DoD Awards $57.5M Levee Repair Contract to Klutina River Contractors Amidst Full and Open Competition
Contract Overview
Contract Amount: $57,489,007 ($57.5M)
Contractor: Klutina River Contractors
Awarding Agency: Department of Defense
Start Date: 2019-12-12
End Date: 2021-10-31
Contract Duration: 689 days
Daily Burn Rate: $83.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: L594 C LEVEE REPAIR
Place of Performance
Location: THURMAN, FREMONT County, IOWA, 51654
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $57.5 million to KLUTINA RIVER CONTRACTORS for work described as: L594 C LEVEE REPAIR Key points: 1. Significant investment in critical infrastructure, highlighting the importance of flood control. 2. Contract awarded through full and open competition, suggesting a competitive bidding process. 3. Potential risks include project delays, cost overruns, and environmental impacts. 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $57.5M for levee repair appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process that initially considered multiple bidders but may have excluded some. This method aims for fair pricing but the exclusion aspect warrants scrutiny.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure maintenance, which is a necessary public service. The competitive nature of the award should help ensure cost-effectiveness.
Public Impact
Ensures public safety by reinforcing critical flood defenses. Supports local economy through construction jobs and related services. Addresses environmental concerns related to river erosion and habitat protection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in cost-plus contracts.
- Risk of environmental impact during construction.
- Dependence on a single contractor for project completion.
Positive Signals
- Addresses critical infrastructure needs.
- Awarded through a competitive process.
- Supports regional economic activity.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, specifically focusing on civil engineering and infrastructure repair. Spending benchmarks for similar large-scale levee and flood control projects would be relevant for comparison.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract award, as 'sb' is false. Further investigation would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The contract type (Cost Plus Fixed Fee) requires diligent monitoring to control costs and ensure performance aligns with the fixed fee.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Potential environmental impacts during construction require careful monitoring.
- The 'exclusion of sources' in competition needs clear justification to ensure fairness.
- Project duration of 689 days indicates a significant undertaking with inherent risks.
Tags
commercial-and-institutional-building-co, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.5 million to KLUTINA RIVER CONTRACTORS. L594 C LEVEE REPAIR
Who is the contractor on this award?
The obligated recipient is KLUTINA RIVER CONTRACTORS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $57.5 million.
What is the period of performance?
Start: 2019-12-12. End: 2021-10-31.
What specific criteria led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary for the project's success. Understanding these criteria is crucial to assess if the exclusion was justified and if it potentially limited competitive pressure, thereby influencing the final price. Without detailed documentation on the exclusion rationale, it's difficult to definitively state the price impact.
What are the key performance indicators (KPIs) for this levee repair project, and how will the Department of the Army ensure the contractor meets them to mitigate risks of substandard work or delays?
Key performance indicators likely include adherence to construction timelines, quality of materials used, structural integrity of the repaired levee, and compliance with environmental regulations. The Army's oversight would involve regular site inspections, progress reviews, and potentially independent engineering assessments to ensure the contractor meets these KPIs. Penalties for non-compliance or incentives for exceeding expectations would also be part of the contractual framework.
Given the 'COST PLUS FIXED FEE' contract type, what mechanisms are in place to prevent scope creep and ensure the fixed fee remains appropriate throughout the project's lifecycle?
Cost Plus Fixed Fee contracts require robust change management processes. The Army must meticulously define the initial scope and rigorously evaluate any proposed changes for necessity and cost impact. The fixed fee is negotiated upfront, and while it doesn't change, the government bears the risk of cost overruns beyond the estimated costs. Strong project management and clear communication channels are vital to control scope and manage expectations.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128F19R0027
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3200 EL CAMINO REAL STE 240, IRVINE, CA, 92602
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,489,007
Exercised Options: $57,489,007
Current Obligation: $57,489,007
Actual Outlays: $11,125,828
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F19D0066
IDV Type: IDC
Timeline
Start Date: 2019-12-12
Current End Date: 2021-10-31
Potential End Date: 2021-10-31 00:00:00
Last Modified: 2025-05-12
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