DoD Awards $123M Florida Ave Canal Project to Boh Bros. Construction, Facing Potential Delays
Contract Overview
Contract Amount: $123,296,038 ($123.3M)
Contractor: BOH Bros. Construction CO., L.L.C.
Awarding Agency: Department of Defense
Start Date: 2014-08-21
End Date: 2025-04-08
Contract Duration: 3,883 days
Daily Burn Rate: $31.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SELA 20 WIDENING OF FLORIDA AVE CANAL PHASE II&III
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70117
Plain-Language Summary
Department of Defense obligated $123.3 million to BOH BROS. CONSTRUCTION CO., L.L.C. for work described as: SELA 20 WIDENING OF FLORIDA AVE CANAL PHASE II&III Key points: 1. The project, valued at $123.3 million, is for widening the Florida Ave Canal. 2. Boh Bros. Construction Co., L.L.C. is the sole awardee under full and open competition. 3. The contract has a significant duration of 3883 days, ending in April 2025. 4. The sector is Other Heavy and Civil Engineering Construction, with a high number of modifications (6).
Value Assessment
Rating: fair
The contract value of $123.3 million appears substantial for heavy civil engineering. Benchmarking against similar canal widening projects is difficult without more specific cost breakdowns, but the duration and number of modifications suggest potential for cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and multiple modifications could indicate evolving project scope or unforeseen challenges impacting the final price discovery.
Taxpayer Impact: The substantial investment of $123.3 million represents a significant taxpayer commitment. While competition was sought, the project's length and modification history warrant scrutiny to ensure value for money.
Public Impact
Infrastructure improvement in Louisiana, potentially impacting local transportation and flood control. Long-term federal investment in civil engineering projects. Potential for disruption to local communities and environment due to extended construction timeline.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended project duration (3883 days)
- High number of contract modifications (6)
- Potential for cost overruns due to project length and complexity
Positive Signals
- Awarded under full and open competition
- Significant infrastructure investment
Sector Analysis
This project falls within the 'Other Heavy and Civil Engineering Construction' sector, which involves large-scale infrastructure development. Federal spending in this sector often includes transportation, water management, and energy infrastructure, with project values varying widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large construction company. There is no explicit information on small business subcontracting participation, which is a common requirement in large federal construction contracts.
Oversight & Accountability
The extensive duration and number of modifications suggest a need for robust oversight to manage scope creep, control costs, and ensure timely completion. Regular reviews of progress and adherence to the original contract intent are crucial.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended contract duration
- High number of contract modifications
- Potential for cost overruns
- Lack of transparency on initial vs. final cost comparison
- Limited information on small business participation
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $123.3 million to BOH BROS. CONSTRUCTION CO., L.L.C.. SELA 20 WIDENING OF FLORIDA AVE CANAL PHASE II&III
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 $123.3 million.
What is the period of performance?
Start: 2014-08-21. End: 2025-04-08.
What specific factors contributed to the extended duration and the high number of contract modifications for this project?
The extended duration of 3883 days and six modifications likely stem from the complexity of widening a canal, potential unforeseen subsurface conditions, environmental considerations, and coordination with other ongoing infrastructure projects. Changes in design requirements or scope adjustments requested by the government could also necessitate modifications, impacting both timeline and cost.
How does the final cost compare to initial estimates, considering the modifications and extended timeline?
Without access to initial cost estimates and detailed modification justifications, a direct comparison is challenging. However, the significant duration and number of modifications often correlate with increased final costs compared to the original bid. A thorough audit would be needed to assess if the final expenditure represents good value for the taxpayer.
What are the primary risks associated with the long-term nature of this contract for the Department of Defense and taxpayers?
The primary risks include potential budget overruns due to inflation and unforeseen issues over the multi-year period, contractor performance degradation over time, and the opportunity cost of capital tied up in a single, long-term project. Taxpayers also face risks related to potential delays impacting intended benefits and the possibility of scope creep inflating the final price.
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: W912P812R0027
Offers Received: 6
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: $123,296,038
Exercised Options: $123,296,038
Current Obligation: $123,296,038
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-08-21
Current End Date: 2025-04-08
Potential End Date: 2025-04-08 00:00:00
Last Modified: 2025-04-09
More Contracts from 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) — $89.5M (Department of Defense)
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- 200606!600959!96ce!w912p8!usa Engineer Dist NEW Orleans !W912P806C0088 !A!N! !N! ! !20060127!20060714!006947386!006947386!006947386!n!boh Bros Construction CO, LLC !730 S Tonti ST !NEW Orleans !la!70119!55000!071!22!new Orleans !orleans !louisiana !+000027806500!n!n!000027806500!y299!all Other Non-Building Facilities !C2 !construction !ZHK !hurricane Katrina !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!002!b! !D!N!Z! ! !N!C!N! ! ! !z!a!a!a!000!a!c!y! !N! ! !96ce!w912p8!0001! ! — $66.9M (Department of Defense)
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