Army awards $17.4M levee construction contract to L&A Contracting Company for Louisiana project

Contract Overview

Contract Amount: $17,389,343 ($17.4M)

Contractor: L & a Contracting Company

Awarding Agency: Department of Defense

Start Date: 2010-05-13

End Date: 2011-09-13

Contract Duration: 488 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CITRUS LAKEFRONT LEVEE, LPV 106 EAST

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to L & A CONTRACTING COMPANY for work described as: CITRUS LAKEFRONT LEVEE, LPV 106 EAST Key points: 1. Contract value appears reasonable for the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 488 days indicates a significant project timeline. 4. Fixed-price contract type shifts risk to the contractor. 5. Project location in Louisiana aligns with regional infrastructure needs. 6. The North American Industry Classification System (NAICS) code 237990 covers specialized heavy construction.

Value Assessment

Rating: good

The contract value of $17.4 million for levee construction seems aligned with typical costs for similar large-scale civil engineering projects. Benchmarking against other Army Corps of Engineers projects of comparable scope and complexity would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor assumed the primary risk for cost overruns, which can be a positive indicator of value if the project is completed within budget.

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 bids. The presence of 9 bidders suggests a healthy level of competition for this project. A competitive environment generally leads to more favorable pricing for the government and encourages contractors to offer their best value propositions.

Taxpayer Impact: The robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers, as multiple companies vied to secure the work by offering competitive pricing and technical solutions.

Public Impact

The primary beneficiaries are residents and businesses in the Citrus Lakefront area of Louisiana, who will receive improved flood protection. The project delivers essential heavy civil engineering construction services, specifically the construction of a levee. The geographic impact is localized to St. Tammany Parish, Louisiana. The project likely supports local employment in the construction sector during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large civil engineering projects if not managed tightly.
Weather-related delays are a common risk in construction projects, especially in coastal Louisiana.
Ensuring compliance with environmental regulations during construction can be complex.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive market.
The contractor, L&A Contracting Company, has experience in heavy civil construction.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on flood control infrastructure. The market for such projects is often driven by government funding for public works and disaster resilience. Comparable spending benchmarks would involve analyzing other levee construction, flood wall projects, or similar Army Corps of Engineers civil works contracts.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities were made available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work. Transparency is generally facilitated through contract award databases and public reporting, though specific oversight reports are not detailed here.

Related Government Programs

Army Corps of Engineers Civil Works Program
Federal Flood Control Projects
Louisiana Infrastructure Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for weather delays in Louisiana
Complexity of civil engineering projects
Environmental compliance requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to L & A CONTRACTING COMPANY. CITRUS LAKEFRONT LEVEE, LPV 106 EAST

Who is the contractor on this award?

The obligated recipient is L & A CONTRACTING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2010-05-13. End: 2011-09-13.

What is the track record of L&A Contracting Company on similar federal projects?

L&A Contracting Company has a history of performing heavy civil engineering and construction projects. While specific details on past federal projects are not provided in this data snippet, their involvement in a $17.4 million Army contract suggests they possess the capacity and experience required for such undertakings. A deeper dive into their contract history with federal agencies, particularly the Army Corps of Engineers, would reveal their performance on similar levee, dam, or flood control structures, including any past performance issues or commendations. Examining past project completion times, budget adherence, and quality of work would offer a more comprehensive view of their reliability.

How does the awarded price compare to similar levee construction projects?

The awarded price of $17.4 million for the Citrus Lakefront Levee project needs to be benchmarked against comparable projects to assess value. Factors such as project scope, complexity, location-specific environmental conditions, and the specific type of levee construction (e.g., earthen, concrete) significantly influence costs. Without data on similar projects undertaken by the Army Corps of Engineers or other agencies in the same region or with similar geological challenges, a precise comparison is difficult. However, the presence of 9 bidders in a full and open competition suggests that the price was likely competitive within the market for this type of specialized heavy civil engineering work.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this firm fixed-price construction contract include potential cost overruns for the contractor if unforeseen site conditions arise, such as difficult soil strata or unexpected environmental challenges. Schedule delays due to weather, material availability, or labor issues are also significant risks, particularly in a region like Louisiana known for its climate. Furthermore, ensuring compliance with stringent environmental regulations during construction and managing the logistical complexities of a large-scale civil engineering project present inherent risks. The government's main risk is ensuring the contractor meets quality standards and project specifications.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally effective in managing costs for the government in construction projects like this levee build. Under an FFP contract, the contractor assumes the majority of the financial risk and is obligated to complete the work for a predetermined price. This incentivizes the contractor to control costs and work efficiently. For the government, it provides a high degree of cost certainty, as the final price is established upfront, barring any change orders. This structure is particularly suitable when the project scope is well-defined and the risks are understood, as is often the case with established civil engineering projects.

What is the historical spending trend for levee construction by the Department of the Army?

Historical spending trends for levee construction by the Department of the Army, primarily through the Army Corps of Engineers, are substantial and fluctuate based on national priorities, infrastructure needs, and disaster recovery efforts. The Army Corps is a major player in flood risk management and civil works projects. Spending in this area can increase significantly following major flood events or in response to long-term infrastructure investment initiatives. Analyzing multi-year budget allocations and contract awards for flood control and coastal protection projects would reveal patterns, highlighting periods of increased investment driven by specific needs or policy changes. This particular $17.4 million contract represents one component of a broader federal commitment to water resource management and infrastructure.

What are the implications of the 488-day contract duration on project management and oversight?

A contract duration of 488 days (approximately 16 months) for a levee construction project necessitates robust project management and sustained oversight. This extended timeline requires the government to maintain consistent monitoring of progress, quality control, and contractor performance throughout the project lifecycle. It also implies a significant commitment of resources, both from the contractor and the overseeing agency. Effective management during this period involves regular site inspections, progress meetings, and diligent tracking of milestones to ensure adherence to the schedule and budget. The duration also allows for potential adjustments to unforeseen issues, but requires careful management to prevent scope creep or unnecessary delays.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912P810B0047

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 SIMS RD, HATTIESBURG, MS, 39401

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

Financial Breakdown

Contract Ceiling: $17,389,343

Exercised Options: $17,389,343

Current Obligation: $17,389,343

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline