Army awards $28.1M contract for Poplar Island Lateral Extension, a significant civil engineering project

Contract Overview

Contract Amount: $28,141,120 ($28.1M)

Contractor: Precon Marine Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-07

End Date: 2017-12-06

Contract Duration: 455 days

Daily Burn Rate: $61.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF POPLAR ISLAND LATERAL EXTENSION

Place of Performance

Location: SHERWOOD, TALBOT County, MARYLAND, 21665

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to PRECON MARINE INC for work described as: IGF::OT::IGF POPLAR ISLAND LATERAL EXTENSION Key points: 1. The contract value of $28.1 million for a 455-day duration suggests a substantial investment in civil engineering infrastructure. 2. Awarded under full and open competition, this contract indicates a market with multiple capable providers. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially leading to cost certainty. 4. The project's location in Maryland places it within a region with significant coastal and environmental engineering needs. 5. The absence of small business set-aside flags suggests the primary contractor is likely a larger entity. 6. The definitive contract award type implies a single, specific agreement for the defined scope of work.

Value Assessment

Rating: good

The contract value of $28.1 million for a 455-day duration, averaging approximately $61,849 per day, appears reasonable for a complex civil engineering project of this nature. Benchmarking against similar Army Corps of Engineers projects for coastal or environmental restoration could provide further context. The firm-fixed-price structure suggests the government sought cost predictability, which is a positive indicator for value if the contractor can deliver within budget.

Cost Per Unit: $61,849 per day (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the solicitation was broadly advertised and multiple bidders were encouraged to participate. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and their relative strengths are not detailed. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through a competitive bidding process.

Public Impact

This project directly benefits the U.S. Army Corps of Engineers by supporting critical infrastructure and environmental protection efforts. The services delivered involve heavy and civil engineering construction, likely related to coastal resilience or environmental remediation. The geographic impact is localized to Maryland, specifically the Poplar Island area, contributing to regional environmental stability. The project likely involves a skilled construction workforce, including engineers, heavy equipment operators, and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Dependence on the primary contractor's performance and ability to manage subcontractors effectively.
Limited visibility into the specific technical challenges and risks associated with the lateral extension work.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Project addresses critical infrastructure needs, indicating strategic importance and potential long-term benefits.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of national infrastructure development. The market for such services is often characterized by large, specialized firms capable of undertaking complex projects. The $28.1 million award is a significant but not extraordinary sum for a project of this type, fitting within the typical range for Army Corps of Engineers civil works. Comparable spending benchmarks would involve other coastal protection, environmental restoration, or infrastructure projects managed by federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific preference for small businesses in the primary award. While the prime contractor, PRECON MARINE INC, may be a large business, there are often subcontracting opportunities within larger construction projects. The extent to which small businesses will be involved as subcontractors is not specified but is a common practice in the construction industry to leverage specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers district responsible for the Poplar Island project. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress and specific oversight activities may not be fully public.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal and Environmental Restoration Projects
Heavy and Civil Engineering Construction Contracts
Infrastructure Development Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk, especially concerning quality and timely completion.
Limited number of bidders may reduce competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to PRECON MARINE INC. IGF::OT::IGF POPLAR ISLAND LATERAL EXTENSION

Who is the contractor on this award?

The obligated recipient is PRECON MARINE 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 $28.1 million.

What is the period of performance?

Start: 2016-09-07. End: 2017-12-06.

What is the specific purpose and scope of the Poplar Island Lateral Extension project?

The Poplar Island Lateral Extension project, awarded to PRECON MARINE INC for $28.1 million, is a civil engineering construction effort managed by the Department of the Army. While the specific technical details are not fully elaborated in the provided data, the name suggests an expansion or reinforcement of existing lateral structures on Poplar Island. Poplar Island is known for its use as a dredged material containment facility and habitat restoration site managed by the U.S. Army Corps of Engineers. Therefore, the project likely involves extending containment dikes, improving shoreline stability, or enhancing the island's capacity for dredged material placement and ecological functions. The firm-fixed-price contract and 455-day duration indicate a defined scope of work with a set budget and timeline.

How does the $28.1 million contract value compare to similar Army civil engineering projects?

The $28.1 million contract value for the Poplar Island Lateral Extension is a substantial figure, indicative of a significant civil engineering undertaking. To benchmark this value effectively, comparisons should be made with other projects managed by the U.S. Army Corps of Engineers (USACE) for coastal protection, dredged material management, or habitat restoration. For instance, USACE projects involving dike construction, shoreline stabilization, or expansion of containment facilities can range from tens to hundreds of millions of dollars depending on scale, complexity, and location. The daily cost rate of approximately $61,849 suggests a project requiring specialized equipment, materials, and skilled labor, which aligns with the typical cost profiles of major civil works.

What are the primary risks associated with this firm-fixed-price contract for the government?

While firm-fixed-price (FFP) contracts are favored for cost certainty, the primary risk for the government lies in the contractor's ability to execute the work within the agreed-upon price. For the Poplar Island Lateral Extension, potential risks include unforeseen subsurface conditions (e.g., unstable soil, unexpected bedrock) that could significantly increase construction costs. Contractor performance issues, such as delays, quality defects, or financial instability, also pose risks. If the contractor underbids or faces insurmountable challenges, they might seek contract modifications or even default, leading to project delays and potentially higher costs through re-procurement or dispute resolution. Effective government oversight is crucial to mitigate these risks by monitoring progress, ensuring quality, and managing any necessary changes.

What is the track record of PRECON MARINE INC in executing similar federal contracts?

Information regarding the specific track record of PRECON MARINE INC for federal contracts, particularly those involving civil engineering and construction of this scale, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance on similar projects, including their history with the Department of Defense or Army Corps of Engineers. Key factors to examine would include on-time delivery, adherence to budget, quality of work, and any history of contract disputes or claims. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would typically hold this information, allowing for an evaluation of their reliability and capability.

How does the competition level (2 bidders) impact the value received by taxpayers?

The fact that this contract was awarded under full and open competition with two bidders suggests a moderately competitive environment. While two bidders are better than one, a higher number of bids generally leads to more robust price discovery and potentially lower prices for taxpayers. With only two offers, there's a risk that the competition might not have been as intense as it could have been with more participants. However, if both bidders were highly qualified and submitted competitive proposals, the government could still have achieved good value. The specific pricing and technical aspects of the proposals would be key to determining the ultimate value realized by taxpayers in this instance.

What are the potential long-term implications of the Poplar Island Lateral Extension for environmental management?

The Poplar Island Lateral Extension project likely plays a crucial role in the long-term environmental management strategy for the Chesapeake Bay region. Poplar Island serves as a vital site for beneficial use of dredged material from navigation channels, simultaneously creating new habitat and managing disposal needs. Extending lateral structures could enhance the island's capacity to accept dredged material, thereby supporting ongoing navigation maintenance for ports and waterways. Furthermore, these extensions may be designed to improve the island's ecological functions, such as creating or expanding wetlands, which are critical for biodiversity, water quality improvement, and coastal storm damage reduction. The project's success contributes to the sustainability of both navigation and habitat restoration efforts.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912DR16B0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 PRECON DR STE 102, CHESAPEAKE, VA, 23320

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

Financial Breakdown

Contract Ceiling: $28,141,120

Exercised Options: $28,141,120

Current Obligation: $28,141,120

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline