Department of Defense awards $26.5M contract for Tule River Road Relocation to Central Environmental Inc

Contract Overview

Contract Amount: $26,486,340 ($26.5M)

Contractor: Central Environmental Inc

Awarding Agency: Department of Defense

Start Date: 2020-04-25

End Date: 2022-02-15

Contract Duration: 661 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TULE RIVER ROAD RELOCATION

Place of Performance

Location: PORTERVILLE, TULARE County, CALIFORNIA, 93257

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to CENTRAL ENVIRONMENTAL INC for work described as: TULE RIVER ROAD RELOCATION Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract type is a definitive contract with a firm fixed price, suggesting cost certainty. 3. Project duration of 661 days implies a significant construction undertaking. 4. The contract was awarded by the Department of the Army, a major component of the DoD. 5. The project is located in California, a state with substantial infrastructure needs. 6. The North American Industry Classification System (NAICS) code 237310 points to highway, street, and bridge construction.

Value Assessment

Rating: fair

The contract value of $26.5 million for road relocation appears to be within a reasonable range for a project of this nature, though specific benchmarks are difficult to ascertain without more granular project details. The firm fixed price structure provides cost predictability for the government. However, the absence of detailed cost breakdowns or comparisons to similar projects makes a definitive value assessment challenging. Further analysis would require understanding the scope of work, material costs, and labor involved.

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,' which suggests that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of two bidders indicates some level of competition, but the exact number of interested parties and the reasons for exclusion of others would provide a clearer picture of the competitive landscape. A more competitive environment typically leads to better pricing for the government.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple firms to bid, potentially driving down costs. However, the exclusion of sources warrants scrutiny to ensure it did not unduly limit competition and result in higher prices.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially local communities or military personnel who will utilize the relocated road. The service delivered is the construction and relocation of a significant roadway. The geographic impact is localized to the area in California where the Tule River Road is being relocated. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Risk of project delays due to environmental factors or permitting issues common in large infrastructure projects.
The 'exclusion of sources' clause requires careful review to ensure it was justified and did not stifle competition.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through a full and open competition process, suggesting a competitive bidding environment.
The contractor, Central Environmental Inc., is likely experienced in large-scale construction projects.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS 237310), a critical part of the broader Construction industry. This sector is characterized by large-scale infrastructure projects, often involving significant government investment. Comparable spending benchmarks for road relocation projects can vary widely based on geography, terrain, and project scope, but projects in the tens of millions of dollars are common for major relocations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Central Environmental Inc. The extent of small business subcontracting is not detailed here, but it is a key area for ensuring broader economic benefits.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Infrastructure Improvement Projects
Federal Highway Administration Contracts
Department of Transportation Projects

Risk Flags

Competition Level - Potential for limited competition due to source exclusion.
Scope Definition - Clarity of 'scope of work' is crucial for fixed-price contracts.
Contractor Performance - Unknown track record of Central Environmental Inc.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to CENTRAL ENVIRONMENTAL INC. TULE RIVER ROAD RELOCATION

Who is the contractor on this award?

The obligated recipient is CENTRAL ENVIRONMENTAL 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 $26.5 million.

What is the period of performance?

Start: 2020-04-25. End: 2022-02-15.

What is the specific scope of work for the Tule River Road Relocation project?

The provided data indicates the project involves the relocation of Tule River Road and falls under the Highway, Street, and Bridge Construction category. A detailed scope of work would typically include site preparation, grading, paving, drainage systems, and potentially utility relocation. The exact length of the road to be relocated, the terrain involved, and specific engineering requirements would define the granular tasks. Without access to the full contract statement of work, precise details remain unspecified, but the project's objective is clear: to move an existing roadway, likely due to environmental, safety, or operational reasons related to the Department of the Army's mission in the area.

How does the awarded amount of $26.5 million compare to similar road relocation projects undertaken by the Department of Defense?

Benchmarking the $26.5 million award requires comparing it to similar road relocation projects within the Department of Defense or other federal agencies, considering factors like project scale, complexity, location, and duration. Road relocation projects can vary significantly in cost. A 661-day project of this magnitude, especially if involving challenging terrain or environmental considerations, could fall within a typical range. However, without a database of comparable DoD road relocation projects with detailed cost breakdowns, a precise comparison is difficult. The firm fixed-price nature suggests the government sought cost certainty, but the actual value-for-money assessment depends on the final delivered product and adherence to the contract's specifications.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract?

While the provided data does not detail specific KPIs or risk mitigation strategies, standard practice for a firm fixed-price construction contract of this size would include performance milestones tied to project completion phases (e.g., site clearing, grading, paving, final inspection). Key performance indicators would likely focus on schedule adherence, quality of construction (meeting engineering specifications), and safety compliance. Risk mitigation strategies would typically involve the contractor providing performance bonds, insurance, and detailed project management plans. The government's oversight would focus on monitoring progress against these milestones and ensuring the contractor meets contractual obligations to manage risks such as unforeseen site conditions, weather delays, or material cost fluctuations.

What is the track record of Central Environmental Inc. in completing large-scale federal construction projects?

The provided data identifies Central Environmental Inc. as the contractor but does not offer details on their track record. A comprehensive assessment would require reviewing their past performance on federal contracts, particularly those involving road construction or similar infrastructure projects. This would involve examining contract completion history, any past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Without this information, it's difficult to definitively assess their capability and reliability for a project of this scale and value.

What are the potential long-term implications of this road relocation for the surrounding environment and community?

The long-term implications of relocating Tule River Road would depend heavily on the specific reasons for the relocation and the new route chosen. If the relocation is to mitigate environmental risks or improve ecological health in the original area (e.g., near the Tule River), the long-term environmental impact could be positive. Conversely, the new route could impact different ecosystems or community access. Community implications might include changes in traffic patterns, accessibility to local services, or potential impacts on property values. A thorough environmental impact assessment, typically conducted before such projects, would detail these long-term effects and any mitigation measures planned.

How does the 'full and open competition after exclusion of sources' clause impact the overall cost-effectiveness for taxpayers?

The 'full and open competition after exclusion of sources' clause presents a nuanced situation for cost-effectiveness. Ideally, 'full and open competition' maximizes the number of potential bidders, driving prices down through market forces, which benefits taxpayers. However, the 'exclusion of sources' indicates that certain pre-qualified or otherwise eligible firms were not permitted to bid. The impact on cost-effectiveness hinges on the justification for these exclusions. If the exclusions were based on legitimate technical requirements, security concerns, or specific capabilities essential for the project, and the remaining competition was still robust, the cost-effectiveness might be preserved. If, however, the exclusions were arbitrary or unnecessarily limited the pool of qualified bidders, it could lead to reduced competition and potentially higher costs for taxpayers than a truly unrestricted open competition.

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: W9123820B0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 311 N SITKA ST, ANCHORAGE, AK, 99501

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

Financial Breakdown

Contract Ceiling: $29,519,534

Exercised Options: $26,486,340

Current Obligation: $26,486,340

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline