DoD awards $23.9M for Louisiana riprap, with 10 bids received, indicating competitive pricing

Contract Overview

Contract Amount: $23,918,667 ($23.9M)

Contractor: Rigid Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2024-10-05

Contract Duration: 1,100 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CHANNEL RIPRAP R-90

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to RIGID CONSTRUCTORS LLC for work described as: CHANNEL RIPRAP R-90 Key points: 1. Contract value of $23.9M for riprap services suggests significant infrastructure investment. 2. The award was made under full and open competition, maximizing potential for cost savings. 3. A high number of bidders (10) points to a healthy and competitive market for this service. 4. The contract duration of 1100 days allows for sustained project execution. 5. The fixed-price contract type shifts performance risk to the contractor. 6. The contractor, Rigid Constructors LLC, has secured a substantial federal award.

Value Assessment

Rating: good

The contract value of $23.9 million for channel riprap services appears reasonable given the scope and duration. Benchmarking against similar heavy civil engineering construction contracts reveals that pricing for large-scale projects can vary significantly based on location, material costs, and specific project requirements. The firm fixed-price structure suggests that the contractor bears the primary financial risk, which can lead to more predictable costs for the government if managed effectively. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive bidding process likely contributed to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit bids. The participation of 10 bidders suggests a robust competitive environment for this type of heavy civil engineering construction. A higher number of bids generally leads to more competitive pricing as contractors vie for the award, potentially resulting in better value for the government.

Taxpayer Impact: The strong competition in this procurement process is beneficial for taxpayers, as it likely drove down the final contract price and ensured that the government received a fair market value for the riprap services.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other Department of Defense entities requiring flood control and erosion prevention measures. The services delivered involve the installation of riprap (loose stone fill) to stabilize channels and prevent erosion. The geographic impact is focused on Louisiana, a state prone to flooding and coastal erosion. The contract supports the construction and engineering workforce in the region, likely benefiting skilled laborers and equipment operators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Dependence on a single contractor for a significant duration could pose supply chain or performance risks.
Environmental compliance and permitting complexities in Louisiana could impact project timelines and costs.

Positive Signals

The firm fixed-price contract type transfers significant cost risk to the contractor.
The extensive competition (10 bidders) suggests a healthy market and likely competitive pricing.
The contract duration allows for phased execution and potentially better resource management.
The award to a single entity for a defined scope provides clear accountability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on infrastructure projects related to water management and environmental protection. The market for such services in coastal regions like Louisiana is substantial, driven by the need for flood control, levee reinforcement, and channel stabilization. Comparable spending benchmarks for large-scale civil works projects can vary widely, but contracts in the tens of millions are common for significant infrastructure undertakings. This award represents a notable investment in maintaining critical infrastructure within the state.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized services or materials. Further investigation into subcontracting goals would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability is established through the firm fixed-price contract terms, requiring the contractor to deliver specified riprap services within the agreed budget and timeframe. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
Coastal Flood Protection Programs
Erosion Control Infrastructure
River and Harbor Improvements
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for scope creep if project requirements evolve.
Risk of contractor default or performance failure.
Environmental permit delays impacting schedule.
Unforeseen subsurface conditions affecting cost/schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to RIGID CONSTRUCTORS LLC. CHANNEL RIPRAP R-90

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 $23.9 million.

What is the period of performance?

Start: 2021-10-01. End: 2024-10-05.

What is the historical spending pattern for channel riprap projects by the Department of the Army in Louisiana?

Analyzing historical spending for channel riprap projects by the Department of the Army in Louisiana reveals a consistent need for such services, particularly in areas prone to flooding and coastal erosion. While specific figures for 'riprap' alone can be difficult to isolate from broader civil works categories, the Army Corps of Engineers frequently awards contracts for levee construction, bank stabilization, and channel maintenance. These projects often run into the millions of dollars, reflecting the scale of engineering required. The frequency and value of these contracts are influenced by factors such as storm events, federal infrastructure funding allocations, and long-term coastal resilience strategies. This $23.9 million award aligns with the typical scale of significant infrastructure investments in the region, suggesting a sustained commitment to managing water-related risks.

How does the per-unit cost of this riprap contract compare to similar projects in other regions?

Direct per-unit cost comparison for this riprap contract is challenging without detailed breakdowns of material, labor, and installation costs per ton or cubic yard. However, the total award of $23.9 million for 1100 days of work suggests a substantial volume of material and labor. Generally, riprap costs can fluctuate significantly based on the type and size of stone required, transportation distances from quarries, site accessibility, and local labor rates. Projects in regions with higher material acquisition costs or more complex logistical challenges (e.g., remote or environmentally sensitive areas) tend to have higher per-unit expenses. Given that this contract is in Louisiana, a state with established construction markets and potentially accessible quarries, the pricing is likely competitive within its regional context. A comprehensive benchmark would require access to detailed cost data from comparable Army Corps of Engineers projects nationwide.

What are the key performance indicators (KPIs) used to measure the success of this riprap contract?

Key performance indicators (KPIs) for a channel riprap contract typically focus on the quality of materials, the effectiveness of installation, adherence to project specifications, and timely completion. For this specific contract, KPIs would likely include: 1) Material Quality: Ensuring the riprap stones meet specified size, durability, and gradation requirements through testing and inspection. 2) Installation Accuracy: Verifying that the riprap is placed according to design elevations, slopes, and coverage areas to achieve the intended hydraulic and structural performance. 3) Erosion Control Effectiveness: Monitoring the channel banks post-installation to confirm that the riprap is successfully preventing erosion under design flow conditions. 4) Schedule Adherence: Tracking progress against the 1100-day schedule to ensure milestones are met. 5) Safety Compliance: Monitoring contractor adherence to all safety regulations and protocols during execution. Success is ultimately measured by the long-term stability and protective function of the installed riprap.

What is the track record of Rigid Constructors LLC in performing similar federal contracts?

Rigid Constructors LLC has a track record of securing and performing federal contracts, primarily within the heavy and civil engineering construction domain. While this $23.9 million award for channel riprap is a significant contract, their past performance would need to be reviewed to assess their experience with similar projects, particularly those involving extensive civil works, environmental considerations, and large-scale material deployment. Federal procurement databases often contain past performance information, including contract values, types of services rendered, and customer satisfaction ratings. A thorough review would examine their history with the Department of the Army or other agencies for projects of comparable complexity and scale to gauge their capability and reliability in executing this specific type of work effectively and efficiently.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (often referred to as a modified competitive process) aims to balance broad competition with specific needs. The 'exclusion of sources' part implies that while the competition was intended to be open, certain potential sources might have been excluded based on pre-defined criteria (e.g., specific capabilities, past performance issues, or security requirements). The primary risk here is ensuring that the exclusion criteria were justified, necessary, and did not unduly limit competition, potentially leading to a less optimal price or solution. If the exclusion was too broad or poorly defined, it could inadvertently reduce the number of qualified bidders, impacting price discovery. Conversely, if the exclusion was narrowly tailored and appropriate, it ensures that only capable contractors participate, potentially leading to a more efficient procurement. The government must carefully document the rationale for any source exclusion to mitigate this risk.

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: W912P821B0042

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3091 HIGHWAY 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: $23,918,667

Exercised Options: $23,918,667

Current Obligation: $23,918,667

Actual Outlays: $6,609,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline