Army awards $24.7M contract for Galveston Harbor Channel improvements to Genesis 360 LLC

Contract Overview

Contract Amount: $24,677,915 ($24.7M)

Contractor: Genesis 360 LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-29

End Date: 2026-01-01

Contract Duration: 612 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GALVESTON HARBOR CHANNEL, TEXAS PELICAN ISLAND PLACEMENT AREA PLACEMENT AREA IMPROVEMENTS, GALVESTON COUNTY, TX

Place of Performance

Location: GALVESTON, GALVESTON County, TEXAS, 77554

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to GENESIS 360 LLC for work described as: GALVESTON HARBOR CHANNEL, TEXAS PELICAN ISLAND PLACEMENT AREA PLACEMENT AREA IMPROVEMENTS, GALVESTON COUNTY, TX Key points: 1. Contract value represents a significant investment in critical port infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Project duration of over 600 days indicates a complex and lengthy undertaking. 4. The firm-fixed-price contract type aims to control costs for the government. 5. Geographic focus on Texas highlights regional infrastructure development priorities. 6. The specific NAICS code points to specialized heavy and civil engineering construction services.

Value Assessment

Rating: good

The contract value of $24.7 million for harbor channel improvements appears reasonable given the scope of civil engineering work. Benchmarking against similar Army Corps of Engineers projects for dredging and placement area development would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of exceptional value is difficult.

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 that multiple bidders were likely considered. The presence of 3 bids suggests a moderate level of competition. While not an exhaustive number, it provides a basis for price discovery and suggests that the government likely received competitive offers. The exclusion of sources clause warrants further investigation to understand its specific implications.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of the Army and potentially commercial shipping interests relying on the Galveston Harbor Channel. The project will deliver improvements to the Pelican Island Placement Area, crucial for managing dredged material. The geographic impact is concentrated in Galveston County, Texas, supporting regional economic activity. The contract is expected to support jobs in the heavy and civil engineering construction sector within Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive construction period.
Dependence on a single contractor for a critical infrastructure project carries inherent execution risk.
The 'exclusion of sources' clause in the competition type needs clarification to ensure full transparency and fairness.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to Genesis 360 LLC, a company with experience in heavy construction, suggests capability.
The project addresses a clear need for infrastructure improvement in a vital port area.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on port and waterway infrastructure. The Army Corps of Engineers is a major client in this space, undertaking numerous projects for navigation, flood control, and environmental restoration. Spending in this sector is often driven by federal infrastructure initiatives and the need to maintain and upgrade critical national assets. Comparable projects might include dredging, breakwater construction, or other marine-related civil works.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Genesis 360 LLC actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through the Army Corps of Engineers district responsible for Galveston Harbor. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress and financial reporting may be less publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
National Defense Authorization Act (Infrastructure Provisions)

Risk Flags

Potential for scope creep given the multi-year duration.
Environmental impact considerations during dredging and placement operations.
Reliance on specific geological or hydrological conditions at the placement area.
Contract type requires careful monitoring due to 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to GENESIS 360 LLC. GALVESTON HARBOR CHANNEL, TEXAS PELICAN ISLAND PLACEMENT AREA PLACEMENT AREA IMPROVEMENTS, GALVESTON COUNTY, TX

Who is the contractor on this award?

The obligated recipient is GENESIS 360 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 $24.7 million.

What is the period of performance?

Start: 2024-04-29. End: 2026-01-01.

What is the track record of Genesis 360 LLC in performing similar large-scale civil engineering projects for the federal government?

Genesis 360 LLC has a history of performing various construction and engineering services. While specific details on past large-scale civil engineering projects comparable to the Galveston Harbor Channel improvements are not immediately available in this summary, their presence in the federal contracting space suggests some level of established capability. A deeper dive into their contract history with agencies like the Army Corps of Engineers, Department of Transportation, or other entities involved in infrastructure would be necessary to fully assess their track record. This would include examining past performance evaluations, project completion success rates, and any history of disputes or contract modifications on similar projects. Understanding their experience with environmental compliance and complex site work would also be crucial.

How does the awarded amount of $24.7 million compare to the estimated cost or budget for this specific harbor channel improvement project?

The provided data indicates an award amount of $24.7 million. Without access to the government's initial cost estimates, independent cost analyses, or the bids submitted by other competitors, it is challenging to definitively state how this award compares to the expected budget. However, the fact that it was awarded under full and open competition with 3 bids suggests that the price was deemed acceptable by the contracting authority. If the award amount is significantly below the government's estimate, it could indicate strong competition or favorable market conditions. Conversely, if it is at or above the estimate, it warrants closer scrutiny to ensure value for money. Further analysis would require comparing this figure to similar projects undertaken by the Army Corps of Engineers in other locations.

What are the specific risks associated with the 'full and open competition after exclusion of sources' contract type, and how might they impact cost or schedule?

The 'full and open competition after exclusion of sources' contract type is unusual and requires careful interpretation. Typically, 'full and open competition' implies soliciting offers from all responsible sources. The addition of 'after exclusion of sources' suggests that certain potential bidders or types of sources were intentionally excluded from the competition for specific reasons, which must be justified under federal acquisition regulations. This exclusion could potentially limit the pool of bidders, thereby reducing competition and potentially leading to higher prices or longer lead times if the excluded sources possessed unique capabilities or competitive advantages. The specific rationale for exclusion is critical; if it was based on legitimate technical requirements or national security concerns, the impact might be minimal. However, if the exclusion was arbitrary, it could represent a missed opportunity for better value and could introduce risks related to contractor performance or innovation.

What is the expected impact of these harbor channel improvements on maritime traffic and the local economy in Galveston?

Improvements to the Galveston Harbor Channel, particularly enhancements to the Pelican Island Placement Area, are crucial for maintaining and potentially increasing the efficiency and capacity of maritime traffic. By ensuring adequate capacity for dredged material, the project supports the ongoing maintenance dredging necessary to keep the channel at its authorized depth and width. This directly benefits commercial shipping by reducing transit times, allowing for larger vessels, and minimizing the risk of channel closures due to shoaling. Economically, a well-maintained and efficient harbor is a vital artery for regional commerce, supporting industries reliant on imports and exports, such as petrochemicals, agriculture, and manufacturing. Enhanced port operations can lead to increased cargo throughput, job creation in logistics and related sectors, and overall economic growth for Galveston County and the broader Texas Gulf Coast region.

Are there any historical spending patterns or trends related to Galveston Harbor maintenance and improvement projects that this contract aligns with?

The Galveston Harbor Channel is a critical piece of maritime infrastructure, and as such, it typically receives consistent federal investment for maintenance and improvement. Historical spending patterns for such projects are often characterized by recurring needs for dredging to counteract natural sedimentation, as well as periodic larger investments for capital improvements, such as deepening or widening the channel, or upgrading associated facilities like placement areas. This $24.7 million contract for placement area improvements likely fits within a long-term strategy of maintaining the harbor's operational capacity. Analyzing past Army Corps of Engineers budgets and contract awards for Galveston Harbor would reveal the frequency and scale of such investments, highlighting whether this award represents a routine maintenance expenditure, a response to increased usage, or part of a larger, multi-year capital improvement plan.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912HY24B0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8352 BLUEBONNET BLVD, BATON ROUGE, LA, 70810

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,120,315

Exercised Options: $24,677,915

Current Obligation: $24,677,915

Actual Outlays: $5,258,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline