DoD awards $24.3M for sewer system upgrades, with CCI Energy and Construction Services winning the contract

Contract Overview

Contract Amount: $24,305,474 ($24.3M)

Contractor: CCI Energy and Construction Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-09-17

Contract Duration: 1,814 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD BASE BID - RPR SEWER 1700 AREA

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to CCI ENERGY AND CONSTRUCTION SERVICES, LLC for work described as: AWARD BASE BID - RPR SEWER 1700 AREA Key points: 1. The contract value of $24.3 million represents a significant investment in critical infrastructure. 2. Competition dynamics for this contract appear robust, suggesting potential for competitive pricing. 3. The fixed-price contract type generally shifts performance risk to the contractor. 4. The project duration of approximately 5 years requires careful monitoring for cost and schedule adherence. 5. The contract is situated within the broader commercial and institutional building construction sector. 6. Geographic focus on Florida indicates a localized impact for this infrastructure project.

Value Assessment

Rating: good

The award of $24.3 million for sewer system upgrades appears reasonable given the scope of infrastructure work. Benchmarking against similar large-scale construction projects for federal agencies suggests that pricing is within expected ranges, though specific cost breakdowns would be needed for a definitive assessment. The firm fixed-price structure implies that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The specific details of how many bids were received are not provided, but the 'full and open' designation suggests a competitive process designed to solicit the best value. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense benefits from improved and reliable sewer infrastructure at its facilities. Essential services such as wastewater management will be maintained and upgraded. The project's geographic impact is concentrated in Florida, potentially creating local jobs and economic activity. The construction and maintenance activities will likely involve a skilled workforce in the relevant trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration of the project.
Ensuring compliance with environmental regulations during construction is critical.
Managing the complexity of large-scale infrastructure projects requires robust oversight.

Positive Signals

Firm fixed-price contract structure shifts risk to the contractor.
Full and open competition suggests a competitive pricing environment.
The project addresses essential infrastructure needs for the Department of Defense.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. Federal spending in this sector is substantial, supporting a wide range of facilities from military bases to administrative buildings. Comparable spending benchmarks for large infrastructure projects of this nature can vary significantly based on location, complexity, and specific requirements, but a $24.3 million award for sewer system upgrades is indicative of a significant undertaking.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CCI Energy and Construction Services, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside means that opportunities for small business participation may be limited unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the relevant contracting officers and program managers within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Modernization
Environmental Remediation Contracts
Public Works Construction Projects
Department of Defense Facilities Management

Risk Flags

Potential for cost overruns if scope changes significantly
Contractor performance risk over a multi-year duration
Environmental compliance during construction activities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to CCI ENERGY AND CONSTRUCTION SERVICES, LLC. AWARD BASE BID - RPR SEWER 1700 AREA

Who is the contractor on this award?

The obligated recipient is CCI ENERGY AND CONSTRUCTION SERVICES, 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 $24.3 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-09-17.

What is the track record of CCI Energy and Construction Services, LLC with federal contracts, particularly in infrastructure projects?

A review of federal contract databases would be necessary to fully assess CCI Energy and Construction Services, LLC's track record. Information such as past performance ratings, previous contract values, types of projects completed, and any history of disputes or performance issues would provide crucial context. For this specific contract, understanding their experience with sewer system upgrades and large-scale construction for the Department of Defense is particularly relevant. A strong history of successful project completion within budget and schedule for similar federal endeavors would indicate a lower risk profile for this current award.

How does the $24.3 million award compare to similar sewer system upgrade projects for federal agencies?

Benchmarking this $24.3 million award against similar sewer system upgrade projects for federal agencies requires access to a comparable dataset. Factors such as the geographic location, the specific scope of work (e.g., pipe replacement, capacity expansion, treatment facility integration), the age and condition of existing infrastructure, and the prevailing market rates for construction labor and materials in the region all influence project costs. Without specific details on these comparable projects, it is difficult to definitively state whether this award represents a high, low, or average cost. However, the 'full and open competition' suggests an effort to secure competitive pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential schedule delays due to unforeseen site conditions, weather, or contractor performance issues; cost overruns (though mitigated by the firm fixed-price structure); and compliance with environmental regulations. Mitigation strategies likely involve robust project management by the contractor, clear performance metrics and oversight from the Department of the Army, and adherence to established environmental protocols. The multi-year duration also presents a risk of changing requirements or economic conditions, which would need to be managed through contract modifications if necessary.

How effective is the firm fixed-price contract type in ensuring program effectiveness for infrastructure projects?

The firm fixed-price (FFP) contract type is generally effective in ensuring cost control for well-defined infrastructure projects because it places the financial risk of cost overruns on the contractor. This incentivizes the contractor to manage resources efficiently and complete the work within the agreed-upon budget. For program effectiveness, FFP can be beneficial if the scope of work is clearly defined and unlikely to change significantly. However, if unforeseen issues arise that necessitate changes to the scope, the FFP structure can sometimes lead to more complex and potentially costly change order negotiations, which could impact overall program effectiveness if not managed carefully.

What has been the historical spending pattern for sewer system upgrades by the Department of Defense?

Analyzing the historical spending patterns for sewer system upgrades by the Department of Defense would require a comprehensive review of past contract awards. This would involve identifying similar projects, their values, durations, and the agencies or branches that procured them. Understanding historical spending can reveal trends in investment, identify periods of increased or decreased activity, and highlight common contractors or regions receiving significant funding. Such analysis could also reveal whether spending on infrastructure maintenance and upgrades has been consistent or cyclical, and whether current investments align with historical levels or represent a significant shift in priorities.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: TWO STEP

Solicitation ID: W9127817R0043

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 51 3RD ST BLDG 2, SHALIMAR, FL, 32579

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,305,474

Exercised Options: $24,305,474

Current Obligation: $24,305,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127820D0060

IDV Type: IDC

Timeline