DoD awards $16.8M for Yazoo River Basin channel improvements, with 4 bidders competing

Contract Overview

Contract Amount: $16,810,472 ($16.8M)

Contractor: Anderson Contracting LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-05

End Date: 2026-04-30

Contract Duration: 1,091 days

Daily Burn Rate: $15.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FC/MR&T, YAZOO RIVER BASIN, TALLAHATCHIE COUNTY, MISSISSIPPI UPPER YAZOO PROJECTS, ITEM 7E CHANNEL IMPROVEMENT

Place of Performance

Location: GREENWOOD, LEFLORE County, MISSISSIPPI, 38930

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to ANDERSON CONTRACTING LLC for work described as: FC/MR&T, YAZOO RIVER BASIN, TALLAHATCHIE COUNTY, MISSISSIPPI UPPER YAZOO PROJECTS, ITEM 7E CHANNEL IMPROVEMENT Key points: 1. Contract value appears reasonable given the scope of civil engineering work. 2. Competition dynamics suggest a healthy market for this type of construction. 3. Risk indicators are moderate, typical for large-scale infrastructure projects. 4. Project performance will be key to assessing long-term value. 5. This contract fits within the broader Army Corps of Engineers' flood control mission. 6. The firm-fixed-price structure shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of $16.8 million for channel improvement in the Yazoo River Basin is within a typical range for large-scale civil engineering projects of this nature. Benchmarking against similar Army Corps of Engineers projects for dredging and channel modification suggests that the pricing is competitive. The firm-fixed-price contract type also indicates a clear understanding of the project scope and associated costs, which generally leads to better cost control compared to cost-plus contracts. The number of bidders further supports the assessment of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition among eligible bidders. With four bids received, the competition level suggests a robust market for this type of heavy civil engineering construction. The presence of multiple bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The full and open competition with four bidders indicates that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best price and technical solution for the channel improvement work.

Public Impact

Benefits residents and businesses in the Yazoo River Basin by enhancing flood control. Delivers critical channel improvement services to mitigate flood risks. Geographic impact is concentrated in Mississippi, specifically Tallahatchie County. Workforce implications include employment for skilled construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays common in large civil works projects.
Environmental compliance monitoring will be crucial throughout the project lifecycle.
Coordination with local stakeholders and other ongoing projects is necessary.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Multiple bidders suggest contractor capability and market availability.
Experienced agency (Army Corps of Engineers) overseeing the project.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to water resource management and flood control. The market for such services is characterized by large, specialized firms capable of undertaking complex infrastructure projects. Spending in this sector is often driven by government infrastructure initiatives and the need to maintain and improve critical waterways. Comparable spending benchmarks would involve other Army Corps of Engineers projects for riverine improvements and levee construction.

Small Business Impact

The contract was competed under SAP and awarded to Anderson Contracting LLC. There is no explicit indication of a small business set-aside for this particular award. However, the nature of the work, involving significant heavy civil engineering, often requires specialized equipment and expertise that may favor larger prime contractors. Subcontracting opportunities for smaller businesses could arise for specific tasks, but the primary award does not appear to be directly targeting the small business ecosystem.

Oversight & Accountability

Oversight for this contract will be provided by the Department of the Army, likely through the Army Corps of Engineers district responsible for the Yazoo River Basin. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver specified improvements within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting, though specific project progress updates may vary in accessibility. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Yazoo River Basin Flood Control Project
Mississippi River Channel Improvements
Army Corps of Engineers Civil Works Programs
Inland Waterways Navigation Projects

Risk Flags

Potential for environmental impact
Risk of weather-related delays
Complexity of civil engineering work

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to ANDERSON CONTRACTING LLC. FC/MR&T, YAZOO RIVER BASIN, TALLAHATCHIE COUNTY, MISSISSIPPI UPPER YAZOO PROJECTS, ITEM 7E CHANNEL IMPROVEMENT

Who is the contractor on this award?

The obligated recipient is ANDERSON CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2023-05-05. End: 2026-04-30.

What is the track record of Anderson Contracting LLC on similar federal projects?

Anderson Contracting LLC has a history of performing civil engineering and construction work for federal agencies. While specific details on past performance for similar channel improvement projects would require a deeper dive into contract databases, their ability to win a competitive bid for this $16.8 million Army Corps of Engineers contract suggests they possess the necessary qualifications and experience. Reviewing past performance evaluations and any past performance questionnaires (PPQs) associated with their previous federal contracts would provide a more comprehensive understanding of their reliability, quality of work, and adherence to schedules and budgets on comparable projects.

How does the awarded amount compare to the original estimated cost or budget for this project?

The provided data does not include the original estimated cost or budget for this project, making a direct comparison impossible. However, the fact that the contract was competed under Simplified Acquisition Procedures (SAP) and received four bids suggests that the awarded amount of $16.8 million was likely within the expected range for this scope of work. In a competitive bidding process, the final award price often reflects a balance between the government's needs and the contractors' cost proposals. Without pre-solicitation estimates, it's difficult to definitively state if it represents savings or an overage relative to an internal government budget.

What are the primary risks associated with this channel improvement project?

The primary risks associated with this channel improvement project include potential environmental challenges, such as encountering unexpected soil conditions, hazardous materials, or protected species, which could lead to delays and increased costs. Schedule risks are also significant, given the duration of the contract (nearly three years) and the potential for weather disruptions, particularly in a riverine environment. Contractor performance risk exists, although mitigated by the firm-fixed-price contract; failure to meet quality standards or complete work on time could still pose issues. Finally, coordination risks with other ongoing projects or local stakeholders in the Yazoo River Basin need to be managed effectively.

How effective has the Army Corps of Engineers been in managing similar channel improvement projects in the past?

The Army Corps of Engineers (USACE) has a long and extensive history of managing large-scale civil works projects, including numerous channel improvement initiatives across the United States. Their effectiveness is generally considered high, given their specialized expertise, established processes, and dedicated oversight. Projects like those in the Yazoo River Basin are critical to their mission of maintaining navigable waterways and providing flood control. While specific project outcomes can vary, USACE typically employs rigorous planning, contracting, and execution strategies. Performance metrics and Inspector General reports for similar past projects would offer a more granular assessment of their effectiveness in specific contexts.

What is the historical spending trend for channel improvement projects in the Yazoo River Basin or similar Mississippi river systems?

Historical spending on channel improvement projects in the Yazoo River Basin and similar Mississippi river systems has been substantial and ongoing, reflecting the critical need for flood control and navigation in the region. The US Army Corps of Engineers consistently allocates significant funding towards maintaining and enhancing these waterways. Spending levels can fluctuate year-to-year based on project lifecycles, infrastructure needs, and federal appropriations. Analyzing historical budgets and contract awards for the Yazoo River Basin specifically, and comparing them to broader USACE spending on inland waterways, would reveal trends related to investment in flood mitigation and navigation infrastructure over time.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912EE23R0012

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 222 ANDERSON LN, YAZOO CITY, MS, 39194

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,810,472

Exercised Options: $16,810,472

Current Obligation: $16,810,472

Actual Outlays: $6,715,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline