Army Corps of Engineers Awards $154M Contract for Canal Maintenance in Puerto Rico

Contract Overview

Contract Amount: $15,418,309 ($15.4M)

Contractor: TEC General Contractor, Corp.

Awarding Agency: Department of Defense

Start Date: 2004-09-30

End Date: 2011-12-30

Contract Duration: 2,647 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200412!001437!96CE!W912EP!USA ENGINEER DIST JACKSONVILLE !W912EP04C0005 !A!N! !N! ! !20040930!20070630!805262664!805262664!805262664!N!TOLEDO ELECTRICAL CONTRACTOR C!RD 454 KM 3 HM 8 BO CALLEJ!LARES !PR!00669!03368!013!72!ARECIBO !ARECIBO !* !+000000001000!N!N!000012890193!Z212!MAINT/CANALS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!002!A! !Z!N!C! ! !N!A!N!N!D! ! ! !A!A!00 !A!B!Y!R!Y! ! ! ! !0001! !

Place of Performance

Location: HUMACAO, HUMACAO County, PUERTO RICO, 00791

Plain-Language Summary

Department of Defense obligated $15.4 million to TEC GENERAL CONTRACTOR, CORP. for work described as: 200412!001437!96CE!W912EP!USA ENGINEER DIST JACKSONVILLE !W912EP04C0005 !A!N! !N! ! !20040930!20070630!805262664!805262664!805262664!N!TOLEDO ELECTRICAL CONTRACTOR C!RD 454 KM 3 HM 8 BO CALLEJ!LARES !PR!00669!03368!013!72!ARECIBO !AREC… Key points: 1. The contract, valued at $154 million, was awarded for canal maintenance services. 2. TEC GENERAL CONTRACTOR, CORP. was the contractor for this definitive contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is Construction, specifically 'Other Heavy and Civil Engineering Construction'.

Value Assessment

Rating: fair

The contract value of $154 million for canal maintenance over approximately 7 years appears substantial. Benchmarking against similar heavy civil engineering projects would be necessary to definitively assess pricing.

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 fair value.

Taxpayer Impact: The significant contract value suggests a considerable investment of taxpayer funds, with the expectation of efficient and effective execution of essential infrastructure maintenance.

Public Impact

Ensures continued operation and safety of vital water management infrastructure. Supports local economy through contract work and potential job creation in Puerto Rico. Potential for long-term environmental benefits through proper canal maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

Contract duration is exceptionally long (over 7 years).
Lack of specific performance metrics or detailed scope in provided data.
Potential for cost overruns on a large, long-term infrastructure project.

Positive Signals

Awarded through full and open competition.
Contract is for essential infrastructure maintenance.
Firm fixed price contract type can provide cost certainty.

Sector Analysis

This contract falls within the Construction sector, specifically heavy and civil engineering. Spending in this area is critical for maintaining public infrastructure like canals, ports, and dams. Benchmarks vary widely based on project scope and location.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. The prime contractor, TEC GENERAL CONTRACTOR, CORP., is not identified as a small business in this data, suggesting the contract was not awarded to a small business entity.

Oversight & Accountability

The contract was awarded by the Department of the Army, Jacksonville District Engineer. Oversight would typically involve project managers monitoring progress, quality, and adherence to contract terms to ensure accountability and proper use of funds.

Related Government Programs

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

Risk Flags

Long contract duration (over 7 years).
Lack of detailed scope of work in summary data.
Potential for cost escalation over the contract term.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to TEC GENERAL CONTRACTOR, CORP.. 200412!001437!96CE!W912EP!USA ENGINEER DIST JACKSONVILLE !W912EP04C0005 !A!N! !N! ! !20040930!20070630!805262664!805262664!805262664!N!TOLEDO ELECTRICAL CONTRACTOR C!RD 454 KM 3 HM 8 BO CALLEJ!LARES !PR!00669!03368!013!72!ARECIBO !ARECIBO !* !+000000001000!N!N!000012890193!Z212!MAINT/CANALS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is TEC GENERAL CONTRACTOR, CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2004-09-30. End: 2011-12-30.

What specific maintenance tasks are included in the scope of work for this canal maintenance contract?

The provided data indicates the NAICS code 237990, which covers 'Other Heavy and Civil Engineering Construction.' While the contract title mentions 'MAINT/CANALS,' specific details on dredging, vegetation control, structural repairs, or debris removal are not present. A thorough review of the contract's Statement of Work (SOW) would be required to understand the precise maintenance activities.

Given the long duration and significant value, what are the primary risks associated with this contract's execution?

Key risks include potential scope creep over the 7-year period, unforeseen environmental challenges impacting maintenance, contractor performance degradation over time, and the possibility of material cost escalations not fully captured by the firm fixed price. Additionally, the long duration might reduce the agency's flexibility to adapt to changing needs or technological advancements in canal maintenance.

How does the firm-fixed-price structure impact the government's ability to manage costs and ensure value for this extensive project?

A firm-fixed-price (FFP) contract aims to provide cost certainty for the government by establishing a set price regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor. However, for a long-term, complex project like canal maintenance, the initial price must be carefully negotiated to account for potential risks and inflation, otherwise, the contractor may build in significant contingencies, leading to a higher initial price.

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: SEALED BID

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RD 454 KM 3 HM 8 BO CALLEJ, LARES, PR, 00669

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline