Army awards $24.5M flood control contract to MI-TY CONTRACTING, LLC for Devils Lake infrastructure

Contract Overview

Contract Amount: $24,462,062 ($24.5M)

Contractor: Mi-Ty Contracting, LLC

Awarding Agency: Department of Defense

Start Date: 2009-10-08

End Date: 2011-08-19

Contract Duration: 680 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CON595-DEVILS LAKE PHASE 1- TO RAISE EXISTING EMBANKMENTS AROUND CREEL BAY AND TO CONSTRUCT A PUMP STATION.

Place of Performance

Location: DEVILS LAKE, RAMSEY County, NORTH DAKOTA, 58301

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to MI-TY CONTRACTING, LLC for work described as: CON595-DEVILS LAKE PHASE 1- TO RAISE EXISTING EMBANKMENTS AROUND CREEL BAY AND TO CONSTRUCT A PUMP STATION. Key points: 1. Contract awarded for critical flood control infrastructure, including embankment raising and pump station construction. 2. The contract was competed under 'full and open competition after exclusion of sources', suggesting a potentially complex procurement process. 3. The duration of 680 days indicates a significant, multi-year project. 4. The firm-fixed-price contract type aims to control costs for the government. 5. The project is located in North Dakota, addressing specific regional environmental challenges. 6. The award value of approximately $24.5 million represents a substantial investment in civil engineering.

Value Assessment

Rating: fair

The contract value of $24.5 million for raising embankments and constructing a pump station appears to be within a reasonable range for heavy civil engineering projects of this nature. However, without specific benchmarks for similar flood control projects in the region or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the final cost-effectiveness will depend on the contractor's efficiency and the actual scope of work completed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources'. This specific procurement method suggests that while the intent was open competition, certain sources may have been excluded for reasons not immediately apparent from the provided data. The number of bidders (2) is relatively low, which could indicate limited market interest or a highly specialized requirement. A low number of bidders can sometimes lead to less competitive pricing.

Taxpayer Impact: A limited number of bidders (2) in a competition, even if initially intended to be open, may result in higher prices for taxpayers compared to a scenario with broader participation and more robust competition.

Public Impact

Residents and businesses in the Devils Lake area will benefit from enhanced flood protection. The project delivers essential civil engineering services to mitigate environmental risks. The geographic impact is concentrated in North Dakota, specifically around Creel Bay. The project likely involves a local workforce for construction and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) raises concerns about potential price inflation.
The 'exclusion of sources' clause in the competition type warrants further investigation into the rationale.
Lack of detailed performance metrics makes it difficult to assess project efficiency beyond cost.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The project addresses a critical need for flood control infrastructure.
Award to a specific contractor (MI-TY CONTRACTING, LLC) suggests they met the technical and capability requirements.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water infrastructure and flood control. The market for such projects is often driven by government funding for public works, environmental protection, and disaster mitigation. Comparable spending benchmarks would typically involve other large-scale embankment and pump station projects, often funded by federal agencies like the Army Corps of Engineers or FEMA.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business' flag is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor may not be required to engage small businesses significantly, potentially limiting opportunities for the small business ecosystem on this specific project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management divisions. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified work within the agreed price. Transparency is generally maintained through contract award databases, but detailed project progress and oversight reports may not be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Emergency Management Agency (FEMA) Hazard Mitigation Grants
Environmental Infrastructure Programs

Risk Flags

Limited competition (2 bidders)
Procurement method includes 'exclusion of sources'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to MI-TY CONTRACTING, LLC. CON595-DEVILS LAKE PHASE 1- TO RAISE EXISTING EMBANKMENTS AROUND CREEL BAY AND TO CONSTRUCT A PUMP STATION.

Who is the contractor on this award?

The obligated recipient is MI-TY 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 $24.5 million.

What is the period of performance?

Start: 2009-10-08. End: 2011-08-19.

What is the track record of MI-TY CONTRACTING, LLC with similar federal flood control projects?

Information on MI-TY CONTRACTING, LLC's specific track record with federal flood control projects of this scale is not detailed in the provided data. A deeper dive into their contract history with the Department of Defense and other federal agencies would be necessary to assess their experience and past performance in similar civil engineering endeavors. This would include examining past project completion times, adherence to budget, and any documented performance issues or commendations. Without this historical context, it's difficult to fully evaluate their capability to execute the Devils Lake project successfully.

How does the awarded price compare to similar flood control projects in North Dakota or the Midwest?

Benchmarking the $24.5 million award against similar flood control projects in North Dakota or the Midwest requires access to a broader dataset of comparable contracts. Factors such as the specific scope of work (embankment height, length, pump station capacity), geological conditions, material costs, and prevailing labor rates in the region significantly influence project costs. A preliminary assessment suggests the value is substantial, but without detailed comparisons of project scope and local economic conditions, it's challenging to definitively state if it represents excellent or questionable value for money. Further analysis would involve identifying contracts with similar engineering requirements and geographic locations.

What are the primary risks associated with this specific contract and its execution?

Key risks for this contract include potential environmental challenges specific to the Devils Lake region, such as unpredictable weather patterns, soil conditions, and the need for specialized construction techniques. The 'exclusion of sources' in the procurement process could indicate unique technical requirements or pre-existing relationships that might limit flexibility or introduce unforeseen complexities. Furthermore, the 680-day duration presents risks related to material cost fluctuations, labor availability, and potential project delays. Ensuring effective project management and contingency planning by both the Army and MI-TY CONTRACTING, LLC will be crucial to mitigate these risks and ensure successful project completion.

What is the expected effectiveness of the constructed pump station and raised embankments in mitigating flood risks?

The effectiveness of the constructed pump station and raised embankments hinges on the engineering design's adequacy in addressing the specific flood risks of Creel Bay and Devils Lake. Assuming the design is sound and based on thorough hydrological studies, these infrastructure improvements are expected to significantly enhance flood protection for the surrounding areas. The pump station would manage water levels, while the embankments would provide a physical barrier against inundation. However, the long-term effectiveness will also depend on ongoing maintenance, potential climate change impacts on water levels, and the system's resilience to extreme weather events.

How has federal spending on flood control infrastructure in North Dakota evolved over the past decade?

Analyzing federal spending trends on flood control in North Dakota over the past decade would require accessing historical federal budget data and contract award databases. This specific contract represents a significant single investment. Generally, federal spending in this area can fluctuate based on perceived flood risks, congressional appropriations, and the prioritization of infrastructure projects. Periods of increased rainfall, major flooding events, or shifts in national infrastructure policy often correlate with increased federal outlays for such mitigation efforts. A detailed analysis would reveal patterns of investment, major projects undertaken, and the agencies most involved.

What are the implications of the 'exclusion of sources' clause on the overall fairness of the competition?

The 'exclusion of sources' clause within a 'full and open competition' framework introduces a layer of complexity regarding the fairness of the procurement process. While the intent is to allow all responsible sources to compete, this clause permits the exclusion of specific entities based on predefined criteria, which could be related to national security, specialized capabilities, or previous performance issues. The fairness of this exclusion depends heavily on the justification provided and whether it was applied consistently and transparently. If the exclusion was arbitrary or lacked a clear, objective basis, it could be perceived as limiting competition unfairly and potentially impacting price discovery for the government.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912ES09B0011

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 321 MAIN ST E, MINNEWAUKAN, ND, 58351

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Government, HUBZone Firm, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $24,462,062

Exercised Options: $24,462,062

Current Obligation: $24,462,062

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline