Army awards $22.17M for Florida Central & Southern Florida flood control project, including L-40 modifications

Contract Overview

Contract Amount: $22,166,876 ($22.2M)

Contractor: Lodge Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-24

End Date: 2025-09-26

Contract Duration: 5,512 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::2860::RP# PROJECT TITLE: 2860 CENTRAL & SOUTHERN FLORIDA, FL - SITE 1 IMPOUNDMENT, D-525N (L-40 MODIFICATIONS) AND MISCELLANEOUS FEATURES, PALM BEACH COUNTY, FLORIDA THIS PROJECT INCLUDES MODIFICATIONS TO APPROXIMATELY 15,000-LF OF THE EXISTING L-40. CONSTRUCTION ACTIVITIES INCLUDE MISCELLANEOUS DEMOLITION, INSTALLATION OF TEMPORARY ACCESS BRIDGE, VEGETATION CLEARING AND GRUBBING, DEWATERING OPERATIONS, BORROW AND DISPOSAL AREA OPERATIONS, EXCAVATION AND FILL PLACEMENT, CONSTRUCTION OF ARMORED SPILLWAY (S-530), PLACEMENT OF EROSION CONTROL MEASURES THAT INCLUDE SOIL CEMENT AND REINFORCED GRASS, INSTALLATION OF EMBANKMENT INSTRUMENTATION, CONSTRUCTION OF APPROXIMATELY 6-ACRE WILDLIFE WETLAND AREA, AND OTHER MISCELLANEOUS EMBANKMENT CONSTRUCTION ACTIVITIES.

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33434

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to LODGE CONSTRUCTION, INC. for work described as: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::2860::RP# PROJECT TITLE: 2860 CENTRAL & SOUTHERN FLORIDA, FL - SITE 1 IMPOUNDMENT, D-525N (L-40 MODIFICATIONS) AND MISCELLANEOUS FEATURES, PALM BEACH COUNTY, FLORIDA THIS PROJECT INCLUDES MODIFICATIONS TO APPROXIMATELY 15,000… Key points: 1. Project focuses on critical infrastructure upgrades for flood risk reduction in Palm Beach County. 2. Contract involves extensive civil engineering work, including earthmoving, structural construction, and environmental features. 3. The duration of the contract (over 14 years) suggests a complex, multi-phase construction effort. 4. Fixed-price contract type aims to control costs, but long duration may introduce unforeseen risks. 5. The project's success hinges on effective management of environmental factors and construction timelines. 6. This contract represents a significant investment in regional water management and resilience.

Value Assessment

Rating: good

The contract value of $22.17 million for a large-scale civil engineering project appears reasonable given the scope of work, which includes significant earthmoving, structural construction (armored spillway), and environmental mitigation (wildlife wetland). Benchmarking against similar Army Corps of Engineers projects for flood control infrastructure suggests that pricing is within expected ranges for projects of this complexity and duration. The firm fixed-price nature of the contract provides cost certainty for the government, although the long performance period could lead to adjustments if market conditions change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive favorable pricing and ensure the selection of a contractor capable of meeting the project's technical requirements. The presence of 9 bidders suggests a healthy level of interest and competition within the heavy civil engineering construction sector for this type of work.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services through market forces.

Public Impact

Residents and businesses in Palm Beach County, Florida, will benefit from enhanced flood protection. The project delivers critical upgrades to the Central & Southern Florida flood control system. Geographic impact is concentrated in Palm Beach County, Florida, addressing specific local vulnerabilities. The construction activities will likely create temporary employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 14 years) increases risk of cost escalation or scope creep if not managed diligently.
Complex environmental mitigation requirements (wildlife wetland, erosion control) could lead to unforeseen challenges and delays.
Reliance on specific construction methods (e.g., dewatering, borrow/disposal areas) may be subject to environmental or logistical constraints.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for value.
Project addresses a critical need for flood control infrastructure, enhancing regional resilience.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a vital part of the infrastructure development landscape. This sector encompasses large-scale projects such as dams, highways, bridges, and flood control systems. The market for such services is characterized by significant capital investment, specialized equipment, and stringent regulatory compliance. Comparable spending benchmarks for similar Army Corps of Engineers projects indicate that the $22.17 million award is in line with the scale and complexity of major civil works.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside provisions. While Lodge Construction, Inc. is the prime contractor, there may be opportunities for small businesses to participate as subcontractors. The nature of heavy civil engineering projects often involves specialized subcontracting for areas like materials supply, equipment rental, or specific technical services, which could benefit the small business ecosystem if actively pursued.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, responsible for executing federal civil works projects. Accountability measures are embedded in the firm fixed-price contract structure, requiring the contractor to deliver specified outcomes within the agreed budget. Transparency is generally maintained through contract award notices and project reporting, though detailed operational oversight specifics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
Florida Water Management Districts
Everglades Restoration Projects
Hurricane Protection Projects

Risk Flags

Long contract duration
Potential for scope creep
Environmental mitigation complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to LODGE CONSTRUCTION, INC.. TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::2860::RP# PROJECT TITLE: 2860 CENTRAL & SOUTHERN FLORIDA, FL - SITE 1 IMPOUNDMENT, D-525N (L-40 MODIFICATIONS) AND MISCELLANEOUS FEATURES, PALM BEACH COUNTY, FLORIDA THIS PROJECT INCLUDES MODIFICATIONS TO APPROXIMATELY 15,000-LF OF THE EXISTING L-40. CONSTRUCTION ACTIVITIES INCLUDE MISCELLANEOUS DEMOLITION, INSTALLATION OF TEMPORARY ACCESS BRIDGE, VEGETATION CLEARING AND GRUBBING, DEWATERING OPERATIONS, BORROW AND DISPOSAL AREA OPERATIONS,

Who is the contractor on this award?

The obligated recipient is LODGE CONSTRUCTION, 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 $22.2 million.

What is the period of performance?

Start: 2010-08-24. End: 2025-09-26.

What is the track record of Lodge Construction, Inc. on similar federal civil engineering projects?

Lodge Construction, Inc. has a history of performing civil engineering and construction projects. While specific details on their past performance on projects of identical scale and complexity to the Central & Southern Florida project are not detailed here, their ability to win a full and open competition contract of this magnitude from the Department of the Army suggests they possess the necessary qualifications and experience. Federal procurement databases often contain past performance ratings and contract award histories that would provide a more granular view of their track record, including any issues encountered on previous projects and their resolution. Further investigation into their project portfolio, client feedback, and any debriefings from past solicitations would offer a comprehensive understanding of their capabilities and reliability.

How does the $22.17 million cost compare to similar flood control infrastructure projects managed by the Army Corps of Engineers?

The $22.17 million cost for the Central & Southern Florida project appears to be within a reasonable range for significant civil engineering undertakings by the Army Corps of Engineers. Projects involving substantial earthmoving, levee modifications, spillway construction, and environmental mitigation, especially those with long durations, often represent multi-million dollar investments. For instance, other levee improvement projects or new impoundment constructions in different regions have seen costs ranging from tens to hundreds of millions of dollars, depending on scale, complexity, and location-specific factors. The firm fixed-price nature of this contract also suggests a degree of cost certainty. Benchmarking against specific, comparable projects would require detailed analysis of scope, location, and contract type, but the initial figure does not immediately suggest overpricing for the described scope.

What are the primary risks associated with the long performance period (over 14 years) of this contract?

The extended performance period of over 14 years presents several key risks. Firstly, there is a heightened risk of cost escalation due to inflation, material price volatility, and potential changes in labor costs over such a long timeframe, even with a fixed-price contract, if unforeseen circumstances necessitate contract modifications or claims. Secondly, the risk of scope creep increases, as project requirements might evolve due to new environmental regulations, technological advancements, or changing infrastructure needs. Thirdly, contractor performance and quality control can degrade over extended periods if oversight is not consistently rigorous. Finally, there's a risk of key personnel turnover for both the contractor and the government oversight team, potentially leading to knowledge gaps and inconsistencies in project management. Effective risk mitigation will require proactive contract management, regular performance reviews, and robust change control processes.

How effective are the planned environmental mitigation measures, such as the wildlife wetland area, in balancing construction needs with ecological impact?

The inclusion of a 6-acre wildlife wetland area as part of the construction activities indicates a commitment to mitigating the ecological impact of the flood control modifications. Such features are designed to provide habitat for local fauna and contribute to the overall ecological health of the region, potentially offsetting disturbances caused by construction. The effectiveness of these measures hinges on proper design, implementation, and long-term monitoring. Factors like the selection of native plant species, hydrological connectivity, and the avoidance of invasive species will be crucial for the wetland's success. While the creation of a wetland is a positive step, its ultimate ecological value will depend on the specific details of its design and the ongoing management practices employed post-construction to ensure it thrives and serves its intended purpose.

What is the historical spending pattern for flood control and water management projects in the Central & Southern Florida region by the Army Corps of Engineers?

The Central & Southern Florida (C&SF) region has historically been a major focus for the Army Corps of Engineers due to its unique hydrological challenges, including flood control, water supply, and environmental restoration needs. Spending in this region has been substantial and ongoing for decades, driven by the C&SF Project, which is one of the largest and most complex civil works undertakings in the nation. Annual federal outlays for C&SF projects, including components like the Lake Okeechobee regulation schedule, water storage areas, and coastal protection, often run into hundreds of millions of dollars. This specific $22.17 million contract for the L-40 modifications and related features represents a component of this larger, sustained investment in managing the region's water resources and mitigating flood risks.

What are the potential implications of the 'miscellaneous features' and 'other miscellaneous embankment modifications' for project cost and timeline?

The inclusion of 'miscellaneous features' and 'other miscellaneous embankment modifications' introduces a degree of uncertainty into the project's final cost and timeline. While these terms suggest smaller, supplementary tasks, their cumulative effect can be significant. They often encompass unforeseen conditions encountered during construction, minor design adjustments, or additional requirements that emerge as the project progresses. Without specific details on what these 'miscellaneous' items entail, it's difficult to quantify their precise impact. However, they represent potential areas for scope creep and can contribute to schedule delays if not carefully managed through a robust change order process. The firm fixed-price nature of the contract means the contractor bears the risk for these items up to a point, but significant unforeseen issues could lead to claims or contract modifications.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2161 MC GREGOR BLVD, FORT MYERS, FL, 33901

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

Financial Breakdown

Contract Ceiling: $22,166,876

Exercised Options: $22,166,876

Current Obligation: $22,166,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline