Army awards $57.1M for Louisiana civil engineering project, including levees and drainage

Contract Overview

Contract Amount: $57,132,850 ($57.1M)

Contractor: Cajun Industries LLC

Awarding Agency: Department of Defense

Start Date: 2010-02-10

End Date: 2013-11-26

Contract Duration: 1,385 days

Daily Burn Rate: $41.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WBV-16.2 WWHC BAYOU SEGNETTE COMPLEX, WORK INCLUDES LEVEES, T-WALLS, DRAINAGE PUMPING STATION, SECTOR GATE, TEMP RETAINING STRUC, TEMP BYPASS PUMPING, EXCAVATION & BACKFILL, & OTHER INCIDENTAL WORK.

Place of Performance

Location: HARVEY, JEFFERSON County, LOUISIANA, 70058

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $57.1 million to CAJUN INDUSTRIES LLC for work described as: WBV-16.2 WWHC BAYOU SEGNETTE COMPLEX, WORK INCLUDES LEVEES, T-WALLS, DRAINAGE PUMPING STATION, SECTOR GATE, TEMP RETAINING STRUC, TEMP BYPASS PUMPING, EXCAVATION & BACKFILL, & OTHER INCIDENTAL WORK. Key points: 1. Project scope includes critical infrastructure like levees, pump stations, and sector gates, vital for flood control. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The project duration of 1385 days indicates a significant, long-term construction effort. 5. The contractor, Cajun Industries LLC, has experience in heavy civil engineering projects. 6. The geographic focus on Louisiana highlights the need for infrastructure resilience in a flood-prone region.

Value Assessment

Rating: good

The contract value of $57.1 million for a comprehensive civil engineering project involving levees, pump stations, and sector gates appears reasonable given the scope and duration. While specific benchmarks for similar projects are not provided, the scale of work suggests a significant investment in critical infrastructure. The firm-fixed-price contract type offers cost predictability. Further analysis would require comparing the unit costs of specific components (e.g., per linear foot of levee, per pump station installed) against industry standards or other government contracts for comparable work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With 7 bidders participating, this suggests a healthy level of competition for this significant civil engineering project. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is receiving the best value through a market-driven process.

Public Impact

Residents and businesses in Louisiana benefit from enhanced flood protection and improved drainage infrastructure. The project delivers critical civil engineering services, including the construction of levees, a drainage pumping station, and sector gates. The geographic impact is concentrated in Louisiana, a state highly vulnerable to flooding. The construction activities likely created numerous jobs in the heavy and civil engineering sector within Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Delays in construction could impact the timely delivery of flood protection benefits.
Ensuring the long-term durability and effectiveness of the constructed infrastructure requires rigorous quality control.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The contractor has experience in heavy civil engineering, indicating a likelihood of successful project execution.

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 developing and maintaining public infrastructure such as flood control systems, transportation networks, and utilities. The market for such projects is often characterized by large, specialized firms capable of undertaking complex, high-value construction. Government spending in this area is typically driven by public safety needs, economic development, and disaster resilience.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and specialized nature of heavy civil engineering construction, it is common for such large prime contracts to be awarded to larger firms. However, the prime contractor, Cajun Industries LLC, may engage small businesses as subcontractors to fulfill specific portions of the work, contributing to the small business ecosystem indirectly. Further investigation into subcontracting plans would be needed to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Quality assurance surveillance plans (QASPs) would likely be in place to monitor performance, adherence to specifications, and safety standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
FEMA Hazard Mitigation Grants
Infrastructure Investment and Jobs Act Projects
State and Local Flood Control Initiatives

Risk Flags

Potential for environmental impact during construction.
Risk of weather delays impacting project schedule.
Geotechnical challenges in Louisiana's soil conditions.
Long-term maintenance and effectiveness of infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.1 million to CAJUN INDUSTRIES LLC. WBV-16.2 WWHC BAYOU SEGNETTE COMPLEX, WORK INCLUDES LEVEES, T-WALLS, DRAINAGE PUMPING STATION, SECTOR GATE, TEMP RETAINING STRUC, TEMP BYPASS PUMPING, EXCAVATION & BACKFILL, & OTHER INCIDENTAL WORK.

Who is the contractor on this award?

The obligated recipient is CAJUN INDUSTRIES 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 $57.1 million.

What is the period of performance?

Start: 2010-02-10. End: 2013-11-26.

What is the track record of Cajun Industries LLC on similar government contracts?

Cajun Industries LLC has a history of performing significant civil engineering and construction projects for government agencies. While specific details on past performance metrics for this exact contract are not provided, their involvement in projects of similar scale and complexity suggests a capacity to handle demanding infrastructure work. A deeper dive into their contract history, including any past performance reviews or awards/debarments, would offer a more comprehensive understanding of their reliability and quality of work. Their experience in areas like levee construction and heavy civil works is a positive indicator for this project's successful execution.

How does the awarded amount compare to the initial estimated cost or budget for this project?

The provided data does not include the initial estimated cost or budget for the Bayou Segnette Complex project. Therefore, a direct comparison to assess whether the final awarded amount of $57.1 million was significantly higher or lower than anticipated is not possible. Understanding the initial budget would be crucial for evaluating the efficiency of the procurement process and the government's ability to secure the project within expected financial parameters. Without this information, it's difficult to definitively state if the value achieved was optimal from a budgetary perspective.

What are the primary risks associated with the construction of levees and drainage systems in a region like Louisiana?

Construction of levees and drainage systems in Louisiana presents several key risks. Environmental risks include potential impacts on wetlands and ecosystems, requiring careful mitigation and compliance with environmental regulations. Geological risks involve the unstable soil conditions common in coastal Louisiana, which can affect foundation stability and require specialized construction techniques. Weather-related risks are significant, with the potential for hurricanes and heavy rainfall to disrupt construction schedules and damage work in progress. Furthermore, the long-term effectiveness of these structures depends on proper design, construction quality, and ongoing maintenance to combat subsidence and sea-level rise.

What is the expected impact of this project on local workforce and small businesses in Louisiana?

This $57.1 million civil engineering project is expected to have a positive impact on the local workforce in Louisiana by creating numerous skilled and unskilled jobs in construction, engineering, and project management. The duration of the contract (1385 days) suggests sustained employment opportunities. While the prime contract was not a small business set-aside, Cajun Industries LLC, as a large contractor, is likely to engage local small businesses as subcontractors for specialized services or material supply. This subcontracting can provide significant revenue streams and business development opportunities for the small business ecosystem in the region.

How does the competition level (7 bidders) influence the final price and value for taxpayers?

A competition level of 7 bidders for this $57.1 million civil engineering contract is generally considered robust and is highly beneficial for taxpayers. A larger pool of bidders intensifies competition, driving down prices as companies vie for the contract. It also encourages bidders to offer their most competitive technical solutions and pricing strategies. This level of competition increases the likelihood that the government secured the project at a fair market price, maximizing the value for taxpayer dollars. It reduces the risk of paying an inflated price that might occur in a less competitive environment.

What are the long-term implications of this infrastructure investment for the Bayou Segnette area?

The long-term implications of this infrastructure investment for the Bayou Segnette area are primarily related to enhanced flood protection and resilience. The construction of levees, a drainage pumping station, and sector gates aims to mitigate the risk of flooding from storm surges and heavy rainfall, thereby protecting residential areas, businesses, and critical infrastructure. This improved resilience can lead to greater economic stability, reduced damage costs from flood events, and potentially attract further development by assuring a safer environment. The project contributes to the overall goal of safeguarding communities in flood-prone regions.

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: W912P809R0116

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cajun Industries, LLC (UEI: 804422801)

Address: 15635 AIRLINE HWY, BATON ROUGE, LA, 70817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,345,650

Exercised Options: $57,132,850

Current Obligation: $57,132,850

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline