Army awards $21.16M for Puerto Rico civil engineering project, completed by LP C & D Inc

Contract Overview

Contract Amount: $21,163,164 ($21.2M)

Contractor: LP C & D Inc

Awarding Agency: Department of Defense

Start Date: 2014-08-13

End Date: 2020-08-07

Contract Duration: 2,186 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RIO PUERTO NUEVO UPPER MARGARITA CHANNEL AND STILING BASIN INCLUDES THE CONSTRUCTION OF A U-FRAMED CONCRETE STILLING BASIN, TRANSITION CHANNEL AND CHUTE. WORK ALSO INCLUDES THE REMOVAL OF EXISTING STEEL PILING GRADE CONTROL STRUCTURE, CLEARING AND GRUBBING, DEMOLITION, OFFSITE DISPOSAL, SEEDING, TURBIDITY MONITORING, ENVIRONMENTAL MONITORING AND ENDANGERED SPECIES MONITORING.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Defense obligated $21.2 million to LP C & D INC for work described as: RIO PUERTO NUEVO UPPER MARGARITA CHANNEL AND STILING BASIN INCLUDES THE CONSTRUCTION OF A U-FRAMED CONCRETE STILLING BASIN, TRANSITION CHANNEL AND CHUTE. WORK ALSO INCLUDES THE REMOVAL OF EXISTING STEEL PILING GRADE CONTROL STRUCTURE, CLEARING AND GRUBBING, DEMOLITION, OFFSITE DI… Key points: 1. Project involved significant civil engineering and environmental monitoring components. 2. Contract duration was substantial, spanning over 6 years. 3. The project was awarded under full and open competition. 4. Firm Fixed Price contract type suggests cost certainty for the government. 5. The scope included construction, demolition, and environmental compliance. 6. The contract was awarded by the Department of the Army. 7. The project was located in Puerto Rico, impacting local infrastructure.

Value Assessment

Rating: fair

The total award amount of $21.16 million for the Rio Puerto Nuevo project appears to be within a reasonable range for large-scale civil engineering and construction projects of this nature. Benchmarking against similar Army Corps of Engineers projects in coastal or environmentally sensitive areas would provide a more precise value-for-money assessment. The firm-fixed-price contract type generally indicates that the contractor assumed the risk of cost overruns, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Seven bids were received, suggesting a healthy level of interest and competition for this project. This competitive environment is generally expected to drive prices down and encourage efficiency from the winning bidder. The number of bidders provides a good basis for price discovery and ensures the government receives proposals from multiple qualified contractors.

Taxpayer Impact: The full and open competition with seven bidders is positive for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that public funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The project directly benefited the residents and infrastructure of Puerto Rico by improving flood control and water management systems. Services delivered included the construction of a stilling basin and transition channel, along with demolition and environmental monitoring. The geographic impact is localized to the Rio Puerto Nuevo area in Puerto Rico. The project likely supported local construction and engineering jobs during its multi-year duration. Environmental monitoring ensured compliance with regulations and protection of endangered species.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2186 days) could lead to potential cost escalations or scope creep if not managed tightly.
Environmental monitoring requirements add complexity and potential for unforeseen costs or delays.
The firm-fixed-price nature, while beneficial, can sometimes lead to disputes if unforeseen site conditions arise.
Reliance on a single contractor for a multi-year, complex project carries inherent execution risks.

Positive Signals

Awarded under full and open competition with multiple bidders, indicating a competitive process.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses critical civil engineering needs for flood control and water management.
Inclusion of environmental monitoring demonstrates a commitment to regulatory compliance and ecological protection.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on water infrastructure and flood control. This sector is characterized by large-scale projects, significant capital investment, and often involves complex environmental considerations. The Army Corps of Engineers is a major player in this sector, undertaking numerous projects nationwide and internationally. Comparable spending benchmarks would typically be found in other large-scale water management or infrastructure projects managed by federal agencies like the EPA or Department of the Interior, or state-level transportation and water authorities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, LP C & D Inc., likely handled the majority of the work with its own resources or larger subcontractors, rather than through specific set-aside provisions aimed at fostering small business involvement in this particular award.

Oversight & Accountability

Oversight for this project would typically fall under the purview of the Department of the Army, likely through the Army Corps of Engineers district responsible for the Puerto Rico area. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases like FPDS-NG, where basic information is publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Puerto Rico Infrastructure Development
Flood Control and Water Management Systems
Heavy Civil Engineering Construction Contracts
Environmental Compliance Monitoring

Risk Flags

Long project duration may increase risk of cost escalation or scope creep.
Environmental monitoring adds complexity and potential for delays.
Firm-fixed-price contracts can lead to disputes if unforeseen conditions arise.
Reliance on a single contractor for a multi-year project carries execution risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to LP C & D INC. RIO PUERTO NUEVO UPPER MARGARITA CHANNEL AND STILING BASIN INCLUDES THE CONSTRUCTION OF A U-FRAMED CONCRETE STILLING BASIN, TRANSITION CHANNEL AND CHUTE. WORK ALSO INCLUDES THE REMOVAL OF EXISTING STEEL PILING GRADE CONTROL STRUCTURE, CLEARING AND GRUBBING, DEMOLITION, OFFSITE DISPOSAL, SEEDING, TURBIDITY MONITORING, ENVIRONMENTAL MONITORING AND ENDANGERED SPECIES MONITORING.

Who is the contractor on this award?

The obligated recipient is LP C & D 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 $21.2 million.

What is the period of performance?

Start: 2014-08-13. End: 2020-08-07.

What is the track record of LP C & D Inc. with federal contracts, particularly with the Department of the Army?

LP C & D Inc. has a history of federal contracting, primarily with the Department of the Army, as indicated by this award. Analyzing their broader contract portfolio would reveal the types of projects they typically undertake, their performance history on past contracts (e.g., any disputes, contract terminations, or awards for excellence), and their experience with similar scopes of work. A review of their past performance evaluations and any available data on contract modifications or claims could provide further insight into their reliability and capability as a federal contractor. Understanding their historical engagement with the Army can help assess their suitability for future projects and identify any recurring patterns in their project execution or financial management.

How does the final cost of $21.16 million compare to the initial estimated cost or bids from other competitors?

The provided data indicates the final award amount was $21,163,163.98. To assess value for money, this figure needs to be compared against the initial government estimate (if available) and the bids submitted by the other six competitors. If the award was significantly lower than the estimate and other bids, it suggests strong price competition. Conversely, if it was close to or exceeded the estimate, further scrutiny of the bidding process and potential reasons for higher costs would be warranted. Without access to the bid tabulation or the government's independent cost estimate, it's difficult to definitively state whether this represents optimal value, though the presence of multiple bids under full and open competition is a positive indicator.

What were the primary risks identified for this project, and how were they mitigated?

Given the nature of the project—construction in a potentially environmentally sensitive area (Puerto Rico) with demolition and new construction—key risks likely included unforeseen subsurface conditions, environmental impacts (endangered species, water quality), weather delays, and potential cost overruns inherent in firm-fixed-price contracts. Mitigation strategies would typically involve thorough site investigations prior to bidding, detailed environmental monitoring plans, robust contract clauses for managing unforeseen conditions, and strong project management by the Army Corps of Engineers. The inclusion of specific environmental monitoring and endangered species monitoring in the contract scope suggests these were identified risks that required active management throughout the project lifecycle.

How effective was the firm-fixed-price contract type in managing costs for this specific project?

The firm-fixed-price (FFP) contract type is designed to provide cost certainty to the government by shifting the risk of cost overruns to the contractor. For this $21.16 million project spanning over six years, the FFP structure likely helped cap the government's expenditure. However, the effectiveness hinges on the initial pricing accuracy and the contractor's ability to manage its own costs. If LP C & D Inc. encountered significant unforeseen issues (e.g., unexpected site conditions, material price spikes beyond their control), they might have sought equitable adjustments, potentially leading to contract modifications. Without detailed data on contract modifications or claims, it's presumed the FFP structure largely contained costs as intended, but the long duration means ongoing vigilance was necessary.

What is the historical spending pattern for similar civil engineering projects by the Department of the Army in Puerto Rico?

Historical spending data for similar civil engineering projects by the Department of the Army in Puerto Rico would provide context for the $21.16 million award. Analyzing past projects of comparable scale (e.g., port improvements, flood control, infrastructure repair) managed by the Army Corps of Engineers in Puerto Rico would reveal typical cost ranges, project durations, and common contracting approaches. This comparison helps determine if the Rio Puerto Nuevo project's cost and timeline were consistent with previous undertakings, or if they represent an outlier. Such analysis is crucial for validating the reasonableness of the current contract's value and for future budget planning and cost estimation for similar federal projects in the region.

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: W912EP14B0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 937 KM 3.0 BO BOQUERON, LAS PIEDRAS, PR, 00771

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

Financial Breakdown

Contract Ceiling: $21,163,164

Exercised Options: $21,163,164

Current Obligation: $21,163,164

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline