Department of Defense awards $349.5M contract for preconstruction services to Cajun Industries LLC

Contract Overview

Contract Amount: $349,499,344 ($349.5M)

Contractor: Cajun Industries LLC

Awarding Agency: Department of Defense

Start Date: 2010-02-23

End Date: 2011-12-23

Contract Duration: 668 days

Daily Burn Rate: $523.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE - PRECONSTRUCTION SVS

Place of Performance

Location: VIOLET, SAINT BERNARD County, LOUISIANA, 70092

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $349.5 million to CAJUN INDUSTRIES LLC for work described as: BASE - PRECONSTRUCTION SVS Key points: 1. Contract value of $349.5M for preconstruction services indicates significant investment in infrastructure projects. 2. Awarded to Cajun Industries LLC, suggesting a focus on established contractors for large-scale civil engineering. 3. The definitive contract type implies a long-term relationship for ongoing or phased construction needs. 4. Fixed-price contract structure aims to control costs and provide budget certainty for the government. 5. The contract duration of 668 days points to a substantial project timeline. 6. Geographic focus on Louisiana (LA) may indicate regional infrastructure development priorities.

Value Assessment

Rating: good

The contract value of $349.5 million for preconstruction services is substantial, reflecting the scale of anticipated construction projects. Benchmarking this against similar large-scale civil engineering contracts would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature suggests an effort to establish clear cost expectations upfront. The provided data does not include specific unit costs or detailed service breakdowns to compare against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bids suggests a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially other federal agencies requiring significant civil engineering and construction support. Services delivered include essential preconstruction activities, laying the groundwork for future large-scale construction projects. The geographic impact is centered in Louisiana (LA), suggesting a focus on infrastructure development or maintenance within that state. Workforce implications include potential job creation in the construction and engineering sectors in Louisiana, supporting local economies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates in preconstruction are inaccurate.
Dependence on a single contractor for a large value contract could pose risks if performance issues arise.
Scope creep is a risk in long-term construction contracts, potentially increasing final costs beyond initial projections.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process, likely resulting in a fair market price.
Award to an established entity like Cajun Industries LLC may indicate a track record of successful project completion.

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 critical for national infrastructure development, including projects like highways, bridges, and utility systems. The contract value of $349.5 million positions it as a significant undertaking within this sector, likely involving complex planning and execution phases.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value definitive contract awarded through full and open competition, the primary contractor, Cajun Industries LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. The firm fixed-price nature provides some inherent cost control. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Infrastructure Development
Heavy Civil Engineering Projects
Department of the Army Contracts
Federal Infrastructure Spending

Risk Flags

Large contract value
Definitive contract type
Potential for scope creep
Limited public detail on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $349.5 million to CAJUN INDUSTRIES LLC. BASE - PRECONSTRUCTION SVS

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 $349.5 million.

What is the period of performance?

Start: 2010-02-23. End: 2011-12-23.

What is the historical spending pattern of the Department of Defense on preconstruction services, and how does this contract compare?

The Department of Defense (DoD) consistently allocates significant funds towards infrastructure and construction projects, including preconstruction services. While specific historical data for 'preconstruction services' alone is not readily available in aggregated public databases, it is a critical component of larger capital investments. Contracts for heavy and civil engineering construction, which encompass preconstruction, often run into hundreds of millions or even billions of dollars annually across various branches like the Army, Navy, and Air Force. This $349.5 million contract for Cajun Industries LLC appears to be a substantial, but not unprecedented, investment for a single project's initial phase, reflecting the DoD's ongoing need to maintain and modernize its vast infrastructure portfolio.

What is Cajun Industries LLC's track record with the federal government, particularly the Department of Defense?

Cajun Industries LLC has a history of performing work for the federal government, including contracts with the Department of Defense and other agencies. Publicly available contract databases show multiple awards to Cajun Industries for various construction and engineering services. While a comprehensive review of their entire federal contracting history would require deeper analysis, their ability to secure a $349.5 million definitive contract for preconstruction services suggests a demonstrated capacity and a level of trust from the awarding agency. Further investigation into past performance reviews, past due diligence, and any history of contract disputes or awards would provide a more complete picture of their track record.

How does the firm fixed-price contract type influence risk allocation and potential for cost savings in this preconstruction contract?

A firm fixed-price (FFP) contract shifts most of the risk to the contractor, Cajun Industries LLC, in this scenario. The government agrees to pay a set price, regardless of the contractor's actual costs incurred. This provides significant budget certainty for the Department of the Army. For the contractor, it incentivizes efficiency and cost control to maximize profit. Potential cost savings for the government are realized if the contractor can perform the preconstruction services effectively and within the agreed-upon price. However, if unforeseen complexities arise that significantly increase the contractor's costs, the contractor bears that burden, which could potentially lead to disputes or a reluctance to bid on future FFP contracts if margins are too thin.

What are the potential implications of awarding a large definitive contract for preconstruction services in Louisiana?

Awarding a $349.5 million definitive contract for preconstruction services in Louisiana has several implications. Economically, it signifies a major investment in the state's infrastructure, likely stimulating local employment in skilled trades, engineering, and project management. It also positions Cajun Industries LLC, a Louisiana-based company, for significant revenue and potential expansion of its capabilities. From a project execution standpoint, having a local contractor can sometimes streamline logistics and understanding of regional conditions. However, it also concentrates a large portion of federal spending in one geographic area and with one primary contractor, which could raise questions about broader economic impact distribution and potential over-reliance on a single entity for critical services.

Are there any specific performance metrics or deliverables associated with this preconstruction services contract that can be assessed?

The provided data summary does not detail specific performance metrics or deliverables for this preconstruction services contract. Typically, preconstruction services involve activities such as detailed cost estimating, constructability reviews, scheduling, value engineering, site investigations, and development of preliminary designs or plans. Performance would likely be assessed based on the accuracy of estimates, the quality and completeness of schedules, the effectiveness of constructability reviews in identifying potential issues, and adherence to project milestones. Without the full contract statement of work, a granular assessment of performance metrics is not possible from this summary alone.

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: W912P809R0032

Offers Received: 5

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: $349,499,344

Exercised Options: $349,499,344

Current Obligation: $349,499,344

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline