Department of Defense awards $48.6M for Louisiana civil engineering, highlighting strong competition

Contract Overview

Contract Amount: $48,612,655 ($48.6M)

Contractor: Cajun Industries LLC

Awarding Agency: Department of Defense

Start Date: 2013-01-03

End Date: 2018-02-12

Contract Duration: 1,866 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SELA 22, JEFFERSON AVE CANAL II. IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $48.6 million to CAJUN INDUSTRIES LLC for work described as: SELA 22, JEFFERSON AVE CANAL II. IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Firm fixed-price contract type indicates predictable costs for the government. 3. Project duration of 1866 days points to a significant, long-term infrastructure undertaking. 4. The contract falls under 'Other Heavy and Civil Engineering Construction,' a critical sector for national infrastructure. 5. Awarded by the Department of the Army, indicating a specific military infrastructure need. 6. The contract was awarded to CAJUN INDUSTRIES LLC, a single entity.

Value Assessment

Rating: good

The contract value of $48.6 million for heavy civil engineering construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale Army Corps of Engineers projects in Louisiana would provide a more precise value-for-money assessment. The firm fixed-price nature of the award helps control cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide range of qualified contractors. The presence of multiple bidders suggests a healthy competitive environment for this type of construction service.

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 indicates that taxpayer funds were used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Department of Defense and potentially local communities in Louisiana through infrastructure improvements. Services delivered include heavy and civil engineering construction, likely related to military base infrastructure or environmental projects. The geographic impact is concentrated in Louisiana, as indicated by the awardee's location and state code. Workforce implications include job creation for construction workers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on a single contractor (CAJUN INDUSTRIES LLC) for the full duration.
Risk of schedule delays due to weather or permitting issues in Louisiana.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk.
Full and open competition suggests a strong pool of qualified bidders.
Long contract duration allows for thorough planning and execution.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a vital component of national infrastructure development. The North American Industry Classification System (NAICS) code 237990 covers a broad range of non-residential heavy construction projects. Spending in this sector is often driven by government infrastructure needs, including military installations, transportation networks, and environmental projects. Comparable benchmarks would involve other large-scale construction contracts awarded by the Army Corps of Engineers or other federal agencies for similar types of work.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is CAJUN INDUSTRIES LLC, there is no explicit information on subcontracting plans for small businesses within this data. Further analysis would be needed to determine if subcontracting opportunities were mandated or pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. The firm fixed-price nature provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project milestones and detailed oversight reports may not be publicly accessible.

Related Government Programs

Army Corps of Engineers Construction Projects
Military Base Infrastructure Development
Louisiana Civil Engineering Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays due to weather or permitting issues.
Contractor performance degradation over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.6 million to CAJUN INDUSTRIES LLC. SELA 22, JEFFERSON AVE CANAL II. IGF::OT::IGF FOR OTHER FUNCTIONS

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 $48.6 million.

What is the period of performance?

Start: 2013-01-03. End: 2018-02-12.

What is the track record of CAJUN INDUSTRIES LLC with the Department of Defense?

CAJUN INDUSTRIES LLC has a history of performing work for the Department of Defense, as evidenced by this contract. To fully assess their track record, a deeper dive into their past performance ratings on similar federal contracts would be necessary. This would include examining any past performance evaluations, any instances of contract disputes, or awards for exceptional performance. Understanding their experience with firm fixed-price contracts of this magnitude and duration is crucial for evaluating their reliability on this specific project. Their history with projects in Louisiana would also be a relevant factor.

How does the awarded price compare to similar construction projects in Louisiana?

Directly comparing the $48.6 million award to similar projects in Louisiana requires access to a database of comparable construction contracts, including their scope, size, and specific engineering challenges. Given the 'Other Heavy and Civil Engineering Construction' category and the firm fixed-price nature, the price is likely benchmarked against historical data for Army Corps of Engineers projects or similar large-scale infrastructure work. Without specific project details (e.g., square footage, specific materials, environmental remediation scope), a precise comparison is difficult. However, the presence of seven bidders suggests the price was competitive within the market for such services in the region.

What are the primary risks associated with a long-duration construction contract like this?

Long-duration construction contracts, such as this 1866-day award, carry inherent risks including potential escalation of material and labor costs (though mitigated by fixed-price), unforeseen site conditions requiring change orders, and the possibility of contractor performance degradation over time. Environmental factors, such as weather patterns in Louisiana, can also lead to significant delays. Furthermore, the longer the contract duration, the greater the chance of shifts in regulatory requirements or technological advancements that might impact the project's execution or final outcome. Effective project management, contingency planning, and robust oversight are critical to mitigating these risks.

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

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks are understood. For this project, it means the contractor, CAJUN INDUSTRIES LLC, bears the primary responsibility for cost overruns. This incentivizes efficient project management and cost control. However, if unforeseen circumstances arise that significantly alter the scope or introduce new risks not contemplated at the time of award, the FFP structure can lead to contentious change order negotiations or potential contractor claims. The success of FFP hinges on the thoroughness of the initial scope definition and the contractor's ability to manage risks.

What is the historical spending trend for 'Other Heavy and Civil Engineering Construction' by the Department of the Army?

Historical spending by the Department of the Army on 'Other Heavy and Civil Engineering Construction' (NAICS 237990) is substantial, reflecting the ongoing need to maintain and upgrade military installations, ports, and related infrastructure. This spending often fluctuates based on defense priorities, infrastructure modernization initiatives, and specific global security requirements. The Army Corps of Engineers is a primary driver of this spending, managing a vast portfolio of construction projects. Analyzing trends would involve examining annual reports, budget allocations, and contract award data over several fiscal years to identify patterns, major project types, and significant shifts in investment.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912P812R0042

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: $48,612,655

Exercised Options: $48,612,655

Current Obligation: $48,612,655

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline