Army awards $36M for Herbert Hoover Dike construction, with Treviicos South Inc. as prime

Contract Overview

Contract Amount: $36,086,605 ($36.1M)

Contractor: Treviicos South, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-17

End Date: 2023-11-10

Contract Duration: 1,393 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HERBERT HOOVER DIKE CUTOFF WALL TASK ORDER 0004

Place of Performance

Location: MOORE HAVEN, GLADES County, FLORIDA, 33471

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $36.1 million to TREVIICOS SOUTH, INC. for work described as: HERBERT HOOVER DIKE CUTOFF WALL TASK ORDER 0004 Key points: 1. Contract value is substantial, indicating a significant infrastructure project. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type generally transfers risk to the contractor. 4. Project duration spans nearly four years, requiring sustained effort and oversight. 5. The project is located in Florida, impacting regional infrastructure. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction.

Value Assessment

Rating: good

The contract value of $36 million for the Herbert Hoover Dike Task Order 0004 appears reasonable for a large-scale civil engineering project of this nature. Without specific benchmarks for similar dike construction and repair tasks, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the initial pricing was deemed acceptable by the government, with the contractor assuming cost overruns. The duration of the contract (1393 days) also implies a significant scope of work that justifies the awarded amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific task order. While not an exceptionally high number of bidders, it still provides a basis for price discovery and ensures that the government received proposals from multiple interested parties. The competitive nature likely contributed to achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value by encouraging multiple contractors to offer their most competitive pricing. This approach helps prevent inflated costs and ensures that public funds are used efficiently for essential infrastructure projects.

Public Impact

The primary beneficiaries are the residents and environment of Florida, particularly those in areas protected by the Herbert Hoover Dike. The services delivered involve critical construction and repair work to ensure the structural integrity of the dike. The geographic impact is localized to Florida, specifically around Lake Okeechobee. The project supports employment in the construction sector, including skilled labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Ensuring timely completion within the nearly four-year duration requires robust project management and oversight.
Coordination with other ongoing dike maintenance or environmental projects could present logistical challenges.

Positive Signals

The firm fixed-price contract shifts cost risk to the contractor, potentially protecting the government from unexpected expenses.
Awarding under full and open competition suggests a thorough evaluation of multiple proposals.
The project addresses critical infrastructure needs, enhancing public safety and environmental protection.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to dam and dike construction and maintenance. This sector is characterized by large-scale projects, significant capital investment, and specialized engineering expertise. The Herbert Hoover Dike is a major piece of U.S. Army Corps of Engineers infrastructure, and spending on its upkeep is crucial for regional flood control and water management. Comparable spending benchmarks would typically involve other large federal civil works projects managed by agencies like the Army Corps of Engineers or the Bureau of Reclamation.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific task order, as the prime contractor, Treviicos South, Inc., is not listed as a small business, and the 'sb' (small business set-aside) flag is false. There is no explicit information on subcontracting plans for small businesses within this data. Future analysis could explore whether subcontracting opportunities were made available to small businesses within the construction trades.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, responsible for the Herbert Hoover Dike. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified work within budget. Transparency is generally maintained through contract award databases and public reporting, though specific project progress reports may be internal. The Inspector General's office for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Herbert Hoover Dike Rehabilitation Project
US Army Corps of Engineers Civil Works Program
Lake Okeechobee Management
Flood Control Infrastructure Projects

Risk Flags

Potential for cost overruns due to long project duration
Risk of schedule delays from weather or unforeseen site conditions
Need for sustained, effective government oversight over multiple years

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to TREVIICOS SOUTH, INC.. HERBERT HOOVER DIKE CUTOFF WALL TASK ORDER 0004

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 $36.1 million.

What is the period of performance?

Start: 2020-01-17. End: 2023-11-10.

What is the historical spending trend for the Herbert Hoover Dike rehabilitation and maintenance by the Department of the Army?

Analyzing historical spending for the Herbert Hoover Dike reveals a consistent commitment by the Department of the Army to its upkeep and rehabilitation. Prior to this specific task order (0004), there have been numerous other contracts and task orders issued for various aspects of the dike's maintenance and improvement. These expenditures are often driven by the U.S. Army Corps of Engineers' long-term strategy for ensuring the structural integrity and safety of this critical piece of infrastructure, particularly in light of environmental factors and aging components. While the exact total historical spend requires a comprehensive review of all related contracts, the recurring nature of these awards underscores the ongoing investment required for such large-scale civil works projects. The $36 million awarded here represents a significant, but not isolated, investment within a broader, multi-year program of work.

How does the per-unit cost of this contract compare to similar dike construction or repair projects managed by the Army Corps of Engineers?

Benchmarking the per-unit cost for this Herbert Hoover Dike task order against similar Army Corps of Engineers projects is challenging without access to detailed cost breakdowns and specific project scopes. Factors such as the type of repair (e.g., seepage control, structural reinforcement, vegetation management), material costs, labor rates in the specific geographic region (Florida), and site accessibility significantly influence per-unit costs. Large civil engineering projects often have unique cost drivers. However, the Army Corps of Engineers typically aims for competitive bidding to ensure value. Given the firm fixed-price nature, the initial bid reflects the contractor's assessment of these factors. A detailed comparison would necessitate analyzing the quantity and type of work performed (e.g., cubic yards of material moved, linear feet of wall repaired) against similar metrics from other Corps projects, adjusted for regional economic differences.

What are the primary risks associated with the long duration (1393 days) of this construction contract?

The extended duration of 1393 days for the Herbert Hoover Dike construction contract introduces several key risks. Firstly, there's an increased exposure to fluctuating material and labor costs, although the firm fixed-price contract aims to mitigate this for the government. However, significant unforeseen market shifts could impact the contractor's profitability and potentially lead to claims or disputes. Secondly, environmental conditions and weather patterns in Florida over a multi-year period can cause delays, impacting the schedule and potentially increasing costs if not adequately planned for. Thirdly, the longer the project, the greater the chance of encountering unforeseen subsurface conditions or archaeological discoveries, which could necessitate scope changes and contract modifications. Finally, maintaining consistent oversight and quality control over such an extended period requires sustained effort from the contracting agency to ensure the project remains on track and meets all specifications.

What is Treviicos South, Inc.'s track record with federal contracts, particularly with the Department of the Army or similar infrastructure projects?

Treviicos South, Inc. has a history of performing work for the federal government, including contracts with the Department of the Army and other agencies involved in civil infrastructure. Their portfolio often includes large-scale construction projects, particularly those related to marine and heavy civil engineering. Examining their past performance on similar projects, such as dam construction, levee work, or port infrastructure, would provide insight into their capabilities, project management proficiency, and ability to deliver within budget and schedule. Federal procurement data typically tracks contractor performance ratings (e.g., past performance evaluations) which are considered during the award process. A review of these records would indicate their reliability and experience in handling complex, long-duration federal construction contracts like the Herbert Hoover Dike task order.

How does the competition level (3 bidders) for this contract potentially impact the final price and value for taxpayers?

A competition level involving three bidders for this Herbert Hoover Dike task order generally suggests a moderate degree of market interest and a reasonable opportunity for price discovery. While more bidders could theoretically drive prices lower, three offers typically provide enough comparative data for the government to assess the reasonableness of the proposed prices. This level of competition indicates that the contract was not awarded under restrictive conditions, allowing multiple firms to compete based on their technical capabilities and pricing. For taxpayers, this means the likelihood of securing a fair market price is increased compared to a sole-source or very limited competition scenario. The government can leverage these competing bids to negotiate favorable terms and ensure that taxpayer funds are used efficiently for this critical infrastructure project.

What are the implications of the 'Firm Fixed Price' contract type for risk allocation and potential cost savings?

The 'Firm Fixed Price' (FFP) contract type is significant because it places the primary responsibility for cost overruns on the contractor, Treviicos South, Inc. This means that unless there are specific contract modifications or unforeseen government-caused delays, the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This allocation of risk is generally favorable to the government and taxpayers, as it provides cost certainty. Potential cost savings for taxpayers arise from the contractor's incentive to manage their own costs efficiently to maximize profit. However, to mitigate their risk, contractors may build contingencies into their initial bid price, which could result in a higher base price than a cost-reimbursable contract. The key is that the government's liability is capped at the agreed-upon price.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EP18R0019

Offers Received: 3

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,310,639

Exercised Options: $36,086,605

Current Obligation: $36,086,605

Actual Outlays: $11,581,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EP19D0014

IDV Type: IDC

Timeline