DoD Awards $16.6M Levee Construction Contract to HB Construction Inc
Contract Overview
Contract Amount: $16,629,073 ($16.6M)
Contractor: HB Construction Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-22
End Date: 2026-03-31
Contract Duration: 1,286 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF LEVEE UNIT R471-460
Place of Performance
Location: ELWOOD, DONIPHAN County, KANSAS, 66024
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $16.6 million to HB CONSTRUCTION INC for work described as: CONSTRUCTION OF LEVEE UNIT R471-460 Key points: 1. Contract awarded for levee construction in Kansas. 2. HB Construction Inc. is the prime contractor. 3. The contract is a Firm Fixed Price type. 4. Competition was full and open after exclusion of sources.
Value Assessment
Rating: fair
The contract value of $16.6 million for levee construction appears within a reasonable range for similar heavy civil engineering projects. However, without specific project scope details and regional cost data, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competitive pool. This approach may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure development. The limited competition raises questions about achieving the best possible price for the government.
Public Impact
Enhances flood protection infrastructure in Kansas. Supports local employment and economic activity through construction. Ensures compliance with federal flood control standards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Contract duration is substantial, increasing risk of cost overruns.
- Fixed price contract may not account for unforeseen site conditions.
Positive Signals
- Addresses critical infrastructure needs.
- Clear contract type (Firm Fixed Price) aids budget predictability.
Sector Analysis
This contract falls under heavy and civil engineering construction, a sector vital for infrastructure development and resilience. Spending in this sector is often driven by government needs for public works and defense-related facilities.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors on this specific award. Further analysis would be needed to determine if small businesses are participating as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The contract's duration and value warrant diligent monitoring to ensure performance and cost control.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Long contract duration.
- Potential for unforeseen site conditions.
- Firm Fixed Price risk for contractor.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ks, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to HB CONSTRUCTION INC. CONSTRUCTION OF LEVEE UNIT R471-460
Who is the contractor on this award?
The obligated recipient is HB CONSTRUCTION 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 $16.6 million.
What is the period of performance?
Start: 2022-09-22. End: 2026-03-31.
What specific factors led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, 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, limiting the pool of eligible bidders. While this can ensure specialized expertise, it may also reduce competitive pressure, potentially leading to a higher price than if a broader range of contractors were considered. A detailed review of the solicitation documents and source selection rationale would clarify the specific reasons and their pricing implications.
Given the 1286-day duration and firm fixed price, what mechanisms are in place to manage potential cost increases due to unforeseen site conditions or material price volatility?
Firm fixed price contracts generally place the risk of unforeseen conditions and price volatility on the contractor. However, contracts may include contingency clauses or allow for equitable adjustments under specific, clearly defined circumstances outlined in the contract terms. The government's oversight team would monitor for any such claims and ensure they align with contractual provisions before approving any modifications to the price or schedule.
How does the $16.6 million cost compare to industry benchmarks for similar levee construction projects of comparable scale and complexity in the specified region?
Benchmarking this contract requires detailed project specifications (e.g., length, height, soil type, environmental mitigation) and regional cost data for heavy civil engineering. While $16.6 million is a significant sum, its value is relative. A comprehensive cost analysis comparing it to similar Army Corps of Engineers or state-level projects would be necessary to determine if it represents a fair and reasonable price, considering labor, materials, equipment, and overhead in Kansas.
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: W912DQ22B1016
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15955 NW 120TH ST, PLATTE CITY, MO, 64079
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,629,073
Exercised Options: $16,629,073
Current Obligation: $16,629,073
Actual Outlays: $4,022,191
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-22
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-16
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