Army Awards $44M Sacramento River Levee Contract to Nordic Industries Inc. for Other Heavy Construction
Contract Overview
Contract Amount: $43,990,732 ($44.0M)
Contractor: Nordic Industries Inc
Awarding Agency: Department of Defense
Start Date: 2021-01-19
End Date: 2021-12-15
Contract Duration: 330 days
Daily Burn Rate: $133.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SACRAMENTO RIVER EAST LEVEE CONTRACT 2
Place of Performance
Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814
Plain-Language Summary
Department of Defense obligated $44.0 million to NORDIC INDUSTRIES INC for work described as: SACRAMENTO RIVER EAST LEVEE CONTRACT 2 Key points: 1. The contract value of $43.99M falls within the typical range for large-scale civil engineering projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project's location in California may indicate specific regional construction cost factors. 4. The firm-fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $43.99M for heavy civil engineering construction appears reasonable given the scope of a major levee project. Benchmarking against similar large-scale infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple bidders were likely considered, promoting price discovery and potentially leading to a more competitive price. The definitive contract award mechanism is standard for such projects.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing the value of taxpayer funds allocated to this critical infrastructure project.
Public Impact
Enhances flood protection for communities along the Sacramento River. Supports regional economic stability by mitigating flood risks. Represents significant investment in California's infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on a single contractor for project completion.
Positive Signals
- Clear contract type (firm fixed price) to manage costs.
- Competitive bidding process likely secured a reasonable price.
Sector Analysis
This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which involves large-scale infrastructure projects. Spending in this sector is often driven by government initiatives for public works and disaster resilience.
Small Business Impact
The data indicates this contract was awarded to Nordic Industries Inc. and does not specify any small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made by the Department of the Army, suggesting adherence to federal procurement regulations. Oversight would typically involve contract management and performance monitoring to ensure timely and quality completion.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen site conditions.
- Contract duration of 330 days may be tight for large-scale construction.
- Lack of small business participation noted.
- Geographic concentration of project in California.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.0 million to NORDIC INDUSTRIES INC. SACRAMENTO RIVER EAST LEVEE CONTRACT 2
Who is the contractor on this award?
The obligated recipient is NORDIC INDUSTRIES 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 $44.0 million.
What is the period of performance?
Start: 2021-01-19. End: 2021-12-15.
What is the historical cost performance of Nordic Industries Inc. on similar federal contracts?
Analyzing Nordic Industries Inc.'s past performance on comparable federal contracts is crucial for assessing their reliability and cost control capabilities. A review of their track record would reveal any patterns of cost overruns, delays, or quality issues, providing valuable insight into the potential risks associated with this current $44M levee project.
Are there any specific environmental or geological risks associated with the Sacramento River levee project that could impact the final cost?
The Sacramento River levee project may face environmental and geological risks such as soil instability, unexpected subsurface conditions, or protected species habitats. These factors could necessitate costly mitigation measures or design changes, potentially leading to cost overruns beyond the initial $44M award. A thorough geotechnical survey and environmental impact assessment are vital.
How effectively does this levee project contribute to the overall flood risk reduction strategy for the region?
The effectiveness of this levee project in reducing regional flood risk depends on its integration with broader flood management plans, including upstream/downstream levee systems and water management infrastructure. While the $44M investment addresses a specific segment, its overall impact is contingent on system-wide resilience and the mitigation of cascading failure points.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W9123821B0001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1437 FURNEAUX RD, OLIVEHURST, CA, 95961
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,990,732
Exercised Options: $43,990,732
Current Obligation: $43,990,732
Actual Outlays: $1,065,493
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-01-19
Current End Date: 2021-12-15
Potential End Date: 2021-12-15 00:00:00
Last Modified: 2023-04-17
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