Army awards $12.9M for Missouri River bank stabilization, a significant civil engineering project

Contract Overview

Contract Amount: $12,909,386 ($12.9M)

Contractor: Western Contracting Corp

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2025-10-17

Contract Duration: 1,113 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY22 BANK STABILIZATION & NAVIGATION PROJECT - NORTH (BSNP), RIVER MILE 600 TO 740, MISSOURI RIVER, IA, MO, NE

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68112

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to WESTERN CONTRACTING CORP for work described as: FY22 BANK STABILIZATION & NAVIGATION PROJECT - NORTH (BSNP), RIVER MILE 600 TO 740, MISSOURI RIVER, IA, MO, NE Key points: 1. Project focuses on critical infrastructure resilience along a 140-mile stretch of the Missouri River. 2. Western Contracting Corp, a seasoned civil engineering firm, secured the award. 3. The contract utilizes a firm-fixed-price structure, offering cost certainty for the government. 4. This project addresses long-term erosion control and navigation improvements. 5. The duration of over three years indicates a substantial scope of work. 6. The award was made under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of $12.9 million for a 140-mile bank stabilization project appears reasonable given the scope and complexity of civil engineering work. Benchmarking against similar large-scale riverine infrastructure projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps manage cost risks for the government. The contractor, Western Contracting Corp, has a history of performing large civil works, suggesting capability.

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 that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing, but the specific nature of heavy civil engineering contracts can sometimes limit the pool of qualified firms.

Taxpayer Impact: The full and open competition, even with potential exclusions, aims to ensure taxpayer funds are used efficiently by encouraging competitive bids. The fact that two firms bid suggests a reasonable effort to obtain fair market value.

Public Impact

Benefits residents and businesses in Iowa, Missouri, and Nebraska by improving river navigation and reducing flood risks. Enhances the stability and longevity of the Missouri River's banks, crucial for regional infrastructure. Supports the transportation of goods and services along the Missouri River waterway. Potentially creates or sustains jobs in the heavy civil engineering and construction sectors in the Midwest.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large civil engineering projects, requiring diligent oversight.
Environmental impact assessments and mitigation strategies need careful monitoring.
Coordination with multiple state and federal agencies may present logistical challenges.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contractor has experience in similar large-scale civil engineering projects.
Project addresses critical infrastructure needs for navigation and flood control.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a vital part of the nation's infrastructure. This sector involves large-scale projects such as dams, bridges, highways, and river improvements. Spending in this area is often driven by federal infrastructure initiatives and the need to maintain and upgrade existing public works. Comparable projects might include other Army Corps of Engineers riverine projects or large-scale transportation infrastructure developments.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Large civil engineering projects of this magnitude often involve prime contractors that are large businesses, with subcontracting opportunities potentially flowing down to smaller firms. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, the contracting agency. Mechanisms likely include regular progress reports, site inspections, and quality assurance reviews. Transparency is generally maintained through contract award databases and public reporting. The Inspector General's office of the Department of Defense would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Missouri River Basin Water Management
Inland Waterways Trust Fund
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for environmental impact during construction.
Risk of unforeseen geological or hydrological conditions.
Coordination complexity across multiple states and stakeholders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to WESTERN CONTRACTING CORP. FY22 BANK STABILIZATION & NAVIGATION PROJECT - NORTH (BSNP), RIVER MILE 600 TO 740, MISSOURI RIVER, IA, MO, NE

Who is the contractor on this award?

The obligated recipient is WESTERN CONTRACTING CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-10-17.

What is Western Contracting Corp's track record with similar Army Corps of Engineers projects?

Western Contracting Corp has a significant history of performing large-scale civil engineering and construction projects, including many for the U.S. Army Corps of Engineers. Their portfolio often includes riverine work, dredging, levee construction, and other infrastructure development. Reviewing their past performance on projects of similar size and complexity, particularly those involving bank stabilization or navigation improvements on major waterways, would provide insight into their capability and reliability. Specific project details, completion records, and any past performance issues or commendations would be crucial for a comprehensive assessment of their suitability for this contract.

How does the $12.9 million cost compare to similar bank stabilization projects on major rivers?

Benchmarking the $12.9 million cost against similar bank stabilization projects requires detailed comparison of scope, length of river affected, specific engineering challenges (e.g., soil type, flow rates, environmental considerations), and project duration. For instance, a 140-mile stretch is substantial. Projects on the Mississippi River, or other major inland waterways, with similar objectives like erosion control and navigation enhancement, could serve as comparators. Without specific data on comparable projects' costs per mile or per unit of work (e.g., cubic yards of material moved, linear feet of revetment installed), it's difficult to definitively assess value. However, large-scale civil works are inherently expensive, and this figure suggests a significant undertaking.

What are the primary risks associated with this bank stabilization project?

The primary risks associated with this bank stabilization project include environmental factors such as unforeseen geological conditions, extreme weather events impacting construction progress or effectiveness, and potential ecological impacts requiring mitigation. Schedule risks could arise from coordination challenges with multiple stakeholders, permitting delays, or contractor performance issues. Cost risks, although mitigated by the firm-fixed-price contract, could still emerge from scope changes or unforeseen site conditions requiring contract modifications. Ensuring robust project management, contingency planning, and diligent oversight are key to mitigating these risks.

What is the expected impact of this project on river navigation and flood control?

This project is expected to significantly improve river navigation by stabilizing the riverbanks, which can reduce sediment deposition and maintain channel depth required for commercial and recreational vessels. By reinforcing the banks, it will also enhance flood control by preventing erosion and potential breaches, thereby protecting adjacent communities and infrastructure from inundation. The 140-mile scope suggests a comprehensive approach to managing these issues along a critical segment of the Missouri River, contributing to the overall reliability and safety of the waterway system.

What has been the historical spending trend for similar bank stabilization projects by the Army Corps of Engineers?

Historical spending on bank stabilization and riverine projects by the Army Corps of Engineers (USACE) has been substantial and cyclical, often tied to federal infrastructure funding priorities and appropriations. USACE manages numerous projects across the country's major river systems, including the Missouri, Mississippi, and Ohio Rivers. Spending levels can fluctuate based on the urgency of infrastructure needs, the availability of funds through annual appropriations, and specific initiatives like the Bipartisan Infrastructure Law. Analyzing past USACE budgets and contract awards for similar projects would reveal trends in investment, project scale, and the types of stabilization techniques employed over time.

How does the 'full and open competition after exclusion of sources' procurement method affect pricing and competition?

The 'full and open competition after exclusion of sources' method implies that the solicitation was broadly advertised, but certain potential offerors were excluded based on specific, justified criteria (e.g., security, past performance, specific technical capabilities). This approach aims to ensure a competitive environment while focusing the competition on a qualified pool of responsible contractors. While it's more competitive than a sole-source award, it might result in fewer bidders than a purely 'full and open' competition without exclusions. The impact on pricing depends on the number of remaining qualified bidders; if the exclusion significantly narrows the field, it could potentially lead to less aggressive pricing compared to a scenario with a larger number of diverse competitors.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9128F22B0010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 705 DOUGLAS ST STE 400, SIOUX CITY, IA, 51101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,588,772

Exercised Options: $26,588,772

Current Obligation: $12,909,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline