Army's $89.5M flood control project awarded to Boh Bros. Construction Co. for Louisiana urban improvements

Contract Overview

Contract Amount: $89,528,416 ($89.5M)

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

Awarding Agency: Department of Defense

Start Date: 2014-03-13

End Date: 2018-12-07

Contract Duration: 1,730 days

Daily Burn Rate: $51.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SELA - 27 SOUTHEAST LOUISIANA URBAN FLOOD CONTROL PROJECT, LOUISIANA AVENUE IMPROVEMENTS (CONSTANCE STREET TO SOUTH CLAIBORNE AVENUE), ORLEANS PARISH, LOUISIANA (ED-13-005)

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $89.5 million to BOH BROS. CONSTRUCTION CO., L.L.C. for work described as: SELA - 27 SOUTHEAST LOUISIANA URBAN FLOOD CONTROL PROJECT, LOUISIANA AVENUE IMPROVEMENTS (CONSTANCE STREET TO SOUTH CLAIBORNE AVENUE), ORLEANS PARISH, LOUISIANA (ED-13-005) Key points: 1. The contract's value of $89.5 million represents a significant investment in critical infrastructure. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. The firm fixed-price contract type shifts cost risk to the contractor. 4. Project duration of 1730 days indicates a long-term commitment to flood control. 5. The contract falls under 'Other Heavy and Civil Engineering Construction,' a vital sector for public works. 6. The award to a single contractor, Boh Bros. Construction Co., warrants scrutiny of their capacity and pricing.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects in the immediate vicinity and timeframe. The total award amount of $89.5 million for urban flood control improvements, including specific street work, appears substantial. However, without detailed cost breakdowns or comparisons to similar scale projects in other urban areas, it's difficult to definitively assess value for money. The firm fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can sometimes lead to higher initial bids.

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. The presence of 3 bids suggests a moderate level of competition for this significant civil engineering project. While multiple bidders are positive, the exact number (3) might not be sufficient to guarantee the most competitive pricing for a project of this scale and complexity.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives the best value. A moderate number of bidders, like three, still offers some price discovery but could leave room for improvement compared to a more crowded field.

Public Impact

Residents and businesses in Orleans Parish, Louisiana, will benefit from improved flood control measures. The project aims to enhance urban infrastructure by improving drainage and flood mitigation systems. Geographic impact is concentrated in the specified areas of Orleans Parish, Louisiana. The construction activities will likely involve a local workforce, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen site conditions.
The limited number of bidders (3) might indicate a lack of broader market interest or contractor capacity, potentially impacting price competitiveness.
Long project duration (1730 days) increases the risk of scope creep or changes in requirements over time.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential bidders.
Firm fixed-price contract type transfers cost risk to the contractor.
Project addresses critical urban flood control needs, enhancing community resilience.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which is crucial for developing and maintaining public infrastructure like flood control systems. The market for such projects is often characterized by large, specialized firms capable of handling complex, high-value undertakings. The Army Corps of Engineers is a major client in this sector, frequently awarding contracts for water resource management and infrastructure improvements. Benchmarks for similar large-scale civil engineering projects can vary widely based on location, complexity, and specific materials used.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and specialized nature of heavy civil engineering construction, it is common for such large-scale projects to be awarded to larger prime contractors. There is no explicit information on subcontracting plans for small businesses within this award, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the Army Corps of Engineers, the contracting agency. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure which incentivizes contractor performance. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
National Flood Insurance Program
Infrastructure Investment and Jobs Act Programs
Urban Development Grants

Risk Flags

Potential for cost escalation due to long project duration.
Limited number of bidders may impact price competitiveness.
Contractor's past performance on similar projects needs verification.
Scope creep risk in long-term infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.5 million to BOH BROS. CONSTRUCTION CO., L.L.C.. SELA - 27 SOUTHEAST LOUISIANA URBAN FLOOD CONTROL PROJECT, LOUISIANA AVENUE IMPROVEMENTS (CONSTANCE STREET TO SOUTH CLAIBORNE AVENUE), ORLEANS PARISH, LOUISIANA (ED-13-005)

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 $89.5 million.

What is the period of performance?

Start: 2014-03-13. End: 2018-12-07.

What is the track record of Boh Bros. Construction Co. on similar federal contracts?

Boh Bros. Construction Co., L.L.C. has a history of performing significant civil engineering and construction projects. While specific details on their past federal contracts are not provided in this data snippet, their selection for an $89.5 million Army Corps of Engineers project suggests they possess the necessary experience and capacity for large-scale infrastructure work. A deeper dive into their contract history, including past performance reviews, on-time delivery rates, and any past disputes or claims on federal projects, would be necessary for a comprehensive assessment of their track record. Examining their portfolio of completed flood control or similar urban infrastructure projects would also provide valuable context.

How does the awarded price compare to similar flood control projects in other urban areas?

Directly comparing the $89.5 million award for the SELA - 27 Southeast Louisiana Urban Flood Control Project to other similar projects is challenging without a standardized metric and comparable project scope. Factors such as local labor costs, material prices, specific geological conditions, and the exact scope of work (e.g., length of levees, capacity of drainage systems, complexity of street improvements) significantly influence project costs. However, the firm fixed-price nature of this contract implies that the contractor's bid was deemed the best value by the Army Corps of Engineers after a competitive bidding process. Further analysis would require identifying projects with similar square footage of improvements, linear feet of floodwall construction, and complexity of engineering challenges in comparable urban environments.

What are the primary risks associated with a firm fixed-price contract for a long-duration construction project?

The primary risk with a firm fixed-price (FFP) contract, especially for a long-duration project like this 1730-day endeavor, is that the contractor may have underestimated costs or encountered unforeseen conditions. While FFP shifts cost overrun risk to the contractor, a poorly estimated bid could lead to the contractor cutting corners on quality or safety to maintain profitability, or potentially seeking change orders. For the government, the risk is paying a premium upfront if the contractor inflates the price to cover potential risks. Unexpected site conditions, material price escalations beyond what was anticipated, or labor shortages could also strain the contractor's ability to deliver within the fixed price, potentially leading to delays or disputes.

What is the expected impact of this project on local employment and the regional economy?

This $89.5 million flood control project is expected to have a positive impact on local employment and the regional economy in Orleans Parish, Louisiana. Large-scale construction projects typically require a significant workforce, including skilled laborers, engineers, project managers, and support staff. Boh Bros. Construction Co., as the prime contractor, will likely hire locally or draw from the regional labor pool. Furthermore, the project will stimulate economic activity through the procurement of materials, equipment, and services from local suppliers and subcontractors, creating a multiplier effect throughout the regional economy. The improved flood control infrastructure itself will also enhance the long-term economic stability and attractiveness of the affected areas.

How does the number of bidders (3) influence the government's ability to secure competitive pricing?

Having three bidders for this contract suggests a moderate level of competition. While more bidders generally lead to greater price competition, three offers a baseline for price discovery. If the bids were significantly varied, it might indicate differing interpretations of the scope or risk. Conversely, if the bids were very close, it could suggest limited competition or a well-understood market for this type of work. The government's contracting officers would have evaluated these bids against technical requirements and cost realism. A higher number of bidders (e.g., 5+) would typically provide stronger assurance of achieving the lowest possible price, but three is often considered sufficient to avoid a sole-source or highly restricted situation.

What are the potential long-term benefits of improved urban flood control infrastructure?

The long-term benefits of improved urban flood control infrastructure are substantial and multifaceted. Primarily, it significantly reduces the risk of property damage and economic disruption caused by flooding events, protecting homes, businesses, and critical public facilities. This enhanced resilience can lead to lower flood insurance costs for residents and businesses over time. Furthermore, robust flood control systems contribute to public safety by mitigating health hazards associated with floodwaters and ensuring the continuity of essential services during extreme weather. Economically, improved infrastructure can attract investment, increase property values, and foster a more stable environment for business operations, ultimately enhancing the overall quality of life and economic vitality of the urban area.

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: W912P814R0001

Offers Received: 3

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: $89,528,416

Exercised Options: $89,528,416

Current Obligation: $89,528,416

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline