Army Awards $33.7M for Pipeline Dredging, Dodging Potential Cost Overruns
Contract Overview
Contract Amount: $33,657,388 ($33.7M)
Contractor: Rigid Constructors LLC
Awarding Agency: Department of Defense
Start Date: 2021-07-19
End Date: 2025-01-04
Contract Duration: 1,265 days
Daily Burn Rate: $26.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PIPELINE DREDGING SECTIONS 1-5
Place of Performance
Location: ANAHUAC, CHAMBERS County, TEXAS, 77514
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $33.7 million to RIGID CONSTRUCTORS LLC for work described as: PIPELINE DREDGING SECTIONS 1-5 Key points: 1. Significant contract value of $33.7 million for essential infrastructure. 2. Rigid Constructors LLC secured the award under full and open competition. 3. Potential risk of schedule delays given the 1265-day duration. 4. Construction sector spending benchmark analysis needed for full context.
Value Assessment
Rating: good
The contract value of $33.7 million appears reasonable for a multi-year heavy civil engineering project. Benchmarking against similar dredging contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The competitive bidding process likely ensured taxpayer funds were used efficiently, minimizing potential overspending.
Public Impact
Ensures critical waterway infrastructure maintenance and navigation. Supports economic activity by maintaining navigable channels. Provides employment opportunities within the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1265 days) could lead to scope creep or unforeseen cost increases.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost uncertainty for the government.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is vital for national infrastructure. Spending in this sector can fluctuate based on government priorities and economic conditions.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or participate as subcontractors.
Oversight & Accountability
The definitive contract award suggests a structured procurement process. Oversight will be crucial to monitor performance, manage potential risks, and ensure adherence to contract terms over the project's duration.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- No small business participation noted.
- Potential for unforeseen environmental or regulatory challenges.
- Contractor's past performance needs verification.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to RIGID CONSTRUCTORS LLC. PIPELINE DREDGING SECTIONS 1-5
Who is the contractor on this award?
The obligated recipient is RIGID CONSTRUCTORS 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 $33.7 million.
What is the period of performance?
Start: 2021-07-19. End: 2025-01-04.
What is the historical cost performance of Rigid Constructors LLC on similar government contracts?
Analyzing Rigid Constructors LLC's past performance on comparable government contracts is essential for assessing their reliability and cost control capabilities. This includes reviewing their track record on projects of similar scale, complexity, and duration, as well as examining any past issues with cost overruns or schedule delays. Such a review would provide valuable insights into the likelihood of this current contract meeting its budget and timeline.
Are there any specific environmental or regulatory risks associated with this pipeline dredging project that could impact cost or schedule?
Pipeline dredging projects often involve environmental considerations, such as sediment disposal, potential impact on aquatic life, and compliance with environmental regulations. Unforeseen environmental challenges or stricter regulatory requirements could lead to delays and increased costs. A thorough risk assessment should identify these potential issues and outline mitigation strategies to ensure the project stays on track and within budget.
How does the firm fixed price structure mitigate potential cost escalations for the government over the contract's long duration?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. For a long-duration project like this, an FFP contract provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. This structure incentivizes the contractor to manage their expenses efficiently to maximize profit, thereby protecting the government from unexpected price increases due to inflation or other factors.
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
Solicitation Procedures: SEALED BID
Solicitation ID: W912HY21B0010
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3091 HIGHWAY 104, OPELOUSAS, LA, 70570
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,707,388
Exercised Options: $33,657,388
Current Obligation: $33,657,388
Actual Outlays: $4,112,657
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-07-19
Current End Date: 2025-01-04
Potential End Date: 2025-01-04 00:00:00
Last Modified: 2024-11-01
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