Army Awards $42.8M for Steel H-Piles to Cajun Industries LLC Under Full and Open Competition
Contract Overview
Contract Amount: $42,835,960 ($42.8M)
Contractor: Cajun Industries LLC
Awarding Agency: Department of Defense
Start Date: 2010-07-29
End Date: 2012-01-18
Contract Duration: 538 days
Daily Burn Rate: $79.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: STEEL H-PILES (14 X 89)
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118
Plain-Language Summary
Department of Defense obligated $42.8 million to CAJUN INDUSTRIES LLC for work described as: STEEL H-PILES (14 X 89) Key points: 1. Significant contract value for construction materials. 2. Competition was full and open, suggesting market availability. 3. Risk appears moderate given the fixed-price nature and established contractor. 4. Construction sector spending is substantial and cyclical.
Value Assessment
Rating: good
The contract value of $42.8M for steel H-piles appears reasonable for a large-scale construction project. Benchmarking against similar large civil engineering projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to compete. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it drives down costs through market forces.
Public Impact
Supports infrastructure development projects. Provides essential materials for construction. Creates jobs in the construction and manufacturing sectors.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for material price fluctuations impacting firm fixed price.
- Dependence on a single contractor for this specific award.
Positive Signals
- Full and open competition utilized.
- Definitive contract awarded.
- Fixed price contract type limits cost overrun risk.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is a significant area of federal spending. Benchmarks for similar large-scale material procurements would be useful for comparison.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard procurement oversight processes would apply, with potential for audits and reviews.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Material price volatility risk
- Potential for supply chain disruptions
- Contract duration and performance monitoring
- Lack of small business participation noted
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to CAJUN INDUSTRIES LLC. STEEL H-PILES (14 X 89)
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 $42.8 million.
What is the period of performance?
Start: 2010-07-29. End: 2012-01-18.
What was the specific project or purpose for these steel H-piles?
The specific project for which these steel H-piles were procured is not detailed in the provided data. However, steel H-piles are commonly used as foundation elements in large construction projects, such as bridges, buildings, and other heavy civil engineering structures, to support significant loads and ensure structural stability.
What is the risk associated with the firm fixed price contract type for this material procurement?
The primary risk with a firm fixed price contract for materials like steel H-piles is potential price volatility. If market prices for steel increase significantly after the contract is awarded, the contractor may experience reduced profit margins or seek contract modifications, though the contract type aims to prevent this. Conversely, if prices decrease, the government benefits.
How effective was the full and open competition in achieving competitive pricing?
The effectiveness of full and open competition in achieving competitive pricing can be inferred from the contract award itself. The fact that the Department of the Army chose this method suggests they anticipated sufficient market interest and believed it would lead to a fair and reasonable price. Without bid data, a definitive assessment of price competitiveness is not possible.
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: W912P810R0031
Offers Received: 10
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: $42,835,960
Exercised Options: $42,835,960
Current Obligation: $42,835,960
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-07-29
Current End Date: 2012-01-18
Potential End Date: 2012-01-18 00:00:00
Last Modified: 2020-10-03
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