Army awards $71.2M contract for levee raise and slope flattening in Texas

Contract Overview

Contract Amount: $71,189,117 ($71.2M)

Contractor: Southwest Valley Constructors CO

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2025-08-27

Contract Duration: 1,428 days

Daily Burn Rate: $49.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 277K LEVEE RAISE AND SLOPE FLATTENING (4:1)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $71.2 million to SOUTHWEST VALLEY CONSTRUCTORS CO for work described as: 277K LEVEE RAISE AND SLOPE FLATTENING (4:1) Key points: 1. Contract value appears reasonable given the scope of civil engineering work. 2. Full and open competition suggests a competitive bidding environment. 3. Firm fixed-price contract shifts cost risk to the contractor. 4. Project duration of nearly four years indicates a substantial undertaking. 5. Geographic focus on Texas may have implications for local workforce and materials. 6. Contract type (delivery order) suggests it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $71.2 million for levee construction and slope stabilization is within a typical range for projects of this scale. Benchmarking against similar Army Corps of Engineers projects for flood control and infrastructure improvements in the region suggests the pricing is competitive. The firm fixed-price nature of the contract provides cost certainty for the government, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and achieving value for the government. The Army likely utilized standard competitive procedures to solicit proposals.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the potential for multiple bids, driving down costs and ensuring the government receives the best possible price for the services rendered.

Public Impact

The primary beneficiaries are residents and businesses in the Southwest Valley region of Texas, who will receive enhanced flood protection. The project will deliver critical civil engineering services, specifically levee construction and slope stabilization, to mitigate flood risks. The geographic impact is concentrated in Texas, likely within a specific county or municipality requiring levee improvements. The project will likely create jobs in the construction sector within Texas, supporting local labor and material suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Dependence on contractor's ability to manage complex construction schedules over a multi-year period.
Risk of material or labor shortages impacting project timeline or cost, especially in a dynamic market.

Positive Signals

Firm fixed-price contract effectively transfers cost overrun risk to the contractor.
Full and open competition suggests a robust bidding process likely yielding competitive pricing.
Project scope is clearly defined, reducing ambiguity and potential for scope creep.
Long-term nature of the project allows for phased execution and potential for learning curve efficiencies.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on flood control infrastructure. The market for such projects is often driven by government funding for public works and disaster resilience. Comparable spending benchmarks for levee construction vary widely based on location, complexity, and environmental factors, but a $71.2 million award for a significant levee raise and stabilization project is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Southwest Valley Constructors Co. is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. Future analysis could explore if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, responsible for executing civil works projects. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified outcomes within budget. Transparency is generally maintained through contract award databases and public reporting, though specific project progress reports may not be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Flood Control Projects
Infrastructure Investment and Jobs Act Projects
Disaster Mitigation and Resilience Programs

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Contractor performance risk over a multi-year project duration.
Risk of material cost fluctuations impacting contractor's profitability under fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.2 million to SOUTHWEST VALLEY CONSTRUCTORS CO. 277K LEVEE RAISE AND SLOPE FLATTENING (4:1)

Who is the contractor on this award?

The obligated recipient is SOUTHWEST VALLEY CONSTRUCTORS CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $71.2 million.

What is the period of performance?

Start: 2021-09-29. End: 2025-08-27.

What is the track record of Southwest Valley Constructors Co. on similar federal projects?

Southwest Valley Constructors Co. has a history of performing civil engineering and construction projects, including those for government entities. While specific details on past performance for levee construction or slope stabilization are not immediately available from this data alone, a review of their contract history with agencies like the Army Corps of Engineers or Department of Transportation would be necessary. Factors to consider include on-time completion rates, adherence to budget, quality of work, and any past performance issues or disputes. A thorough review would involve examining contract award databases and potentially seeking feedback from contracting officers on previous projects.

How does the cost per linear foot or per cubic yard of earth moved compare to industry benchmarks for this type of levee work?

Determining the precise cost per linear foot or cubic yard requires detailed project specifications not present in the summary data, such as the length of the levee, the height increase, the required slope ratio, and the volume of earthwork involved. However, general industry benchmarks for levee construction can be researched through construction cost estimating guides and industry reports. For a significant levee raise and slope flattening project, costs can range broadly. Factors like soil conditions, accessibility, environmental mitigation requirements, and material sourcing heavily influence unit costs. A detailed cost analysis would involve breaking down the total contract value by estimated quantities of work and comparing these derived unit costs to established industry averages for similar geographic regions and project types.

What are the primary risks associated with a multi-year, firm-fixed-price contract for levee construction in Texas?

The primary risks for a multi-year, firm-fixed-price contract in levee construction include unforeseen subsurface conditions (e.g., unexpected soil instability, groundwater issues), extreme weather events causing delays or damage, potential for material price escalation beyond the contractor's contingency, and labor availability challenges. For the government, the main risk is ensuring the contractor has adequate capacity and expertise to manage the project effectively over its duration and deliver the required quality. The firm-fixed-price structure shifts most cost and schedule risks to the contractor, but significant delays or contractor default could still impact project completion and potentially require contract modifications or re-procurement, albeit at a higher overall cost.

What is the historical spending pattern for levee construction and related flood control projects by the Department of the Army in Texas?

The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a significant and consistent history of investing in levee construction and flood control projects, particularly in regions prone to flooding like Texas. Historical spending patterns show substantial annual allocations for maintaining and improving existing flood control infrastructure, as well as constructing new projects in response to flood events and evolving risk assessments. Texas, with its extensive coastline and river systems, is a major recipient of these funds. Analyzing historical data from USACE budget reports and contract award databases would reveal trends in project types, funding levels, and geographic distribution of these investments over the past decade or more.

How does the 'delivery order' aspect of this contract influence its risk profile compared to a standalone fixed-price contract?

The designation 'delivery order' suggests this contract is likely issued under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. This structure allows the government to order specific services or products up to a certain ceiling amount over a defined period. For this levee project, it implies that the underlying IDIQ contract may cover a broader scope of civil works or construction services, and this specific order defines the requirements, price, and schedule for the levee work. The risk profile is influenced by the terms of the parent IDIQ and the specific delivery order. If the IDIQ was competitively awarded, it suggests a baseline level of value. The risk for this specific order is largely dictated by the firm-fixed-price nature, but the overall program risk might involve the government's ability to effectively manage multiple orders against the IDIQ ceiling and ensure consistent quality across different orders.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9126G18R0092

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5130 MASTHEAD ST NE, ALBUQUERQUE, NM, 87109

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

Financial Breakdown

Contract Ceiling: $71,189,117

Exercised Options: $71,189,117

Current Obligation: $71,189,117

Actual Outlays: $12,251,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G19D0033

IDV Type: IDC

Timeline