DoD Awards $17.7M for West Sac YOLO Bypass Construction to Nordic Industries Inc
Contract Overview
Contract Amount: $17,714,650 ($17.7M)
Contractor: Nordic Industries Inc
Awarding Agency: Department of Defense
Start Date: 2023-05-05
End Date: 2025-12-15
Contract Duration: 955 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WEST SAC YOLO BYPASS - SOUTH IMPROVEMENT
Place of Performance
Location: WEST SACRAMENTO, YOLO County, CALIFORNIA, 95605
Plain-Language Summary
Department of Defense obligated $17.7 million to NORDIC INDUSTRIES INC for work described as: WEST SAC YOLO BYPASS - SOUTH IMPROVEMENT Key points: 1. Contract awarded to Nordic Industries Inc. for heavy civil engineering construction. 2. Full and open competition was utilized for this procurement. 3. The contract has a duration of 955 days, ending in December 2025. 4. This project falls under the 'Other Heavy and Civil Engineering Construction' NAICS code.
Value Assessment
Rating: good
The award amount of $17.7 million appears reasonable for a large-scale civil engineering project of this duration. Benchmarking against similar large infrastructure projects would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process, likely leading to competitive pricing. Multiple bids were likely considered, ensuring value for taxpayer dollars.
Taxpayer Impact: Taxpayer funds are being utilized for critical infrastructure improvement, with competition aiming to secure the best value.
Public Impact
Enhances critical flood control infrastructure in California. Supports regional economic activity through construction employment. Improves environmental resilience and water management capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Schedule delays due to unforeseen site conditions or weather.
Positive Signals
- Clear contract end date provides project scope.
- Firm fixed price contract limits cost uncertainty.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is vital for public infrastructure. Spending in this sector can fluctuate based on government funding priorities and economic conditions.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army's procurement process, utilizing full and open competition, suggests a degree of oversight. However, ongoing monitoring of project progress and expenditures is crucial for accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long project duration.
- Potential for scope creep.
- Environmental considerations.
- Infrastructure project complexity.
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 $17.7 million to NORDIC INDUSTRIES INC. WEST SAC YOLO BYPASS - SOUTH IMPROVEMENT
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 $17.7 million.
What is the period of performance?
Start: 2023-05-05. End: 2025-12-15.
What is the specific scope of the YOLO Bypass South Improvement project and its expected benefits?
The YOLO Bypass South Improvement project likely aims to enhance flood control capacity and environmental resilience in the Sacramento-San Joaquin Delta region. Expected benefits include reduced flood risk for surrounding communities, improved water quality, and restored ecological habitats, contributing to the overall health and safety of the area.
What are the primary risks associated with this large-scale civil engineering contract?
Key risks include potential cost overruns due to unforeseen geological conditions, material price volatility, or scope creep. Schedule delays are also a concern, stemming from weather impacts, labor shortages, or permitting issues. Environmental compliance and stakeholder management present additional complexities that could affect project execution and final cost.
How does the firm fixed price contract structure impact the effectiveness of this procurement?
A firm fixed price contract is effective in transferring cost risk to the contractor, providing budget certainty for the government. This structure incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. However, it may also lead to less flexibility if unforeseen issues require contract modifications.
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: W9123823B0010
Offers Received: 5
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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,714,650
Exercised Options: $17,714,650
Current Obligation: $17,714,650
Actual Outlays: $1,841,052
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-05-05
Current End Date: 2025-12-15
Potential End Date: 2025-12-15 00:00:00
Last Modified: 2025-12-12
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