DoD Awards $19.8M Contract for Mississippi River Levee Enlargement in Arkansas

Contract Overview

Contract Amount: $19,828,630 ($19.8M)

Contractor: Circle, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-06-30

Contract Duration: 638 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF WEST BANK MISSISSIPPI RIVER ITEM 525-R, LEVEE ENLARGEMENT AND BERMS, IN CHICOT COUNTY, ARKANSAS.

Place of Performance

Location: LAKE VILLAGE, CHICOT County, ARKANSAS, 71653

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to CIRCLE, LLC for work described as: CONSTRUCTION OF WEST BANK MISSISSIPPI RIVER ITEM 525-R, LEVEE ENLARGEMENT AND BERMS, IN CHICOT COUNTY, ARKANSAS. Key points: 1. The contract focuses on critical infrastructure for flood control in Chicot County. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration is substantial at 638 days, indicating a complex undertaking. 4. The award value of $19.8M is a significant investment in regional infrastructure.

Value Assessment

Rating: good

The contract value of $19.8M appears reasonable for a large-scale civil engineering project of this nature. Benchmarking against similar levee construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used for essential flood control infrastructure, which provides long-term public safety and economic benefits by protecting communities and property.

Public Impact

Enhances flood protection for communities and agricultural lands in Chicot County, Arkansas. Supports regional economic stability by mitigating risks associated with Mississippi River flooding. Creates construction jobs and stimulates local economic activity during the project execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to the long duration and complexity of civil engineering projects.
  • Environmental impact assessments and mitigation strategies need careful monitoring.
  • Ensuring timely completion to meet flood season readiness is crucial.

Positive Signals

  • Awarded through full and open competition, promoting fair pricing.
  • Addresses critical infrastructure needs for public safety.
  • Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is vital for public infrastructure development. Spending in this sector is often driven by government initiatives for transportation, water management, and disaster resilience.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in the provided data. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The Department of Defense, through the Department of the Army, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, 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

  • Long project duration increases risk of cost escalation and unforeseen issues.
  • Potential environmental impacts require diligent monitoring and mitigation.
  • Dependence on weather conditions can affect project timeline.
  • Ensuring contractor's capacity for complex civil engineering tasks.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, ar, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to CIRCLE, LLC. CONSTRUCTION OF WEST BANK MISSISSIPPI RIVER ITEM 525-R, LEVEE ENLARGEMENT AND BERMS, IN CHICOT COUNTY, ARKANSAS.

Who is the contractor on this award?

The obligated recipient is CIRCLE, 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 $19.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-06-30.

What is the historical cost performance of Circle, LLC on similar large-scale civil engineering projects?

Assessing Circle, LLC's past performance on comparable projects is crucial for understanding their ability to deliver within budget and schedule. Reviewing their track record with the Army Corps of Engineers or other federal agencies for similar levee or civil works construction would provide valuable insights into their cost control measures and project management effectiveness.

Are there any identified environmental risks associated with this levee enlargement project, and what mitigation plans are in place?

Large-scale civil engineering projects, especially those involving river systems, often carry environmental risks such as habitat disruption, sedimentation, and water quality impacts. A thorough review of the environmental impact statement and the contractor's mitigation plan is necessary to ensure compliance with regulations and minimize ecological harm. Monitoring during construction is key.

How does the projected completion date align with critical flood season timelines for the Mississippi River in this region?

The project's completion date of June 30, 2026, needs to be evaluated against the typical flood season for the Mississippi River in Chicot County, Arkansas. Delays could leave the area vulnerable. Understanding the contingency plans for potential weather-related interruptions and the criticality of the levee system's readiness is essential for assessing effectiveness.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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: 1204 ENGINEERS RD, BELLE CHASSE, LA, 70037

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

Financial Breakdown

Contract Ceiling: $19,828,630

Exercised Options: $19,828,630

Current Obligation: $19,828,630

Actual Outlays: $3,442,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EE20D0008

IDV Type: IDC

Timeline

Start Date: 2024-09-30

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2025-10-17

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