Department of Defense awards $19M for spillway construction, with 7 bidders indicating competitive pricing

Contract Overview

Contract Amount: $19,027,738 ($19.0M)

Contractor: Cajun Industries LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-18

End Date: 2014-02-12

Contract Duration: 512 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF A 3-BAY OGEE WEIR SPILLWAY AND INCIDENTAL RELATED WORK.

Place of Performance

Location: OKEECHOBEE, OKEECHOBEE County, FLORIDA, 34972

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to CAJUN INDUSTRIES LLC for work described as: CONSTRUCTION OF A 3-BAY OGEE WEIR SPILLWAY AND INCIDENTAL RELATED WORK. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 3. The project duration of 512 days indicates a significant construction undertaking. 4. The award was made to Cajun Industries LLC, a contractor with experience in heavy civil engineering. 5. The project is located in Florida, potentially impacting local construction workforce and material suppliers. 6. The absence of small business set-aside suggests the primary contractor is not a small business, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract value of approximately $19 million for the construction of a 3-bay Ogee weir spillway and related work appears reasonable given the scope. While direct comparisons are difficult without specific project details, the presence of 7 bidders in a full and open competition suggests that pricing was likely competitive. The firm-fixed-price nature of the contract also provides cost certainty for the government, assuming the contractor manages their risks effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, with 7 bids received. This level of competition is generally considered healthy and suggests that multiple contractors were interested and capable of performing the work. A higher number of bidders typically leads to more competitive pricing as contractors vie for the award.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the surrounding environment through improved water management infrastructure. The project delivers critical heavy and civil engineering construction services, specifically a spillway. The geographic impact is concentrated in Florida, where the construction will take place. The project will likely involve a significant construction workforce, including skilled laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
Delays in project completion could impact the intended operational benefits of the spillway.
Ensuring the long-term durability and effectiveness of the spillway requires rigorous quality control during construction.

Positive Signals

The firm-fixed-price contract structure transfers cost overrun risk to the contractor.
Full and open competition with multiple bidders suggests a competitive market price was likely achieved.
The contractor, Cajun Industries LLC, has experience in heavy and civil engineering construction.
The project is located in Florida, potentially leveraging local resources and expertise.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to water infrastructure. The North American Industry Classification System (NAICS) code 237990 covers 'Other Heavy and Civil Engineering Construction.' This sector involves large-scale projects such as dams, levees, and spillways. Spending in this sector can fluctuate based on government infrastructure needs and funding allocations.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false. This indicates that the primary contract was likely awarded to a large business. However, there may be opportunities for small businesses to participate as subcontractors to Cajun Industries LLC, particularly in specialized construction trades or material supply.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract officers, project managers, and potentially quality assurance representatives from the Army Corps of Engineers. Inspector General oversight may be involved in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of Defense Infrastructure Modernization
Heavy and Civil Engineering Construction Contracts
Water Resource Management Infrastructure

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor performance risk under a firm-fixed-price structure.
Ensuring long-term durability and effectiveness of the constructed spillway.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to CAJUN INDUSTRIES LLC. CONSTRUCTION OF A 3-BAY OGEE WEIR SPILLWAY AND INCIDENTAL RELATED WORK.

Who is the contractor on this award?

The obligated recipient is CAJUN INDUSTRIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2012-09-18. End: 2014-02-12.

What is the track record of Cajun Industries LLC on similar government contracts?

Cajun Industries LLC has a history of performing significant heavy and civil engineering projects for government agencies. While specific details on past spillway construction projects are not provided in this data snippet, their experience in this sector suggests a capability to handle complex infrastructure work. A deeper dive into their contract history would reveal performance ratings, past performance questionnaires, and any significant issues encountered on previous projects. This would provide a more robust assessment of their reliability and expertise for this specific spillway construction.

How does the awarded price compare to similar spillway construction projects?

Benchmarking the $19 million award for this 3-bay Ogee weir spillway against similar projects is challenging without more specific project parameters such as size, complexity, location-specific costs, and the exact scope of 'incidental related work.' However, the presence of 7 bidders in a full and open competition suggests that the pricing was likely competitive within the market for such projects. To provide a precise comparison, data from the Federal Procurement Data System (FPDS) on comparable projects, including their awarded values and number of bids, would be necessary.

What are the primary risks associated with this firm-fixed-price contract?

The primary risks associated with this firm-fixed-price contract, while generally favorable to the government by capping costs, lie in potential contractor performance issues. If Cajun Industries LLC underestimates costs, encounters unforeseen site conditions, or faces labor/material shortages, they bear the financial burden. This could lead to pressure to cut corners on quality or safety, or potentially contractor default. The government's risk is mitigated by the contractor's incentive to manage their project efficiently and the potential for liquidated damages if milestones are missed. Robust oversight and quality assurance are crucial to manage these risks.

What is the expected effectiveness and long-term value of this spillway construction?

The expected effectiveness and long-term value of this spillway construction are tied to its intended purpose, likely related to flood control, water management, or operational requirements for a Department of Defense facility. A well-constructed spillway ensures the safe passage of excess water, preventing potential damage to infrastructure and protecting personnel or assets. The long-term value is realized through its reliable function over its lifespan, contributing to the overall mission readiness and safety of the facility it serves. Regular maintenance and adherence to design specifications during construction are key to maximizing this value.

How has federal spending on heavy and civil engineering construction (NAICS 237990) trended in recent years?

Federal spending on Heavy and Civil Engineering Construction (NAICS 237990) can be cyclical, often influenced by infrastructure initiatives, national security needs, and economic conditions. Historically, significant investments have been made in areas like transportation, water resources, and defense installations. Trends can show increases during periods of major infrastructure bills or specific agency modernization efforts. Conversely, spending may decrease during periods of budget austerity or when focus shifts to other sectors. Analyzing historical data from sources like FPDS or the Congressional Budget Office would provide specific trend information.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EP12R0016

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cajun Industries, LLC (UEI: 804422801)

Address: 15635 AIRLINE HWY, BATON ROUGE, LA, 70817

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

Financial Breakdown

Contract Ceiling: $19,027,738

Exercised Options: $19,027,738

Current Obligation: $19,027,738

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline