Army's $33.5M Mississippi River pile dike repairs contract awarded to CAYO LLC in 2009

Contract Overview

Contract Amount: $33,464,013 ($33.5M)

Contractor: Cayo LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-11

End Date: 2011-05-09

Contract Duration: 605 days

Daily Burn Rate: $55.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3135::TAS RECOVERYPROJECT#::323047::RP# MISSISSIPPI RIVER, BATON ROUGE TO THE GULF OF MEXICO, SWP 2009 PILE DIKE REPAIRS, MILE 18.83 BHP TO MILE 20.14 BHP, FIRST CONTRACT, PLAQUEMINES PARISH

Place of Performance

Location: BELLE CHASSE, PLAQUEMINES County, LOUISIANA, 70037

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to CAYO LLC for work described as: TAS::96 3135::TAS RECOVERYPROJECT#::323047::RP# MISSISSIPPI RIVER, BATON ROUGE TO THE GULF OF MEXICO, SWP 2009 PILE DIKE REPAIRS, MILE 18.83 BHP TO MILE 20.14 BHP, FIRST CONTRACT, PLAQUEMINES PARISH Key points: 1. Contract awarded for critical infrastructure repair on the Mississippi River. 2. Project involved pile dike repairs to maintain navigation and prevent erosion. 3. The contract was awarded through full and open competition. 4. Duration of the contract was 605 days. 5. The contract was a firm-fixed-price type, indicating defined scope and cost. 6. The project was located in Plaquemines Parish, Louisiana.

Value Assessment

Rating: fair

The contract value of $33.5 million for pile dike repairs appears within a reasonable range for large-scale civil engineering projects of this nature. However, without specific details on the scope of work, material costs, and labor rates at the time, a precise value-for-money assessment is challenging. Benchmarking against similar Army Corps of Engineers projects for riverine infrastructure maintenance would provide a clearer picture of cost-effectiveness. The firm-fixed-price structure suggests an attempt to control costs, but the final expenditure relative to initial estimates is not detailed here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally promotes competitive pricing and allows the government to select the best value offer. The open competition is a positive indicator for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which benefits taxpayers by potentially lowering the overall cost of the project compared to sole-source or limited solicitations.

Public Impact

Benefits the U.S. Army Corps of Engineers in maintaining vital inland waterways. Ensures continued navigation and reduces flood risk for the Mississippi River. Supports economic activity by maintaining a key transportation artery. Impacts the local workforce in Plaquemines Parish, Louisiana, through construction jobs. Contributes to the environmental stability of the riverbanks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess project success beyond completion.
No information provided on potential cost overruns or schedule delays.
Limited insight into the specific technical challenges encountered and overcome.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps in cost control and predictability.
Project addresses critical infrastructure needs for national navigation and flood control.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine and riverine infrastructure. The U.S. Army Corps of Engineers is a major client for such projects, investing billions annually in maintaining and improving the nation's waterways. The market for these services is characterized by specialized engineering firms capable of undertaking large-scale, complex construction projects in challenging environments. Comparable spending benchmarks would involve other Army Corps projects for dike construction, levee repair, and port infrastructure development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, CAYO LLC, would have had the discretion to subcontract portions of the work, but the extent to which small businesses were involved in that subcontracting is not detailed in this record. The absence of a small business set-aside means the primary competition was open to all eligible firms, potentially larger, established construction companies.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the U.S. Army Corps of Engineers, the contracting agency. As a public works project, it would be subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award announcements and public reporting, though specific day-to-day oversight details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Navigation Projects
Mississippi River Management and Maintenance
Flood Control Infrastructure Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for unforeseen environmental conditions impacting project schedule and cost.
Reliance on specialized equipment and skilled labor, which may face availability constraints.
Importance of the project to navigation necessitates strict adherence to timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to CAYO LLC. TAS::96 3135::TAS RECOVERYPROJECT#::323047::RP# MISSISSIPPI RIVER, BATON ROUGE TO THE GULF OF MEXICO, SWP 2009 PILE DIKE REPAIRS, MILE 18.83 BHP TO MILE 20.14 BHP, FIRST CONTRACT, PLAQUEMINES PARISH

Who is the contractor on this award?

The obligated recipient is CAYO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2009-09-11. End: 2011-05-09.

What was the specific scope of work for the pile dike repairs, and what were the key performance indicators (KPIs) used to measure success?

The contract specified repairs to pile dikes between mile 18.83 and 20.14 BHP on the Mississippi River in Plaquemines Parish, Louisiana. This likely involved reinforcing or replacing existing structures designed to guide water flow, prevent bank erosion, and maintain channel depth for navigation. Key performance indicators would typically include structural integrity of the repaired dikes, adherence to specified dimensions and materials, and successful maintenance of navigation channel parameters as defined by the Army Corps of Engineers. However, specific KPIs and detailed scope documentation are not publicly available in this summary data.

How did the final cost of this contract compare to the initial estimated cost, and were there any significant change orders?

The provided data shows the awarded amount was $33,464,012.50. Without access to the original solicitation's estimated cost or a contract close-out report, it is impossible to determine if the final cost deviated significantly from the estimate. Similarly, information regarding change orders, which could alter the scope and cost, is not available in this dataset. Firm-fixed-price contracts aim to limit cost increases, but unforeseen conditions or scope adjustments can still lead to modifications.

What was the track record of CAYO LLC in undertaking similar large-scale civil engineering projects prior to or following this contract?

Information on CAYO LLC's specific track record for large-scale civil engineering projects is not detailed in the provided data. To assess their capability, one would need to review their past performance on similar Army Corps of Engineers or other federal/state infrastructure contracts. This would involve examining project complexity, contract values, on-time and on-budget delivery history, and client satisfaction ratings. A comprehensive review of their contract history and performance evaluations would be necessary for a thorough assessment.

Were there any notable risks identified during the bidding process or contract execution, and how were they mitigated?

The provided data does not explicitly list identified risks or mitigation strategies for this contract. However, typical risks for such projects include environmental conditions (e.g., weather, river currents), material availability, labor shortages, and unforeseen subsurface conditions. Mitigation strategies often involve detailed site investigations, robust contract language, contingency planning, and close monitoring by the contracting officer's representative. The firm-fixed-price nature of the contract places much of the cost risk on the contractor, incentivizing them to manage these factors effectively.

How does the spending on this specific pile dike repair project compare to the Army Corps of Engineers' overall budget for Mississippi River maintenance and infrastructure over the period 2009-2011?

This contract represents a significant, but likely small, portion of the Army Corps of Engineers' overall spending on Mississippi River maintenance and infrastructure during the 2009-2011 period. The Corps manages a vast network of waterways, locks, dams, and levees, with annual budgets often in the billions of dollars for civil works. While $33.5 million is a substantial sum for a single project, the total expenditure for the entire Mississippi River system, encompassing numerous projects and ongoing operations, would be considerably higher. Specific comparative budget figures would require accessing the Army Corps' historical budget and expenditure reports.

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: SEALED BID

Solicitation ID: W912P809B0067

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 115 S MAIN ST STE 211, CLEBURNE, TX, 76033

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,464,013

Exercised Options: $33,464,013

Current Obligation: $33,464,013

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline