DoD awards $8.4M contract for FIMI 3D Well Relocation Construction to Loduca Associates, Inc

Contract Overview

Contract Amount: $8,367,796 ($8.4M)

Contractor: Loduca Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-07

End Date: 2026-09-01

Contract Duration: 237 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIMI 3D WELL RELOCATION CONSTRUCTION

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to LODUCA ASSOCIATES, INC. for work described as: FIMI 3D WELL RELOCATION CONSTRUCTION Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration of 237 days is relatively short for a construction project of this scale. 4. Awarded by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 237110 points to significant infrastructure work. 6. The contract value of $8.4 million falls within a moderate spending range for construction projects.

Value Assessment

Rating: good

The contract value of $8.4 million for water and sewer line construction appears reasonable given the scope. Without specific details on the complexity of the well relocation and the associated infrastructure, a direct comparison is challenging. However, the firm-fixed-price nature suggests that the contractor has assessed the risks and costs, and the price reflects that assessment. The benchmark for similar projects would typically involve analyzing the cost per linear foot of pipe laid or per well relocated, which is not provided here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific contract. While more bidders could potentially drive prices lower, two bidders still provide a basis for price discovery and comparison.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and better value for the government.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel and their families residing in the affected area. The services delivered involve the construction and relocation of water and sewer wells, crucial for maintaining essential infrastructure. The geographic impact is localized to New York, as indicated by the state and city codes. This project will likely involve a workforce of skilled construction laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Delays in project completion could impact the functionality of essential water and sewer services.
Ensuring compliance with all environmental regulations during well relocation is critical.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
The project addresses essential infrastructure needs for the Department of Defense.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction related to water and sewer systems. The market for such infrastructure projects is substantial, driven by both public and private sector needs for maintaining and upgrading essential utilities. Comparable spending benchmarks would involve analyzing the average cost of similar water and sewer line construction projects, factoring in location, complexity, and scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Military Construction
Water Infrastructure Projects
Department of Defense Facilities Management
Civil Engineering Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk on firm-fixed-price contracts.
Environmental compliance during relocation activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to LODUCA ASSOCIATES, INC.. FIMI 3D WELL RELOCATION CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is LODUCA ASSOCIATES, 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 $8.4 million.

What is the period of performance?

Start: 2026-01-07. End: 2026-09-01.

What is the specific scope of work for the FIMI 3D Well Relocation Construction project?

The FIMI 3D Well Relocation Construction project, awarded to Loduca Associates, Inc., involves the physical relocation of existing water and sewer wells. While the term 'FIMI 3D' is not standard industry terminology and might refer to a specific internal project designation or technology, the core task is to move these essential utility structures. This typically entails excavation, disconnection of existing lines, transportation or reconstruction of well components, reconnection to new locations, and rigorous testing to ensure functionality and compliance with environmental and safety standards. The project's success hinges on minimizing disruption to existing water and sewer services during the transition.

How does the $8.4 million contract value compare to similar water and sewer construction projects?

Comparing the $8.4 million contract value requires context on the project's scale and complexity. For standard water and sewer line extensions or replacements, this amount could cover several miles of piping. However, well relocation can be significantly more complex, involving specialized equipment, potential environmental remediation, and intricate connections. If 'FIMI 3D' implies advanced technology or a particularly challenging site, the cost could be justified. Without detailed project specifications, such as the number of wells, depth, diameter, and geological conditions, a precise benchmark is difficult. However, for significant infrastructure upgrades involving multiple wells in a developed area, $8.4 million is within a plausible range, though potentially on the higher side if the scope is limited to a few standard wells.

What are the potential risks associated with this firm-fixed-price contract for well relocation?

Despite the cost certainty offered by a firm-fixed-price (FFP) contract, risks remain for well relocation projects. The primary risk for the government is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise, though the FFP structure incentivizes the contractor to manage costs. For the contractor, the main risk is underestimating the complexity of the relocation, encountering unexpected subsurface conditions (e.g., rock formations, contaminated soil, utility conflicts), or facing delays due to permitting or environmental regulations. These unforeseen circumstances could lead to cost overruns for the contractor, potentially impacting their ability or willingness to complete the project to the required standards, or necessitating change orders that increase the overall cost to the government.

What is Loduca Associates, Inc.'s track record with Department of Defense contracts?

Information regarding Loduca Associates, Inc.'s specific track record with the Department of Defense (DoD) is not detailed in the provided data. To assess their suitability, a review of their past performance on similar government contracts, particularly those involving construction, infrastructure, and utility work, would be necessary. This would include examining their history of on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes. Their experience with firm-fixed-price contracts and projects of comparable size and complexity would also be key indicators of their capability to successfully execute this well relocation project.

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

A competition level with two bidders suggests a moderate degree of market interest for this specific contract. While more bidders generally lead to greater price competition and potentially better value for taxpayers, two bidders still provide a basis for comparison and negotiation. It indicates that at least two firms possessed the capability and interest to bid on the project. The government's ability to secure a fair price depends on the thoroughness of the solicitation, the clarity of requirements, and the negotiation strategies employed. If the two bids were significantly different, it might suggest a lack of understanding of the scope or a wide range of perceived risk among potential contractors.

What are the long-term implications of this well relocation for the DoD's infrastructure?

The long-term implications of this well relocation project for the DoD's infrastructure are primarily related to modernization, operational efficiency, and potentially enhanced resilience. Relocating wells might be part of a larger infrastructure upgrade, consolidation, or realignment effort, aiming to improve service delivery, reduce maintenance costs, or accommodate new construction. By ensuring the continued functionality and potentially improved performance of water and sewer systems, this project supports the base's operational readiness and the quality of life for personnel. The success of this relocation could also serve as a model for future infrastructure management, demonstrating effective planning and execution of essential utility upgrades.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 113 DIVISION AVE, BLUE POINT, NY, 11715

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

Financial Breakdown

Contract Ceiling: $8,367,796

Exercised Options: $8,367,796

Current Obligation: $8,367,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline