Army awards $14.6M for heavy civil engineering construction, highlighting a 5-bidder competition

Contract Overview

Contract Amount: $14,649,603 ($14.6M)

Contractor: Ceres Caribe Inc

Awarding Agency: Department of Defense

Start Date: 2006-06-14

End Date: 2012-03-31

Contract Duration: 2,117 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200608!602353!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0162 !A!N! !N! ! !20060614!20061017!081151354!081151354!081151354!N!CERES CARIBE, INC !CALLE UNION #15 !LAJAS !PR!00667!99075!075!22!PLAQUEMINES !PLAQUEMINES !LOUISIANA !+000014123605!N!N!000014123605!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!005!B! !D!N!Z! ! !N!B!N!Y! ! !A! !A!A!000!A!B!Y!P!N! ! ! ! !0001! !

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to CERES CARIBE INC for work described as: 200608!602353!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0162 !A!N! !N! ! !20060614!20061017!081151354!081151354!081151354!N!CERES CARIBE, INC !CALLE UNION #15 !LAJAS !PR!00667!99075!075!22!PLAQUEMINES !PLAQ… Key points: 1. Contract awarded for heavy civil engineering construction services. 2. Demonstrates a competitive bidding process with 5 offers received. 3. Contract duration of over 5 years suggests a significant project scope. 4. Firm Fixed Price contract type indicates cost certainty for the government. 5. Awarded to CERES CARIBE INC, a contractor with a track record in this sector. 6. Geographic focus on Louisiana, specifically Plaquemines Parish.

Value Assessment

Rating: good

The contract value of $14.6 million for heavy civil engineering construction appears reasonable given the 5-year duration and the nature of the work. Benchmarking against similar Army Corps of Engineers projects in Louisiana would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost overruns, but the final cost will depend on the specific scope of work executed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates a healthy level of market interest and suggests that the Army Corps of Engineers sought a broad range of potential contractors. The presence of multiple bidders generally leads to more competitive pricing and a wider selection of qualified firms.

Taxpayer Impact: A full and open competition with multiple bidders is favorable for taxpayers as it increases the likelihood of securing the best value and competitive pricing for the services rendered.

Public Impact

The primary beneficiary is the Department of the Army, specifically the U.S. Engineer District New Orleans, for critical infrastructure or construction needs. Services delivered likely involve heavy civil engineering construction, potentially including projects related to flood control, navigation, or other civil works in the region. The geographic impact is concentrated in Louisiana, with specific mention of Plaquemines Parish, an area prone to environmental and infrastructure challenges. Workforce implications include job creation for skilled construction labor and support personnel in the local Louisiana economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction contracts, impacting final cost.
Reliance on a single contractor for an extended period could limit flexibility.
Ensuring sustained quality and performance over the contract's multi-year duration.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Award to an established entity implies familiarity with relevant regulations and practices.
Long contract duration allows for project continuity and potential economies of scale.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically under NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector is crucial for national infrastructure development, including projects related to water management, transportation, and energy. The U.S. Army Corps of Engineers is a major procurer in this space, often awarding large, complex contracts for public works and defense-related infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award was made to CERES CARIBE, INC. Further analysis would be needed to determine if small business participation was encouraged through subcontracting opportunities or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army and the U.S. Army Corps of Engineers. Accountability measures are embedded in the contract's performance requirements and payment schedules. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may vary in public accessibility. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Louisiana Infrastructure Projects
Heavy and Civil Engineering Construction Contracts
Federal Disaster Recovery and Resilience Projects

Risk Flags

Long contract duration increases risk of cost escalation or performance degradation.
Potential for unforeseen site conditions in civil engineering projects.
Firm Fixed Price contracts can strain contractor finances if costs rise unexpectedly.
Need for robust oversight to ensure quality and adherence to scope over multiple years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to CERES CARIBE INC. 200608!602353!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0162 !A!N! !N! ! !20060614!20061017!081151354!081151354!081151354!N!CERES CARIBE, INC !CALLE UNION #15 !LAJAS !PR!00667!99075!075!22!PLAQUEMINES !PLAQUEMINES !LOUISIANA !+000014123605!N!N!000014123605!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CERES CARIBE 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 $14.6 million.

What is the period of performance?

Start: 2006-06-14. End: 2012-03-31.

What specific types of heavy civil engineering construction projects has CERES CARIBE, INC. performed for the federal government previously?

Analyzing CERES CARIBE, INC.'s past performance requires accessing federal procurement databases like SAM.gov or FPDS. While this specific contract (W912P806C0162) is for 'ALL OTHER NON-BUILDING FACILITIES' under NAICS 237990, it's essential to look at their award history. Common projects within this NAICS code for the Army Corps of Engineers include levee construction and repair, dredging, port and harbor improvements, flood control structures, and potentially road or bridge work related to military installations. A review of their contract history would reveal the scale, complexity, and specific nature of their prior federal work, providing insight into their capabilities and experience relevant to this $14.6 million award.

How does the $14.6 million contract value compare to the average cost of similar heavy civil engineering projects managed by the Army Corps of Engineers in Louisiana?

Benchmarking the $14.6 million award requires comparing it to similar projects within the same geographic region and sector. The Army Corps of Engineers manages a wide array of projects, from small repairs to massive infrastructure undertakings. For projects of similar scope and duration (over 5 years), a value of $14.6 million might be considered moderate. However, without specific details on the project's scope (e.g., levee construction vs. facility upgrades), a precise comparison is difficult. Factors like material costs, labor rates in Louisiana, and the complexity of the engineering challenges significantly influence project costs. A detailed analysis would involve reviewing recent Army Corps of Engineers contracts in Louisiana for NAICS 237990 to establish a more accurate cost range.

What are the primary risks associated with a firm fixed-price contract of this duration (over 5 years) for heavy civil engineering construction?

The primary risks with a firm fixed-price (FFP) contract of this duration for heavy civil engineering construction revolve around potential cost overruns for the contractor and scope definition for the government. For the contractor, unforeseen increases in material costs (e.g., steel, concrete), labor shortages, or unexpected site conditions (geotechnical issues, environmental discoveries) can erode profit margins significantly, especially over a multi-year period. For the government, the risk lies in ensuring the contract's scope is precisely defined and that any necessary changes are managed through a rigorous change order process. If the scope is not well-defined initially, the contractor may be incentivized to perform minimal work, or the government may face costly change orders to achieve desired outcomes. Additionally, contractor performance degradation over a long period is a risk that requires diligent oversight.

What does the presence of 5 bidders in a full and open competition suggest about the market for heavy civil engineering construction services in Louisiana?

The fact that 5 bids were received for this $14.6 million contract under full and open competition suggests a reasonably robust and competitive market for heavy civil engineering construction services in Louisiana. It indicates that multiple firms possess the necessary qualifications, capacity, and interest to undertake projects of this nature for the Army Corps of Engineers. This level of competition is generally positive for the government, as it increases the likelihood of receiving competitive pricing and a wider array of technical solutions. It also suggests that the barriers to entry for qualified firms are not prohibitively high, allowing for a healthy ecosystem of contractors to participate in federal procurements.

Are there any specific performance metrics or key performance indicators (KPIs) typically associated with Army Corps of Engineers heavy civil engineering contracts?

Yes, Army Corps of Engineers heavy civil engineering contracts typically include stringent performance metrics and KPIs. These often focus on schedule adherence (meeting milestones and completion dates), quality of work (compliance with specifications, defect rates), safety performance (incident rates, adherence to safety protocols), and environmental compliance. For construction projects, specific KPIs might include concrete strength, compaction density, dimensional accuracy, and adherence to environmental permits. The contract will outline specific deliverables, acceptance criteria, and reporting requirements. Failure to meet these KPIs can result in penalties, withholding of payments, or even contract termination, underscoring the importance of robust oversight and contractor performance management.

What is the historical spending trend for NAICS code 237990 (Other Heavy and Civil Engineering Construction) by the Department of the Army?

The Department of the Army, particularly through the Army Corps of Engineers, is a significant spender within the 'Other Heavy and Civil Engineering Construction' (NAICS 237990) category. Historical spending trends show consistent and substantial investment in this sector, driven by the Corps' mission in areas like flood control, navigation, military construction support, and environmental restoration. Spending often fluctuates based on national priorities, infrastructure initiatives, disaster recovery needs (e.g., post-hurricane levee repairs), and annual appropriations. While specific dollar amounts vary year-to-year, the Army consistently ranks among the top federal agencies procuring services under this NAICS code, reflecting the ongoing need for critical infrastructure development and maintenance.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE UNION #15, LAJAS, PR, 00667

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline