Over $81.7M awarded for Lewisville Dam lake repairs, with 3 bidders competing

Contract Overview

Contract Amount: $81,750,854 ($81.8M)

Contractor: Shimmick Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-24

End Date: 2026-01-16

Contract Duration: 1,333 days

Daily Burn Rate: $61.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LEWISVILLE DAM LAKE REPAIRS

Place of Performance

Location: LEWISVILLE, DENTON County, TEXAS, 75067

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $81.8 million to SHIMMICK CONSTRUCTION COMPANY, INC. for work described as: LEWISVILLE DAM LAKE REPAIRS Key points: 1. Contract awarded to Shimmick Construction Company, Inc. for significant infrastructure work. 2. The project involves heavy civil engineering construction, indicating a need for specialized expertise. 3. A firm-fixed-price contract suggests cost certainty for the government, but potential for contractor profit. 4. The duration of the contract extends over several years, implying a complex and lengthy undertaking. 5. The award was made under full and open competition, theoretically maximizing value. 6. The contract is a definitive contract, often used for complex projects with defined scopes.

Value Assessment

Rating: good

The contract value of $81.7M for dam repairs appears substantial, aligning with the scale of major civil engineering projects. Benchmarking against similar large-scale dam maintenance or repair contracts would provide a clearer picture of value for money. The firm-fixed-price structure offers budget predictability, but the final cost is dependent on the contractor's efficiency. Without specific cost breakdowns or comparisons to independent cost estimates, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive, suggesting that multiple firms were interested and capable of performing the work. The presence of three bidders indicates a reasonable degree of market interest and allows for price discovery. However, the optimal number of bidders for maximizing competition can vary depending on the complexity and specialization required for the project.

Taxpayer Impact: Full and open competition with multiple bidders generally leads to more competitive pricing, which is beneficial for taxpayers by ensuring the government secures the best possible value for its investment.

Public Impact

The primary beneficiaries are the residents and infrastructure reliant on the Lewisville Dam's integrity and functionality. The services delivered include critical repairs and maintenance to ensure the dam's structural soundness and operational capacity. The geographic impact is localized to the area surrounding the Lewisville Dam in Texas. The project will likely involve a significant workforce in the heavy civil engineering and construction sectors, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the fixed-price nature.
Contractor performance risks associated with the long duration and complexity of the project.
Dependency on the contractor's specialized skills and equipment for successful completion.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses critical infrastructure needs, ensuring public safety and resource management.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical area for national infrastructure. The market for dam repair and maintenance is specialized, often dominated by a smaller number of firms with the requisite expertise and bonding capacity. Spending in this sector is driven by the need to maintain aging infrastructure, ensure public safety, and support water resource management. Comparable spending benchmarks would typically involve large-scale public works projects with significant structural components.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting goals explicitly stated in the provided data. The prime contractor, Shimmick Construction Company, Inc., is a large entity. The implications for the small business ecosystem would depend on whether Shimmick actively seeks out and utilizes small business subcontractors for specialized services or supplies, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Infrastructure Investment and Jobs Act Projects
Dam Safety and Infrastructure Modernization
Federal Public Works Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or performance degradation.
Potential for unforeseen site conditions in large civil engineering projects.
Dependency on specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.8 million to SHIMMICK CONSTRUCTION COMPANY, INC.. LEWISVILLE DAM LAKE REPAIRS

Who is the contractor on this award?

The obligated recipient is SHIMMICK CONSTRUCTION COMPANY, 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 $81.8 million.

What is the period of performance?

Start: 2022-05-24. End: 2026-01-16.

What is the track record of Shimmick Construction Company, Inc. on similar federal contracts, particularly in dam repair?

Shimmick Construction Company, Inc. has a history of performing large-scale civil engineering and construction projects for the federal government. While specific details on their dam repair track record require deeper analysis of past contracts, their general experience in heavy construction suggests capability. Examining their performance ratings on previous Army Corps of Engineers or other agency projects would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of past contract awards and modifications could reveal any patterns of cost overruns or delays on comparable projects.

How does the awarded amount compare to the estimated cost or independent government cost estimates for this project?

The awarded amount of $81.7 million serves as the baseline for the firm-fixed-price contract. To assess value for money, this figure should be compared against any pre-award independent government cost estimates (IGCE) or engineer estimates. If the awarded price is significantly below the IGCE, it suggests strong competition and potentially good value. Conversely, if it's close to or exceeds the estimate, further scrutiny of the bidding process and the estimate's accuracy would be warranted. Without access to these internal estimates, it's difficult to definitively state if the price represents optimal value.

What are the primary risks associated with the long duration (over 3 years) of this contract?

The extended duration of this contract presents several risks. Firstly, there's a risk of escalating material and labor costs, even with a fixed-price contract, if market conditions change significantly over the project's lifespan, potentially impacting the contractor's profitability and motivation. Secondly, long-term projects are more susceptible to unforeseen site conditions or design changes that could lead to costly modifications and delays. Thirdly, contractor performance can degrade over time due to personnel turnover or shifts in company priorities. Finally, the government's needs or funding priorities might change, creating pressure to alter the project scope or timeline.

What is the expected impact of these repairs on the dam's operational capacity and safety?

The Lewisville Dam lake repairs are intended to enhance the dam's structural integrity and ensure its continued safe operation. This likely involves addressing issues such as seepage, structural weaknesses, or aging components that could compromise the dam's ability to perform its functions, such as flood control and water supply. Successful completion of the repairs is expected to mitigate risks of failure, improve the dam's lifespan, and maintain or enhance its capacity to manage water resources effectively, thereby safeguarding downstream communities and infrastructure.

How has federal spending on dam repair and maintenance evolved in recent years, and where does this contract fit?

Federal spending on dam repair and maintenance has generally been increasing due to the aging infrastructure across the United States and a growing recognition of the critical role these structures play in water management and public safety. Programs like the Army Corps of Engineers' Civil Works budget and initiatives funded by the Infrastructure Investment and Jobs Act have allocated significant resources towards addressing deferred maintenance and modernizing existing dams. This $81.7 million contract for the Lewisville Dam represents a substantial investment within this broader trend, addressing specific, critical needs for a key piece of infrastructure.

What are the potential implications of a 'definitive contract' award for project flexibility and cost control?

A definitive contract, often used for complex projects with a well-defined scope, typically outlines the full terms and conditions upfront. For this dam repair project, it suggests that the government and contractor have agreed upon the specific work to be performed and the pricing structure. This can enhance cost control by minimizing scope creep and providing a clear basis for payments. However, it also implies less flexibility for mid-project adjustments compared to other contract types. Any necessary changes would likely require formal contract modifications, which can be time-consuming and potentially costly, impacting the overall project timeline and budget if not managed carefully.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9126G21R0004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shimmick Construction Company Inc.

Address: 530 TECHNOLOGY DR STE 300, IRVINE, CA, 92618

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $81,750,854

Exercised Options: $81,750,854

Current Obligation: $81,750,854

Actual Outlays: $735,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline