Army awards $17.4M contract for Marysville Levee strengthening, focusing on seepage control

Contract Overview

Contract Amount: $17,392,162 ($17.4M)

Contractor: Nsod Joint Venture

Awarding Agency: Department of Defense

Start Date: 2023-03-27

End Date: 2025-03-30

Contract Duration: 734 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE 2B MARYSVILLE LEVEE EFFORTS TO STRENGTHEN THE LEVEE BY ADDITION OF THE SEEPAGE CUTOFF WALL AND INCLUDE CONSTRUCTION OF SEEPAGE BERMS.

Place of Performance

Location: MARYSVILLE, YUBA County, CALIFORNIA, 95901

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to NSOD JOINT VENTURE for work described as: PHASE 2B MARYSVILLE LEVEE EFFORTS TO STRENGTHEN THE LEVEE BY ADDITION OF THE SEEPAGE CUTOFF WALL AND INCLUDE CONSTRUCTION OF SEEPAGE BERMS. Key points: 1. Contract addresses critical infrastructure needs for flood risk reduction. 2. Focus on seepage cutoff wall and berm construction indicates a specific engineering challenge. 3. The firm-fixed-price structure aims to control costs for the government. 4. Competition was conducted after excluding sources, suggesting a potentially narrowed but still competitive field. 5. The project duration of 734 days indicates a significant construction undertaking. 6. Geographic focus on California highlights regional vulnerability to levee failure.

Value Assessment

Rating: good

The contract value of $17.4 million for levee strengthening appears reasonable given the scope of work, which includes the construction of a seepage cutoff wall and berms. Benchmarking against similar large-scale civil engineering projects for flood control, this price point is within expected ranges. The firm-fixed-price contract type helps mitigate cost overrun risks for the government, suggesting a proactive approach to value management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be open, certain sources were excluded prior to the solicitation. This suggests a potentially limited number of bidders compared to a truly full and open competition. The specific reasons for exclusion would need further investigation to fully assess the impact on price discovery and overall competition.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources may have limited the number of potential bidders, potentially impacting the government's ability to secure the lowest possible price. However, the remaining competition still provides some level of price pressure.

Public Impact

Residents and businesses in the Marysville area, California, will benefit from enhanced flood protection. The project will deliver critical infrastructure improvements to strengthen the levee system. The geographic impact is concentrated in California, specifically the Marysville region. Construction activities will likely create temporary employment opportunities in the civil engineering and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion.
Risk of unforeseen site conditions impacting cost and schedule.
Dependence on specialized construction techniques for the seepage cutoff wall.

Positive Signals

Addresses a critical need for flood risk mitigation.
Firm-fixed-price contract provides cost certainty.
Project duration is clearly defined, allowing for planning.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on critical infrastructure related to water management and flood control. The market for such projects is often characterized by large, specialized firms capable of undertaking complex engineering and construction tasks. Spending in this sector is driven by government investment in maintaining and upgrading aging infrastructure, as well as responding to environmental and safety concerns.

Small Business Impact

The contract data indicates that small business participation (sb) is marked as false, and there is no indication of a small business set-aside (ss). This suggests that the prime contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award information. The overall impact on the small business ecosystem would depend on the subcontracting plans of the prime contractor, NSOD JOINT VENTURE.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which shifts much of the cost risk to the contractor. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones, though specific oversight reports are not detailed here.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Disaster Mitigation Programs
California Infrastructure Projects
Levee and Dam Safety Initiatives

Risk Flags

Potential for limited competition
Complexity of seepage cutoff wall construction
Geotechnical risks associated with subsurface conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to NSOD JOINT VENTURE. PHASE 2B MARYSVILLE LEVEE EFFORTS TO STRENGTHEN THE LEVEE BY ADDITION OF THE SEEPAGE CUTOFF WALL AND INCLUDE CONSTRUCTION OF SEEPAGE BERMS.

Who is the contractor on this award?

The obligated recipient is NSOD JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2023-03-27. End: 2025-03-30.

What is the track record of NSOD JOINT VENTURE in performing similar large-scale civil engineering projects, particularly those involving levee construction and seepage control?

Assessing the track record of NSOD JOINT VENTURE requires a review of their past performance on contracts of similar size, scope, and complexity. Specifically, their experience with seepage cutoff walls, levee reinforcement, and large civil engineering projects would be crucial. Information on past project delivery times, adherence to budget, and quality of work would provide insight into their capability to successfully execute the Marysville Levee project. A review of their contract history, including any past performance evaluations or disputes, would be necessary to fully understand their reliability as a contractor for this significant infrastructure undertaking.

How does the awarded amount of $17.4 million compare to the estimated cost or bids received from other potential contractors for this project?

The awarded amount of $17.4 million represents the government's final negotiated price with NSOD JOINT VENTURE. To benchmark this value, one would need to compare it against the initial cost estimates developed by the agency, the bids submitted by other competitors (if available), and the pricing of similar levee strengthening projects in comparable geographic regions. The fact that the competition was 'after exclusion of sources' might mean fewer bids were received, potentially influencing the final price. A detailed cost analysis, including unit pricing for key components like the seepage cutoff wall, would be essential to determine if this represents a competitive market price.

What are the primary risks associated with the construction of a seepage cutoff wall and berms for levee strengthening, and how are they being mitigated?

Key risks in constructing a seepage cutoff wall and berms include unforeseen subsurface geological conditions, potential for groundwater interference, challenges in achieving watertightness for the cutoff wall, and environmental impacts. Mitigation strategies typically involve thorough geotechnical investigations prior to construction, advanced dewatering techniques, specialized equipment for deep excavation and wall installation, and stringent quality control measures. The firm-fixed-price contract structure also incentivizes the contractor to manage these risks effectively to avoid cost overruns. The contract's duration and specific technical requirements would further detail the planned mitigation approaches.

What is the historical spending pattern for levee maintenance and improvement projects by the Department of the Army in California?

Analyzing historical spending patterns for levee maintenance and improvement by the Department of the Army in California would involve examining contract awards over several fiscal years. This would reveal trends in project frequency, average contract values, and the types of levee work being prioritized. Such analysis could indicate whether the $17.4 million Marysville Levee project is an outlier, part of a consistent investment strategy, or a response to specific recent events or identified vulnerabilities. Understanding this historical context helps in evaluating the current contract's significance and the agency's ongoing commitment to flood control infrastructure in the region.

What are the specific criteria used for excluding sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and what impact did this have on the number of bidders?

The criteria for excluding sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award are typically based on specific technical capabilities, past performance, or other pre-defined requirements outlined in the solicitation. For this Marysville Levee project, exclusions might have been based on demonstrated expertise in constructing deep seepage cutoff walls or experience with the specific soil conditions in the area. The exact number of bidders that resulted from this exclusion process is not provided, but it implies that the competition was narrowed from the universe of all potential offerors to a select group deemed most qualified. This approach aims to ensure that only capable contractors participate, potentially leading to a more focused competition among pre-qualified entities.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9123823B0008

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4740 ROCKLIN RD, ROCKLIN, CA, 95677

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,516,662

Exercised Options: $17,392,162

Current Obligation: $17,392,162

Actual Outlays: $3,717,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline