Army awards $45.7M for Mississippi River concrete mats, facing limited competition

Contract Overview

Contract Amount: $45,758,200 ($45.8M)

Contractor: Fordice Construction CO

Awarding Agency: Department of Defense

Start Date: 2022-09-14

End Date: 2024-04-25

Contract Duration: 589 days

Daily Burn Rate: $77.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MISSISSIPPI RIVER AND TRIBUTARIES, 2022 CASTING ARTICULATED CONCRETE MATTRESS, ST. FRANCISVILLE CASTING FIELD, ST. FRANCISVILLE, LOUISIANA (ED 22-052)

Place of Performance

Location: SAINT FRANCISVILLE, WEST FELICIANA County, LOUISIANA, 70775

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to FORDICE CONSTRUCTION CO for work described as: MISSISSIPPI RIVER AND TRIBUTARIES, 2022 CASTING ARTICULATED CONCRETE MATTRESS, ST. FRANCISVILLE CASTING FIELD, ST. FRANCISVILLE, LOUISIANA (ED 22-052) Key points: 1. Significant investment in critical infrastructure maintenance for the Mississippi River. 2. Fordice Construction Co. secured the contract, highlighting potential concentration in this specialized sector. 3. The contract's 'full and open competition after exclusion of sources' suggests a complex procurement process. 4. Firm Fixed Price contract type provides cost certainty for the government.

Value Assessment

Rating: fair

The award of $45.7M for concrete mattress casting appears to be within a reasonable range for specialized civil works. Benchmarking against similar Army Corps of Engineers projects for riverine maintenance would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, certain sources were initially excluded, potentially limiting the breadth of bids and impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential flood control and navigation infrastructure, representing a necessary investment, though the limited competition warrants scrutiny for optimal value.

Public Impact

Ensures continued flood control and navigation safety along the Mississippi River. Supports specialized construction jobs in Louisiana. Highlights the ongoing need for significant federal investment in aging infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may have inflated costs.
  • Lack of small business participation noted.

Positive Signals

  • Essential infrastructure maintenance.
  • Firm fixed price contract provides cost control.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on specialized concrete manufacturing for riverine applications. Spending benchmarks for similar Army Corps of Engineers projects are typically in the tens of millions for such critical maintenance.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the specialized nature of the work may favor larger, established firms, potentially limiting opportunities for smaller businesses in this sector.

Oversight & Accountability

The Army Corps of Engineers is responsible for managing this contract. Oversight would focus on ensuring the quality and timely delivery of the concrete mattresses, as well as adherence to contract specifications.

Related Government Programs

  • Other Concrete Product Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition raises concerns about price optimality.
  • No small business participation noted.
  • Complexity of procurement method warrants further review.
  • Potential for cost overruns if unforeseen issues arise.

Tags

other-concrete-product-manufacturing, department-of-defense, la, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to FORDICE CONSTRUCTION CO. MISSISSIPPI RIVER AND TRIBUTARIES, 2022 CASTING ARTICULATED CONCRETE MATTRESS, ST. FRANCISVILLE CASTING FIELD, ST. FRANCISVILLE, LOUISIANA (ED 22-052)

Who is the contractor on this award?

The obligated recipient is FORDICE CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $45.8 million.

What is the period of performance?

Start: 2022-09-14. End: 2024-04-25.

What specific factors led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' process, and how did this impact the final price?

The exclusion of sources typically occurs due to specific technical requirements, past performance issues, or unique capabilities needed for the project. Understanding these criteria is crucial. If only a few qualified bidders remained after exclusions, it could lead to less aggressive pricing compared to a truly open competition, potentially increasing the cost to taxpayers for this essential infrastructure work.

What is the long-term cost-effectiveness of using articulated concrete mattresses for riverbank stabilization compared to alternative methods?

Articulated concrete mattresses are a proven, durable solution for preventing riverbank erosion and scour, particularly in high-flow environments like the Mississippi River. Their longevity and effectiveness in mitigating costly flood damage often justify the initial investment. However, periodic inspection and potential repairs are necessary. A comparative analysis with other stabilization techniques, considering lifecycle costs and environmental impact, would fully assess long-term cost-effectiveness.

How does the $45.7M award compare to historical spending on similar concrete mattress projects by the Army Corps of Engineers?

Comparing this $45.7M award to historical data for similar projects is essential for assessing value. Factors like inflation, material costs, and project scope variations must be considered. If this award is significantly higher than comparable past projects, it could indicate potential inefficiencies or market shifts. Conversely, if it aligns with or is lower than historical averages adjusted for inflation, it suggests reasonable pricing for the work performed.

Industry Classification

NAICS: ManufacturingCement and Concrete Product ManufacturingOther Concrete Product Manufacturing

Product/Service Code: NONMETALLIC FABRICATED MATERIALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912P822B0057

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1798 HIGHWAY 27, VICKSBURG, MS, 39180

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,158,200

Exercised Options: $45,758,200

Current Obligation: $45,758,200

Actual Outlays: $14,056,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-09-14

Current End Date: 2024-04-25

Potential End Date: 2024-04-25 00:00:00

Last Modified: 2024-01-30

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