Army awards $25M floodwall contract to Southern Contracting, LLC for Missouri project

Contract Overview

Contract Amount: $25,045,940 ($25.0M)

Contractor: Southern Contracting, LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-15

End Date: 2026-07-08

Contract Duration: 1,545 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REINFORCED CONCRETE FLOODWALL

Place of Performance

Location: BRAGGADOCIO, PEMISCOT County, MISSOURI, 63826

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to SOUTHERN CONTRACTING, LLC for work described as: REINFORCED CONCRETE FLOODWALL Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The definitive contract type suggests a flexible agreement for ongoing work. 3. The firm-fixed-price structure aims to control costs for the government. 4. Project duration spans over 1500 days, indicating a significant, long-term infrastructure undertaking. 5. The contract is for reinforced concrete floodwall construction, a critical infrastructure need. 6. Awarded by the Department of the Army, highlighting defense-related infrastructure investment.

Value Assessment

Rating: fair

The contract value of approximately $25 million for a reinforced concrete floodwall over a multi-year period appears within a reasonable range for large-scale civil engineering projects. However, without specific details on the scope of work, length of the floodwall, or specific engineering requirements, a precise value-for-money assessment is challenging. Benchmarking against similar flood control projects of comparable scale and complexity would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation method suggests that while the competition was intended to be open, certain sources may have been excluded prior to the final award. The number of bidders (5) indicates some level of competition, but the exclusion of sources might limit the full breadth of market participation and potentially impact price discovery.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, could mean that taxpayers did not benefit from the lowest possible price that might have been achieved through unrestricted open competition.

Public Impact

The primary beneficiaries are likely residents and businesses in Missouri protected by the new floodwall. The project delivers critical infrastructure in the form of reinforced concrete floodwall construction. The geographic impact is concentrated in Missouri, specifically within the area covered by the floodwall. The contract supports the construction workforce involved in building the floodwall.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Long contract duration (1545 days) increases exposure to potential cost overruns or scope creep if not managed tightly.
Reliance on a single contractor for a significant infrastructure project carries inherent performance risks.

Positive Signals

Firm-fixed-price contract type helps mitigate cost uncertainty for the government.
Award to a single contractor (Southern Contracting, LLC) can streamline project management and execution.
The project addresses a critical need for flood protection, enhancing community safety and resilience.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on infrastructure projects like flood control. The market for such projects is often characterized by a mix of large, established construction firms and specialized engineering companies. Government spending in this sector is driven by the need to maintain and upgrade critical infrastructure, often involving significant capital investment and long project timelines. Comparable spending benchmarks would typically involve analyzing the cost per linear foot or per square foot of floodwall constructed, adjusted for regional labor costs and material prices.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Southern Contracting, LLC actively engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
FEMA Flood Mitigation Assistance
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for limited competition due to exclusion of sources.
Long contract duration increases risk of cost escalation and delays.
Lack of detailed scope of work hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to SOUTHERN CONTRACTING, LLC. REINFORCED CONCRETE FLOODWALL

Who is the contractor on this award?

The obligated recipient is SOUTHERN CONTRACTING, 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 $25.0 million.

What is the period of performance?

Start: 2022-04-15. End: 2026-07-08.

What is the specific scope of work for the reinforced concrete floodwall, and what are the key performance metrics?

The provided data indicates the contract is for 'REINFORCED CONCRETE FLOODWALL' construction. However, specific details regarding the length, height, design specifications, and geographical boundaries of the floodwall are not included. Key performance metrics would typically involve adherence to construction timelines, quality of materials and workmanship, structural integrity of the completed floodwall, and compliance with all relevant engineering and environmental standards. Without the full contract statement of work, a precise definition of these metrics remains unavailable.

How does the awarded price of $25 million compare to similar floodwall construction projects in Missouri or the Midwest region?

Benchmarking the $25 million award requires detailed comparison with similar projects. Factors such as the linear footage of the floodwall, its height and complexity, site preparation requirements (e.g., soil conditions, demolition), and the specific materials used significantly influence cost. Projects of comparable scale in the Midwest might range from tens to hundreds of millions of dollars depending on these variables. A preliminary assessment suggests the price is within a plausible range for a substantial infrastructure project, but a definitive comparison necessitates access to detailed project specifications and cost data for comparable contracts.

What are the potential risks associated with a 1545-day contract duration for floodwall construction?

A contract duration of 1545 days (over four years) for floodwall construction presents several potential risks. These include increased exposure to fluctuating material costs (concrete, steel), potential for labor shortages or wage inflation over the extended period, and the possibility of unforeseen site conditions (e.g., geological issues, environmental discoveries) that could lead to delays and cost increases. Furthermore, the longer duration increases the risk of design changes or evolving regulatory requirements impacting the project. Effective risk mitigation would involve robust contract management, contingency planning for material and labor, and clear protocols for addressing unforeseen site conditions.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the competitiveness and taxpayer value?

This solicitation method implies a nuanced approach to competition. 'Full and open competition' suggests an intent to solicit from a broad range of potential offerors. However, the 'after exclusion of sources' clause indicates that certain entities were deemed ineligible to bid, possibly due to specific pre-qualification criteria, past performance issues, or national security concerns. While five bidders participated, the exclusion of some sources might have limited the overall pool of competitors. This could potentially reduce the downward pressure on pricing compared to truly unrestricted competition, meaning taxpayers might not have secured the absolute lowest possible price, though it still aimed for a competitive outcome among eligible firms.

What is the track record of Southern Contracting, LLC in completing large-scale civil engineering projects?

Information regarding Southern Contracting, LLC's specific track record on large-scale civil engineering projects, particularly floodwall construction, is not provided in the data. A comprehensive assessment would require reviewing their past performance on similar government contracts, including project completion times, adherence to budget, quality of work, and any history of disputes or contract modifications. Without this historical data, it is difficult to definitively assess their capability and reliability for this significant infrastructure undertaking.

Are there any specific environmental considerations or mitigation efforts associated with this floodwall project?

The provided data does not contain information regarding specific environmental considerations or mitigation efforts for this floodwall project. Large civil engineering projects, especially those involving water bodies or significant land alteration, typically require thorough environmental impact assessments. These assessments identify potential impacts on local ecosystems, water quality, and wildlife, and outline necessary mitigation strategies. Such strategies might include measures to protect endangered species, manage construction runoff, or restore disturbed habitats post-construction. Further investigation into the contract's environmental compliance documentation would be necessary.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EQ21R0015

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 777 ALLOY DRIVE, NEWBERN, TN, 38059

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,045,940

Exercised Options: $25,045,940

Current Obligation: $25,045,940

Actual Outlays: $6,484,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline