Army awards $15.1M contract for erosion protection in California, with completion by October 2025

Contract Overview

Contract Amount: $15,088,622 ($15.1M)

Contractor: Camenzind Dutra JV LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-19

End Date: 2025-10-31

Contract Duration: 651 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EROSION PROTECTION

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95815

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to CAMENZIND DUTRA JV LLC for work described as: EROSION PROTECTION Key points: 1. Contract value appears reasonable for specialized civil engineering work. 2. Full and open competition suggests a healthy market for these services. 3. Definitive contract type may indicate evolving project scope or requirements. 4. Project duration of 651 days is substantial, requiring sustained contractor performance. 5. Focus on erosion control highlights environmental resilience and infrastructure protection. 6. Geographic concentration in California points to specific regional needs.

Value Assessment

Rating: good

The contract value of $15.1 million for erosion protection services in California seems aligned with typical heavy civil engineering projects of this nature. Benchmarking against similar Army Corps of Engineers projects for coastal or riverine erosion control would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the government has a clear understanding of the scope and associated costs, which generally leads to better cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were excluded for specific reasons, possibly related to specialized capabilities or prior performance. The number of bidders is not specified, but this award type suggests a limited pool compared to unrestricted full and open competition. This could potentially impact price discovery if the excluded sources represent significant market players.

Taxpayer Impact: While the competition was not entirely unrestricted, the exclusion of sources was likely based on specific project requirements. Taxpayers benefit from competition that ensures a qualified contractor is selected, even if the pool is narrowed for technical reasons.

Public Impact

The primary beneficiaries are likely military installations or public infrastructure in California requiring protection from erosion. Services delivered include heavy and civil engineering construction focused on mitigating erosion. Geographic impact is concentrated in California, addressing specific environmental challenges in that state. Workforce implications include employment for skilled construction labor, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the 'Definitive Contract' award type.
Limited competition could lead to higher-than-market pricing if not carefully managed.
Contract duration of over 21 months requires robust oversight to ensure timely completion.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a joint venture (CAMENZIND DUTRA JV LLC) may indicate specialized expertise.
Focus on erosion protection addresses critical infrastructure and environmental concerns.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically addressing environmental protection and infrastructure resilience. The market for such services is substantial, driven by ongoing needs for infrastructure maintenance, repair, and upgrades, as well as increasing concerns about climate change impacts like erosion. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' civil works program or other agencies managing large-scale environmental remediation and construction projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, CAMENZIND DUTRA JV LLC, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, with performance milestones and final delivery. Transparency is typically facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Coastal and Shoreline Protection Projects
Environmental Infrastructure Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for scope creep due to definitive contract type.
Limited competition may impact price discovery.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to CAMENZIND DUTRA JV LLC. EROSION PROTECTION

Who is the contractor on this award?

The obligated recipient is CAMENZIND DUTRA JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2024-01-19. End: 2025-10-31.

What is the specific nature of the erosion being addressed, and what technologies or methods are expected to be employed?

The contract specifies 'EROSION PROTECTION' under NAICS code 237990 (Other Heavy and Civil Engineering Construction). While the exact nature of the erosion (e.g., coastal, riverine, soil) is not detailed in the provided data, the NAICS code suggests significant civil engineering work. Expected methods could include construction of seawalls, revetments, levees, soil stabilization techniques, or vegetation-based solutions. The specific technologies and methods would be detailed in the contract's Statement of Work (SOW), which is not provided here. Further analysis would require reviewing the SOW to understand the technical approach and associated costs.

How does the $15.1 million contract value compare to similar erosion protection projects undertaken by the Department of the Army or other federal agencies?

Benchmarking the $15.1 million contract value requires comparing it to similar erosion protection projects in terms of scale, complexity, and geographic location. Projects managed by the Army Corps of Engineers, particularly those involving coastal or riverine defenses, would be the most relevant comparators. For instance, similar projects might range from a few million dollars for localized repairs to tens or hundreds of millions for large-scale coastal resilience initiatives. Without specific details on the project's scope (e.g., linear feet of shoreline protected, volume of material moved), a precise comparison is difficult. However, $15.1 million appears to be a mid-range value for a significant, but not massive, civil engineering undertaking focused on erosion control.

What are the potential risks associated with a definitive contract awarded after excluding certain sources, and how are they mitigated?

Definitive contracts can carry risks if their scope is not well-defined initially, potentially leading to scope creep and cost overruns. Awarding after excluding sources, even under 'Full and Open Competition After Exclusion of Sources,' narrows the competitive pool. This could mean less price pressure if the remaining bidders are few or lack strong alternatives. Mitigation strategies typically involve robust government oversight, clear performance metrics, detailed SOWs, and potentially incorporating options for adjustments within defined parameters. The exclusion of sources suggests the agency had specific technical or performance-based reasons, aiming to ensure capability, which should theoretically reduce technical risks if those reasons were valid.

What is the track record of CAMENZIND DUTRA JV LLC in performing similar heavy civil engineering construction contracts for the federal government?

Information on the specific track record of CAMENZIND DUTRA JV LLC for this type of contract would typically be available through federal procurement databases like SAM.gov or FPDS. A review would involve examining past performance evaluations, contract values, types of services rendered, and timeliness of delivery on previous projects. As a joint venture, its performance might also reflect the combined experience of its constituent companies. Assessing their history with erosion protection or similar large-scale civil engineering projects is crucial for understanding their capability and reliability in executing this $15.1 million contract.

Given the contract's duration of 651 days (approx. 21 months), what are the key performance indicators (KPIs) and oversight mechanisms in place?

For a contract spanning 651 days, key performance indicators (KPIs) would likely focus on adherence to schedule, quality of construction, safety compliance, and environmental protection measures. Oversight mechanisms would include regular progress meetings, site inspections by government representatives (e.g., Army Corps of Engineers personnel), review of contractor submittals (e.g., design modifications, material certifications), and milestone-based payments. The firm fixed-price nature incentivizes the contractor to meet these KPIs efficiently. Failure to meet KPIs could result in contractual remedies, including liquidated damages or termination, depending on the severity and contract terms.

How does this contract fit into the broader context of federal spending on infrastructure resilience and environmental protection, particularly in California?

This $15.1 million contract aligns with broader federal and state initiatives focused on infrastructure resilience and environmental protection, especially in a state like California prone to natural hazards such as coastal erosion and flooding. Federal spending in this area has been increasing, driven by climate change adaptation needs and aging infrastructure. This contract likely represents a specific investment to address identified vulnerabilities. It contributes to the overall federal effort to safeguard critical assets and communities from environmental degradation, complementing larger programs related to water resource management, coastal defense, and disaster mitigation.

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: W9123824B0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 792 MONTROSE AVE, PALO ALTO, CA, 94303

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,232,622

Exercised Options: $15,088,622

Current Obligation: $15,088,622

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline