Army Awards $18.4M for Sacramento Levee Reconstruction to Cape-ForgEn JV
Contract Overview
Contract Amount: $18,421,615 ($18.4M)
Contractor: Cape-Forgen JV
Awarding Agency: Department of Defense
Start Date: 2024-09-09
End Date: 2025-12-31
Contract Duration: 478 days
Daily Burn Rate: $38.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: SPK LEVEE RECONSTRUCTION-SOUTH, SACRAMENTO, CA
Place of Performance
Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814
Plain-Language Summary
Department of Defense obligated $18.4 million to CAPE-FORGEN JV for work described as: SPK LEVEE RECONSTRUCTION-SOUTH, SACRAMENTO, CA Key points: 1. Spending is concentrated in construction, a sector with significant infrastructure needs. 2. The contract was awarded via full and open competition, suggesting a competitive bidding process. 3. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 4. The project duration of 478 days indicates a substantial undertaking.
Value Assessment
Rating: good
The contract value of $18.4M for levee reconstruction appears reasonable given the project scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield a fair price for taxpayers, ensuring value for the investment in critical infrastructure.
Public Impact
Enhances flood protection for Sacramento residents and infrastructure. Supports local economy through construction jobs and related services. Addresses critical aging infrastructure needs in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to higher costs if not managed effectively.
- Project duration extends into late 2025, requiring sustained oversight.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs.
- Supports regional resilience.
Sector Analysis
This contract falls within the commercial and institutional building construction sector, which is vital for infrastructure development. Spending in this sector can fluctuate based on government priorities and economic conditions.
Small Business Impact
The contract was awarded to a joint venture (Cape-ForgEn JV). Further analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors.
Oversight & Accountability
The Department of the Army is responsible for oversight. The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure taxpayer funds are used efficiently.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus-fixed-fee contract structure.
- Potential for cost overruns.
- Extended project duration.
- Lack of detailed small business participation data.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to CAPE-FORGEN JV. SPK LEVEE RECONSTRUCTION-SOUTH, SACRAMENTO, CA
Who is the contractor on this award?
The obligated recipient is CAPE-FORGEN JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.4 million.
What is the period of performance?
Start: 2024-09-09. End: 2025-12-31.
What is the projected cost savings achieved through the competitive bidding process for this levee reconstruction project?
While the contract was awarded under full and open competition, specific cost savings figures are not publicly available. However, competitive processes generally aim to secure the best value by encouraging multiple bids, which typically results in prices lower than those from sole-source or limited competition awards. The benchmark price of $3.85M suggests a significant difference from the awarded value, warranting further investigation into the scope and specific requirements.
What are the primary risks associated with the cost-plus-fixed-fee contract structure for this project?
The primary risk with a cost-plus-fixed-fee (CPFF) contract is that the contractor may have less incentive to control costs, as the government agrees to cover all allowable costs plus a predetermined fee. This can lead to cost overruns if not rigorously monitored. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the project stays within budget.
How will the effectiveness of the levee reconstruction be measured and ensured post-completion?
Effectiveness will likely be measured by the project's adherence to engineering specifications, successful completion within the defined timeline and budget, and ultimately, its performance in preventing flooding during future events. The Army Corps of Engineers will oversee the construction quality and compliance. Post-completion, ongoing monitoring and periodic inspections will confirm the levee's structural integrity and its ability to meet flood control objectives.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128F19R0043
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 500 PINNACLE CT, NORCROSS, GA, 30071
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $18,421,615
Exercised Options: $18,421,615
Current Obligation: $18,421,615
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W9128F20D0004
IDV Type: IDC
Timeline
Start Date: 2024-09-09
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-07-10
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