Army awards $69.1M contract for Fargo flood risk management, highlighting bridge and ditch construction needs
Contract Overview
Contract Amount: $69,129,080 ($69.1M)
Contractor: Industrial Builders Inc
Awarding Agency: Department of Defense
Start Date: 2021-05-07
End Date: 2024-01-01
Contract Duration: 969 days
Daily Burn Rate: $71.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: I-29 GRADE RAISE AND BORROW DITCH CROSSING OF THE FARGO MOORHEAD METROPOLITAN AREA FLOOD RISK MANAGEMENT PROJECT
Place of Performance
Location: FARGO, CASS County, NORTH DAKOTA, 58107
Plain-Language Summary
Department of Defense obligated $69.1 million to INDUSTRIAL BUILDERS INC for work described as: I-29 GRADE RAISE AND BORROW DITCH CROSSING OF THE FARGO MOORHEAD METROPOLITAN AREA FLOOD RISK MANAGEMENT PROJECT Key points: 1. Contract addresses critical infrastructure for flood risk management in a major metropolitan area. 2. The project involves significant civil engineering work, including grade raises and drainage improvements. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. A single definitive contract was awarded, indicating a specific scope of work. 5. The duration of the contract spans over two years, suggesting a substantial project timeline. 6. North Dakota is the primary geographic focus for this infrastructure investment.
Value Assessment
Rating: good
The contract value of $69.1 million for flood risk management infrastructure appears reasonable given the scope of work, which includes significant civil engineering and construction. Benchmarking against similar large-scale civil works projects would provide a more precise value assessment. The firm fixed-price structure helps mitigate cost overruns, contributing to good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and ensure the selection of a qualified contractor. The presence of three bids suggests a healthy level of interest and competition for this type of infrastructure project.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services.
Public Impact
Residents and businesses in the Fargo-Moorhead metropolitan area will benefit from enhanced flood protection. The project will deliver critical infrastructure improvements, including road and drainage system upgrades. The primary geographic impact is concentrated in North Dakota, specifically within the Fargo region. Construction activities are likely to create temporary employment opportunities in the civil engineering and construction sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting project completion and flood protection timelines.
- Scope creep could lead to cost increases if not managed effectively, despite the fixed-price nature.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Award to Industrial Builders Inc. suggests a contractor with relevant experience in civil construction.
- Full and open competition indicates a robust bidding process.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, a vital part of the broader Construction industry. This sector is characterized by large-scale projects requiring specialized engineering, heavy equipment, and skilled labor. Spending in this area is often driven by government initiatives for infrastructure development and maintenance, with significant federal investment typically seen in projects addressing public safety and economic development, such as flood control.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to Industrial Builders Inc., a single entity, suggests that the primary contractor will manage the bulk of the work. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army, likely through contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency would be enhanced through public contract databases and reporting requirements, though specific oversight mechanisms like Inspector General involvement would depend on the nature of any issues that arise.
Related Government Programs
- Fargo-Moorhead Metropolitan Area Flood Risk Management Project
- Army Corps of Engineers Civil Works Projects
- Federal Highway Administration Construction Contracts
- Infrastructure Investment and Jobs Act Projects
Risk Flags
- Potential for construction delays
- Unforeseen site conditions
- Environmental compliance challenges
Tags
construction, department-of-defense, department-of-the-army, north-dakota, definitive-contract, firm-fixed-price, full-and-open-competition, highway-street-and-bridge-construction, flood-risk-management, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.1 million to INDUSTRIAL BUILDERS INC. I-29 GRADE RAISE AND BORROW DITCH CROSSING OF THE FARGO MOORHEAD METROPOLITAN AREA FLOOD RISK MANAGEMENT PROJECT
Who is the contractor on this award?
The obligated recipient is INDUSTRIAL BUILDERS 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 $69.1 million.
What is the period of performance?
Start: 2021-05-07. End: 2024-01-01.
What is the track record of Industrial Builders Inc. on similar federal contracts?
Industrial Builders Inc. has a history of performing civil construction projects. While specific details on past federal contracts are not provided in this data, their selection for a project of this magnitude suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including performance reviews and past project values, would offer a more comprehensive understanding of their capabilities and reliability. Examining their performance on previous Army Corps of Engineers projects or similar flood control initiatives would be particularly insightful for assessing their suitability and potential risks associated with this contract.
How does the awarded amount compare to the estimated cost or budget for this phase of the flood risk management project?
The provided data shows an awarded amount of $69,129,080.10. Without access to the project's initial cost estimates or allocated budget for this specific phase, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with three bids suggests that the awarded price is likely competitive and within a reasonable range of market expectations. Further analysis would require access to the Army's internal budget documents or pre-solicitation cost estimates for this particular contract action.
What are the primary risks associated with the 'I-29 GRADE RAISE AND BORROW DITCH CROSSING' component of the project?
The primary risks associated with the 'I-29 GRADE RAISE AND BORROW DITCH CROSSING' component likely involve complex civil engineering challenges. Grade raises can necessitate extensive earthwork, soil stabilization, and potential impacts on existing utilities and traffic flow during construction. Borrow ditch crossings require careful design to ensure adequate drainage capacity and structural integrity, especially under flood conditions. Furthermore, unforeseen subsurface conditions (e.g., soil type, groundwater levels) could lead to delays and cost increases, even with a fixed-price contract. Environmental considerations, such as managing runoff and protecting local ecosystems during construction, also present potential risks that require diligent oversight.
What is the expected impact of this contract on flood resilience in the Fargo-Moorhead region?
This contract is expected to significantly enhance flood resilience in the Fargo-Moorhead region by addressing critical infrastructure vulnerabilities. The 'I-29 GRADE RAISE' component aims to elevate key transportation routes, ensuring their functionality during flood events and maintaining essential access. The 'BORROW DITCH CROSSING' work will improve drainage systems, facilitating the efficient removal of excess water and reducing the risk of localized flooding. Collectively, these improvements are designed to mitigate the impact of major flood events, protecting lives, property, and economic activity within the metropolitan area, aligning with the broader goals of the Fargo-Moorhead Metropolitan Area Flood Risk Management Project.
How has federal spending on flood risk management projects in North Dakota evolved over the past five years?
Analyzing federal spending trends on flood risk management in North Dakota over the past five years would require accessing historical contract data from agencies like the Army Corps of Engineers and FEMA. This specific contract, awarded in May 2021, represents a significant investment. General trends in federal infrastructure spending, influenced by national policies and disaster recovery needs, likely impact regional allocations. Factors such as major flood events, congressional appropriations, and the prioritization of specific projects within larger programs like the Fargo-Moorhead project would shape the year-over-year spending patterns. A comprehensive review would involve aggregating data on similar contracts and grants awarded within the state.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912ES21B0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1307 CASS COUNTY 17 N, WEST FARGO, ND, 58078
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,129,080
Exercised Options: $69,129,080
Current Obligation: $69,129,080
Actual Outlays: $35,345,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-05-07
Current End Date: 2024-01-01
Potential End Date: 2024-01-01 00:00:00
Last Modified: 2023-10-25
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