Army awards $24.8M for levee embankment work, with 3 bids received

Contract Overview

Contract Amount: $24,881,210 ($24.9M)

Contractor: Affolter Contracting Company, Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-20

End Date: 2024-10-31

Contract Duration: 1,107 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LEVEE EMBANKMENT, SEMICOMPACTED

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39183

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to AFFOLTER CONTRACTING COMPANY, INC for work described as: LEVEE EMBANKMENT, SEMICOMPACTED Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering. 2. Full and open competition suggests a healthy bidding environment. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of nearly three years indicates a substantial undertaking. 5. Work is located in Mississippi, a region prone to flood risks.

Value Assessment

Rating: good

The contract value of approximately $24.8 million for levee embankment construction seems aligned with the scale of such projects. Benchmarking against similar heavy civil engineering contracts, particularly those involving flood control or infrastructure in the Gulf Coast region, would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government in controlling costs, assuming the 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, indicating that all responsible sources were permitted to submit bids. With three bids received, the competition level suggests a moderate but not exceptionally high level of interest from potential contractors. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing.

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

Public Impact

The primary beneficiaries are communities in Mississippi requiring enhanced flood protection through levee improvements. The contract delivers critical infrastructure services related to flood control and environmental resilience. Geographic impact is concentrated in Mississippi, specifically within the area served by the levee system. Workforce implications include job creation in the construction sector within the project's operational area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial embankment specifications are not precisely defined.
Weather delays in Mississippi could impact project timeline and potentially costs if not managed proactively.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a robust market for these services.
Experienced contractor likely selected through a competitive process.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on earthwork and embankment construction, often related to flood control or water management infrastructure. The market for such services is influenced by government infrastructure spending, environmental regulations, and regional needs. Comparable spending benchmarks would typically be found in large-scale public works projects, such as dam construction, highway earthmoving, or other large-scale civil projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While there is no explicit requirement for small business subcontracting noted, the prime contractor may still engage small businesses as subcontractors. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out and utilizes small business partners for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring adherence to contract terms, specifications, and quality standards. Accountability is maintained through performance reviews, milestone payments, and final acceptance of work. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
FEMA Hazard Mitigation Grants
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for cost overruns if scope is not precisely defined.
Risk of weather-related delays impacting schedule.
Need for robust quality assurance to ensure embankment integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to AFFOLTER CONTRACTING COMPANY, INC. LEVEE EMBANKMENT, SEMICOMPACTED

Who is the contractor on this award?

The obligated recipient is AFFOLTER CONTRACTING COMPANY, 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 $24.9 million.

What is the period of performance?

Start: 2021-10-20. End: 2024-10-31.

What is the historical spending pattern for levee embankment construction by the Department of the Army in Mississippi?

Analyzing historical spending for levee embankment construction by the Department of the Army in Mississippi requires access to detailed contract databases over several fiscal years. While this specific contract is for $24.8 million, understanding the broader trend involves looking at the frequency and value of similar awards. Factors such as major weather events (hurricanes, floods), federal infrastructure initiatives, and budget allocations for flood control projects would influence these patterns. For instance, following significant natural disasters, there might be an uptick in spending for repair and reinforcement projects. Without specific historical data for this precise category and region, it's difficult to provide a definitive pattern, but it's reasonable to assume spending fluctuates based on need and available funding.

How does the number of bids (3) compare to similar heavy civil engineering contracts awarded by the Army?

The number of bids received for federal contracts can vary significantly based on the contract's complexity, value, geographic location, and the availability of qualified contractors. For heavy civil engineering projects of this magnitude (around $25 million), receiving three bids under a full and open competition is a moderate level of competition. In some highly specialized or geographically constrained markets, fewer bids might be common, while in more robust markets with many capable firms, five or more bids could be expected. The Army, as a major procurer of construction services, often sees a range of bid counts. Three bids suggest sufficient interest to ensure some level of price competition, but it doesn't indicate an exceptionally crowded field that might drive prices down to their absolute lowest.

What are the primary risks associated with firm fixed-price contracts for large-scale construction projects like this?

Firm fixed-price (FFP) contracts are generally favored by the government for their cost certainty. However, for large-scale construction projects, the primary risk lies in the potential for the contractor to incur costs exceeding the fixed price, especially if the project scope is not perfectly defined or unforeseen conditions arise. This can lead to contractor requests for equitable adjustments or claims, potentially negating the cost certainty benefit. Another risk is that the contractor might cut corners on quality or safety to maintain profitability if cost pressures mount, although quality assurance measures are in place to mitigate this. The government's risk is primarily in ensuring the initial scope is comprehensive and accurate to minimize change orders.

What is the typical performance context for 'Other Heavy and Civil Engineering Construction' contracts awarded by the Department of the Army?

Contracts in the 'Other Heavy and Civil Engineering Construction' category for the Department of the Army typically involve large-scale infrastructure projects essential for military operations, base support, or national security interests. This can include everything from road and airfield construction/repair, utility systems, earthmoving, flood control structures, and environmental remediation. The performance context often involves challenging environmental conditions, strict security requirements, and tight deadlines, especially if related to operational readiness. Successful performance hinges on robust project management, adherence to stringent safety and environmental standards, and the ability to manage complex logistics and large workforces.

How does the contract duration (1107 days) impact the overall value assessment for this levee embankment project?

A contract duration of 1107 days (approximately three years) for a $24.8 million levee embankment project indicates a significant and complex undertaking. While a longer duration might suggest higher overall costs due to extended labor and equipment use, it can also be indicative of a more thorough and potentially higher-quality execution, especially if the project involves multiple phases, difficult terrain, or extensive environmental considerations. For value assessment, it's crucial to consider the 'cost per year' or 'cost per unit of work completed per year.' A longer duration can be efficient if it allows for phased construction, minimizes disruption, or accommodates seasonal work limitations. Conversely, excessively long durations without clear justification could signal potential inefficiencies or scope creep.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EE19R0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4629 FM 1765, LA MARQUE, TX, 77568

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

Financial Breakdown

Contract Ceiling: $24,881,210

Exercised Options: $24,881,210

Current Obligation: $24,881,210

Actual Outlays: $6,528,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EE20D0009

IDV Type: IDC

Timeline