DoD Awards $24M for Puerto Rico Flood Control, Highlighting Construction Sector Needs
Contract Overview
Contract Amount: $23,969,754 ($24.0M)
Contractor: DEL Valle Group LLC
Awarding Agency: Department of Defense
Start Date: 2017-02-14
End Date: 2022-04-27
Contract Duration: 1,898 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CT::IGF RIO PUERTO NUEVO CONTRACT 2D WALLS; PART OF RIO PUERTO FLOOD CONTROL
Place of Performance
Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00920
Plain-Language Summary
Department of Defense obligated $24.0 million to DEL VALLE GROUP LLC for work described as: IGF::CT::IGF RIO PUERTO NUEVO CONTRACT 2D WALLS; PART OF RIO PUERTO FLOOD CONTROL Key points: 1. The contract addresses critical infrastructure needs in Puerto Rico, a region often facing unique environmental challenges. 2. Competition was full and open, suggesting a potentially competitive bidding process for this significant construction project. 3. The project's duration of nearly 5 years indicates a substantial undertaking with long-term implications for the region. 4. The firm-fixed-price contract type aims to control costs, but potential for change orders exists in long-term construction.
Value Assessment
Rating: good
The contract value of $23.97 million for heavy civil engineering construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale infrastructure projects in disaster-prone areas would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple qualified contractors to bid. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this essential infrastructure project.
Public Impact
Enhances flood control infrastructure in Puerto Rico, improving community safety and resilience. Supports economic activity through construction jobs and related services in the region. Addresses long-term environmental and infrastructure challenges faced by the island.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long project duration could lead to cost overruns if not managed effectively.
- Potential for unforeseen site conditions in heavy civil engineering projects.
Positive Signals
- Addresses critical infrastructure needs.
- Utilized full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the Other Heavy and Civil Engineering Construction sector, which is vital for national infrastructure development. Spending in this sector can fluctuate based on government priorities and economic conditions.
Small Business Impact
While the contract was awarded to DEL VALLE GROUP LLC, there is no specific information provided regarding small business participation or subcontracting. Further analysis would be needed to assess small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Army, suggesting established oversight mechanisms. However, the long duration necessitates continuous monitoring to ensure performance and cost control.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Potential for unforeseen site conditions
- Dependency on regional environmental factors
- Need for ongoing oversight
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, pr, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.0 million to DEL VALLE GROUP LLC. IGF::CT::IGF RIO PUERTO NUEVO CONTRACT 2D WALLS; PART OF RIO PUERTO FLOOD CONTROL
Who is the contractor on this award?
The obligated recipient is DEL VALLE GROUP 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 $24.0 million.
What is the period of performance?
Start: 2017-02-14. End: 2022-04-27.
What specific flood control benefits does this project aim to achieve for the affected communities in Puerto Rico?
The project aims to mitigate flood risks by constructing or reinforcing 2D walls as part of the Rio Puerto Flood Control initiative. This is intended to protect residential areas, critical infrastructure, and public spaces from damage caused by severe weather events and rising water levels, thereby enhancing community safety and resilience.
What are the primary risks associated with the long duration (1898 days) of this construction contract?
The primary risks associated with the long duration include potential cost escalation due to inflation or material price fluctuations, increased likelihood of encountering unforeseen site conditions requiring change orders, and potential delays from weather or logistical challenges. Effective project management and contingency planning are crucial to mitigate these risks.
How does the firm-fixed-price contract type balance cost control with the potential for scope changes in a long-term construction project?
The firm-fixed-price (FFP) contract aims to provide cost certainty by setting a fixed price for the defined scope of work, shifting cost overrun risk to the contractor. However, in long-term construction, unforeseen issues often necessitate change orders, which can increase the total contract value. Careful scope definition and robust change order management are essential to maintain the cost control benefits of FFP.
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: W912EP16R0023
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: CARR 865 KM 0.6 BO CAMPANILLA, TOA BAJA, PR, 00949
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $23,969,754
Exercised Options: $23,969,754
Current Obligation: $23,969,754
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-02-14
Current End Date: 2022-04-27
Potential End Date: 2022-04-27 00:00:00
Last Modified: 2025-09-09
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