DoD's $37M Harrison County beach restoration contract awarded to JBW Group LLC raises value questions

Contract Overview

Contract Amount: $37,101,237 ($37.1M)

Contractor: JBW Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2027-03-26

Contract Duration: 480 days

Daily Burn Rate: $77.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COASTWIDE BEACH AND DUNE ECOSYSTEM RESTORATION, HARRISON COUNTY, MS

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to JBW GROUP LLC for work described as: COASTWIDE BEACH AND DUNE ECOSYSTEM RESTORATION, HARRISON COUNTY, MS Key points: 1. The contract's value proposition is unclear due to a lack of competitive bidding. 2. Limited competition may have led to suboptimal pricing for taxpayers. 3. The fixed-price contract type offers some cost certainty but doesn't mitigate potential overspending. 4. Performance risks are moderate given the nature of civil engineering projects. 5. This contract falls within the heavy and civil engineering construction sector. 6. The project's success hinges on effective execution of coastal ecosystem restoration.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without a competitive benchmark. Awarded at $37.1 million, the lack of multiple bids prevents a robust comparison to market rates or similar projects. While a firm fixed-price contract provides some cost predictability, the absence of competition raises concerns about whether the government secured the best possible price. Further analysis of the contractor's proposed costs against industry standards would be necessary to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This significantly limits the number of potential bidders and removes the pressure that multiple competing firms would typically exert on pricing and innovation. The lack of competition makes it challenging to ascertain if the government received the most advantageous terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding processes.

Public Impact

Residents and businesses in Harrison County, Mississippi, will benefit from improved coastal resilience and protection against storm surges. The project aims to restore and enhance the beach and dune ecosystems, providing environmental benefits. The geographic impact is concentrated in Harrison County, Mississippi, a region vulnerable to coastal erosion and extreme weather. The contract is expected to create employment opportunities in the construction and environmental services sectors within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award limits transparency in pricing.
Potential for scope creep in a large civil engineering project.
Environmental restoration projects can face unforeseen challenges impacting cost and schedule.

Positive Signals

Firm fixed-price contract provides cost certainty.
Focus on critical coastal infrastructure and ecosystem restoration.
Awarded by the Department of Defense, suggesting a potentially high level of oversight.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which includes a wide range of infrastructure projects. The market for coastal restoration and protection is significant, driven by increasing concerns over climate change and rising sea levels. Comparable spending benchmarks are difficult to establish without more specific project details and competitive data, but large-scale civil engineering projects often involve multi-million dollar investments.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement or set-aside (ss: false, sb: false). This suggests that the primary contractor, JBW Group LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could limit opportunities for smaller firms to participate in this significant federal expenditure.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, a component of the Department of Defense. Specific oversight mechanisms, such as regular progress reports, site inspections, and performance reviews, are standard for such projects. Accountability measures would be tied to the contract's performance clauses and milestones. Transparency could be enhanced through public reporting on project progress and expenditures, though this is not explicitly detailed in the provided data.

Related Government Programs

Coastal Zone Management Programs
Army Corps of Engineers Civil Works Projects
Disaster Relief and Recovery Efforts
Environmental Infrastructure Projects

Risk Flags

Sole-source award raises concerns about price competition.
Lack of transparency in the procurement process.
Potential for cost overruns if risks are not adequately managed.
Environmental restoration projects can be complex and unpredictable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to JBW GROUP LLC. COASTWIDE BEACH AND DUNE ECOSYSTEM RESTORATION, HARRISON COUNTY, MS

Who is the contractor on this award?

The obligated recipient is JBW GROUP 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 $37.1 million.

What is the period of performance?

Start: 2025-12-01. End: 2027-03-26.

What is JBW Group LLC's track record with similar federal contracts, particularly in coastal restoration?

Information regarding JBW Group LLC's specific track record with similar federal contracts, especially in coastal restoration, is not provided in the data. A comprehensive review would require accessing contract databases like SAM.gov or FPDS to analyze past performance, contract values, and any reported issues or successes. Understanding their experience with projects of comparable scale and complexity is crucial for assessing their capability to execute this $37.1 million contract effectively and efficiently. Without this historical data, it is difficult to gauge their reliability and expertise in this specialized field.

How does the awarded price compare to industry benchmarks for similar beach and dune restoration projects?

The provided data does not include specific cost breakdowns or metrics that would allow for a direct comparison to industry benchmarks for similar beach and dune restoration projects. The contract's value of $37.1 million is a total award amount. To benchmark effectively, one would need detailed cost information (e.g., per linear foot of restored beach, per acre of dune habitat) and data from comparable, competitively bid projects. Given the sole-source nature of this award, establishing a precise value-for-money comparison is challenging without further independent cost analysis or access to more granular project data.

What are the primary risks associated with this specific coastal restoration project, and how are they being mitigated?

Primary risks for this coastal restoration project include environmental factors (e.g., unforeseen geological conditions, weather impacts during construction), potential for scope creep in a large civil engineering endeavor, and contractor performance issues. Mitigation strategies are typically embedded within the contract terms, such as performance bonds, phased payments tied to milestones, and detailed technical specifications. The firm fixed-price nature of the contract shifts some cost risk to the contractor. However, the lack of competitive bidding makes it harder to assess if the contractor's proposed risk mitigation plans were rigorously vetted against alternatives.

What is the expected effectiveness of this restoration project in achieving its stated goals of ecosystem enhancement and coastal protection?

The expected effectiveness of the COASTWIDE BEACH AND DUNE ECOSYSTEM RESTORATION project hinges on several factors not detailed in the provided data, including the specific engineering and ecological methodologies employed, the long-term maintenance plan, and the resilience of the restored ecosystem to future environmental stressors. While the project's intent is to enhance coastal resilience and ecological health in Harrison County, MS, its ultimate success will be measured by post-completion monitoring of dune stability, habitat recovery, and reduced storm surge impact. The Department of Defense's involvement suggests a focus on critical infrastructure protection, implying a high expectation for tangible protective benefits.

How has federal spending on coastal restoration projects in Mississippi trended over the past five years?

Analyzing the trend of federal spending on coastal restoration projects in Mississippi over the past five years would require a detailed review of historical federal contract and grant data, likely from sources such as the Federal Procurement Data System (FPDS) and agency budget reports. This specific contract award of $37.1 million represents a significant single investment. Without access to comprehensive historical spending data for Mississippi's coastal restoration efforts, it is impossible to determine if this contract represents an increase, decrease, or continuation of previous spending levels. Such an analysis would typically involve identifying relevant NAICS codes and agencies involved in similar projects.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9127825RA093

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16414 SAN PEDRO AVE STE 450, SAN ANTONIO, TX, 78232

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

Financial Breakdown

Contract Ceiling: $37,101,237

Exercised Options: $37,101,237

Current Obligation: $37,101,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline