DoD Awards $28.4M Contract for Wall Gap Closure, Facing Potential Cost Overruns

Contract Overview

Contract Amount: $28,424,223 ($28.4M)

Contractor: Treviicos South, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-29

End Date: 2020-01-22

Contract Duration: 1,210 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF HHD REACH 1 CUTOFF WALL GAP CLOSURE

Place of Performance

Location: BELLE GLADE, PALM BEACH County, FLORIDA, 33430

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to TREVIICOS SOUTH, INC. for work described as: IGF::CT::IGF HHD REACH 1 CUTOFF WALL GAP CLOSURE Key points: 1. Contract awarded to TREVIICOS SOUTH, INC. for construction services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract has a potential overrun of $2.3M, indicating potential cost risks. 4. The project falls under 'Other Heavy and Civil Engineering Construction' sector.

Value Assessment

Rating: questionable

The contract value is $28.4M. With a potential overrun of $2.3M (approximately 8%), the final cost could exceed initial estimates. Benchmarking against similar large-scale civil engineering projects is needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the significant potential overrun suggests that the initial pricing may not have fully accounted for all project complexities or unforeseen issues.

Taxpayer Impact: The potential overrun of $2.3M represents a direct increase in taxpayer cost beyond the initial contract award, necessitating careful monitoring and justification.

Public Impact

Construction project impacting infrastructure in Florida. Potential for job creation and economic activity in the local region. The project's success is tied to the effective closure of wall gaps, potentially for security or environmental reasons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential cost overrun
  • Long contract duration (1210 days)
  • Unspecified nature of 'wall gap closure'

Positive Signals

  • Awarded under full and open competition
  • Firm Fixed Price contract type

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which involves large-scale infrastructure projects. Spending in this sector can vary significantly based on government priorities and economic conditions. The benchmark for similar projects would depend on the specific type of construction.

Small Business Impact

The data indicates the prime contractor is TREVIICOS SOUTH, INC. There is no information provided regarding subcontracting to small businesses. Further analysis would be needed to determine if small business participation was a requirement or achieved.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would typically involve contract management teams ensuring adherence to terms, quality standards, and budget. The potential overrun suggests a need for robust oversight to manage costs effectively.

Related Government Programs

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

Risk Flags

  • Potential cost overrun significantly exceeds typical contingency.
  • Long contract duration increases risk of unforeseen issues.
  • Lack of detail on 'wall gap closure' purpose.
  • No information on small business subcontracting.
  • Final cost could be 8% higher than initially awarded.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, fl, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to TREVIICOS SOUTH, INC.. IGF::CT::IGF HHD REACH 1 CUTOFF WALL GAP CLOSURE

Who is the contractor on this award?

The obligated recipient is TREVIICOS SOUTH, 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 $28.4 million.

What is the period of performance?

Start: 2016-09-29. End: 2020-01-22.

What specific factors contributed to the potential cost overrun of $2.3M on this construction contract?

The potential cost overrun could stem from various factors including unforeseen site conditions, material price fluctuations, scope creep, or initial underestimation of project complexity. Detailed contract modifications and progress reports would be necessary to pinpoint the exact causes and assess if they were justifiable or indicative of poor planning or execution.

How does the final cost compare to the initial bid and the estimated cost of similar projects in the region?

The initial contract value was $28.4M, with a potential overrun of $2.3M, bringing the estimated final cost to $30.7M. A comparison to similar heavy civil engineering projects in Florida would reveal if this final cost is competitive. Without specific benchmarks for 'wall gap closure' projects, it's difficult to definitively assess cost-effectiveness.

What is the strategic importance of closing these 'wall gaps' and how does this contract contribute to national security or other federal objectives?

The strategic importance of closing 'wall gaps' is not explicitly defined in the provided data. Depending on the context, it could relate to border security, flood control, or infrastructure integrity. Understanding the specific purpose of the wall and the gaps is crucial to evaluating the contract's contribution to broader federal objectives and national security.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EP16R0018

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trevi Icos Corporation

Address: 38 3RD AVE FL 3 BOSTON NATIONAL HISTORIC PARK, CHARLESTOWN, MA, 02129

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

Financial Breakdown

Contract Ceiling: $28,424,223

Exercised Options: $28,424,223

Current Obligation: $28,424,223

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2016-09-29

Current End Date: 2020-01-22

Potential End Date: 2020-01-22 00:00:00

Last Modified: 2022-03-11

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