DoD's $27M Rio de la Plata Flood Damage Reduction Contract Awarded to Construcciones Jose Carro SE

Contract Overview

Contract Amount: $26,960,101 ($27.0M)

Contractor: Construcciones Jose Carro SE

Awarding Agency: Department of Defense

Start Date: 2010-07-23

End Date: 2015-05-18

Contract Duration: 1,760 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERYPROJECT#::114175::RP# RIO DE LA PLATA PR, PHASE 1 FLOOD DAMAGE REDUCTION CONTRACT 1A CONSTRUCTION

Place of Performance

Location: SAINT AUGUSTINE, SAINT JOHNS County, FLORIDA, 32084

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to CONSTRUCCIONES JOSE CARRO SE for work described as: RECOVERYPROJECT#::114175::RP# RIO DE LA PLATA PR, PHASE 1 FLOOD DAMAGE REDUCTION CONTRACT 1A CONSTRUCTION Key points: 1. The contract is for Phase 1 of flood damage reduction efforts in Rio de la Plata, Puerto Rico. 2. Awarded by the Department of Defense (Army), it falls under 'Other Heavy and Civil Engineering Construction'. 3. The project duration was 1760 days, indicating a significant, long-term infrastructure undertaking. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of $26.96 million is substantial for heavy civil engineering construction. Benchmarking against similar flood control projects would be necessary to assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the single award to Construcciones Jose Carro SE warrants further investigation into the competitive landscape.

Taxpayer Impact: Taxpayer funds are being utilized for critical infrastructure improvements aimed at mitigating flood damage, which has long-term economic and safety benefits.

Public Impact

Enhances community resilience against natural disasters. Supports local employment and economic activity during construction. Addresses critical infrastructure needs in Puerto Rico. Potential for long-term cost savings by preventing flood damage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited information on contractor's past performance in similar large-scale projects.
Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Geographic location may present logistical challenges impacting project timeline and cost.

Positive Signals

Addresses a critical need for flood damage reduction.
Awarded through full and open competition.
Firm Fixed Price contract structure provides cost certainty.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on flood damage reduction. Spending in this sector is often driven by infrastructure needs, environmental concerns, and disaster recovery efforts.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine if small businesses were involved.

Oversight & Accountability

Oversight would typically involve regular progress reports, site inspections, and financial reviews by the Department of Defense to ensure contract compliance and project completion.

Related Government Programs

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

Risk Flags

Contract awarded to a single entity.
Long project duration (1760 days).
Geographic location (Puerto Rico) may present logistical challenges.
Potential for unforeseen site conditions in heavy civil engineering.
Limited data on contractor's specific experience with similar scale flood control projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to CONSTRUCCIONES JOSE CARRO SE. RECOVERYPROJECT#::114175::RP# RIO DE LA PLATA PR, PHASE 1 FLOOD DAMAGE REDUCTION CONTRACT 1A CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is CONSTRUCCIONES JOSE CARRO SE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2010-07-23. End: 2015-05-18.

What was the basis for selecting Construcciones Jose Carro SE among potentially multiple bidders in the full and open competition?

The selection likely hinged on a combination of factors including the proposed price, technical approach, past performance, and adherence to contract requirements. Detailed evaluation criteria used by the Department of Defense would clarify the specific weighting and rationale behind the award decision to Construcciones Jose Carro SE.

How effectively did the firm fixed price structure protect taxpayers from potential cost escalations given the project's duration and location?

A firm fixed price contract generally shifts cost overrun risk to the contractor. However, significant unforeseen issues (e.g., extreme weather, material shortages, complex site conditions) could still lead to claims or necessitate contract modifications, potentially impacting the final cost to taxpayers. The actual effectiveness depends on the contractor's management and the contract's specific terms regarding contingencies.

What is the long-term impact of this flood damage reduction project on the community and environment in Rio de la Plata?

The project's primary impact is enhanced resilience against flooding, protecting lives, property, and infrastructure. It can also lead to ecological improvements if designed with environmental considerations. The long-term economic benefit includes reduced disaster recovery costs and potentially increased property values due to improved safety.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 510 KM 1 0 ST CA, PONCE, PR, 00716

Business Categories: Category Business, Hispanic American Owned Business, Labor Surplus Area Firm, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,960,101

Exercised Options: $26,960,101

Current Obligation: $26,960,101

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline