DoD's $42M contract for temporary retaining structures awarded to Boh Bros. Construction shows fair value with 7 bidders
Contract Overview
Contract Amount: $41,968,458 ($42.0M)
Contractor: BOH Bros. Construction CO., L.L.C.
Awarding Agency: Department of Defense
Start Date: 2009-09-24
End Date: 2015-06-23
Contract Duration: 2,098 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TEMPORARY RETAINING STRUCTURES
Place of Performance
Location: BELLE CHASSE, PLAQUEMINES County, LOUISIANA, 70037
Plain-Language Summary
Department of Defense obligated $42.0 million to BOH BROS. CONSTRUCTION CO., L.L.C. for work described as: TEMPORARY RETAINING STRUCTURES Key points: 1. The contract's value appears reasonable given the scope and duration, with a competitive bidding process. 2. Competition dynamics suggest a healthy market for heavy civil engineering construction services. 3. Risk indicators are moderate, primarily related to project execution and potential cost overruns. 4. Performance context is within the typical range for large-scale civil engineering projects. 5. Sector positioning places this contract within the broader Defense construction and infrastructure domain. 6. The firm fixed-price contract type helps mitigate cost escalation risks for the government.
Value Assessment
Rating: good
The contract's total value of approximately $42 million over its life appears to be a fair price for the services rendered, considering the extensive duration of nearly six years and the nature of heavy civil engineering construction. Benchmarking against similar large-scale infrastructure projects managed by the Department of the Army suggests that the pricing falls within an acceptable range. The firm fixed-price structure further supports value for money by capping potential cost increases for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of seven bidders suggests a robust level of competition for this type of specialized construction work. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.
Taxpayer Impact: The strong competition for this contract likely resulted in more favorable pricing for taxpayers, as contractors vied to win the award. It also ensures that the government selects from a pool of capable firms, reducing the risk of selecting a contractor unable to perform.
Public Impact
The primary beneficiaries are the Department of Defense and its operational readiness, through the provision of essential construction services. Services delivered include the construction and maintenance of temporary retaining structures, critical for military installations and operations. The geographic impact is localized to Louisiana (ST: LA), supporting specific military or defense-related infrastructure needs in that region. Workforce implications include the creation of skilled labor jobs in the construction sector within Louisiana.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays common in large construction projects.
- Risk of unforeseen site conditions impacting cost and timeline.
- Contractor performance monitoring is crucial for ensuring quality and adherence to specifications.
Positive Signals
- Firm fixed-price contract type provides cost certainty.
- Full and open competition suggests a competitive market and potentially better pricing.
- Award to an established contractor with experience in heavy civil engineering.
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 characterized by large-scale infrastructure projects, often involving significant capital investment and specialized expertise. Comparable spending benchmarks in this sector would involve other large federal construction contracts for military bases, transportation infrastructure, or public works projects, which can range from tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. Therefore, the direct impact on the small business ecosystem is likely minimal, with the primary award going to a larger entity. However, the prime contractor may engage small businesses as subcontractors, which would offer indirect opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports are not publicly available.
Related Government Programs
- Military Construction
- Defense Infrastructure Projects
- Army Corps of Engineers Contracts
- Heavy Civil Engineering Services
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays impacting operational readiness.
- Contractor performance and quality assurance are critical.
Tags
construction, department-of-defense, department-of-the-army, louisiana, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-civil-engineering, infrastructure, defense-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to BOH BROS. CONSTRUCTION CO., L.L.C.. TEMPORARY RETAINING STRUCTURES
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 $42.0 million.
What is the period of performance?
Start: 2009-09-24. End: 2015-06-23.
What is the track record of Boh Bros. Construction Co., L.L.C. with federal contracts, particularly with the Department of Defense?
Boh Bros. Construction Co., L.L.C. has a history of federal contracting, primarily with the Department of Defense and the Army Corps of Engineers. Their experience often involves large-scale civil engineering and construction projects, including infrastructure development, dredging, and marine construction. While specific performance metrics for all past contracts are not detailed here, their ability to secure and execute significant federal awards suggests a level of established capability and experience. Reviewing past contract performance evaluations (e.g., CPARS) would provide a more granular understanding of their reliability, quality of work, and adherence to schedules and budgets on previous federal engagements.
How does the per-unit cost or value proposition of this contract compare to similar temporary retaining structure projects?
Direct per-unit cost comparison for temporary retaining structures is challenging without specific details on the type, scale, and complexity of the structures built under this contract. The total contract value of approximately $42 million over nearly six years suggests a significant undertaking. However, the firm fixed-price nature and the competitive bidding process involving seven bidders indicate that the government likely secured a reasonably competitive price. To benchmark effectively, one would need to compare the cost per linear foot, cubic yard of material, or square foot of area retained against similar projects undertaken by other federal agencies or state transportation departments, considering regional labor and material cost differences.
What are the primary risks associated with this type of heavy civil engineering construction contract for the government?
The primary risks for the government in heavy civil engineering construction contracts like this include potential cost overruns due to unforeseen site conditions (e.g., unexpected soil geology, underground utilities), schedule delays caused by weather, labor disputes, or supply chain issues, and performance deficiencies where the completed work does not meet specifications or quality standards. For a firm fixed-price contract, the risk of cost overrun is primarily borne by the contractor, but delays can still impact the government's operational timelines. Ensuring robust contract oversight, clear specifications, and thorough site investigations prior to bidding are key mitigation strategies.
How effective has the Department of the Army been in managing similar large-scale civil engineering contracts in the past?
The Department of the Army, often through the U.S. Army Corps of Engineers, has extensive experience managing large-scale civil engineering contracts. Historically, their performance has been mixed, with many successful projects completed on time and within budget, alongside notable instances of significant cost increases and schedule delays. Factors influencing effectiveness include the complexity of the project, the quality of initial planning and design, the effectiveness of contractor selection and oversight, and the ability to adapt to unforeseen circumstances. The success of this specific contract would depend on diligent project management and adherence to best practices in contract administration.
What has been the historical spending trend for temporary retaining structures or similar civil engineering services by the Department of Defense?
Historical spending on temporary retaining structures and broader civil engineering services by the Department of Defense is substantial, reflecting the continuous need for infrastructure maintenance, upgrades, and new construction at military installations worldwide. While specific figures for 'temporary retaining structures' alone are not readily available, the DoD consistently allocates billions of dollars annually to construction and engineering services. This spending fluctuates based on military readiness requirements, base realignment and closure initiatives, and infrastructure modernization programs. Contracts like this one represent a segment of that larger, ongoing investment in defense infrastructure.
What is the significance of the 'Other Heavy and Civil Engineering Construction' NAICS code in the context of federal spending?
The 'Other Heavy and Civil Engineering Construction' (NAICS 237990) code signifies contracts related to projects that do not fit into more specific heavy and civil engineering categories, such as highway construction or water treatment facilities. This often includes specialized work like marine construction, dams, levees, tunnels, and, as in this case, retaining structures. Federal spending under this code is crucial for national infrastructure development, military base support, and environmental projects. It represents a significant portion of the government's investment in physical infrastructure, requiring specialized contractors and often involving complex engineering challenges.
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
Solicitation ID: W912P809R0075
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 730 S TONTI ST, NEW ORLEANS, LA, 70119
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,968,458
Exercised Options: $41,968,458
Current Obligation: $41,968,458
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-24
Current End Date: 2015-06-23
Potential End Date: 2015-06-23 00:00:00
Last Modified: 2020-10-03
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- 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! ! — $66.9M (Department of Defense)
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