DoD awards $19.3M for Mississippi seawall construction, highlighting civil engineering needs

Contract Overview

Contract Amount: $19,281,134 ($19.3M)

Contractor: Hemphill-Key, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2010-01-26

End Date: 2013-09-30

Contract Duration: 1,343 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF SEAWALL BAY ST LOUIS, MS

Place of Performance

Location: FLORENCE, RANKIN County, MISSISSIPPI, 39073

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to HEMPHILL-KEY, A JOINT VENTURE for work described as: CONSTRUCTION OF SEAWALL BAY ST LOUIS, MS Key points: 1. Contract value of $19.3M for a critical infrastructure project. 2. Competition dynamics indicate a robust bidding process for this civil engineering work. 3. Project duration of over three years suggests a complex and lengthy undertaking. 4. Fixed-price contract type aims to control costs for the government. 5. Geographic focus on Mississippi underscores regional infrastructure priorities. 6. The award falls within the 'Other Heavy and Civil Engineering Construction' NAICS code.

Value Assessment

Rating: good

The contract value of $19.3 million for the construction of a seawall in Bay St. Louis, Mississippi, appears reasonable given the scope of heavy civil engineering work. While direct comparisons are difficult without specific project details, large-scale coastal defense projects often involve significant investment. The firm fixed-price nature of the contract suggests an effort to establish a clear cost ceiling, which is a positive indicator for value. Benchmarking against similar federal construction projects of comparable scale and complexity would provide further insight into the pricing efficiency.

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 fact that 19 bids were received suggests a healthy level of interest and competition within the market for this type of civil engineering construction. A higher number of bidders generally leads to more competitive pricing and a greater likelihood that the government will secure the best value. The agency's commitment to full and open competition is a positive sign for efficient use of taxpayer funds.

Taxpayer Impact: The extensive competition for this seawall project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that multiple companies vied to offer their best pricing and capabilities.

Public Impact

The primary beneficiaries are residents and businesses in Bay St. Louis, Mississippi, who will gain enhanced protection from storm surges and coastal erosion. The project delivers essential coastal infrastructure, improving resilience against natural disasters. The geographic impact is localized to the Mississippi Gulf Coast region. The construction activities would likely involve a significant local workforce, including skilled trades and laborers, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental challenges arise during the extended construction period.
Risk of delays due to weather, particularly in a coastal environment prone to hurricanes.
Ensuring long-term durability and effectiveness of the seawall against future storm events.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing and a wide selection of qualified contractors.
Firm fixed-price contract type provides cost certainty for the government.
The project addresses a critical need for coastal infrastructure protection in Mississippi.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects. The market for such services is driven by government spending on public works, defense installations, and disaster recovery. Federal spending in this sector often fluctuates based on infrastructure needs, economic conditions, and national security priorities. Comparable spending benchmarks would involve analyzing other large-scale civil engineering projects awarded by agencies like the Army Corps of Engineers or the Department of Transportation.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award went to a joint venture, which may or may not include small business participation. Further investigation into the joint venture's composition and any subcontracting plans would be necessary to assess the impact on the small business ecosystem. Typically, large infrastructure projects offer opportunities for small businesses as subcontractors for specialized services or material supply.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with contract terms and specifications. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency would be enhanced through public contract databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Projects
FEMA Hazard Mitigation Grants
Department of Transportation Infrastructure Grants
State of Mississippi Coastal Restoration Projects

Risk Flags

Extended project duration may increase risk of unforeseen costs or delays.
Coastal construction is inherently susceptible to weather-related disruptions.
Need for ongoing monitoring to ensure long-term structural integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to HEMPHILL-KEY, A JOINT VENTURE. CONSTRUCTION OF SEAWALL BAY ST LOUIS, MS

Who is the contractor on this award?

The obligated recipient is HEMPHILL-KEY, A 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 $19.3 million.

What is the period of performance?

Start: 2010-01-26. End: 2013-09-30.

What is the track record of Hemphill-Key, A Joint Venture, in completing similar large-scale civil engineering projects for the federal government?

Information regarding the specific track record of 'Hemphill-Key, A Joint Venture' is not detailed in the provided data. As a joint venture, its performance would be a composite of its member companies' capabilities and past project execution. To assess their track record, one would typically review past performance evaluations, project completion history, and any history of litigation or disputes on similar federal contracts. Federal procurement databases and past performance information systems are key resources for this type of analysis. Without this specific data, it's difficult to definitively gauge their experience and reliability for this seawall construction project.

How does the awarded amount of $19.3 million compare to the estimated cost or budget for this seawall construction project?

The provided data lists the awarded amount ($19,281,134.40) but does not include the original estimated cost or budget for the project. In a full and open competition with 19 bidders, it is reasonable to infer that the awarded amount was competitive and likely within a range considered acceptable by the agency. However, a definitive comparison to the initial budget or estimate is not possible with the given information. Ideally, an analysis would compare the awarded value against the government's independent government cost estimate (IGCE) or the initial solicitation's budget allocation to determine if the contract was awarded at a favorable price point.

What are the primary risks associated with the long duration (1343 days) of this construction contract?

The extended duration of 1343 days (approximately 3.7 years) for the seawall construction presents several risks. Firstly, there is an increased risk of cost escalation, even with a firm fixed-price contract, if unforeseen site conditions, material price fluctuations, or scope changes occur that necessitate contract modifications. Secondly, the prolonged timeline heightens the potential for weather-related delays, especially in a hurricane-prone region like the Mississippi coast, which could impact project completion and potentially lead to claims. Thirdly, maintaining consistent oversight and quality control over such an extended period requires sustained effort and resources. Finally, the longer the project, the greater the chance of technological advancements or changes in engineering standards that might require adaptation.

What specific performance metrics or milestones were likely established to measure the success of this seawall construction?

While specific performance metrics are not detailed in the provided data, typical milestones for a large civil engineering construction project like a seawall would include: completion of site preparation and foundation work, adherence to construction schedules for different phases of the seawall, quality control checks for materials and workmanship (e.g., concrete strength, structural integrity), compliance with environmental regulations during construction, and final inspection and acceptance of the completed structure. Performance would likely be evaluated against the technical specifications outlined in the contract, adherence to the project schedule, and the overall quality of the finished seawall, ensuring it meets the required design standards for flood protection.

How does the $19.3 million expenditure for this single seawall project compare to the Department of Defense's overall spending on coastal infrastructure or civil engineering projects?

The $19.3 million expenditure for this specific seawall project represents a component of the Department of Defense's (DoD) broader investment in infrastructure, which includes significant spending on coastal defenses, military base resilience, and other civil engineering endeavors. While this amount is substantial for a single project, it is likely a fraction of the DoD's total annual budget allocated to facilities, engineering, and construction. To provide context, one would need to analyze the DoD's historical spending data on similar projects, particularly those managed by the Army Corps of Engineers, which is often tasked with such infrastructure development. This comparison would reveal whether this award is typical, large, or small relative to the DoD's overall infrastructure portfolio.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127809R0101

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1858 HWY 49 S, FLORENCE, MS, 39073

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,281,134

Exercised Options: $19,281,134

Current Obligation: $19,281,134

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline