DoD awards $11M construction contract to Legacy Corporation of IL for heavy civil engineering
Contract Overview
Contract Amount: $11,067,732 ($11.1M)
Contractor: Legacy Corporation of IL
Awarding Agency: Department of Defense
Start Date: 2024-09-12
End Date: 2028-11-12
Contract Duration: 1,522 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BONDS (PAYMENT & PERFORMANCE)
Place of Performance
Location: GUTTENBERG, CLAYTON County, IOWA, 52052
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to LEGACY CORPORATION OF IL for work described as: BONDS (PAYMENT & PERFORMANCE) Key points: 1. Contract value appears reasonable given the 4-year duration and scope of heavy civil engineering. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Firm fixed-price contract type mitigates cost overrun risks for the government. 4. The contract is for 'Other Heavy and Civil Engineering Construction', a broad category. 5. Performance and payment bonds totaling over $11M indicate significant financial commitment and risk mitigation. 6. The contract is managed by the Department of the Army, a major DoD component.
Value Assessment
Rating: good
The contract value of $11.07 million for a 4-year period (approximately $2.77 million per year) for heavy civil engineering construction seems within a reasonable range for projects of this nature. Without specific project details or comparable contract data, a precise benchmark is difficult. However, the firm fixed-price structure suggests that the initial pricing was deemed acceptable and aims to control costs. The requirement for substantial performance and payment bonds ($11.07M) further supports the assessment of good value, as it protects the government against contractor default.
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'. This procurement method indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria or requirements. The number of bidders (4) suggests a moderate level of competition, which is generally positive for price discovery. However, the exclusion of certain sources warrants further investigation to ensure it did not unduly limit competition.
Taxpayer Impact: A moderate level of competition, even with source exclusions, is generally beneficial for taxpayers by encouraging competitive pricing. The fact that four bidders participated suggests that the contract requirements were clear enough to attract multiple qualified firms.
Public Impact
The primary beneficiaries are the Department of Defense and potentially military personnel or operations requiring the constructed facilities. The services delivered fall under heavy and civil engineering construction, which could include infrastructure development, repairs, or new builds. The geographic impact is localized to Iowa (SN: IOWA), where the contractor is based. Workforce implications include employment opportunities for construction workers and related trades in the Iowa region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to 'exclusion of sources' clause, which could impact price discovery.
- The broad nature of 'Other Heavy and Civil Engineering Construction' may lead to scope creep if not precisely defined.
- Reliance on a single contractor for a 4-year duration could pose risks if performance issues arise.
Positive Signals
- Firm fixed-price contract type provides cost certainty for the government.
- Significant performance and payment bonds ($11.07M) offer strong financial protection.
- Contract awarded to a company with a presence in Iowa, potentially supporting local economy.
Sector Analysis
The construction sector, particularly heavy and civil engineering, is a significant area of federal spending, supporting infrastructure development and maintenance across various agencies. This contract fits within the broader category of federal construction projects, which can range from small repairs to large-scale infrastructure initiatives. Comparable spending benchmarks would depend heavily on the specific type of civil engineering work performed, but the $11M value over four years suggests a medium-sized project.
Small Business Impact
The data indicates that small business participation (SB: false) was not a primary set-aside consideration for this contract. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary awardee, Legacy Corporation of IL, is likely a larger entity, and the contract's structure does not appear to prioritize small business engagement through set-asides.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures are embedded in the firm fixed-price structure and the requirement for performance and payment bonds. Transparency is facilitated by the public nature of federal contract awards, though specific project details and oversight reports may vary in accessibility. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Corps of Engineers Construction Contracts
- Department of Defense Infrastructure Projects
- Federal Heavy Civil Engineering Contracts
- Public Works Construction Awards
Risk Flags
- Potential for limited competition due to source exclusion.
- Broad scope of 'Other Heavy and Civil Engineering Construction' requires clear definition.
- Contractor performance history needs verification.
Tags
construction, department-of-defense, department-of-the-army, heavy-civil-engineering, firm-fixed-price, full-and-open-competition, iowa, medium-contract-value, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to LEGACY CORPORATION OF IL. BONDS (PAYMENT & PERFORMANCE)
Who is the contractor on this award?
The obligated recipient is LEGACY CORPORATION OF IL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2024-09-12. End: 2028-11-12.
What is the specific nature of the 'Other Heavy and Civil Engineering Construction' being performed under this contract?
The provided data classifies the contract under NAICS code 237990, which covers 'Other Heavy and Civil Engineering Construction'. This broad category typically includes the construction of projects such as tunnels, subways, pipelines, highways, streets, bridges, dams, and marine facilities. Without further details from the contract's statement of work, it is difficult to ascertain the precise nature of the work. However, given the Department of the Army as the awarding agency and the substantial value and duration, it could involve significant infrastructure development or maintenance critical to military operations or base support within the specified region.
How does the $11.07 million contract value compare to similar heavy civil engineering projects awarded by the Department of the Army?
Benchmarking the $11.07 million contract value requires access to a database of comparable Department of the Army (or DoD) heavy civil engineering projects, considering factors like project scope, duration, and location. However, as a general estimate, $11.07 million spread over approximately 4 years (1522 days) represents an annual expenditure of roughly $2.77 million. This falls into the medium-sized project category for federal construction. Larger infrastructure projects can easily reach tens or hundreds of millions of dollars, while smaller repair or specialized tasks might be in the low millions or less. The firm fixed-price nature suggests a well-defined scope was established to arrive at this value.
What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method?
The 'Full and Open Competition After Exclusion of Sources' method, while aiming for broad competition, introduces specific risks. The 'exclusion of sources' implies that certain potential bidders were intentionally not considered, possibly due to specific technical requirements, security clearances, or prior performance issues. The primary risk is that this exclusion might have inadvertently limited the pool of qualified bidders more than necessary, potentially leading to less competitive pricing than a truly unrestricted full and open competition. It also raises questions about the justification for excluding specific sources and whether this process was fully transparent and equitable to all potential offerors.
What is Legacy Corporation of IL's track record with federal construction contracts, particularly with the Department of Defense?
Information on Legacy Corporation of IL's specific track record with federal construction contracts, especially with the Department of Defense, is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (e.g., CPARS), and any history of contract disputes or terminations. A positive track record with similar projects would reduce performance risk for this new $11.07 million contract. Conversely, a history of issues could indicate potential future problems.
How does the firm fixed-price (FFP) contract type impact the government's financial exposure compared to other contract types?
The Firm Fixed-Price (FFP) contract type significantly limits the government's financial exposure to cost overruns. Under an FFP contract, the contractor agrees to a set price for the work, regardless of their actual costs. This shifts the risk of cost increases from the government to the contractor. If the contractor incurs higher costs than anticipated, their profit margin decreases. Conversely, if they manage costs efficiently, their profit increases. This contrasts with cost-reimbursement contracts, where the government bears the risk of cost overruns. For well-defined projects like construction, FFP is often preferred for budget predictability.
What are the implications of the $11.07 million in performance and payment bonds for this contract?
The requirement for $11.07 million in performance and payment bonds is a critical risk mitigation measure for the government. A performance bond guarantees that the contractor will complete the work according to the contract terms. If the contractor defaults or fails to perform, the surety company that issued the bond can step in to ensure completion or compensate the government for losses. A payment bond guarantees that the contractor will pay subcontractors, laborers, and material suppliers. This protects the government from potential liens and ensures the project's supply chain integrity. The substantial bond amount reflects the significant value and potential risks associated with this $11.07 million construction contract.
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: W912ES24B0007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 16322 BARSTOW RD, EAST MOLINE, IL, 61244
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,067,732
Exercised Options: $11,067,732
Current Obligation: $11,067,732
Actual Outlays: $643,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-12
Current End Date: 2028-11-12
Potential End Date: 2028-11-12 00:00:00
Last Modified: 2025-12-01
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