Army awards $16.4M for Green Brook flood damage reduction, highlighting infrastructure resilience

Contract Overview

Contract Amount: $16,448,254 ($16.4M)

Contractor: Scafar Contracting, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2012-11-15

Contract Duration: 1,508 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GREEN BROOK FLOOD DAMAGE REDUCTION PROJECT - R2 LEVEE, FLOOD PUMP, BOROUGH OF BOUND BROOK, NJ

Place of Performance

Location: BOUND BROOK, SOMERSET County, NEW JERSEY, 08805

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to SCAFAR CONTRACTING, INC. for work described as: GREEN BROOK FLOOD DAMAGE REDUCTION PROJECT - R2 LEVEE, FLOOD PUMP, BOROUGH OF BOUND BROOK, NJ Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The project focuses on critical infrastructure, specifically flood damage reduction measures. 3. A firm-fixed-price contract type indicates defined costs and potential for contractor risk. 4. The duration of the contract (1508 days) suggests a substantial, multi-year undertaking. 5. The project is geographically focused on Bound Brook, New Jersey, addressing local resilience needs. 6. The award to SCAFAR CONTRACTING, INC. represents a significant investment in civil works.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects. The firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be beneficial for the government if managed effectively. However, the total award amount of $16.4 million for flood damage reduction infrastructure needs to be assessed against the scope and complexity of the work, including levee and flood pump construction.

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 6 bidders suggests a healthy level of competition for this project. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for the funds expended on this critical infrastructure project.

Public Impact

Residents and businesses in Bound Brook, New Jersey, are the primary beneficiaries through enhanced flood protection. The project delivers critical infrastructure improvements, including levee and flood pump construction. The geographic impact is localized to the Borough of Bound Brook, NJ. The project likely involves a construction workforce, contributing to local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project contingencies.
The long contract duration could introduce risks related to material price fluctuations or unforeseen site conditions.
Ensuring the long-term effectiveness and maintenance of the constructed flood control measures.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract shifts cost risk to the contractor.
Focus on critical infrastructure addresses a significant public safety need.

Sector Analysis

This contract falls within the construction sector, specifically related to civil engineering and infrastructure projects. The market for flood damage reduction and levee construction is specialized, often involving large engineering and construction firms. Spending in this area is driven by federal and state initiatives focused on disaster preparedness, climate resilience, and protecting communities from natural hazards. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' civil works program.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. The nature of large-scale civil engineering projects like levee construction often favors larger prime contractors with specialized equipment and expertise, potentially limiting direct opportunities for small businesses unless they are part of a subcontracting team.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve project management by the Army Corps of Engineers, contract administration by the awarding office, and potentially oversight from the Department of Defense's Inspector General. Transparency is generally maintained through contract award databases and public reporting, though specific project progress details may be internal.

Related Government Programs

Army Corps of Engineers Civil Works Program
National Flood Insurance Program
Disaster Relief and Emergency Supplemental Appropriations

Risk Flags

Potential for cost overruns under firm-fixed-price contract.
Long contract duration may introduce schedule and cost risks.
Effectiveness dependent on engineering design and construction quality.
Geographic concentration of benefits and risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to SCAFAR CONTRACTING, INC.. GREEN BROOK FLOOD DAMAGE REDUCTION PROJECT - R2 LEVEE, FLOOD PUMP, BOROUGH OF BOUND BROOK, NJ

Who is the contractor on this award?

The obligated recipient is SCAFAR CONTRACTING, 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 $16.4 million.

What is the period of performance?

Start: 2008-09-29. End: 2012-11-15.

What is the track record of SCAFAR CONTRACTING, INC. on similar federal projects?

Information on SCAFAR CONTRACTING, INC.'s specific track record for similar federal projects, particularly those involving levee and flood pump construction, would require a deeper dive into federal procurement databases like SAM.gov or FPDS. While this contract award indicates they were selected for the Green Brook project, a comprehensive assessment would involve reviewing past performance evaluations, any past disputes or claims, and the scale and complexity of their previous work. Understanding their history with firm-fixed-price contracts and their ability to manage large infrastructure projects within budget and schedule is crucial for evaluating their reliability on this specific award.

How does the $16.4 million award compare to the estimated cost of similar flood control projects?

Directly comparing the $16.4 million award to similar flood control projects is difficult without specific project details and scope definitions. The cost of flood damage reduction projects can vary significantly based on geographic location, the specific engineering solutions required (e.g., levee height and length, pump capacity, material types), environmental mitigation needs, and prevailing labor and material costs. Generally, large-scale civil infrastructure projects of this nature represent substantial investments. To benchmark effectively, one would need to identify projects with comparable geographical challenges, similar engineering requirements, and undertaken within a similar timeframe to account for inflation and market conditions.

What are the primary risks associated with a firm-fixed-price contract for a multi-year infrastructure project?

The primary risk with a firm-fixed-price (FFP) contract, especially for a multi-year infrastructure project like the Green Brook flood damage reduction, lies with the contractor. The contractor assumes the risk of cost overruns. However, for the government, risks can include the contractor potentially cutting corners on quality to maintain profitability if not adequately overseen, or the contractor becoming insolvent if they significantly underestimate costs. For a long-duration project, there's also the risk of unforeseen site conditions or material price escalation that the contractor may not have fully anticipated, potentially leading to claims or disputes if the contract doesn't have appropriate clauses for such events.

What is the expected effectiveness of the R2 Levee and Flood Pump improvements in mitigating future flood damage?

The expected effectiveness of the R2 Levee and Flood Pump improvements is directly tied to the engineering design and construction quality, as well as the specific flood events they are designed to withstand. Projects undertaken by the Army Corps of Engineers typically involve rigorous design standards based on historical flood data and projected future conditions, often aiming to provide a specific level of protection (e.g., protecting against a 100-year flood event). The 'R2' designation likely refers to a specific segment or phase of the levee system. Post-construction performance monitoring and evaluation would be key to confirming the actual effectiveness in reducing flood damage during future storm events.

How has federal spending on flood damage reduction projects evolved over the past decade?

Federal spending on flood damage reduction projects has generally seen fluctuations influenced by major weather events, infrastructure initiatives, and budget appropriations. Following significant natural disasters, there is often an increase in funding allocated to resilience and mitigation projects. Over the past decade, there has been a growing emphasis on climate resilience and adaptation, which may have shifted some spending towards projects designed to address the impacts of climate change, including more intense rainfall and rising sea levels. The Army Corps of Engineers' Civil Works program is a primary channel for such federal investments, with annual budgets reflecting national priorities and available congressional funding.

What is the typical duration for a federal flood control infrastructure construction contract of this magnitude?

The typical duration for a federal flood control infrastructure construction contract of this magnitude can vary widely depending on the project's scope, complexity, and specific requirements. Projects involving significant earthwork, levee construction, pump station installation, and environmental mitigation can often span several years. A contract duration of 1508 days (approximately 4.1 years), as seen in this case, is not uncommon for substantial infrastructure undertakings. Factors such as weather delays, permitting processes, and the phased nature of construction can all contribute to the overall project timeline.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS08B0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 PACIFIC ST, NEWARK, NJ, 07114

Business Categories: Category Business, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,448,254

Exercised Options: $16,448,254

Current Obligation: $16,448,254

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline