Army awards $27.4M dike expansion contract to Integrated Environmental Solutions, Inc

Contract Overview

Contract Amount: $27,427,975 ($27.4M)

Contractor: Integrated Environmental Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2024-06-08

Contract Duration: 1,347 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INDIANA HARBOR AND CANAL CONFINED DISPOSAL FACILITY DIKE EXPANSION

Place of Performance

Location: EAST CHICAGO, LAKE County, INDIANA, 46312

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to INTEGRATED ENVIRONMENTAL SOLUTIONS, INC. for work described as: INDIANA HARBOR AND CANAL CONFINED DISPOSAL FACILITY DIKE EXPANSION Key points: 1. Contract awarded for Indiana Harbor and Canal Confined Disposal Facility dike expansion. 2. Integrated Environmental Solutions, Inc. secured the $27.4M definitive contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. Project duration is 1347 days, with an estimated completion in June 2024. 5. The contract type is Firm Fixed Price, indicating price certainty.

Value Assessment

Rating: good

The contract value of $27.4M appears reasonable for a heavy civil engineering construction project of this scope. Benchmarking against similar dike expansion or confined disposal facility projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be open, specific sources were excluded, potentially limiting the competitive pool and impacting price discovery.

Taxpayer Impact: The use of full and open competition, even with exclusions, aims to achieve fair pricing. The final price relative to market rates will determine the ultimate taxpayer impact.

Public Impact

Enhances environmental protection by expanding the dike at the Indiana Harbor and Canal Confined Disposal Facility. Supports critical infrastructure for managing dredged material, crucial for waterway navigation and environmental quality. The project's long duration suggests a complex construction undertaking with significant on-site activity. Awarding to a single entity for a definitive contract implies specialized capabilities are required.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Long project duration may increase risk of cost overruns or delays.
No small business participation indicated.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded under a competitive process, aiming for best value.
Addresses environmental infrastructure needs.

Sector Analysis

This contract falls under Other Heavy and Civil Engineering Construction, a sector often characterized by large-scale infrastructure projects. Spending in this sector can vary significantly based on government infrastructure initiatives and environmental regulations.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and there's no explicit indication of subcontracting to small businesses.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army. Oversight would typically involve contract management by the agency to ensure performance, quality, and adherence to the firm fixed price.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to long project duration.
Limited competition may have resulted in a higher price than with broader competition.
Lack of small business participation noted.
Complexity of heavy civil engineering construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to INTEGRATED ENVIRONMENTAL SOLUTIONS, INC.. INDIANA HARBOR AND CANAL CONFINED DISPOSAL FACILITY DIKE EXPANSION

Who is the contractor on this award?

The obligated recipient is INTEGRATED ENVIRONMENTAL SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2024-06-08.

What specific environmental benefits does the dike expansion provide, and how are these measured?

The dike expansion is designed to increase the capacity and structural integrity of the confined disposal facility, which is crucial for safely storing dredged materials from the Indiana Harbor and Canal. This prevents the release of contaminated sediments into the waterway, thereby protecting aquatic ecosystems and improving water quality. Measurable benefits would likely include increased storage volume, reduced risk of containment failure, and compliance with environmental regulations for dredged material management.

What were the reasons for excluding specific sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

Excluding sources in a competitive process typically occurs when specific technical capabilities, past performance, or unique qualifications are required that only a limited number of contractors possess. The agency might have determined that only certain firms could meet the specialized requirements for constructing or expanding a confined disposal facility dike, especially considering environmental and engineering complexities. This exclusion aims to ensure the best-suited contractor is selected, though it narrows the competitive field.

How does the firm fixed price structure impact the contractor's incentive to control costs and ensure project efficiency?

A Firm Fixed Price (FFP) contract places the primary risk of cost overruns on the contractor. This incentivizes the contractor to manage costs efficiently, innovate to reduce expenses, and complete the project within the agreed-upon budget. Any costs exceeding the fixed price are borne by the contractor, while savings below the fixed price benefit the contractor. This structure provides budget certainty for the government but requires careful contractor selection and monitoring.

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: W912P620B0026

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7550 MELTON RD, GARY, IN, 46403

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,427,975

Exercised Options: $27,427,975

Current Obligation: $27,427,975

Actual Outlays: $7,131,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline