Army awards $14.1M contract for dike raising and disposal area work in New Jersey

Contract Overview

Contract Amount: $14,097,200 ($14.1M)

Contractor: C. Abbonizio Contractors, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-19

End Date: 2025-08-22

Contract Duration: 612 days

Daily Burn Rate: $23.0K/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: DIKE RAISING KILLCOHOOK DISPOSAL AREA - PENNSVILLE, NJ

Place of Performance

Location: PENNSVILLE, SALEM County, NEW JERSEY, 08070

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to C. ABBONIZIO CONTRACTORS, INC. for work described as: DIKE RAISING KILLCOHOOK DISPOSAL AREA - PENNSVILLE, NJ Key points: 1. Contract awarded to C. Abbonizio Contractors, Inc. for dike raising and disposal area services. 2. Project located in Pennsville, NJ, with an estimated completion date in August 2025. 3. The contract type is a definitive contract with a firm fixed price. 4. This award represents a significant investment in critical infrastructure maintenance for the Department of the Army. 5. The contract duration is 612 days, indicating a substantial scope of work. 6. The procurement method was full and open competition after exclusion of sources.

Value Assessment

Rating: good

The contract value of $14.1 million for dike raising and disposal area work appears reasonable given the scope and duration. Benchmarking against similar heavy civil engineering construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after the exclusion of sources. This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions, but two bidders can still yield a fair market price.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. The fact that multiple firms were considered, even if some were excluded, suggests an effort to achieve a fair price and quality outcome.

Public Impact

The primary beneficiaries are the Department of the Army and potentially surrounding communities through enhanced flood control and environmental protection. Services delivered include the raising of dikes and management of disposal areas, crucial for environmental safety and operational readiness. The geographic impact is localized to Pennsville, New Jersey, addressing specific infrastructure needs in that region. Workforce implications include job creation for construction workers, engineers, and project managers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial site assessments are incomplete.
Risk of unforeseen environmental conditions impacting project timelines and costs.
Dependence on contractor's ability to manage specialized equipment and skilled labor.
Ensuring compliance with all federal and state environmental regulations throughout the project lifecycle.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Award to an established contractor suggests a degree of confidence in their capabilities.
Clear definition of work scope in the contract documents.
Defined project timeline with an end date in August 2025.

Sector Analysis

This contract falls within the Other Heavy and Civil Engineering Construction sector, a vital part of the construction industry focused on large-scale public works. This sector includes projects like dams, levees, highways, and waste management facilities. Spending in this area is often driven by infrastructure needs, environmental regulations, and national security requirements. Comparable spending benchmarks would involve analyzing other Army Corps of Engineers or similar agency contracts for dike construction, landfill capping, or environmental remediation projects.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. The prime contractor, C. Abbonizio Contractors, Inc., will determine its own subcontracting strategy, which may or may not involve small businesses. The absence of set-asides means that opportunities for small businesses are not guaranteed through this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms, specifications, and performance standards. Accountability measures are embedded in the firm fixed-price structure, incentivizing the contractor to complete the work within budget. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Environmental Infrastructure Projects
Flood Control and Coastal Emergencies
Disposal Area Management Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for unforeseen environmental conditions.
Risk of schedule delays due to weather or site complexities.
Contractor's ability to manage specialized equipment and labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to C. ABBONIZIO CONTRACTORS, INC.. DIKE RAISING KILLCOHOOK DISPOSAL AREA - PENNSVILLE, NJ

Who is the contractor on this award?

The obligated recipient is C. ABBONIZIO CONTRACTORS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2023-12-19. End: 2025-08-22.

What is the track record of C. Abbonizio Contractors, Inc. with the Department of Defense?

A review of federal procurement data indicates that C. Abbonizio Contractors, Inc. has a history of receiving contracts from various government agencies, including the Department of Defense. While specific details on past performance metrics for this contractor are not provided in this summary, agencies typically evaluate a contractor's past performance as part of the source selection process. This evaluation often includes assessing their record on previous contracts regarding quality, timeliness, cost control, and overall customer satisfaction. For a comprehensive understanding, one would need to consult detailed past performance reviews or agency evaluation reports related to C. Abbonizio Contractors, Inc.'s prior engagements with the DoD.

How does the awarded amount compare to similar dike raising projects?

Direct comparison of the $14.1 million award for dike raising and disposal area work to similar projects is challenging without access to a detailed database of comparable contracts. Factors such as project scope, geographic location, specific environmental conditions, material requirements, and regulatory compliance can significantly influence costs. However, the firm fixed-price nature of this contract suggests that the government has negotiated a price that is intended to cover all anticipated costs and profit. To benchmark effectively, one would need to identify contracts with similar cubic yards of material moved, linear feet of dike constructed, and complexity of disposal area management, ideally within the same region or with similar geological characteristics.

What are the primary risks associated with this type of heavy civil engineering contract?

Heavy civil engineering projects, such as dike raising and disposal area management, carry inherent risks. Key risks include unforeseen subsurface conditions (e.g., unstable soil, groundwater issues) that can lead to delays and cost increases. Environmental risks are also significant, involving potential discovery of hazardous materials or impacts on protected species, requiring costly mitigation measures. Weather-related delays can disrupt schedules, especially in coastal or environmentally sensitive areas. Furthermore, the availability and cost of specialized heavy equipment and skilled labor can fluctuate, impacting project execution. Finally, ensuring strict adherence to complex regulatory requirements (e.g., EPA, Army Corps of Engineers) adds another layer of risk if not managed proactively.

What is the historical spending pattern for dike raising and disposal area contracts by the Department of the Army?

Historical spending on dike raising and disposal area contracts by the Department of the Army can vary significantly year over year, influenced by infrastructure needs, environmental mandates, and budget allocations. The Army Corps of Engineers, in particular, manages numerous projects related to water resource management, flood control, and environmental restoration, which often include dike construction and maintenance, as well as the management of dredged material disposal sites. Analyzing historical data would reveal trends in contract values, types of services procured, and the geographic distribution of these investments. This specific $14.1 million award should be viewed within the context of the Army's broader portfolio of infrastructure and environmental stewardship obligations.

What does the 'after exclusion of sources' clause imply for competition?

The 'after exclusion of sources' clause in a 'full and open competition' procurement indicates that while the competition was initially intended to be open to all responsible sources, certain potential offerors were excluded prior to the solicitation. This exclusion is typically based on specific, justifiable criteria outlined in the solicitation, such as demonstrated capability, past performance, or specific technical requirements. It means the competition was not truly open to every possible vendor but rather to a pre-qualified or filtered pool. While it aims to ensure that only capable contractors participate, it can limit the breadth of competition compared to a truly unrestricted full and open process, potentially impacting price discovery.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BU23R0007

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1850 HURFFVILLE RD, SEWELL, NJ, 08080

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

Financial Breakdown

Contract Ceiling: $14,097,200

Exercised Options: $14,097,200

Current Obligation: $14,097,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline