Army's $8.3M Louisiana Storm Damage Project Awarded to CAYO LLC Under Full and Open Competition
Contract Overview
Contract Amount: $8,318,989 ($8.3M)
Contractor: Cayo LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-23
End Date: 2024-03-01
Contract Duration: 525 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WEST SHORE LAKE PONTCHARTRAIN, LOUISIANA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP PILE LOAD TEST, ST. JOHN THE BAPTIST PARISH, LOUISIANA
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76140
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.3 million to CAYO LLC for work described as: WEST SHORE LAKE PONTCHARTRAIN, LOUISIANA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP PILE LOAD TEST, ST. JOHN THE BAPTIST PARISH, LOUISIANA Key points: 1. Project focuses on critical hurricane and storm damage risk reduction in St. John the Baptist Parish, Louisiana. 2. Awarded to CAYO LLC, a relatively new entity, raising questions about long-term performance. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The project falls under 'Other Heavy and Civil Engineering Construction', a sector vital for infrastructure resilience.
Value Assessment
Rating: fair
The contract value of $8.3M for a pile load test is substantial. Benchmarking against similar specialized engineering services is difficult without more granular data on the scope and complexity of the test.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial limited competition or a specific reason for excluding certain sources, which could impact price discovery and potentially lead to higher costs.
Taxpayer Impact: The final cost to taxpayers will depend on the efficiency of CAYO LLC's execution and whether the competitive process truly yielded the best value.
Public Impact
Enhances crucial storm surge protection for a vulnerable Louisiana community. Potential for job creation and economic activity in the local region. The project's success is vital for the long-term safety and resilience of West Shore Lake Pontchartrain residents. Transparency in the 'exclusion of sources' process is important for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition history for CAYO LLC.
- Potential for cost overruns if unforeseen issues arise during testing.
- Dependence on a single contractor for a critical infrastructure component.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Project addresses a significant public safety need.
- Awarded by the Department of the Army, suggesting adherence to rigorous standards.
Sector Analysis
This project falls within the 'Other Heavy and Civil Engineering Construction' sector, which is critical for national infrastructure and resilience. Spending in this sector can fluctuate based on federal infrastructure initiatives and disaster recovery needs.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or if subcontracting opportunities exist.
Oversight & Accountability
Oversight will be crucial to ensure CAYO LLC meets performance standards and adheres to the contract's fixed price. The 'exclusion of sources' clause warrants scrutiny to ensure fairness and prevent potential collusion.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition history of the awardee.
- Potential for cost escalation if unforeseen site conditions arise.
- The 'exclusion of sources' clause requires careful justification and oversight.
- Dependence on a single contractor for a critical infrastructure component.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.3 million to CAYO LLC. WEST SHORE LAKE PONTCHARTRAIN, LOUISIANA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP PILE LOAD TEST, ST. JOHN THE BAPTIST PARISH, LOUISIANA
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 $8.3 million.
What is the period of performance?
Start: 2022-09-23. End: 2024-03-01.
What specific technical expertise does CAYO LLC possess to justify their selection for this specialized pile load test, especially given the limited competition history?
The justification for CAYO LLC's selection likely stems from specific technical qualifications, past performance on similar projects (even if not widely publicized), or unique capabilities relevant to the WSLP project's requirements. The 'exclusion of sources' clause suggests that other potential bidders may have lacked these specific qualifications or were deemed unsuitable for reasons outlined in the procurement documentation.
How will the 'exclusion of sources' clause be monitored to ensure it did not unduly restrict competition and potentially inflate the contract price?
Monitoring the 'exclusion of sources' clause involves reviewing the documented justification for excluding specific entities. Contracting officers must ensure the exclusion was based on legitimate technical, capability, or regulatory reasons, not arbitrary decisions. Transparency in this justification and adherence to procurement regulations are key to ensuring fair competition and taxpayer value.
What are the key performance indicators (KPIs) for this pile load test, and how will their successful achievement be measured to ensure project effectiveness?
Key performance indicators for a pile load test typically include achieving specified load capacities without excessive settlement, maintaining structural integrity of the piles, and providing accurate data on soil-pile interaction. Success will be measured against pre-defined technical specifications and acceptance criteria outlined in the contract documents, ensuring the test validates the foundation's suitability for the larger storm damage risk reduction project.
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: W912P822B0032
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1400 EVERMAN PKWY STE 116, 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: $8,318,989
Exercised Options: $8,318,989
Current Obligation: $8,318,989
Actual Outlays: $1,829,535
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-23
Current End Date: 2024-03-01
Potential End Date: 2024-03-01 00:00:00
Last Modified: 2026-01-06
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