Army awards $39.2M for Louisiana canal improvements, with 4 bids received

Contract Overview

Contract Amount: $39,238,419 ($39.2M)

Contractor: BOH Bros. Construction CO., L.L.C.

Awarding Agency: Department of Defense

Start Date: 2013-09-26

End Date: 2017-06-15

Contract Duration: 1,358 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SELA 23A, NAPOLEON AVENUE COVERED CANAL, CARONDELET TO CONSTANCE STREET, ORLEANS PARISH, LA

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70115

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $39.2 million to BOH BROS. CONSTRUCTION CO., L.L.C. for work described as: SELA 23A, NAPOLEON AVENUE COVERED CANAL, CARONDELET TO CONSTANCE STREET, ORLEANS PARISH, LA Key points: 1. Contract value appears reasonable given the scope of civil engineering work. 2. Full and open competition suggests a healthy market for this type of construction. 3. Potential risks include project delays and cost overruns common in large infrastructure. 4. Project duration of over three years indicates a significant undertaking. 5. This contract falls within the heavy and civil engineering construction sector.

Value Assessment

Rating: good

The contract value of $39.2 million for canal improvements in New Orleans appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar Army Corps of Engineers civil works projects in coastal Louisiana, the pricing seems competitive. The firm-fixed-price structure also suggests that the contractor assumed a significant portion of the cost risk, which can lead to better value if managed effectively. However, without detailed cost breakdowns, a precise value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Four bids were received, suggesting a moderate level of competition for this specific project. While four bidders is not exceptionally high, it demonstrates that multiple firms were interested and capable of undertaking the work. This level of competition generally helps in achieving fair market prices.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging efficiency from contractors.

Public Impact

Residents and businesses in Orleans Parish, Louisiana, will benefit from improved flood control and navigation. The project delivers essential civil engineering services for critical infrastructure. The geographic impact is localized to the specified section of Napoleon Avenue canal in New Orleans. The project likely supports local construction jobs and related industries in Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large civil engineering projects.
Weather-related delays are a common risk in Louisiana's climate.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process.
Project addresses critical infrastructure needs for flood control.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a significant segment of the federal procurement landscape. This sector encompasses a wide range of infrastructure projects, including waterways, bridges, and flood control systems. The Department of Defense, through the Army Corps of Engineers, is a major client for such services, particularly in areas prone to natural disasters or requiring extensive water management. Spending in this sector is often driven by infrastructure needs, resilience efforts, and national security requirements.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale and nature of the project, it is possible that larger firms dominated the bidding process. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors on this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for executing civil works projects. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided in the summary data.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Hurricane Protection Projects Louisiana
Infrastructure Improvement Contracts
Flood Control Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays due to weather or environmental factors.
Contractor performance and adherence to quality standards.
Management of scope changes throughout a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to BOH BROS. CONSTRUCTION CO., L.L.C.. SELA 23A, NAPOLEON AVENUE COVERED CANAL, CARONDELET TO CONSTANCE STREET, ORLEANS PARISH, LA

Who is the contractor on this award?

The obligated recipient is BOH BROS. CONSTRUCTION CO., L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.2 million.

What is the period of performance?

Start: 2013-09-26. End: 2017-06-15.

What is the track record of BOH BROS. CONSTRUCTION CO., L.L.C. with the Department of Defense?

BOH BROS. CONSTRUCTION CO., L.L.C. has a history of contracts with the Department of Defense, primarily within the civil engineering and construction domain. Analyzing their past performance on similar projects, particularly those involving waterway or flood control infrastructure, would provide insight into their reliability, quality of work, and ability to manage complex projects within budget and schedule. A review of their contract history might reveal any past performance issues, disputes, or successful project completions that are relevant to assessing their suitability for this specific canal improvement contract.

How does the $39.2 million award compare to similar Army Corps of Engineers projects in Louisiana?

Comparing the $39.2 million award to similar Army Corps of Engineers projects in Louisiana requires access to a database of comparable contracts. Factors such as project scope (e.g., length of canal, depth, specific engineering challenges), duration, and the economic conditions at the time of award are crucial for a meaningful comparison. Projects involving dredging, levee construction, or other heavy civil works in the region can serve as benchmarks. If this award falls within the typical range for similar projects, it suggests fair pricing. Deviations could indicate unique project complexities, a highly competitive bidding environment, or potentially over/under pricing.

What are the primary risks associated with a large-scale civil engineering project like this canal improvement?

Large-scale civil engineering projects, such as the SELA 23A canal improvement, carry inherent risks. Key risks include unforeseen subsurface conditions (e.g., unexpected soil types, buried debris) that can increase costs and delays. Environmental factors, like severe weather events common in Louisiana, can disrupt work schedules. Furthermore, managing a project of this magnitude involves complex logistical challenges, coordination with multiple stakeholders, and ensuring adherence to stringent safety and environmental regulations. The firm-fixed-price contract aims to mitigate cost overrun risks for the government, but contractor performance and unforeseen issues remain potential concerns.

How effective are firm-fixed-price contracts in managing costs for infrastructure projects?

Firm-fixed-price (FFP) contracts are generally considered effective in managing costs for infrastructure projects when the scope of work is well-defined and risks are understood. In an FFP contract, the contractor agrees to a set price for the work, assuming responsibility for any cost overruns. This incentivizes the contractor to be efficient and control costs. However, if unforeseen issues arise that significantly alter the scope or complexity of the work, contract modifications can lead to price increases. For projects with high uncertainty, cost-plus contracts might be considered, but FFP is often preferred for its cost certainty when feasible, as it was here.

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) fluctuates based on infrastructure needs, national priorities, and funding allocations. The Army Corps of Engineers is a primary driver of this spending, focusing on flood control, navigation, and environmental restoration. Trends can be influenced by major infrastructure initiatives, disaster recovery efforts (like post-hurricane rebuilding in Louisiana), and long-term capital investment plans. Analyzing multi-year spending data would reveal patterns, identify peak spending periods, and indicate the consistent or growing importance of this construction category for the Army.

What are the implications of a 1358-day contract duration on project management and oversight?

A contract duration of 1358 days (approximately 3.7 years) for a civil engineering project signifies a substantial undertaking requiring robust project management and sustained oversight. Such a long duration increases the potential for encountering unforeseen challenges, including environmental changes, material price fluctuations, and shifts in regulatory requirements. Effective oversight is critical to monitor progress, ensure quality control, manage scope changes, and maintain contractor accountability throughout the project lifecycle. The government must dedicate resources to continuous monitoring to ensure the project stays on track and delivers the intended outcomes within the established parameters.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P813R0031

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 730 S TONTI ST, NEW ORLEANS, LA, 70119

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

Financial Breakdown

Contract Ceiling: $39,238,419

Exercised Options: $39,238,419

Current Obligation: $39,238,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline