Fargo Flood Risk Project Awarded to Hendrickson Transportation for $12.9M
Contract Overview
Contract Amount: $12,912,806 ($12.9M)
Contractor: Hendrickson Transportation LLC
Awarding Agency: Department of Defense
Start Date: 2024-02-23
End Date: 2026-01-01
Contract Duration: 678 days
Daily Burn Rate: $19.0K/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: OXBOW, HICKSON, AND BAKKE RING LEVEE OF THE FARGO MOORHEAD METROPOLITAN FLOOD RISK MANAGEMENT PROJECT
Place of Performance
Location: OXBOW, CASS County, NORTH DAKOTA, 58047
Plain-Language Summary
Department of Defense obligated $12.9 million to HENDRICKSON TRANSPORTATION LLC for work described as: OXBOW, HICKSON, AND BAKKE RING LEVEE OF THE FARGO MOORHEAD METROPOLITAN FLOOD RISK MANAGEMENT PROJECT Key points: 1. Contract awarded to Hendrickson Transportation LLC for $12.9M. 2. Project is part of the Fargo Moorhead Metropolitan Flood Risk Management Project. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Firm Fixed Price. 5. Project duration is 678 days.
Value Assessment
Rating: good
The contract value of $12.9M appears reasonable for a heavy civil engineering construction project of this nature. Benchmarking against similar flood control or levee construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process was used. This method aims to ensure fair pricing and access for qualified contractors.
Taxpayer Impact: The competitive award process is expected to yield a fair price, ensuring taxpayer funds are used efficiently for critical infrastructure.
Public Impact
Enhances flood protection for the Fargo-Moorhead metropolitan area. Supports critical infrastructure development and resilience. Creates construction jobs and stimulates local economic activity. Addresses long-term flood risk management needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on a single contractor for project completion.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Competitive bidding process likely secured a favorable price.
- Project addresses a significant public safety need.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to water management and flood control infrastructure. Spending in this sector is often driven by public safety needs and federal infrastructure initiatives.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, through the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for federal construction projects should be in place to ensure compliance and quality.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep or change orders.
- Weather-related delays impacting project timeline.
- Environmental compliance challenges.
- Coordination with multiple stakeholders.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, nd, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to HENDRICKSON TRANSPORTATION LLC. OXBOW, HICKSON, AND BAKKE RING LEVEE OF THE FARGO MOORHEAD METROPOLITAN FLOOD RISK MANAGEMENT PROJECT
Who is the contractor on this award?
The obligated recipient is HENDRICKSON TRANSPORTATION 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 $12.9 million.
What is the period of performance?
Start: 2024-02-23. End: 2026-01-01.
What specific flood mitigation capabilities will this levee construction provide?
The levee construction is designed to enhance the flood protection for the Fargo-Moorhead metropolitan area, a region historically susceptible to significant flood events. The project aims to reduce the risk of damage to property and infrastructure, ensuring greater community safety and resilience against future flooding.
Are there any identified risks associated with the 'Exclusion of Sources' in the competition method?
While 'Full and Open Competition After Exclusion of Sources' implies a competitive process, the exclusion of specific sources warrants scrutiny. Understanding the rationale for exclusion is crucial to ensure no qualified bidders were unfairly prevented from participating, which could impact price discovery and overall value.
How does the $12.9M cost compare to similar levee construction projects in comparable regions?
Benchmarking this $12.9M contract against similar levee construction projects in regions with comparable geological and environmental conditions is essential for a thorough value assessment. Without comparative data, it's difficult to definitively state if the price represents optimal value for taxpayer investment.
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: SEALED BID
Solicitation ID: W912ES24B0001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2762 310TH ST, HAMBURG, IA, 51640
Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,912,806
Exercised Options: $12,912,806
Current Obligation: $12,912,806
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-23
Current End Date: 2026-01-01
Potential End Date: 2026-01-01 00:00:00
Last Modified: 2025-12-02
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