DoD awards $6.6M for Cedar Rapids flood control, with 2 bidders competing for the construction project

Contract Overview

Contract Amount: $6,615,935 ($6.6M)

Contractor: General Constructors Inc. of the Quad Cities

Awarding Agency: Department of Defense

Start Date: 2022-06-09

End Date: 2026-05-15

Contract Duration: 1,436 days

Daily Burn Rate: $4.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IOWA RIVER BASIN CEDAR RIVER CEDAR RAPIDS, IA CR FRMP 12TH AVE SE ROLLER CLOSURE STRUCTURE

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52404

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to GENERAL CONSTRUCTORS INC. OF THE QUAD CITIES for work described as: IOWA RIVER BASIN CEDAR RIVER CEDAR RAPIDS, IA CR FRMP 12TH AVE SE ROLLER CLOSURE STRUCTURE Key points: 1. The contract value appears reasonable given the scope of heavy civil engineering construction. 2. Competition was present, with two bidders vying for the contract, suggesting some price discovery. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The project is crucial for flood risk management in the Iowa River Basin. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The contract duration of nearly four years indicates a significant, long-term construction effort.

Value Assessment

Rating: good

The contract value of approximately $6.6 million for a roller closure structure in Cedar Rapids is within a reasonable range for heavy civil engineering projects of this nature. Benchmarking against similar flood control or infrastructure projects would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the contractor's bid was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), and two bids were received. While SAP is intended for smaller procurements, the presence of two bidders indicates some level of competition. However, the limited number of bidders suggests that the competition may not have been as robust as a full and open competition, potentially impacting the extent of price discovery and the government's ability to secure the lowest possible price.

Taxpayer Impact: With two bidders, taxpayers likely benefited from some competitive pressure, leading to a more favorable price than a sole-source award. However, a broader competition could have potentially yielded even greater savings.

Public Impact

Residents and businesses in Cedar Rapids, Iowa, will benefit from enhanced flood protection. The project will deliver a critical infrastructure component: a roller closure structure. The geographic impact is localized to the Cedar River corridor in Cedar Rapids. The construction effort will likely create temporary jobs in the local and regional construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Risk of schedule delays due to weather or material availability in a long-term construction project.
Limited competition may have resulted in a higher-than-optimal price.

Positive Signals

Fixed-price contract shifts performance risk to the contractor.
Award to a known entity (General Constructors Inc.) suggests some level of past performance.
Project addresses a critical public safety need (flood control).

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which includes a wide range of infrastructure projects such as dams, levees, flood control systems, and transportation infrastructure. The market for such services is typically characterized by a mix of large, established construction firms and smaller, specialized contractors. Government spending in this sector is often driven by infrastructure needs, disaster recovery, and national security requirements. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' project portfolio for flood risk management.

Small Business Impact

The contract was competed under SAP and awarded to General Constructors Inc. of the Quad Cities. There is no indication that this was a small business set-aside, nor is there information on subcontracting plans. The size of the contractor relative to small business definitions would determine its status. Without specific subcontracting requirements, the direct impact on the small business ecosystem is unclear, though the prime contractor may engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, likely through contracting officers and project managers responsible for monitoring performance, schedule, and compliance with contract terms. The fixed-price nature of the contract provides a degree of financial oversight by limiting the government's exposure to cost increases. Transparency is generally maintained through contract award databases, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
Flood Control Infrastructure
Heavy and Civil Engineering Construction Contracts
Department of Defense Construction Contracts

Risk Flags

Potential for schedule delays due to long construction duration.
Risk of unforeseen site conditions impacting cost and schedule.
Limited competition may affect optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to GENERAL CONSTRUCTORS INC. OF THE QUAD CITIES. IOWA RIVER BASIN CEDAR RIVER CEDAR RAPIDS, IA CR FRMP 12TH AVE SE ROLLER CLOSURE STRUCTURE

Who is the contractor on this award?

The obligated recipient is GENERAL CONSTRUCTORS INC. OF THE QUAD CITIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2022-06-09. End: 2026-05-15.

What is the track record of General Constructors Inc. of the Quad Cities with federal contracts, particularly with the Department of Defense?

Information on the specific track record of General Constructors Inc. of the Quad Cities with federal contracts, especially the Department of Defense, is not detailed in the provided data. A thorough analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance ratings, contract history, and any reported issues or successes on previous government projects. Understanding their experience with similar-sized, fixed-price, heavy civil engineering contracts would be crucial for assessing their capability and reliability for the Cedar River flood control project.

How does the awarded price of $6.6 million compare to similar flood control projects managed by the Army Corps of Engineers?

Direct comparison of the $6.6 million award for the Cedar River roller closure structure to similar Army Corps of Engineers (USACE) projects requires access to a broader dataset of USACE flood control contracts. Factors such as project scope, geographic location, specific engineering requirements (e.g., soil conditions, environmental mitigation), and the year of award significantly influence costs. While $6.6 million is a substantial sum, it may be competitive or even low depending on the complexity and scale of the structure and its integration into the existing levee system. A detailed benchmark analysis would involve identifying comparable USACE projects and adjusting for relevant variables.

What are the primary risks associated with the performance of this contract, and how are they mitigated?

The primary risks for this contract revolve around construction performance and potential cost/schedule overruns. Given it's a fixed-price contract, the contractor, General Constructors Inc., bears the financial risk of cost increases. However, risks such as unforeseen subsurface conditions, extreme weather impacting work schedules, material shortages, or labor disputes could still lead to delays. Mitigation strategies typically include detailed site investigations prior to bidding, robust project management by the contracting officer's representative (COR), clear contract terms defining responsibilities, and potentially performance bonds. The contract's duration (nearly four years) also increases the potential exposure to these risks over time.

What is the expected effectiveness of the Cedar River roller closure structure in mitigating flood risk for Cedar Rapids?

The effectiveness of the roller closure structure is directly tied to its design specifications and its integration into the broader flood control system for Cedar Rapids. As part of the 'CR FRMP' (Cedar Rapids Flood Risk Management Project), this structure is intended to provide a specific level of protection against anticipated flood events on the Cedar River. Its success will depend on factors like the height and strength of the structure, its operational reliability during flood events, and the overall capacity of the river system to handle water volumes. Detailed engineering reports and flood modeling data associated with the project would quantify the expected reduction in flood risk and the probability of protection levels being met.

How has federal spending on heavy and civil engineering construction, particularly for flood control, trended in recent years?

Federal spending on heavy and civil engineering construction, including flood control, has generally seen fluctuations influenced by infrastructure initiatives, disaster recovery funding, and agency budgets (like the Army Corps of Engineers). Following major natural disasters, there is often an increase in spending for repair and mitigation projects. Broader infrastructure bills can also boost investment in this sector. Analyzing historical spending data from agencies like the USACE, FEMA, and DOT would reveal trends, highlighting periods of increased investment driven by specific policy priorities or urgent needs, such as resilience against climate change impacts and severe weather events.

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: W912EK22B0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 480 42ND ST, BETTENDORF, IA, 52722

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

Financial Breakdown

Contract Ceiling: $6,615,935

Exercised Options: $6,615,935

Current Obligation: $6,615,935

Actual Outlays: $1,990,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline