Montana Construction Corp. awarded $19.8M for Green Brook Flood Reduction Project, a segment of a larger ARRA initiative

Contract Overview

Contract Amount: $19,785,265 ($19.8M)

Contractor: Montana Construction Corp., Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-22

End Date: 2013-10-05

Contract Duration: 1,109 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::12329::RP# THE GREEN BROOK FLOOD DAMAGE REDUCTIOON PROJECT - SEGMENT B-1, SEBRINGS MILLS ROAD BRIDGE RECONSTRUCTION, FLOODWALL, LEVEE AND PUMP STATION, MIDDLESEX AND GREEN 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 $19.8 million to MONTANA CONSTRUCTION CORP., INC. for work described as: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::12329::RP# THE GREEN BROOK FLOOD DAMAGE REDUCTIOON PROJECT - SEGMENT B-1, SEBRINGS MILLS ROAD BRIDGE RECONSTRUCTION, FLOODWALL, LEVEE AND PUMP STATION, MIDDLESEX AND GREEN BROOK, NJ Key points: 1. The contract value represents a significant investment in critical infrastructure for flood damage reduction. 2. The project's scope includes reconstruction of a bridge, floodwall, levee, and pump station. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The project duration of 1109 days indicates a substantial, long-term construction effort. 5. The fixed-price contract type aims to control costs and provide predictability for the government. 6. This project is part of a broader recovery effort, likely leveraging ARRA funds for economic stimulus.

Value Assessment

Rating: good

The contract value of approximately $19.8 million for a major civil engineering project appears reasonable given the scope. Benchmarking against similar large-scale flood control and infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests an effort to manage costs effectively, but the final cost will depend on the contractor's efficiency and any unforeseen circumstances.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of 8 bids suggests a healthy level of competition for this significant civil engineering project. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Residents and businesses in Middlesex and Green Brook, New Jersey, will benefit from enhanced flood protection. The project delivers critical infrastructure improvements including bridge reconstruction, floodwall, levee, and pump station construction. The geographic impact is concentrated in the specified areas of New Jersey, addressing localized flood risks. The construction activities will likely create numerous jobs in the civil engineering and construction sectors within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite fixed-price contract.
Delays in project completion could impact the intended flood protection timeline and economic benefits.
Coordination challenges between multiple construction elements (bridge, levee, pump station) could arise.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract structure provides cost certainty for the government.
Project addresses a critical need for flood damage reduction, enhancing community safety and resilience.
Inclusion in ARRA recovery projects suggests alignment with national economic stimulus goals.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a vital part of the construction industry focused on large-scale public works. This sector includes projects like dams, levees, bridges, and flood control systems. Spending in this area is often driven by government infrastructure initiatives and disaster recovery efforts. Comparable spending benchmarks would typically be assessed against other major civil engineering projects of similar scale and complexity.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor is Montana Construction Corp., Inc., there is no explicit information on subcontracting plans for small businesses within this data. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, likely through contracting officers and project managers. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

ARRA Recovery Projects
Flood Damage Reduction Programs
Army Corps of Engineers Civil Works Projects
Infrastructure Improvement Initiatives

Risk Flags

Potential for scope creep if project requirements evolve.
Risk of contractor default or performance issues on a large-scale project.
Environmental compliance challenges during construction.
Dependency on ARRA funding timelines and objectives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to MONTANA CONSTRUCTION CORP., INC.. TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::12329::RP# THE GREEN BROOK FLOOD DAMAGE REDUCTIOON PROJECT - SEGMENT B-1, SEBRINGS MILLS ROAD BRIDGE RECONSTRUCTION, FLOODWALL, LEVEE AND PUMP STATION, MIDDLESEX AND GREEN BROOK, NJ

Who is the contractor on this award?

The obligated recipient is MONTANA CONSTRUCTION CORP., 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 $19.8 million.

What is the period of performance?

Start: 2010-09-22. End: 2013-10-05.

What is the track record of Montana Construction Corp., Inc. on federal contracts, particularly those involving large-scale civil engineering projects?

A review of Montana Construction Corp., Inc.'s federal contract history would be necessary to assess their track record. Specifically, examining past performance on similar civil engineering projects, including flood control, bridge construction, and levee work, would provide insight into their capabilities and reliability. Data on past project completion times, adherence to budget, and any documented performance issues or awards would be crucial. Understanding their experience with government contracts, including compliance with regulations and reporting requirements, is also important for evaluating their suitability for projects of this magnitude.

How does the awarded value of $19.8 million compare to similar flood reduction projects in New Jersey or the surrounding region?

To benchmark the $19.8 million award, a comparative analysis with similar flood reduction projects in New Jersey and the broader Mid-Atlantic region would be required. This would involve identifying projects with comparable scopes, such as levee construction, floodwall installation, and bridge reconstruction, and examining their contract values, durations, and the specific challenges they addressed. Factors like project complexity, environmental considerations, and the specific economic conditions at the time of award would need to be accounted for to ensure a fair comparison. Without such a detailed comparison, it is difficult to definitively assess whether this contract represents optimal value for money.

What are the primary risks associated with the Green Brook Flood Damage Reduction Project, and how are they being mitigated?

The primary risks associated with this project likely include potential environmental challenges during construction (e.g., soil conditions, water management), unforeseen site complexities, and the possibility of weather-related delays, especially given its flood control nature. Material cost fluctuations and labor availability could also pose risks, although the firm fixed-price contract aims to mitigate cost overruns for the government. Mitigation strategies would typically involve thorough site investigations, robust project management plans, contingency planning for weather events, and strong oversight from the contracting agency to monitor progress and address issues proactively.

What is the historical spending pattern for flood damage reduction projects managed by the Department of the Army in New Jersey?

Analyzing historical spending patterns for flood damage reduction projects by the Department of the Army in New Jersey would reveal trends in investment, project types, and average contract values. This data could highlight periods of increased or decreased funding, potentially correlating with major weather events or shifts in federal infrastructure priorities. Understanding these patterns can help contextualize the $19.8 million award for the Green Brook project, indicating whether it aligns with or deviates from historical spending levels. It could also inform future budget allocations and project planning for similar initiatives in the state.

How does the 'full and open competition after exclusion of sources' contracting method impact cost efficiency and contractor performance?

The 'full and open competition after exclusion of sources' method is a specific type of competitive procurement. It implies that the solicitation was broadly advertised, but certain sources were excluded based on pre-defined criteria (e.g., specific qualifications or past performance). While it aims for competition, the exclusion of sources could potentially limit the number of bidders compared to a pure 'full and open' competition. The impact on cost efficiency depends on how many qualified bidders remained; a robust competition among qualified firms generally leads to better pricing. Contractor performance is influenced by the selection criteria and the contract type (firm fixed-price in this case), which incentivizes the contractor to manage costs effectively.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS10B0011

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 80 CONTANT AVE, LODI, NJ, 07644

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

Financial Breakdown

Contract Ceiling: $19,785,265

Exercised Options: $19,785,265

Current Obligation: $19,785,265

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline