Dod Awards $32.6M for AVE Pump Station/Tree of Five Seasons - Reach 2 Phase 1 to WRH Inc

Contract Overview

Contract Amount: $32,656,117 ($32.7M)

Contractor: WRH Inc

Awarding Agency: Department of Defense

Start Date: 2023-06-28

End Date: 2026-03-27

Contract Duration: 1,003 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: A AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52404

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to WRH INC for work described as: A AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1 Key points: 1. Contract awarded to WRH INC for a significant infrastructure project. 2. Project involves heavy and civil engineering construction, indicating a large-scale undertaking. 3. The contract type is a Definitive Contract, suggesting a well-defined scope. 4. Firm Fixed Price contract type aims to control costs for the government. 5. The contract duration is over 1000 days, implying a long-term commitment. 6. Awarded by the Department of the Army, a major component of the DoD. 7. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction.

Value Assessment

Rating: fair

The contract value of $32.6 million for heavy and civil engineering construction is substantial. Without specific benchmarks for similar 'AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1' projects, a direct value-for-money assessment is challenging. However, the firm fixed-price structure suggests an attempt to manage costs. Further analysis would require comparing this to similar large-scale civil engineering projects undertaken by the Army or other federal agencies to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it is a definitive contract with a single award suggests that after the competitive process, WRH INC was selected as the most advantageous offer. The level of competition is positive for price discovery, as multiple bidders likely submitted proposals, driving down costs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives the best possible pricing and value through a robust bidding process.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary of this contract. The services delivered are related to heavy and civil engineering construction, likely for infrastructure development. The geographic impact is specified as Iowa (IA), indicating local economic benefits and workforce implications. The project's scale suggests potential job creation and business opportunities within the construction sector in Iowa.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Long contract duration increases the risk of scope creep or changes in project requirements.
Dependence on a single contractor (WRH INC) for a large-scale project could pose risks if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process, likely leading to better value.
Award to a single entity for a defined scope can streamline project execution.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical part of the broader construction industry. This sector includes projects like infrastructure, utilities, and other large-scale engineering works. The market size for federal heavy and civil engineering construction is substantial, with significant annual outlays across various agencies. This specific contract appears to be a component of a larger program, indicated by 'REACH 2 PHASE 1', suggesting it fits into a strategic infrastructure development plan.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, WRH INC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the work required. The absence of a small business set-aside means the primary competition was open to all eligible firms, not specifically targeted at small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Construction Projects
Department of Defense Infrastructure Modernization
Federal Civil Engineering Contracts
Public Works Construction Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting project completion.
Dependence on contractor's technical expertise for specialized construction.
Long-term nature of the contract increases exposure to external economic factors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to WRH INC. A AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1

Who is the contractor on this award?

The obligated recipient is WRH 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 $32.7 million.

What is the period of performance?

Start: 2023-06-28. End: 2026-03-27.

What is the track record of WRH INC in performing similar large-scale civil engineering projects for the federal government?

Assessing WRH INC's track record requires a review of their past performance on federal contracts, particularly those involving heavy and civil engineering construction. This would involve examining contract databases for previous awards, contract values, and performance ratings. Specific attention should be paid to their experience with projects of similar complexity, duration, and scope, such as pump stations or large infrastructure developments. Understanding their history of on-time and on-budget delivery, as well as any past disputes or contract modifications, would provide crucial insight into their capability to successfully execute the 'AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1' project. Without this specific performance data, it is difficult to definitively gauge their suitability.

How does the awarded amount of $32.6 million compare to the estimated cost or budget for this specific phase of the project?

The awarded amount of $32.6 million represents the government's contractual obligation to WRH INC for the defined scope of work. To assess value for money, this figure needs to be compared against the government's independent cost estimate (ICE) or budget allocated for 'REACH 2 PHASE 1'. If the awarded amount is significantly lower than the ICE, it could indicate strong competition or a favorable negotiation. Conversely, if it is close to or exceeds the ICE, it might warrant further scrutiny regarding the accuracy of the estimate or the competitiveness of the bids. The firm fixed-price nature suggests the government aims to cap its expenditure at this amount, barring any approved change orders.

What are the key performance indicators (KPIs) and deliverables expected under this contract, and how will they be measured?

Key performance indicators and deliverables for this contract would be detailed in the Statement of Work (SOW) and contract clauses. For a project like the 'AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1', KPIs likely include adherence to construction schedules, quality of materials and workmanship, safety compliance, and environmental protection measures. Deliverables would encompass completed construction phases, functional pump station components, and final project documentation. Performance measurement would involve regular site inspections, progress reports, milestone reviews, and potentially third-party quality assurance checks. The government's project manager would be responsible for monitoring these KPIs and ensuring all contractual obligations are met by WRH INC.

What is the historical spending pattern for similar infrastructure projects managed by the Department of the Army in Iowa?

Analyzing historical spending patterns for similar infrastructure projects by the Department of the Army in Iowa would provide context for the $32.6 million award. This involves examining past contracts for civil engineering, construction, and utility infrastructure within the state. Key metrics to consider include average contract values, project durations, and the number of bids received for comparable projects. Understanding the typical cost ranges and the typical number of competitors can help determine if this award is within historical norms or represents an outlier. Such analysis can also reveal trends in contracting strategies and the prevalence of specific types of construction projects within the region.

Are there any identified risks associated with WRH INC's performance history or the nature of this specific construction project?

Risks associated with this contract can stem from both the contractor's performance history and the project's inherent nature. A review of WRH INC's past federal contract performance would reveal any history of delays, cost overruns, quality issues, or disputes. For the 'AVE PUMP STATION/TREE OF FIVE SEASONS - REACH 2 PHASE 1' project itself, risks might include unforeseen geological conditions, complex environmental regulations, supply chain disruptions for specialized equipment, or labor availability issues in Iowa. The long duration (1003 days) also increases exposure to changing economic conditions or regulatory requirements. The firm fixed-price contract type, while beneficial for cost control, can shift some of these risks to the contractor.

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: SEALED BID

Solicitation ID: W912EK22R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1648 T AVE, SOUTH AMANA, IA, 52334

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

Financial Breakdown

Contract Ceiling: $32,656,117

Exercised Options: $32,656,117

Current Obligation: $32,656,117

Actual Outlays: $7,703,508

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline