Army awards $8.3M for Old Hickory Lake recreation area redevelopment, focusing on civil engineering construction

Contract Overview

Contract Amount: $8,385,776 ($8.4M)

Contractor: AIS Infrastructure, LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-31

End Date: 2026-07-06

Contract Duration: 552 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OLD HICKORY LAKE ROCKLAND RECREATION AREA REDEVELOPMENT PROJECT

Place of Performance

Location: HENDERSONVILLE, SUMNER County, TENNESSEE, 37075

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to AIS INFRASTRUCTURE, LLC for work described as: OLD HICKORY LAKE ROCKLAND RECREATION AREA REDEVELOPMENT PROJECT Key points: 1. Contract value of $8.3M for a 552-day performance period suggests a significant investment in infrastructure. 2. The 'Other Heavy and Civil Engineering Construction' NAICS code indicates a focus on large-scale public works. 3. Full and open competition was utilized, implying a broad search for qualified contractors and potentially competitive pricing. 4. The contract is firm-fixed-price, transferring most cost risk to the contractor. 5. The project is located in Tennessee, with potential implications for regional economic development and workforce. 6. The award to AIS Infrastructure, LLC, requires assessment of their past performance and capacity for this scale of project.

Value Assessment

Rating: fair

The contract value of $8.3 million for a 552-day duration appears substantial for a recreation area redevelopment. Benchmarking against similar civil engineering construction projects for federal recreation areas is necessary to determine if the pricing is competitive. Without specific cost breakdowns or comparisons to similar projects, it's difficult to definitively assess value for money. The firm-fixed-price nature suggests the government has locked in a price, but the overall value depends on the quality and timeliness of the delivered infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of two bidders (no) suggests some level of competition, but further analysis would be needed to understand the breadth of participation and the specific reasons for the number of bids received.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through market forces, leading to better value for public funds.

Public Impact

The primary beneficiaries are expected to be users of the Old Hickory Lake Rockland Recreation Area, who will experience improved facilities. The project will deliver significant civil engineering construction services, likely involving site preparation, structural work, and utility improvements. The geographic impact is concentrated in Tennessee, potentially creating local jobs and stimulating economic activity within the region. Workforce implications may include employment opportunities for construction workers, engineers, and project managers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Risk of schedule delays impacting the project completion date and public access to facilities.
Ensuring the contractor's capacity and experience align with the scale and complexity of the redevelopment.
Adequacy of the firm-fixed-price contract to cover all necessary aspects of a large civil engineering project.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process aimed at securing competitive pricing.
The project addresses infrastructure needs for a public recreation area, indicating a focus on public benefit.
The contract duration of 552 days allows for a structured and thorough execution of the redevelopment.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a significant part of the broader construction industry. This sector is characterized by large-scale projects such as infrastructure development, utilities, and public works. The market size for federal civil engineering construction is substantial, driven by ongoing needs for maintenance, upgrades, and new development of public assets. This specific project contributes to the federal government's investment in recreational infrastructure, which often involves complex engineering and environmental considerations.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal unless the prime contractor voluntarily engages small businesses in their subcontracting plan. Further review of the contract's subcontracting provisions would be necessary to confirm any potential opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver specified work within the agreed-upon price. Transparency may be enhanced through contract award databases and public reporting, though detailed project oversight mechanisms are not specified in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
National Park Service Infrastructure Improvements
Bureau of Reclamation Construction Contracts
Federal Recreation Area Management and Development

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor's past performance on similar large-scale civil engineering projects.
Adequacy of competition given the number of bids received.
Ensuring compliance with all environmental regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to AIS INFRASTRUCTURE, LLC. OLD HICKORY LAKE ROCKLAND RECREATION AREA REDEVELOPMENT PROJECT

Who is the contractor on this award?

The obligated recipient is AIS INFRASTRUCTURE, 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 $8.4 million.

What is the period of performance?

Start: 2024-12-31. End: 2026-07-06.

What is the track record of AIS Infrastructure, LLC in completing similar federal civil engineering construction projects on time and within budget?

Assessing the track record of AIS Infrastructure, LLC is crucial for understanding their capability to successfully execute the Old Hickory Lake recreation area redevelopment. A review of their past performance on federal contracts, particularly those involving heavy civil engineering and construction of public facilities, would be necessary. This would involve examining contract close-out data, any reported performance issues, and client feedback. Specifically, looking for projects of similar scale (in terms of dollar value and duration) and complexity would provide the most relevant insights. A history of timely completion and adherence to budget on comparable projects would indicate a lower risk profile for this award. Conversely, a pattern of delays or cost overruns on past work would raise concerns about the successful delivery of this $8.3 million contract.

How does the awarded amount of $8.3 million compare to the estimated cost or budget for this specific redevelopment project?

The awarded amount of $8.3 million represents the final negotiated price for the Old Hickory Lake Rockland Recreation Area Redevelopment Project. To assess value, this figure should be compared against the government's initial cost estimates or budget allocations for the project. If the award is significantly lower than estimates, it could indicate successful competition and cost savings for taxpayers. Conversely, if the award is close to or exceeds initial estimates, it might suggest that the project's scope or complexity was underestimated, or that competition was less robust than anticipated. Understanding the relationship between the awarded amount and the government's internal budget provides context for the financial prudence of the procurement.

What are the key performance indicators (KPIs) that will be used to measure the success of this redevelopment project?

Key performance indicators for the Old Hickory Lake Rockland Recreation Area Redevelopment Project would likely focus on the successful completion of specified construction tasks, adherence to quality standards, and timely delivery. Given the firm-fixed-price nature, meeting the defined scope of work within the $8.3 million budget is paramount. Specific KPIs might include: completion of all structural and site preparation milestones by their scheduled dates, compliance with all relevant building codes and environmental regulations, successful testing and commissioning of any new utilities or facilities, and achieving a high level of user satisfaction upon project completion. The contract's statement of work and performance standards would detail these specific metrics, allowing for objective evaluation of AIS Infrastructure, LLC's performance throughout the 552-day duration.

What is the historical spending pattern for the redevelopment and maintenance of federal recreation areas managed by the Department of the Army?

Analyzing historical spending patterns for federal recreation area redevelopment and maintenance by the Department of the Army provides essential context for the $8.3 million award. This involves examining past budgets allocated for similar projects, the frequency of major redevelopment efforts, and the average cost of such undertakings. Understanding this historical data helps determine if the current investment is consistent with previous levels of expenditure, or if it represents a significant increase or decrease. It can also shed light on the typical duration and scope of these projects. For instance, if historical data shows frequent, smaller-scale maintenance rather than large redevelopment projects, this $8.3 million award might signify a strategic shift in investment priorities. Conversely, if similar large-scale redevelopments have occurred regularly, this contract aligns with established spending patterns.

Are there any specific environmental or geological risks associated with the Old Hickory Lake area that could impact project costs or timelines?

The Old Hickory Lake area, like many natural environments, may present specific environmental or geological risks that could impact the redevelopment project. These could include soil stability issues, potential for erosion, presence of protected flora or fauna, or hydrological concerns related to the lake itself. Federal construction projects typically require thorough environmental impact assessments and geotechnical surveys prior to award. The contract's specifications should address how these risks are managed, including any contingency plans or mitigation strategies. If significant unforeseen environmental or geological challenges arise during construction, they could lead to scope changes, delays, and potentially cost increases, even under a firm-fixed-price contract, depending on the contract's clauses regarding unforeseen conditions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P522R0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2250 LOVVORN RD, CARROLLTON, GA, 30117

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,385,776

Exercised Options: $8,385,776

Current Obligation: $8,385,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P523D0003

IDV Type: IDC

Timeline