DoD's $14M Mayhew Levee project awarded to FCI Constructors Inc. for civil engineering construction

Contract Overview

Contract Amount: $13,980,636 ($14.0M)

Contractor: FCI Constructors Incorporated (3347)

Awarding Agency: Department of Defense

Start Date: 2007-08-07

End Date: 2010-04-30

Contract Duration: 997 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAYHEW LEVEE RAISE AND DRAIN CLOSURE STRUCTURE

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to FCI CONSTRUCTORS INCORPORATED (3347) for work described as: MAYHEW LEVEE RAISE AND DRAIN CLOSURE STRUCTURE Key points: 1. The contract value of $13.98 million for the Mayhew Levee Raise and Drain Closure Structure appears to be a significant investment in critical infrastructure. 2. Competition dynamics for this contract are favorable, with a 'full and open competition' award indicating multiple bids were considered. 3. The firm fixed-price contract type suggests a predictable cost structure, potentially mitigating cost overrun risks for the government. 4. The project duration of 997 days (nearly 3 years) indicates a substantial undertaking requiring long-term resource commitment. 5. The contract was awarded by the Department of the Army, highlighting its role in national defense infrastructure or civil works. 6. The North American Industry Classification System (NAICS) code 237990 points to a specialized area of heavy and civil engineering construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns or comparable project data. However, the $13.98 million price tag for a levee raise and drain closure structure suggests a significant investment in civil engineering. The firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. Further analysis would require comparing the scope and complexity of this project to similar levee construction projects undertaken by the Army Corps of Engineers or other federal agencies.

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. The presence of 3 bids suggests a reasonable level of competition for this specialized civil engineering project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value. The fact that it was competed openly is a positive sign for price discovery.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down costs through competitive bidding.

Public Impact

The primary beneficiaries of this project are likely residents and businesses in the Mayhew area of California, who benefit from improved flood protection. The project delivers essential civil engineering services related to flood control and water management infrastructure. The geographic impact is localized to the Mayhew region in California, addressing specific flood risks in that area. The project likely supports a workforce of construction laborers, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large civil engineering projects, leading to cost increases if not managed tightly.
Environmental impact assessments and mitigation efforts could introduce unforeseen challenges or delays.
The long duration of the contract increases the risk of material price fluctuations or labor availability issues.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a competitive bidding process that should yield fair pricing.
The project addresses critical flood control infrastructure, a vital public service.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to water infrastructure and flood control. The NAICS code 237990 covers projects like dams, levees, canals, and flood control structures. The market for such specialized construction is often dominated by a few large firms with the expertise and equipment to handle complex projects. Federal spending in this area is typically driven by the need to maintain and upgrade aging infrastructure, ensure public safety, and manage water resources.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the specialized nature and scale of levee construction, it is common for prime contracts to be awarded to larger firms. However, the prime contractor, FCI Constructors Inc., may engage small businesses as subcontractors for specific tasks or material supply, contributing to the small business ecosystem indirectly. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by contracting officers and project managers within the relevant Army command or Corps of Engineers district. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Federal Flood Control Infrastructure
California Water Management Projects
Heavy Civil Engineering Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays due to weather or environmental factors.
Ensuring long-term structural integrity and maintenance requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to FCI CONSTRUCTORS INCORPORATED (3347). MAYHEW LEVEE RAISE AND DRAIN CLOSURE STRUCTURE

Who is the contractor on this award?

The obligated recipient is FCI CONSTRUCTORS INCORPORATED (3347).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2007-08-07. End: 2010-04-30.

What is the track record of FCI Constructors Inc. on similar federal projects?

FCI Constructors Inc. has a history of performing federal construction contracts, including projects for the Department of Defense and other agencies. Their experience likely includes a range of civil engineering and heavy construction tasks. To assess their track record specifically for levee construction or similar water control structures, a deeper dive into their past performance evaluations and project history would be necessary. This would involve reviewing contract databases for past awards, completion statuses, and any reported performance issues or commendations. Understanding their success rate on projects of comparable size and complexity is crucial for evaluating their capability and reliability on the Mayhew Levee project.

How does the awarded price compare to similar levee construction projects?

Directly comparing the $13.98 million award for the Mayhew Levee project to similar projects is difficult without standardized data on scope, complexity, and location. Levee construction costs vary significantly based on factors such as length, height, soil conditions, environmental requirements, and the need for specialized structures like drain closures. A comprehensive benchmark would require analyzing a portfolio of recently awarded federal levee and flood control projects, adjusting for regional cost differences and project-specific variables. The 'full and open competition' with 3 bidders suggests the price was likely competitive within the market for this type of work at the time of award.

What are the primary risks associated with this type of civil engineering contract?

Key risks for this civil engineering contract include unforeseen geological or hydrological conditions that could impact construction methods and costs, potential environmental compliance challenges requiring costly mitigation, and the possibility of weather-related delays, especially given the project's duration. For a firm fixed-price contract, the contractor bears the risk of cost overruns due to these factors. The government's primary risk is ensuring the contractor possesses the technical expertise and financial stability to complete the project successfully and that the final structure meets all performance and safety standards. Effective project management and oversight are critical to mitigating these risks.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks can be reasonably anticipated. For the Mayhew Levee project, FFP places the primary cost risk on the contractor, FCI Constructors Inc. This incentivizes the contractor to control costs and manage resources efficiently to maximize profit. The government benefits from cost certainty, as the final price is fixed unless significant, unforeseen changes to the scope occur (which would typically require contract modification). The effectiveness hinges on the initial accuracy of the cost estimates and the contractor's ability to execute the work within those parameters.

What is the historical spending trend for levee and flood control projects by the Department of the Army?

The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a long history of significant investment in levee and flood control projects. Spending in this category fluctuates based on federal appropriations, infrastructure needs, and disaster recovery efforts. Historically, USACE manages a substantial portfolio of civil works projects, with billions allocated annually for construction, operation, and maintenance of flood risk management systems. Trends are influenced by national infrastructure initiatives, climate change adaptation strategies, and the prioritization of aging infrastructure upgrades. Analyzing specific historical spending data for levee construction would reveal patterns related to specific regions or types of projects.

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: W9123807B0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2100 GOODYEAR RD, BENICIA, CA, 94510

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,065,636

Exercised Options: $13,980,636

Current Obligation: $13,980,636

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline