Army awards $29.6M for levee repairs in Kansas, highlighting infrastructure needs

Contract Overview

Contract Amount: $29,564,947 ($29.6M)

Contractor: ESI Contracting, Corp.

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2025-04-18

Contract Duration: 1,298 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LEVEE REPAIRS.

Place of Performance

Location: MANHATTAN, RILEY County, KANSAS, 66502

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to ESI CONTRACTING, CORP. for work described as: LEVEE REPAIRS. Key points: 1. Contract value represents a significant investment in regional flood control infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type may offer cost certainty but limits flexibility for unforeseen issues. 4. The duration of the contract suggests a substantial scope of work for levee maintenance and repair. 5. Geographic focus on Kansas points to specific regional vulnerability to flooding. 6. The contract's value is moderate within the broader context of federal infrastructure spending.

Value Assessment

Rating: good

The contract value of approximately $29.6 million for levee repairs appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale infrastructure projects, particularly those involving flood control and environmental remediation, suggests that the pricing is within an expected range. The firm fixed-price nature of the award provides a degree of cost predictability for the government. However, a detailed cost breakdown and comparison to independent cost estimates would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this type of specialized construction service. A competitive process generally leads to better price discovery and can drive innovation and efficiency among contractors vying for the award. The government likely received multiple proposals to evaluate, allowing for selection of the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and terms for the government, ensuring that public funds are used efficiently for essential infrastructure projects.

Public Impact

Residents and businesses in Kansas will benefit from improved flood protection measures. The contract will result in the repair and maintenance of critical levee infrastructure. The geographic impact is concentrated in Kansas, addressing specific regional flood risks. The project is expected to create or sustain jobs in the construction sector within the region. Environmental considerations related to levee integrity and water management are addressed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental conditions are encountered during repairs, despite the fixed-price nature.
Contract duration may be subject to delays due to weather or supply chain issues common in heavy construction.
Ensuring long-term effectiveness and durability of repairs will require robust quality assurance and oversight.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
Focus on essential infrastructure repair addresses critical public safety needs.
Contractor has been awarded a significant project, suggesting a level of established capability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the nation's infrastructure. This sector encompasses a wide range of projects, including transportation, water management, and energy infrastructure. Federal spending in this area is often driven by the need to maintain and upgrade aging public works, ensure public safety, and support economic development. Comparable spending benchmarks would typically involve other large-scale civil engineering projects such as bridge construction, dam maintenance, or highway infrastructure development, where contract values can range from millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that the prime contractor is not a small business. While there is no explicit information on subcontracting plans, large federal construction contracts often include provisions for small business participation. The absence of a small business set-aside means that larger firms were the primary focus of the competition. Further analysis would be needed to determine if small businesses will have opportunities to participate as subcontractors on this project and the extent of their involvement in the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and technical representatives within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, which stipulate deliverables and performance standards. Transparency is generally facilitated through contract award databases, though detailed project progress and specific expenditures may not be publicly available in real-time. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
Federal Highway Administration Infrastructure Projects
National Dam Safety Program
FEMA Hazard Mitigation Assistance Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays from weather or supply chain disruptions.
Ensuring long-term durability and effectiveness of repairs requires diligent oversight.
Contractor performance history needs thorough vetting for complex projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to ESI CONTRACTING, CORP.. LEVEE REPAIRS.

Who is the contractor on this award?

The obligated recipient is ESI 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 $29.6 million.

What is the period of performance?

Start: 2021-09-28. End: 2025-04-18.

What is the track record of ESI Contracting, Corp. with federal contracts, particularly in civil engineering and infrastructure repair?

A review of federal procurement data indicates that ESI Contracting, Corp. has a history of securing federal contracts, primarily within the construction and engineering domains. While specific details on past performance for levee repair projects would require deeper analysis, their award of this significant contract suggests a demonstrated capability and experience relevant to the scope of work. Examining past contract awards, performance evaluations (if available), and any past performance issues or disputes would provide a more comprehensive understanding of their track record. This includes assessing their experience with similar project sizes, complexities, and geographic locations, as well as their history of meeting deadlines and budget constraints on previous federal engagements.

How does the awarded amount of $29.6 million compare to the estimated cost or budget for this specific levee repair project?

Without access to the government's independent cost estimate or the detailed breakdown of ESI Contracting, Corp.'s bid, a direct comparison is challenging. However, the awarded amount of $29.6 million represents the government's commitment based on the competitive bidding process. If the government had a pre-determined budget, the award suggests that the winning bid was within acceptable parameters. Factors influencing the estimate would include labor costs, material prices, equipment rental, site accessibility, and the complexity of the required repairs. A significant difference between the awarded amount and a publicly available estimate (if one exists) could warrant further investigation into the bidding environment or the accuracy of the initial estimate.

What are the primary risks associated with this firm fixed-price contract for levee repairs, and how are they being mitigated?

The primary risk with a firm fixed-price contract is that the contractor may face financial losses if costs exceed the agreed-upon price, potentially leading to quality compromises or project delays if the contractor struggles. For levee repairs, unforeseen geological conditions, extreme weather events, or environmental discoveries during excavation pose significant cost escalation risks. Mitigation strategies typically involve thorough site investigations prior to bidding, detailed contract specifications that clearly define responsibilities for unforeseen conditions, and robust government oversight to ensure work quality and adherence to the contract. The government's risk is generally lower in terms of cost certainty, but they risk contractor default or subpar performance if the price is too low for the contractor to execute profitably.

What is the expected effectiveness of these levee repairs in enhancing flood protection for the affected Kansas region?

The effectiveness of the levee repairs hinges on the specific scope of work outlined in the contract and the quality of execution. Assuming the contract addresses known structural deficiencies, erosion issues, or capacity limitations, the repairs are expected to significantly enhance flood protection. This could involve reinforcing levees, improving drainage, or increasing their height or width to withstand higher water levels. The long-term effectiveness will also depend on ongoing maintenance and monitoring by the relevant authorities. The contract's duration and value suggest a comprehensive approach rather than superficial fixes, aiming for a substantial improvement in the region's resilience against flooding events.

How does historical spending on levee maintenance and repair in Kansas compare to this $29.6 million award?

To assess this, one would need to analyze historical federal and state spending data specifically for levee maintenance and repair within Kansas. This $29.6 million award represents a substantial single investment. If historical spending has been sporadic or focused on smaller, localized repairs, this contract signifies a major commitment to addressing potentially widespread or critical infrastructure needs in the state. Conversely, if Kansas has a history of large-scale, multi-year levee improvement programs, this award might be one component of a larger ongoing effort. Understanding the historical context helps determine if this award is an anomaly, a continuation of a trend, or a response to a specific recent event or identified vulnerability.

What are the potential environmental impacts of undertaking extensive levee repairs, and are there specific environmental protection measures included in this contract?

Undertaking extensive levee repairs can have various environmental impacts, including temporary disruption of local ecosystems, potential sedimentation in waterways, and habitat disturbance. Measures to mitigate these impacts are crucial. Federal contracts, especially those involving significant construction, typically require adherence to environmental regulations such as the National Environmental Policy Act (NEPA). This often involves environmental assessments, impact statements, and the implementation of specific protection measures like erosion control, sediment management plans, wildlife protection protocols, and restoration of disturbed areas post-construction. The contract documents would detail these requirements, ensuring that the repairs are conducted in an environmentally responsible manner.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912DQ21B1002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3001 E 83RD ST, KANSAS CITY, MO, 64132

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,564,947

Exercised Options: $29,564,947

Current Obligation: $29,564,947

Actual Outlays: $5,705,669

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline