Army Awards $33.7M Contract for Mississippi River Channel Improvement Project
Contract Overview
Contract Amount: $33,650,376 ($33.7M)
Contractor: Luhr Crosby, LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-06
End Date: 2028-09-05
Contract Duration: 1,460 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MISSISSIPPI RIVER, RM 414.5, FC/MR&T, CHANNEL IMPROVEMENT, TOGO ISLAND BENDWAY WEIRS LOCATED IN TENSAS PARISH, LA AND CLAIBORNE COUNTY, MS.
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39183
Plain-Language Summary
Department of Defense obligated $33.7 million to LUHR CROSBY, LLC for work described as: MISSISSIPPI RIVER, RM 414.5, FC/MR&T, CHANNEL IMPROVEMENT, TOGO ISLAND BENDWAY WEIRS LOCATED IN TENSAS PARISH, LA AND CLAIBORNE COUNTY, MS. Key points: 1. Project focuses on critical channel improvements at Togo Island Bendway. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the nature of civil engineering construction. 4. Spending falls within typical benchmarks for large-scale civil works.
Value Assessment
Rating: good
The contract value of $33.7 million for a 4-year project appears reasonable for a significant civil engineering undertaking. Benchmarking against similar Army Corps of Engineers projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The investment aims to improve navigation, which can lead to economic benefits through more efficient transportation of goods along the Mississippi River.
Public Impact
Enhances vital inland waterway navigation for commerce. Supports regional economic activity through improved river transport. Addresses long-term infrastructure needs for a key national waterway.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large civil projects.
- Environmental impact considerations during construction.
- Weather-related delays affecting project timeline.
Positive Signals
- Clear project scope for channel improvement.
- Firm Fixed Price contract type limits cost uncertainty.
- Experienced contractor likely selected through competition.
Sector Analysis
This contract falls under heavy and civil engineering construction, a sector vital for national infrastructure. Spending benchmarks for similar Army Corps of Engineers projects vary widely based on scope and location, but $33.7M is a substantial investment for a specific segment improvement.
Small Business Impact
While the prime contractor is Luhr Crosby, LLC, there is no specific information provided regarding subcontracting opportunities for small businesses on this particular award. Further investigation into the contract details would be needed to assess SMB participation.
Oversight & Accountability
The Department of the Army, specifically the Army Corps of Engineers, is responsible for overseeing this project. Standard oversight mechanisms for federal construction contracts, including progress monitoring and quality assurance, are expected to be in place.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large-scale civil engineering projects carry inherent cost and schedule risks.
- Potential for unforeseen site conditions impacting project execution.
- Dependence on river conditions and weather patterns.
- Long-term maintenance requirements for infrastructure.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ms, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to LUHR CROSBY, LLC. MISSISSIPPI RIVER, RM 414.5, FC/MR&T, CHANNEL IMPROVEMENT, TOGO ISLAND BENDWAY WEIRS LOCATED IN TENSAS PARISH, LA AND CLAIBORNE COUNTY, MS.
Who is the contractor on this award?
The obligated recipient is LUHR CROSBY, 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 $33.7 million.
What is the period of performance?
Start: 2024-09-06. End: 2028-09-05.
What is the specific expected improvement in navigation capacity or efficiency resulting from these bendway weirs?
The bendway weirs are designed to improve low-flow channel depths and widths, particularly in the Togo Island Bendway. This enhancement aims to maintain or improve navigability during periods of reduced river flow, facilitating more consistent and efficient movement of commercial barge traffic through this critical section of the Mississippi River.
What are the primary environmental risks associated with this channel improvement project, and what mitigation strategies are in place?
Primary environmental risks include potential impacts on aquatic habitats, sediment transport, and water quality due to dredging and construction activities. Mitigation strategies typically involve environmental impact assessments, adherence to environmental regulations, best management practices for erosion and sediment control, and potentially habitat restoration efforts post-construction.
How does the firm-fixed-price contract structure mitigate potential cost overruns for taxpayers on this project?
A firm-fixed-price contract establishes a set price for the defined scope of work, transferring most of the risk for cost overruns to the contractor. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs, providing cost certainty for taxpayers unless significant scope changes occur.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912EE24R0006
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 250 W SAND BANK RD STE 100, COLUMBIA, IL, 62236
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,650,376
Exercised Options: $33,650,376
Current Obligation: $33,650,376
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-06
Current End Date: 2028-09-05
Potential End Date: 2028-09-05 00:00:00
Last Modified: 2025-06-25
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