Army awards $19.3M levee enlargement contract to Affolter Contracting Company, Inc. in Louisiana

Contract Overview

Contract Amount: $19,261,780 ($19.3M)

Contractor: Affolter Contracting Company, Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-11

End Date: 2026-12-31

Contract Duration: 629 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TENSAS PARISH, LA, POINT PLEASANT-YUCATAN, LA, LEVEE ENLARGEMENT AND BERMS, MRL ITEM 409-R, FC/MRT, WBMRL

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39183

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to AFFOLTER CONTRACTING COMPANY, INC for work described as: TENSAS PARISH, LA, POINT PLEASANT-YUCATAN, LA, LEVEE ENLARGEMENT AND BERMS, MRL ITEM 409-R, FC/MRT, WBMRL Key points: 1. The contract value represents a significant investment in critical infrastructure for flood risk management. 2. Competition dynamics for this contract appear robust, potentially leading to favorable pricing. 3. Performance risk is moderate, given the nature of heavy civil engineering projects. 4. The project's duration suggests a sustained commitment to enhancing regional resilience. 5. This contract aligns with broader federal efforts to bolster coastal protection infrastructure. 6. The fixed-price nature of the contract shifts cost overrun risk to the contractor.

Value Assessment

Rating: good

The contract value of $19.3 million for levee enlargement and berms in Tensas Parish, LA, appears reasonable for a project of this scale and complexity. Benchmarking against similar Army Corps of Engineers civil works projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the government has secured a defined cost, but the contractor bears the risk of cost overruns. Without detailed cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging, but the award to a single contractor after a competitive process indicates a potentially fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, certain sources may have been excluded. This suggests a potentially limited pool of bidders compared to unrestricted full and open competition. The presence of 4 bidders, as indicated by 'no': 4, shows some level of competition, but the exclusion of sources warrants further investigation into the rationale and its potential impact on price discovery. The final award was made to Affolter Contracting Company, Inc.

Taxpayer Impact: The limited competition, due to the exclusion of certain sources, may have resulted in a higher price for taxpayers than if all potential qualified bidders had been allowed to compete. However, the fact that four bids were received suggests that a competitive market still existed for this specific requirement.

Public Impact

Residents and businesses in Tensas Parish, Louisiana, will benefit from enhanced flood protection measures. The project will improve the structural integrity of levees and berms, reducing the risk of inundation. Geographic impact is concentrated in the specified areas of Louisiana, directly addressing local flood vulnerabilities. The construction activities will likely create temporary employment opportunities for skilled labor in the region. This infrastructure improvement contributes to the long-term economic stability and safety of the affected communities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
Dependence on the contractor's ability to manage complex heavy civil engineering operations effectively.
Environmental compliance during construction activities needs careful monitoring.
Coordination with local authorities and stakeholders is crucial for successful project execution.

Positive Signals

The firm-fixed-price contract shifts significant cost risk to the contractor.
Award to a single contractor after a competitive process suggests a potentially well-defined requirement and achievable scope.
The project addresses critical infrastructure needs, indicating a high priority for the awarding agency.
The specified performance period allows for structured project execution and delivery.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on water management infrastructure. This sector is characterized by large-scale projects, significant capital investment, and specialized engineering expertise. Federal spending in this area is often driven by national security, disaster preparedness, and environmental protection mandates. Comparable spending benchmarks would typically involve other Army Corps of Engineers projects for levee construction, flood control, and coastal resilience initiatives, which can range from millions to billions of dollars depending on scope and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear. However, large prime contractors are often encouraged or required to utilize small businesses for a portion of their work, which could indirectly benefit the small business sector.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through the Army Corps of Engineers. Accountability measures are embedded in the contract's firm-fixed-price structure and delivery schedule. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Flood Control Projects
Coastal Resilience Initiatives
Infrastructure Investment and Jobs Act Projects
Disaster Mitigation and Recovery Programs

Risk Flags

Limited competition due to source exclusion
Potential for unforeseen site conditions impacting cost and schedule
Environmental compliance during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to AFFOLTER CONTRACTING COMPANY, INC. TENSAS PARISH, LA, POINT PLEASANT-YUCATAN, LA, LEVEE ENLARGEMENT AND BERMS, MRL ITEM 409-R, FC/MRT, WBMRL

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 $19.3 million.

What is the period of performance?

Start: 2025-04-11. End: 2026-12-31.

What is the historical spending pattern for Affolter Contracting Company, Inc. with the Department of Defense?

A review of federal procurement data indicates that Affolter Contracting Company, Inc. has a history of receiving contracts from the Department of Defense and other federal agencies. While specific dollar amounts and contract types vary, their track record suggests experience in performing heavy civil engineering and construction services. Analyzing their past performance on similar projects, including on-time delivery and adherence to budget, would provide further insight into their reliability and capability for this current levee enlargement contract. A deeper dive into their contract history would reveal the frequency and scale of their engagements with the DoD, helping to contextualize their current award.

How does the awarded amount compare to similar levee enlargement projects managed by the Army Corps of Engineers?

The awarded amount of $19.3 million for levee enlargement and berms in Tensas Parish, LA, needs to be benchmarked against similar projects undertaken by the Army Corps of Engineers. Factors such as project scope, geographic location, specific engineering requirements (e.g., soil type, length of levee, height), and prevailing market conditions significantly influence costs. Projects of similar scale in other regions might have different cost profiles due to varying labor rates, material costs, and environmental considerations. A comprehensive comparison would involve analyzing the per-linear-foot or per-cubic-yard costs of similar projects, adjusted for regional economic factors, to ascertain if this contract represents a competitive and efficient use of taxpayer funds.

What are the primary risks associated with this specific levee enlargement project?

The primary risks associated with this levee enlargement project include potential unforeseen subsurface conditions (e.g., unexpected soil instability, presence of groundwater) that could lead to cost overruns or schedule delays, despite the firm-fixed-price contract. Environmental risks, such as impacts on local ecosystems or compliance with environmental regulations during construction, are also significant. Furthermore, the logistical challenges of working in a specific geographic area, including access and material transport, can pose risks. Contractor performance risk, related to their ability to manage the complex construction operations and workforce effectively, is another key consideration. Finally, coordination with local stakeholders and ensuring public safety during construction are critical risk areas.

What is the expected effectiveness of the completed levee enlargement in mitigating flood risks for the region?

The expected effectiveness of the completed levee enlargement and berms in mitigating flood risks for Tensas Parish, LA, is directly tied to the project's design specifications and the Army Corps of Engineers' assessment of regional vulnerabilities. The project aims to increase the structural integrity and height of existing levees, thereby enhancing their capacity to withstand higher water levels and reduce the probability of breaches during flood events. The specific design parameters, such as the targeted increase in levee height and width, and the incorporation of berms, are intended to provide a specified level of flood protection, often measured by the frequency of storms the system is designed to withstand (e.g., a 100-year flood event). The success of this mitigation effort also depends on the ongoing maintenance and integrity of the entire levee system.

How does the contract type (Firm Fixed Price) influence the financial risk for the government and the contractor?

The Firm Fixed Price (FFP) contract type significantly shifts financial risk from the government to the contractor. Under an FFP agreement, the contractor agrees to a set price for the work, regardless of the actual costs incurred. This provides the government with cost certainty and predictability, making budgeting easier. The primary risk for the government is paying a potentially higher initial price compared to cost-reimbursement contracts, as the contractor will likely build in a contingency for unforeseen costs. Conversely, the contractor assumes the risk of cost overruns. If their actual costs exceed the agreed-upon price, their profit margin will decrease, or they could incur a loss. This contract type incentivizes the contractor to control costs and work efficiently to maximize profit.

What is the significance of the contract being awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a nuanced approach to competition. It implies that the agency initially intended to conduct full and open competition but subsequently excluded certain sources based on specific justifications, such as national security, proprietary data, or unique capabilities. While it is a form of competition, the exclusion of sources inherently limits the bidder pool compared to unrestricted full and open competition. The number of bids received (4 in this case) suggests that a competitive market still existed, but the rationale for exclusion is critical. If the exclusions were well-justified and did not unduly restrict competition, the resulting price could still be fair. However, if the exclusions were arbitrary or overly broad, it could lead to reduced price competition and potentially higher costs for the government.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EE25RA007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4629 TEXAS AVE, 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: $19,261,780

Exercised Options: $19,261,780

Current Obligation: $19,261,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EE25D0001

IDV Type: IDC

Timeline