Army Awards $34.9M Contract for Tainter Gate Furnishing and Installation to Sealevel Construction Inc
Contract Overview
Contract Amount: $34,890,362 ($34.9M)
Contractor: Sealevel Construction Inc
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2026-10-15
Contract Duration: 1,294 days
Daily Burn Rate: $27.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FURNISH AND INSTALL TAINTER GATE
Place of Performance
Location: MARKSVILLE, AVOYELLES County, LOUISIANA, 71351
Plain-Language Summary
Department of Defense obligated $34.9 million to SEALEVEL CONSTRUCTION INC for work described as: FURNISH AND INSTALL TAINTER GATE Key points: 1. The contract value of $34.9 million is significant for heavy civil engineering construction. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The project duration of 1294 days indicates a long-term commitment and potential for cost overruns. 4. The sector is dominated by large firms, with limited opportunities for small businesses in this specific contract type.
Value Assessment
Rating: fair
The contract value of $34.9 million for furnishing and installing tainter gates appears substantial. Benchmarking against similar large-scale civil engineering projects is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to better pricing for the government. The use of a definitive contract with a firm fixed price suggests that the scope and cost were well-defined upfront.
Taxpayer Impact: The competitive bidding process is intended to ensure taxpayer funds are used efficiently, though the long duration and fixed-price nature warrant monitoring for potential cost impacts.
Public Impact
This project directly impacts critical infrastructure, likely related to water management or flood control. The successful completion of this contract could enhance the operational capabilities of Army facilities. The long-term nature of the contract means sustained economic activity and potential job creation in Louisiana.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1294 days) increases risk of cost escalation and schedule delays.
- Firm Fixed Price contract may not adequately account for unforeseen material cost increases.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Definitive contract awarded, indicating a clear scope.
- Project located in Louisiana, potentially supporting regional economy.
Sector Analysis
This contract falls within the Other Heavy and Civil Engineering Construction sector (NAICS 237990). Spending in this sector is often project-specific and driven by infrastructure needs, with significant capital investment required for large-scale projects like gate installation.
Small Business Impact
The contract was not set aside for small businesses, and the prime contractor, Sealevel Construction Inc., is likely a larger entity. Opportunities for small businesses would typically be through subcontracting, which is not detailed in this award notice.
Oversight & Accountability
The use of a definitive contract and full and open competition suggests a structured procurement process. However, ongoing oversight will be crucial to manage the long duration and ensure adherence to the firm fixed price.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Firm Fixed Price contract.
- Potential for material cost volatility.
- Lack of small business set-aside.
- Complexity of civil engineering construction.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.9 million to SEALEVEL CONSTRUCTION INC. FURNISH AND INSTALL TAINTER GATE
Who is the contractor on this award?
The obligated recipient is SEALEVEL CONSTRUCTION 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 $34.9 million.
What is the period of performance?
Start: 2023-03-31. End: 2026-10-15.
What is the historical cost performance of Sealevel Construction Inc. on similar large-scale civil engineering projects?
Analyzing Sealevel Construction Inc.'s past performance on comparable projects is crucial for assessing the value and risk associated with this $34.9 million contract. A review of their track record, including on-time completion rates, budget adherence, and any disputes or claims on previous large civil works, would provide valuable insights into their capability to execute this complex tainter gate project effectively and efficiently.
How will the long contract duration (1294 days) impact the government's ability to adapt to potential changes in operational needs or technological advancements?
The extended 1294-day duration presents a risk of obsolescence or misalignment with evolving operational requirements. While a firm fixed price offers cost certainty, it may limit flexibility. The Army should establish clear change order processes and regular review points to assess if modifications are needed, balancing the need for stability with the potential for future requirements shifts.
What specific mechanisms are in place to ensure the quality and long-term durability of the installed tainter gates, given the significant investment?
Ensuring the quality and longevity of the tainter gates is paramount given the $34.9 million investment. The contract should detail stringent quality assurance and control measures, including material testing, fabrication inspections, and installation verification. Performance bonds and warranties will be critical to hold the contractor accountable for defects and ensure the gates meet performance standards throughout their intended service life.
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: W912EE22B0008
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1069 HWY 3185, THIBODAUX, LA, 70301
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,890,362
Exercised Options: $34,890,362
Current Obligation: $34,890,362
Actual Outlays: $1,149,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-31
Current End Date: 2026-10-15
Potential End Date: 2026-10-15 00:00:00
Last Modified: 2025-11-13
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