Army awards $66.9M contract for Hurricane Katrina recovery construction services in New Orleans

Contract Overview

Contract Amount: $66,904,282 ($66.9M)

Contractor: BOH Bros. Construction CO., L.L.C.

Awarding Agency: Department of Defense

Start Date: 2006-01-27

End Date: 2009-01-06

Contract Duration: 1,075 days

Daily Burn Rate: $62.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200606!600959!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0088 !A!N! !N! ! !20060127!20060714!006947386!006947386!006947386!N!BOH BROS CONSTRUCTION CO, LLC !730 S TONTI ST !NEW ORLEANS !LA!70119!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000027806500!N!N!000027806500!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!B! !D!N!Z! ! !N!C!N! ! ! !Z!A!A!A!000!A!C!Y! !N! ! !96CE!W912P8!0001! !

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70124

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $66.9 million to BOH BROS. CONSTRUCTION CO., L.L.C. for work described as: 200606!600959!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0088 !A!N! !N! ! !20060127!20060714!006947386!006947386!006947386!N!BOH BROS CONSTRUCTION CO, LLC !730 S TONTI ST !NEW ORLEANS !LA!70119!55000!071!22!NEW ORLEANS !ORLE… Key points: 1. Contract awarded for critical infrastructure repair following a major natural disaster. 2. Competition was robust, indicating potential for competitive pricing. 3. Contractor has a significant presence in the New Orleans area. 4. Fixed-price contract type suggests cost certainty for the government. 5. Long duration of the contract implies a complex and extensive recovery effort.

Value Assessment

Rating: good

The contract value of $66.9 million for heavy and civil engineering construction services appears reasonable given the scope of work related to Hurricane Katrina recovery. While direct comparisons are difficult without specific project details, the fixed-price nature of the contract provides a degree of cost control. The number of bids received (2) suggests a competitive environment, which typically drives better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The presence of multiple bidders suggests that the market was accessible and that the government sought a broad range of potential contractors. This level of competition is generally favorable for achieving competitive pricing and ensuring that the best value is obtained.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

Residents and businesses in New Orleans and surrounding areas benefit from restored infrastructure. Services include heavy and civil engineering construction, crucial for rebuilding after a disaster. Geographic impact is concentrated in Louisiana, specifically the New Orleans region. Workforce implications include job creation for construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during extensive reconstruction.
Contract duration may lead to extended reliance on a single contractor for critical recovery efforts.

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition suggests a robust market response.
Contractor's local presence may facilitate rapid response and understanding of regional needs.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical industry for infrastructure development and repair. The market size for such services can be substantial, especially in regions affected by natural disasters. This specific award is a direct response to the extensive damage caused by Hurricane Katrina, highlighting the sector's role in disaster recovery and resilience.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, the contract was awarded under full and open competition, which does not preclude small businesses from participating. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management divisions. Given the nature of disaster recovery, there may be additional oversight from federal emergency management agencies and potentially Inspector General offices to ensure funds are used effectively and appropriately.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Army Corps of Engineers Construction Contracts
Gulf Coast Reconstruction Projects

Risk Flags

Long contract duration may increase exposure to market volatility.
Potential for scope creep in disaster recovery scenarios.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.9 million to BOH BROS. CONSTRUCTION CO., L.L.C.. 200606!600959!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0088 !A!N! !N! ! !20060127!20060714!006947386!006947386!006947386!N!BOH BROS CONSTRUCTION CO, LLC !730 S TONTI ST !NEW ORLEANS !LA!70119!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000027806500!N!N!000027806500!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is BOH BROS. CONSTRUCTION CO., L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $66.9 million.

What is the period of performance?

Start: 2006-01-27. End: 2009-01-06.

What specific types of heavy and civil engineering construction were performed under this contract?

The provided data indicates the contract falls under the NAICS code 237990 for 'Other Heavy and Civil Engineering Construction.' While specific project details are not itemized, this category typically encompasses a wide range of activities such as the construction of bridges, tunnels, waterways, dams, highways, and other infrastructure projects. Given the context of Hurricane Katrina recovery, it is highly probable that the work involved repairing or rebuilding damaged levees, roads, utilities, and other critical public infrastructure essential for the region's recovery and long-term resilience.

How does the contract value of $66.9 million compare to other Hurricane Katrina recovery contracts?

Comparing this $66.9 million contract requires a broader analysis of Hurricane Katrina recovery spending, which was in the hundreds of billions of dollars across various agencies and sectors. This particular contract, awarded by the Army Corps of Engineers, represents a significant but specific investment in heavy and civil engineering construction. Without a detailed database of all Katrina-related construction contracts, a precise benchmark is challenging. However, contracts of this magnitude were common for major infrastructure repair and rebuilding efforts in the affected Gulf Coast region during the post-Katrina period.

What is the track record of BOH BROS CONSTRUCTION CO., LLC with federal contracts, particularly in disaster recovery?

BOH BROS CONSTRUCTION CO., LLC has a history of federal contracting, as evidenced by this award. To fully assess their track record, a review of their past performance on similar contracts, especially those involving disaster recovery or heavy civil engineering, would be necessary. This would include examining contract completion timeliness, adherence to budget, quality of work, and any past performance issues or disputes. Their local presence in New Orleans suggests familiarity with the region's challenges and infrastructure needs, which can be a positive indicator for disaster recovery projects.

What are the potential risks associated with a fixed-price contract for a long-duration disaster recovery project?

While fixed-price contracts offer cost certainty, they can pose risks in long-duration disaster recovery projects. Unforeseen site conditions, material price fluctuations, or changes in scope due to the evolving needs of recovery can lead to cost overruns for the contractor. If the contractor underestimated these risks, they might seek change orders, potentially increasing the overall cost to the government. Conversely, if the contractor absorbs unexpected costs, it could impact their financial stability or future bidding. Effective contract management and clear scope definition are crucial to mitigate these risks.

How did the competition level (2 bidders) impact the pricing and value for this contract?

With two bidders, the competition level for this contract was moderate. While more bidders generally lead to more competitive pricing, two offers can still result in a fair and reasonable price, especially if both bidders were highly qualified and submitted competitive proposals. The government's evaluation process would have determined if the pricing was aligned with market rates and the overall value proposition. The fixed-price nature of the contract further incentivizes the contractor to manage costs efficiently to maintain profitability, contributing to value for the taxpayer.

What is the significance of the contract duration (1075 days) in the context of Hurricane Katrina recovery?

A contract duration of 1075 days (approximately 3 years) is significant and reflects the immense scale and complexity of the recovery efforts following Hurricane Katrina. Such a long duration indicates that the project involved extensive rebuilding or repair of critical infrastructure that could not be completed quickly. It suggests a phased approach to reconstruction, allowing for detailed planning, execution, and adaptation to changing conditions during the recovery process. This extended timeline is typical for large-scale civil engineering projects aimed at restoring a region's fundamental services and structures.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 730 S TONTI ST, NEW ORLEANS, LA, 70119

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline