Army awards $17M construction contract for hurricane recovery, highlighting fixed-price terms and full competition

Contract Overview

Contract Amount: $16,994,701 ($17.0M)

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

Awarding Agency: Department of Defense

Start Date: 2006-02-15

End Date: 2007-08-25

Contract Duration: 556 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200606!601105!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0103 !A!N! !N! ! !20060215!20060914!006947386!006947386!006947386!N!BOH BROS CONSTRUCTION CO, LLC !730 S TONTI ST !NEW ORLEANS !LA!70119!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000014817225!N!N!000014817225!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!005!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to BOH BROS. CONSTRUCTION CO., L.L.C. for work described as: 200606!601105!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0103 !A!N! !N! ! !20060215!20060914!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 under full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type may offer cost certainty for the government, but shifts risk to the contractor. 3. The contract duration of over 500 days indicates a substantial project scope. 4. Awarded by the Army Corps of Engineers, a frequent issuer of large construction contracts. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The contract was awarded in 2006, suggesting it relates to post-hurricane recovery efforts.

Value Assessment

Rating: good

The contract value of approximately $17 million for heavy civil engineering construction appears reasonable given the project's scope and duration. Without specific benchmarks for similar hurricane recovery projects, a direct per-unit cost comparison is difficult. However, the fixed-price nature of the award suggests that the contractor assumed the risk of cost overruns, which can be a positive indicator of value if the final cost remains within the awarded amount. The competition level also suggests that pricing was likely scrutinized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates five bids were received, suggesting a healthy level of competition for this project. A competitive bidding process generally leads to more favorable pricing for the government as contractors vie for the award.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The presence of multiple bidders helps ensure that the government is not overpaying for the construction services.

Public Impact

The primary beneficiaries are likely residents and businesses in the New Orleans area impacted by Hurricane Katrina, through the restoration of essential infrastructure. The contract delivers heavy and civil engineering construction services, crucial for rebuilding damaged facilities and infrastructure. The geographic impact is focused on New Orleans, Louisiana, an area severely affected by the hurricane. The contract supports the construction workforce in the New Orleans region, providing employment opportunities for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise, despite the fixed-price structure.
Contractor performance risk associated with the complexity and duration of the construction project.
Dependency on the contractor's ability to manage resources and subcontractors effectively.
Potential for delays impacting the timeline for infrastructure restoration.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
Contract awarded to a specific entity (BOH BROS CONSTRUCTION CO, LLC) with a clear scope of work.
The project addresses critical infrastructure needs following a major natural disaster.
The contract duration suggests a significant and comprehensive approach to recovery.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which includes projects like infrastructure development, utility construction, and site preparation. The market for such services is substantial, particularly in regions recovering from natural disasters. The Army Corps of Engineers is a major procurer in this sector, often awarding large-scale contracts for public works and disaster relief. Comparable spending benchmarks would typically involve analyzing other large-scale infrastructure projects in the region or similar disaster recovery efforts.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if there were specific subcontracting requirements for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large construction contracts often involve a tiered subcontracting structure where prime contractors may engage smaller firms for specialized tasks, potentially benefiting the small business sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver the specified work within the agreed price. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports may not always be publicly available.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Army Corps of Engineers Construction Contracts
Louisiana Infrastructure Projects
Federal Fixed-Price Construction Awards
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for cost overruns despite fixed-price structure.
Contractor performance and delivery timeline risks.
Complexity of post-disaster reconstruction projects.
Ensuring adequate oversight for large-scale construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to BOH BROS. CONSTRUCTION CO., L.L.C.. 200606!601105!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0103 !A!N! !N! ! !20060215!20060914!006947386!006947386!006947386!N!BOH BROS CONSTRUCTION CO, LLC !730 S TONTI ST !NEW ORLEANS !LA!70119!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000014817225!N!N!000014817225!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 $17.0 million.

What is the period of performance?

Start: 2006-02-15. End: 2007-08-25.

What is the track record of BOH BROS CONSTRUCTION CO, LLC in handling large federal construction contracts, particularly those related to disaster recovery?

BOH BROS CONSTRUCTION CO, LLC, based in New Orleans, has a history of engaging in construction projects within the region. While this specific contract highlights their involvement in post-Hurricane Katrina recovery, a comprehensive assessment of their track record would require examining their performance on other federal and non-federal contracts. This includes evaluating their on-time delivery, adherence to budget (especially for fixed-price contracts), quality of work, and any history of disputes or contract modifications. Their longevity in the industry and the types of projects they have undertaken provide further context for their capabilities in managing complex federal construction endeavors.

How does the awarded amount of approximately $17 million compare to similar heavy and civil engineering construction contracts awarded by the Army Corps of Engineers for disaster recovery in the Gulf

Comparing this $17 million contract requires context regarding the specific scope of work and the scale of the disaster. Following Hurricane Katrina, numerous large-scale reconstruction and repair contracts were awarded across the Gulf Coast. Projects could range from debris removal and temporary housing to the rebuilding of critical infrastructure like roads, bridges, and levees. A contract of this size would likely cover a significant component of a larger recovery effort. To benchmark effectively, one would need to analyze contracts with similar objectives, geographic locations, and timeframes, considering factors like inflation and the specific engineering challenges involved in each project.

What are the primary risks associated with this fixed-price construction contract, and what mitigation strategies might be in place?

The primary risk for the government in a fixed-price contract is that the contractor may not be able to complete the work within the agreed-upon price due to unforeseen circumstances, leading to potential disputes or requests for modification. For the contractor, the risk is bearing the cost of any overruns. Mitigation strategies for the government include thorough pre-award assessments of the contractor's capabilities and the project's complexity, clear and detailed contract specifications, and robust contract administration to monitor progress and identify potential issues early. For the contractor, risk mitigation involves detailed cost estimation, contingency planning, and effective project management.

Given the contract was awarded in 2006 for work ending in 2007, how effective was this specific project in contributing to the overall Hurricane Katrina recovery efforts in New Orleans?

Assessing the effectiveness of this specific contract in the broader Hurricane Katrina recovery requires detailed post-project analysis, which is not directly available from the award data alone. However, its role as a heavy and civil engineering construction project suggests it addressed critical infrastructure needs. If the project successfully restored or improved essential facilities, it would have directly contributed to the region's functional recovery and the resumption of economic and social activities. The duration and value indicate a substantial undertaking, implying a significant impact on the targeted area. Further evaluation would involve examining project completion reports, community impact assessments, and the long-term resilience of the restored infrastructure.

What does the number of bids (5) suggest about the market conditions and contractor interest for heavy civil engineering construction in New Orleans post-Katrina?

Receiving five bids for this contract suggests a moderately competitive market for heavy and civil engineering construction services in New Orleans following Hurricane Katrina. This number indicates that multiple firms were interested and capable of undertaking the work, which is generally positive for price discovery and value for the government. However, the optimal number of bids can vary depending on project complexity and specialization. A higher number of bids might indicate broader market interest and potentially lower prices, while fewer bids could suggest a more specialized niche or limited contractor availability in the immediate post-disaster environment.

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: 5

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