Illinois River Lock Rehabilitation Contract Exceeds $129M for Major Infrastructure Upgrade

Contract Overview

Contract Amount: $129,231,036 ($129.2M)

Contractor: Shimmick Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-10-31

End Date: 2022-09-30

Contract Duration: 1,430 days

Daily Burn Rate: $90.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ILLINOIS RIVER BASIN, LAGRANGE LOCK AND DAM, MAJOR REHABILITATION, US ARMY CORPS OF ENGINEERS, ROCK ISLAND DISTRICT

Place of Performance

Location: VERSAILLES, BROWN County, ILLINOIS, 62378

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $129.2 million to SHIMMICK CONSTRUCTION COMPANY, INC. for work described as: ILLINOIS RIVER BASIN, LAGRANGE LOCK AND DAM, MAJOR REHABILITATION, US ARMY CORPS OF ENGINEERS, ROCK ISLAND DISTRICT Key points: 1. The contract awarded to Shimmick Construction Company, Inc. represents a significant investment in critical U.S. waterway infrastructure. 2. Competition was full and open, suggesting a robust price discovery process for this large-scale civil engineering project. 3. The project's duration of 1430 days highlights the complexity and long-term nature of major rehabilitation efforts. 4. The absence of small business participation warrants further investigation into contracting opportunities for smaller firms in such projects.

Value Assessment

Rating: fair

The contract value of $129.2M for heavy civil engineering construction appears substantial. Benchmarking against similar large-scale lock and dam rehabilitation projects is necessary to fully assess value, as specific per-unit cost data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The firm-fixed-price structure provides cost certainty for the government, though potential for cost overruns exists if unforeseen issues arise during the extensive rehabilitation.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure maintenance, aiming to ensure the continued operation and efficiency of a vital waterway for commerce and transportation.

Public Impact

Ensures continued operation of the Illinois River, a key transportation artery for goods and commodities. Supports economic activity by maintaining the efficiency of barge traffic for agriculture and industry. Represents a significant federal investment in aging infrastructure, potentially preventing more costly failures in the future. The rehabilitation of the LaGrange Lock and Dam is crucial for regional and national supply chain resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential for cost overruns on long-term, complex projects
Dependency on a single contractor for a critical infrastructure component

Positive Signals

Awarded through full and open competition
Firm-fixed-price contract provides cost certainty
Addresses critical infrastructure needs

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to water infrastructure. Spending in this area is often driven by the need to maintain and upgrade aging federal facilities, with significant investments required for projects of this scale.

Small Business Impact

The contract data indicates no small business participation. This suggests that opportunities for small businesses in large-scale civil engineering projects may be limited, or that subcontracting opportunities were not effectively utilized or tracked. Further analysis is needed to understand why small businesses were not involved.

Oversight & Accountability

The US Army Corps of Engineers, Rock Island District, is responsible for overseeing this major rehabilitation. Oversight would typically involve monitoring project progress, quality control, and adherence to contract terms to ensure taxpayer funds are used effectively and the project meets its objectives.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Significant contract value
Long project duration
Lack of small business participation
Critical infrastructure dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $129.2 million to SHIMMICK CONSTRUCTION COMPANY, INC.. ILLINOIS RIVER BASIN, LAGRANGE LOCK AND DAM, MAJOR REHABILITATION, US ARMY CORPS OF ENGINEERS, ROCK ISLAND DISTRICT

Who is the contractor on this award?

The obligated recipient is SHIMMICK CONSTRUCTION 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 $129.2 million.

What is the period of performance?

Start: 2018-10-31. End: 2022-09-30.

What is the projected economic benefit of the LaGrange Lock and Dam rehabilitation in terms of improved navigation efficiency and reduced transportation costs?

The rehabilitation is expected to significantly improve navigation efficiency by addressing structural deficiencies and modernizing components, leading to reduced transit times and lower operational costs for barge traffic. This enhances the reliability of the Illinois Waterway as a cost-effective shipping route for agricultural products and other goods, supporting regional economic competitiveness and national supply chains.

What are the primary risks associated with the long duration and complexity of this major rehabilitation project, and how are they being mitigated?

Risks include potential schedule delays due to unforeseen site conditions, weather impacts, or contractor performance issues. Complexity introduces challenges in coordination and quality assurance. Mitigation strategies likely involve robust project management, contingency planning, regular progress reviews, and clear communication channels between the Corps of Engineers and Shimmick Construction.

How does the $129M contract value compare to industry benchmarks for similar large-scale lock and dam rehabilitation projects, and does it represent good value for the investment?

Benchmarking is crucial. While $129M is a substantial sum, its value depends on the scope of work, specific rehabilitation needs, and market conditions at the time of bidding. Comparing cost per cubic yard of concrete, per linear foot of structure repaired, or other relevant metrics against similar projects nationwide would provide a clearer picture of whether this contract represents a competitive and reasonable investment.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EK18R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 8201 EDGEWATER DR STE 202, OAKLAND, CA, 94621

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

Financial Breakdown

Contract Ceiling: $129,231,036

Exercised Options: $129,231,036

Current Obligation: $129,231,036

Actual Outlays: $44,890,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline