Department of Defense awards $25.6M civil engineering contract to CAYO LLC for work in Louisiana
Contract Overview
Contract Amount: $25,589,560 ($25.6M)
Contractor: Cayo LLC
Awarding Agency: Department of Defense
Start Date: 2018-05-17
End Date: 2020-06-01
Contract Duration: 746 days
Daily Burn Rate: $34.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF NOV-NF-W-06B.2
Place of Performance
Location: PORT SULPHUR, PLAQUEMINES County, LOUISIANA, 70083
Plain-Language Summary
Department of Defense obligated $25.6 million to CAYO LLC for work described as: IGF::OT::IGF NOV-NF-W-06B.2 Key points: 1. Contract awarded using full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is a definitive contract with a firm fixed price, suggesting cost certainty for the government. 3. The duration of 746 days indicates a significant, long-term project. 4. The award was made to CAYO LLC, a contractor whose track record and performance on this specific contract warrant further examination. 5. The North American Industry Classification System (NAICS) code 237990 points to 'Other Heavy and Civil Engineering Construction,' a specialized sector. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this $25.6 million contract is challenging without specific deliverables or scope of work. However, the firm fixed-price structure suggests an attempt to control costs. Further analysis would require comparing the unit costs or project outcomes to similar heavy civil engineering projects undertaken by the Department of the Army or other federal agencies. The absence of detailed performance metrics makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The number of bidders (5) suggests some level of competition, but the exclusion of sources raises questions about the breadth of the competitive landscape and whether the most advantageous offers were fully considered.
Taxpayer Impact: The exclusion of sources, even with five bidders, may have limited the potential for lower pricing that could have resulted from a broader competitive field. Taxpayers may not have received the absolute lowest possible price.
Public Impact
The primary beneficiaries are likely the Department of the Army and potentially military personnel or operations supported by the civil engineering infrastructure developed. The contract delivers heavy and civil engineering construction services, crucial for maintaining and developing essential infrastructure. The geographic impact is focused on Louisiana, where the construction work will take place. The contract implies a workforce impact, creating jobs in the construction sector within Louisiana, including skilled labor and support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to exclusion of sources.
- Lack of detailed performance metrics makes value assessment difficult.
- Firm fixed-price contracts can sometimes lead to contractor cost-cutting if not properly monitored.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Awarded after a competitive process, albeit with exclusions.
- Contract duration suggests a significant and potentially impactful project.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector (NAICS 237990), which includes the construction of infrastructure such as highways, streets, bridges, tunnels, and water/sewer systems. The federal government is a significant consumer of these services for military bases, transportation networks, and other public works. Comparable spending benchmarks would involve analyzing other large-scale civil engineering projects awarded by the Department of Defense or the Department of Transportation.
Small Business Impact
The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This means that while small businesses could have bid, there was no specific requirement for them to do so. The implications for the small business ecosystem are neutral to potentially negative if CAYO LLC does not engage small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to assess the impact.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns by the contractor. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Infrastructure Projects
- Army Corps of Engineers Construction Contracts
- Federal Highway Administration Projects
- Public Works Construction
Risk Flags
- Limited Competition Potential
- Lack of Detailed Performance Data
- Unclear Scope of Work Details
Tags
construction, heavy-civil-engineering, department-of-defense, department-of-the-army, louisiana, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to CAYO LLC. IGF::OT::IGF NOV-NF-W-06B.2
Who is the contractor on this award?
The obligated recipient is CAYO 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 $25.6 million.
What is the period of performance?
Start: 2018-05-17. End: 2020-06-01.
What specific civil engineering projects were undertaken by CAYO LLC under this contract, and what was the final scope of work completed?
The provided data does not detail the specific civil engineering projects undertaken by CAYO LLC. The contract (IGF::OT::IGF NOV-NF-W-06B.2) was for 'Other Heavy and Civil Engineering Construction' (NAICS 237990) and awarded by the Department of the Army. To understand the scope of work, one would need to access the contract's statement of work (SOW) or task orders. These documents would outline the specific deliverables, such as the construction of roads, bridges, utility systems, or other infrastructure at a particular military installation or location within Louisiana. Without the SOW, it's impossible to assess the precise nature of the services rendered or the extent of their completion.
How does the awarded amount of $25.6 million compare to similar heavy civil engineering contracts awarded by the Department of the Army in the last five years?
Comparing the $25.6 million award to similar contracts requires access to a broader dataset of Department of the Army (DA) heavy civil engineering contracts. The NAICS code 237990 covers a wide range of projects. A preliminary assessment suggests that $25.6 million is a substantial, but not exceptionally large, sum for major civil engineering undertakings. For instance, the DA frequently awards contracts for base infrastructure upgrades, runway repairs, or new construction that can range from a few million to tens or even hundreds of millions of dollars. To provide a precise benchmark, one would need to filter federal procurement data for DA contracts under NAICS 237990, filter by award date (e.g., last 5 years), and analyze the distribution of contract values to determine if this award falls within the typical range, is unusually high, or unusually low for the scope of work it represents.
What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that a solicitation was issued under full and open competition, but prior to that, certain potential sources were excluded from consideration. The Federal Acquisition Regulation (FAR) outlines specific circumstances under which sources may be excluded, such as if they failed to meet minimum responsibility requirements, did not submit proposals by the deadline, or if their exclusion is otherwise justified by law or regulation. Without further details specific to this contract (e.g., a Justification and Approval document), the exact reasons for excluding sources remain unknown. This exclusion could stem from past performance issues, inability to meet technical requirements, or other factors deemed critical by the procuring agency, the Department of the Army in this case.
What is the track record of CAYO LLC in performing federal contracts, particularly those related to heavy civil engineering?
The provided data identifies CAYO LLC as the contractor but does not offer details on their track record. To assess CAYO LLC's performance, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review their contract history. This would involve examining past awards, contract values, performance ratings (if available), and any reported disputes or terminations. For a contractor in the heavy civil engineering sector, key indicators would include successful completion of similar-sized projects, adherence to schedules and budgets, and positive past performance reviews from government agencies. A review of CAYO LLC's history is crucial to understanding their capability and reliability in executing this $25.6 million Department of the Army contract.
Given the firm fixed-price contract type, what mechanisms are in place to ensure the quality of the construction work performed by CAYO LLC?
Even with a firm fixed-price (FFP) contract, the government employs several mechanisms to ensure the quality of construction work. The Department of the Army would assign a Contracting Officer's Representative (COR) or a construction representative responsible for monitoring the contractor's progress and adherence to the contract specifications and Statement of Work (SOW). This involves regular site inspections, review of materials testing, verification of compliance with building codes and safety standards, and ensuring that the work aligns with approved designs and plans. Payment milestones are typically tied to verified completion of specific work phases, ensuring that the contractor must deliver acceptable quality to receive compensation. Furthermore, the contract likely includes clauses for warranties and remedies for defective work discovered during or after construction.
What is the historical spending pattern for NAICS code 237990 by the Department of the Army, and how does this $25.6M award fit into that pattern?
Historical spending by the Department of the Army (DA) on NAICS code 237990 (Other Heavy and Civil Engineering Construction) can be substantial, reflecting the ongoing need for infrastructure maintenance and development at military installations. The DA, often through the Army Corps of Engineers, manages a vast portfolio of construction projects. A $25.6 million award for a single project represents a significant investment but is likely within the typical range for major civil engineering tasks such as road construction, utility upgrades, or facility support structures. To place this award in context, one would analyze DA's total annual spending on this NAICS code over several years. If the DA typically awards dozens or hundreds of millions annually in this category, this single award is a component of a larger spending strategy. Conversely, if annual spending is lower, this award might represent a larger proportion of their budget for this sector in a given period.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912P817B0017
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1400 EVERMAN PKWY STE 127, FORT WORTH, TX, 76140
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,589,560
Exercised Options: $25,589,560
Current Obligation: $25,589,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-05-17
Current End Date: 2020-06-01
Potential End Date: 2020-06-01 00:00:00
Last Modified: 2023-06-23
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