Dredging and Dike Construction in Louisiana Awarded to Rigid Constructors LLC for $29.6 Million

Contract Overview

Contract Amount: $29,643,487 ($29.6M)

Contractor: Rigid Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2019-12-04

End Date: 2025-05-23

Contract Duration: 1,997 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CALCASIEU RIVER AND PASS, LA, DREDGED MATERIAL MANAGEMENT PLAN (DMMP), CDF-7 DREDGING AND DIKE CONSTRUCTION, CALCASIEU PARISH, LA

Place of Performance

Location: LAKE CHARLES, CALCASIEU County, LOUISIANA, 70601

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to RIGID CONSTRUCTORS LLC for work described as: CALCASIEU RIVER AND PASS, LA, DREDGED MATERIAL MANAGEMENT PLAN (DMMP), CDF-7 DREDGING AND DIKE CONSTRUCTION, CALCASIEU PARISH, LA Key points: 1. The contract focuses on managing dredged material for the Calcasieu River and Pass. 2. Rigid Constructors LLC is the sole awardee, raising questions about competition. 3. The project involves significant civil engineering construction, impacting local infrastructure. 4. The firm fixed price contract aims to control costs for this large-scale project.

Value Assessment

Rating: fair

The contract value of $29.6 million for dredging and dike construction appears substantial. Benchmarking against similar heavy civil engineering projects is necessary to assess if the pricing is competitive, especially given the lack of initial competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.

Public Impact

Environmental impact of dredging and construction on the Calcasieu River ecosystem. Potential for improved navigation and flood control in Calcasieu Parish. Economic impact on local businesses and employment during the construction phase. Long-term management of dredged material and its environmental implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for cost overruns in large-scale civil engineering projects.
Environmental risks associated with dredging activities.

Positive Signals

Addresses critical infrastructure needs for navigation and material management.
Firm fixed price contract provides cost certainty.
Long duration suggests a comprehensive approach to the project.

Sector Analysis

This contract falls under 'Other Heavy and Civil Engineering Construction,' a sector often characterized by large-scale projects with significant environmental and logistical considerations. Spending benchmarks in this sector vary widely based on project scope and location.

Small Business Impact

The contract was awarded to Rigid Constructors LLC and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The Department of the Army, specifically the Department of Defense, is responsible for overseeing this contract. The long duration and significant value warrant robust oversight to ensure project completion, adherence to environmental regulations, and fiscal responsibility.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of documented competition
Potential environmental impact
Large contract value
Long project duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to RIGID CONSTRUCTORS LLC. CALCASIEU RIVER AND PASS, LA, DREDGED MATERIAL MANAGEMENT PLAN (DMMP), CDF-7 DREDGING AND DIKE CONSTRUCTION, CALCASIEU PARISH, LA

Who is the contractor on this award?

The obligated recipient is RIGID CONSTRUCTORS 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 $29.6 million.

What is the period of performance?

Start: 2019-12-04. End: 2025-05-23.

What specific factors justified the sole-source award for this significant dredging and construction project, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without further details on the justification, it's difficult to assess the fairness of the pricing. Agencies are expected to conduct market research and negotiate the best possible price even in sole-source situations, often relying on historical data or independent cost estimates.

What are the primary environmental risks associated with the dredging and dike construction, and what mitigation strategies are in place?

Primary environmental risks include habitat disruption, water quality degradation from sediment plumes, and potential impacts on aquatic life. Mitigation strategies typically involve strict adherence to environmental permits, monitoring of water quality, containment of dredged material, and restoration efforts post-construction. The effectiveness of these strategies depends on rigorous enforcement and adaptive management.

How does the long project duration (1997 days) impact the overall cost-effectiveness and potential for scope creep?

A long duration can increase costs due to extended labor, equipment rental, and potential material price escalation. It also raises the risk of scope creep if project requirements change over time. However, it can also be necessary for complex projects requiring phased execution or long-term environmental monitoring. Careful contract management and change control are crucial to maintain cost-effectiveness.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912P820B0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3091 HWY 104, OPELOUSAS, LA, 70570

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,710,987

Exercised Options: $29,643,487

Current Obligation: $29,643,487

Actual Outlays: $3,362,691

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline