DOD awards $51M civil engineering contract to The Wesson Group, LLC for Poplar Island expansion

Contract Overview

Contract Amount: $51,074,882 ($51.1M)

Contractor: THE Wesson Group, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-19

End Date: 2019-07-20

Contract Duration: 669 days

Daily Burn Rate: $76.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF POPLAR ISLAND LATERAL EXPANSION CONTRACT 2, TALBOT COUNTY, MD

Place of Performance

Location: EASTON, TALBOT County, MARYLAND, 21601

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $51.1 million to THE WESSON GROUP, LLC for work described as: IGF::OT::IGF POPLAR ISLAND LATERAL EXPANSION CONTRACT 2, TALBOT COUNTY, MD Key points: 1. Contract value of $51.1 million for civil engineering services. 2. Awarded under full and open competition, indicating a broad bidder pool. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Project duration of 669 days, spanning nearly two years. 5. Small business set-aside was not utilized for this procurement. 6. Geographic focus on Talbot County, Maryland.

Value Assessment

Rating: good

The contract value of $51.1 million for civil engineering construction appears reasonable given the scope of a lateral expansion project. Benchmarking against similar Army Corps of Engineers projects for coastal resilience or infrastructure development would provide a more precise value-for-money assessment. The firm fixed price structure helps mitigate cost overrun risks for the government, assuming the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The presence of 3 bidders indicates a moderate level of competition for this specific project. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and ensure the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the local environment through the expansion of Poplar Island's infrastructure. Services delivered include heavy and civil engineering construction, likely related to environmental or coastal protection efforts. The geographic impact is concentrated in Talbot County, Maryland. Workforce implications include employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements were not fully defined, impacting cost and schedule.
Reliance on a single prime contractor, The Wesson Group, LLC, for overall project execution.
Environmental impact considerations during construction phase need careful monitoring.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Project is awarded to a specific contractor, allowing for focused execution and accountability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically under NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector is crucial for national infrastructure development, including projects related to environmental remediation, coastal defense, and water management. The market size for such specialized construction can be substantial, often driven by government funding for public works and defense-related infrastructure.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of a small business subcontracting plan being a primary driver for this award. This suggests that the prime contract was likely awarded to a larger firm capable of handling the project's scale and complexity. The absence of a set-aside means opportunities for small businesses would primarily be through subcontracting, if utilized by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not publicly detailed.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Coastal Resilience and Infrastructure Projects
Environmental Engineering and Construction Contracts
Department of Defense Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of quality compromise if contractor faces financial pressure.
Dependency on contractor's ability to manage complex logistics and environmental regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to THE WESSON GROUP, LLC. IGF::OT::IGF POPLAR ISLAND LATERAL EXPANSION CONTRACT 2, TALBOT COUNTY, MD

Who is the contractor on this award?

The obligated recipient is THE WESSON GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 2017-09-19. End: 2019-07-20.

What is the track record of The Wesson Group, LLC with federal contracts, particularly with the Department of Defense?

The Wesson Group, LLC has a history of federal contracting, primarily with the Department of Defense. Analyzing their past performance on similar civil engineering and construction projects is crucial. This includes examining contract values, completion timeliness, any reported disputes or terminations, and customer satisfaction ratings. A review of their awarded contracts can reveal patterns in project types and agencies served, providing insight into their capabilities and reliability. For instance, if they have a strong record on large-scale civil works, it bolsters confidence in their ability to execute this $51 million Poplar Island expansion effectively. Conversely, any history of performance issues or cost overruns on prior contracts would raise concerns.

How does the $51.1 million contract value compare to similar civil engineering projects for coastal or environmental infrastructure?

The $51.1 million contract value for the Poplar Island Lateral Expansion Contract 2 needs to be benchmarked against comparable projects to assess value for money. Projects involving significant civil engineering for coastal defense, island expansion, or environmental restoration by agencies like the Army Corps of Engineers can range widely in cost depending on complexity, location, and specific requirements. For example, similar projects might involve dredging, levee construction, habitat creation, or specialized material installation. If The Wesson Group's bid is within the typical range for projects of similar scope and scale, it suggests fair pricing. However, if it significantly deviates (higher or lower) without clear justification, it warrants further investigation into the underlying cost drivers and potential risks or efficiencies.

What are the primary risks associated with a firm fixed price contract for a large civil engineering project like this?

While a firm fixed price (FFP) contract is designed to provide cost certainty for the government, it carries inherent risks, primarily for the contractor. For this $51.1 million project, the main risk for The Wesson Group, LLC is underestimating the costs or encountering unforeseen site conditions. If actual costs exceed the fixed price, the contractor absorbs the loss, potentially impacting their financial stability or future bidding. For the government, the risk lies in the contractor potentially cutting corners on quality or scope to maintain profitability if they encounter significant cost overruns, or if the initial scope was poorly defined, leading to change orders that can inflate the total cost. Effective government oversight is crucial to ensure quality and adherence to the defined scope.

What is the expected program effectiveness and impact of the Poplar Island Lateral Expansion Contract 2?

The effectiveness and impact of the Poplar Island Lateral Expansion Contract 2 are likely tied to its role within a broader environmental or defense infrastructure strategy. Poplar Island is a significant US Army Corps of Engineers project aimed at restoring eroded Chesapeake Bay islands, creating new habitat, and providing a beneficial use for dredged material. This expansion contract, valued at $51.1 million, would contribute to increasing the island's resilience against erosion, expanding its capacity for dredged material placement, and enhancing its ecological value. Successful completion should lead to improved coastal protection for the surrounding region, increased wildlife habitat, and continued support for navigation channel maintenance through dredged material disposal. The long-term effectiveness will depend on ongoing maintenance and the ecological success of the created habitats.

How has federal spending on heavy and civil engineering construction evolved, and where does this contract fit?

Federal spending on heavy and civil engineering construction, encompassing projects like the Poplar Island expansion, has historically fluctuated based on infrastructure needs, environmental regulations, and national priorities. Agencies like the Army Corps of Engineers, Department of Transportation, and Department of the Interior are major contributors. Spending often increases during periods of focus on infrastructure renewal, coastal defense, or environmental restoration. This $51.1 million contract fits within the broader category of civil works projects managed by the Army Corps of Engineers, specifically addressing coastal resilience and beneficial use of dredged materials. It represents a significant investment in a specific, ongoing environmental restoration initiative, reflecting a commitment to addressing the impacts of sea-level rise and erosion in the Chesapeake Bay.

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: W912DR17B0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 E MAIN ST STE 210, JOHNSTOWN, NY, 12095

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,074,882

Exercised Options: $51,074,882

Current Obligation: $51,074,882

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline