Relief and Emergency Management
California State Water Resources Control Board Projects
Sacramento River Flood Control Project

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Long-term effectiveness of vegetation establishment requires diligent monitoring.
Contractor performance risk on large-scale civil projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to D D-M LEASING COMPANY, INC. REPAIR THREE CRITICAL EROSION SITES ALONG THE SACRAMENTO RIVER LEVEE. WORK REQUIREMENTS INCLUDE RIPRAP ROCK PLACED BANK PROTECTION, RE-BUILDING OF THE TOE BENCH TO INCLUDE ANCHORING IN-STREAM WOODY MATERIAL, SEEDING OF ALL DISTURBED AREAS WITH NATIVE GRASSES, AND THE PLANTING OF TREES AND SHRUBS ON THE BENCH AND WATERSIDE SLOPE. A 3-YEAR ESTABLISHMENT AND MAINTENANCE PERIOD FOR THE TREES AND SHRUBS IS ALSO REQUIRED.

Who is the contractor on this award?

The obligated recipient is D D-M LEASING COMPANY, 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 $21.0 million.

What is the period of performance?

Start: 2006-07-13. End: 2009-12-31.

What is the track record of D D-M Leasing Company, Inc. with federal contracts, particularly in civil engineering and environmental restoration?

A review of federal contract databases would be necessary to fully assess D D-M Leasing Company, Inc.'s track record. However, being awarded a contract of this magnitude by the Department of the Army suggests they possess the necessary qualifications, experience, and financial stability. Further investigation into their past performance on similar projects, including any reported issues or successes, would provide a more comprehensive understanding of their capabilities and reliability in executing complex civil engineering and environmental restoration tasks. Examining their history with firm-fixed-price contracts and their ability to meet deadlines and quality standards on previous government engagements is also crucial for a complete assessment.

How does the $21 million contract value compare to similar levee repair projects in California or other regions?

Benchmarking this $21 million contract against similar levee repair projects requires access to a database of comparable federal, state, and local contracts. Factors influencing cost include the specific scope of work (e.g., type of erosion, extent of repair, materials used), the duration of the project, and the prevailing market rates for labor and materials in the region. Projects involving extensive riprap placement, significant structural rebuilding, and long-term vegetation establishment, as described in this contract, are typically high-cost endeavors. Without specific comparable data, it is difficult to definitively state whether $21 million represents excellent, fair, or concerning value. However, the inclusion of a three-year maintenance period adds a significant component to the overall contract value.

What are the primary risks associated with this specific levee repair project, and how are they mitigated?

The primary risks associated with this levee repair project include unforeseen geological or hydrological conditions that could increase costs or delay completion, potential challenges in establishing and maintaining native vegetation, and the risk of contractor underperformance. The firm-fixed-price contract structure mitigates financial risk for the government by capping the total cost. The three-year establishment and maintenance period for vegetation helps mitigate risks related to plant survival and long-term effectiveness. Mitigation for geological risks often relies on thorough site investigations prior to bidding and contingency planning within the contractor's scope. Contractor performance is typically managed through contract surveillance by the COR and adherence to performance standards outlined in the contract.

What is the historical spending pattern for Sacramento River levee maintenance and repair by the Department of the Army?

Analyzing historical spending patterns for Sacramento River levee maintenance and repair by the Department of the Army would require accessing historical contract databases and budget reports. This specific $21 million contract represents a significant investment in a single project. Understanding the frequency and scale of previous repair efforts would indicate whether this award is part of a larger, ongoing maintenance program or a response to a particularly critical need. Trends in spending could reveal patterns of erosion, the effectiveness of past repairs, and the overall investment strategy for this vital piece of infrastructure. Without historical data, it's challenging to place this contract within a broader fiscal context.

How effective are native grass and tree plantings in long-term erosion control for levees, and what is the typical success rate?

Native grass and tree plantings are generally considered highly effective for long-term erosion control on levees, provided they are properly established and maintained. Native species are adapted to local conditions, requiring less water and maintenance once established, and their root systems help stabilize soil, preventing erosion from rainfall and water flow. The success rate depends heavily on factors such as species selection, planting techniques, soil preparation, and the duration and quality of the establishment and maintenance period. A three-year establishment period, as included in this contract, is generally sufficient to promote robust root development and plant survival, significantly increasing the likelihood of long-term erosion control effectiveness. Monitoring and adaptive management during this period are key to addressing any challenges.

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: SEALED BID

Solicitation ID: W9123806B0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 2900 MAIN ST STE 101, ALAMEDA, CA, 94501

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,008,778

Exercised Options: $21,008,778

Current Obligation: $21,008,778

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline