Army awards $61.6M contract for Hurricane Katrina recovery construction in New Orleans

Contract Overview

Contract Amount: $12,444,186 ($12.4M)

Contractor: Odebrecht-Johnson Bros JV

Awarding Agency: Department of Defense

Start Date: 2006-02-10

End Date: 2006-10-10

Contract Duration: 242 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200606!600994!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0101 !A!N! !N! ! !20060210!20060812!616490756!616490756!616490756!N!ODEBRECHT JOHNSON BROS JV !201 ALHAMBRA CIR STE 1400 !CORAL GABLES !FL!33134!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000012021775!N!N!000012021775!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!004!B! !D!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!B!Y! !N! ! !96CE!W912P8!0001! !

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to ODEBRECHT-JOHNSON BROS JV for work described as: 200606!600994!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0101 !A!N! !N! ! !20060210!20060812!616490756!616490756!616490756!N!ODEBRECHT JOHNSON BROS JV !201 ALHAMBRA CIR STE 1400 !CORAL GABLES !FL!33134!55000!071!22!NEW ORLEANS !ORLE… Key points: 1. Contract awarded for critical infrastructure repair following a major natural disaster. 2. Full and open competition suggests a robust bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Contract duration of 242 days indicates a focused scope of work. 5. The awardee has experience in heavy civil engineering construction. 6. Geographic focus on New Orleans highlights disaster relief efforts.

Value Assessment

Rating: good

The contract value of $61.6 million for heavy civil engineering construction appears reasonable given the scope and urgency following Hurricane Katrina. Benchmarking against similar disaster recovery projects would provide further context, but the fixed-price nature suggests an attempt to control costs. The award amount is within the expected range for large-scale reconstruction efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and ensure the government receives the best value. The number of bidders is not specified, but the 'full and open' designation implies a significant level of competition.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for essential recovery work.

Public Impact

Residents and businesses in New Orleans benefit from the restoration of critical infrastructure. Services delivered include heavy and civil engineering construction for disaster recovery. Geographic impact is concentrated in New Orleans, Louisiana. Workforce implications include employment opportunities for construction labor in the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in post-disaster reconstruction.
Contractor performance risk in delivering complex construction under challenging conditions.
Dependency on specific materials and labor availability in a disaster-affected area.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type provides cost predictability for the government.
Contract focused on a critical need for disaster recovery and rebuilding.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a significant part of the broader construction industry. This sector is responsible for large-scale public works projects such as roads, bridges, and utilities. Spending in this area often fluctuates with government infrastructure initiatives and disaster recovery efforts. The market size for such recovery work can be substantial following major events like Hurricane Katrina.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. However, large prime contracts often include subcontracting opportunities. The prime contractor, Odebrecht Johnson Bros JV, may engage small businesses for specialized services or labor, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army Corps of Engineers district. Accountability measures are inherent in the contract terms, including performance requirements and payment schedules. Transparency is generally facilitated through contract databases, though specific details of performance and oversight might be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Army Corps of Engineers Construction Contracts
Federal Infrastructure Repair Programs
Heavy and Civil Engineering Construction

Risk Flags

Post-disaster reconstruction complexity
Potential for unforeseen site conditions
Contractor performance risk in challenging environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to ODEBRECHT-JOHNSON BROS JV. 200606!600994!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0101 !A!N! !N! ! !20060210!20060812!616490756!616490756!616490756!N!ODEBRECHT JOHNSON BROS JV !201 ALHAMBRA CIR STE 1400 !CORAL GABLES !FL!33134!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000012021775!N!N!000012021775!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 ODEBRECHT-JOHNSON BROS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2006-02-10. End: 2006-10-10.

What was the specific nature of the construction work performed under this contract?

This contract, W912P806C0101, was awarded to Odebrecht Johnson Bros JV for 'ALL OTHER NON-BUILDING FACILITIES' construction, categorized under NAICS code 237990 (Other Heavy and Civil Engineering Construction). Given the context of Hurricane Katrina and the awarding agency (US Army Engineer District New Orleans), the work likely involved the repair, reconstruction, or reinforcement of critical infrastructure such as levees, floodwalls, drainage systems, roads, bridges, or other civil engineering structures essential for the city's functioning and flood protection. The contract was a definitive contract with a fixed-price type, indicating a defined scope of work and a set price for its completion.

How does the $61.6 million award compare to other Hurricane Katrina recovery contracts?

The $61.6 million award is a significant sum, reflecting the scale of damage and the complexity of reconstruction efforts following Hurricane Katrina. While it represents a substantial investment, it is important to note that the total federal spending for Katrina recovery exceeded billions of dollars across numerous agencies and contracts. This particular contract focused on heavy and civil engineering, which is a critical but specific component of the overall recovery. Comparing it directly requires analyzing contracts with similar scopes (e.g., levee repair, infrastructure rebuilding) awarded by agencies like FEMA, the Army Corps of Engineers, and the Department of Transportation during the same period. Without a detailed comparative analysis of similar projects, it's difficult to definitively state if this award was high or low, but it aligns with the substantial financial commitment required for such a large-scale disaster.

What are the potential risks associated with a fixed-price contract in a post-disaster environment?

Fixed-price contracts offer cost certainty to the government, as the price is set upfront. However, in a post-disaster environment like Hurricane Katrina recovery, there are heightened risks. Unforeseen conditions, such as hidden structural damage, contaminated materials, or unexpected geological issues, can significantly increase the contractor's costs. If these costs exceed the fixed price, the contractor may incur losses, potentially leading to disputes, delays, or even contract termination. Conversely, if the contractor significantly underestimates costs or scope, they might seek to cut corners, impacting quality. The government's risk lies in potentially paying a premium for the contractor's assumption of these uncertainties, or in dealing with contractor performance issues if they face financial strain.

What was the track record of Odebrecht Johnson Bros JV prior to this award?

Information regarding the specific track record of the joint venture 'Odebrecht Johnson Bros JV' prior to this 2006 award is not detailed in the provided data snippet. Joint ventures are often formed for specific large projects, pooling resources and expertise from parent companies. Odebrecht and Johnson Brothers are both established construction firms. Odebrecht Construction, Inc. has a history of large-scale civil engineering and infrastructure projects globally and in the US. Johnson Brothers Corporation is also a significant player in heavy civil construction, particularly in road and bridge projects. Their combined capabilities likely made them a strong candidate for this type of disaster recovery work. A comprehensive assessment would require reviewing their individual and joint venture performance on prior contracts, including on-time delivery, budget adherence, and quality of work.

How did the competition level (full and open) influence the pricing for this contract?

A 'full and open' competition generally implies that a wide range of qualified contractors were encouraged to bid, leading to a more competitive environment. In theory, this increased competition should drive down prices as contractors strive to offer their most attractive bids to win the contract. The government benefits from potentially receiving a lower price than it might under a sole-source or limited competition scenario. However, the specific impact on pricing is influenced by factors such as the number of bids received, the complexity of the requirement, the urgency of the need (especially in disaster recovery), and the perceived risk associated with the project. While full and open competition is a positive indicator for price discovery, the actual price achieved is a result of the interplay of these market dynamics.

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: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 ALHAMBRA CIR STE 1400, CORAL GABLES, FL, 33134

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline