EVCO DEVELOPMENT LLC awarded $27.5M contract for West Shore Lake Pontchartrain hurricane and storm damage risk reduction

Contract Overview

Contract Amount: $27,470,365 ($27.5M)

Contractor: Evco Development LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-25

End Date: 2027-03-09

Contract Duration: 1,292 days

Daily Burn Rate: $21.3K/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: WEST SHORE LAKE PONTCHARTRAIN, LA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP - 108, T-WALL AND DRAINAGE STRUCTURE

Place of Performance

Location: LAPLACE, ST JOHN THE BAPTIST County, LOUISIANA, 70068

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to EVCO DEVELOPMENT LLC for work described as: WEST SHORE LAKE PONTCHARTRAIN, LA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP - 108, T-WALL AND DRAINAGE STRUCTURE Key points: 1. Contract value of $27.5 million for critical infrastructure. 2. Competition was full and open after exclusion of sources, indicating a broad search for qualified bidders. 3. The definitive contract type suggests a long-term agreement for specific services. 4. Project duration of 1292 days highlights the scale and complexity of the work. 5. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 6. The project is located in Louisiana, a region highly susceptible to storm damage.

Value Assessment

Rating: good

The contract value of $27.5 million appears reasonable for a large-scale civil engineering project focused on hurricane and storm damage risk reduction. Benchmarking against similar Army Corps of Engineers projects for levee and flood control infrastructure would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator for cost control, as it places the financial risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while some sources may have been initially excluded, the remaining pool was competed openly. The number of bidders (5) is a moderate level of competition, which can lead to competitive pricing but might not be as robust as a fully open competition with a larger number of participants.

Taxpayer Impact: The open competition, even with initial exclusions, likely resulted in a fair market price for taxpayers. A moderate number of bidders helps ensure that the government is not overpaying for the services.

Public Impact

Residents and businesses in the West Shore Lake Pontchartrain area of Louisiana will benefit from enhanced protection against hurricanes and storm surges. The project will deliver critical T-wall and drainage structure construction, bolstering the region's resilience. Geographic impact is concentrated in Louisiana, specifically around Lake Pontchartrain. The project is expected to create or sustain jobs in the construction and engineering sectors within Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Contractor performance risk given the scale and duration of the project.
Dependency on timely delivery of materials and specialized equipment.
Environmental compliance and permitting challenges could cause delays.
Coordination with local authorities and stakeholders is crucial for success.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Project addresses a critical need for storm damage risk reduction in a vulnerable area.
Experienced contractor (EVCO DEVELOPMENT LLC) likely selected through a competitive process.
Clear project scope with defined deliverables (T-wall and drainage structures).
Long-term duration allows for methodical execution and quality control.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on infrastructure related to flood control and storm surge protection. The market for such projects is significant, driven by climate change concerns and the need to protect coastal communities. Comparable spending benchmarks would involve other Army Corps of Engineers projects for similar risk reduction initiatives, which often involve multi-million dollar investments.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses may be limited to direct supply chain roles or potential future subcontracts awarded by EVCO DEVELOPMENT LLC. The absence of a set-aside suggests the primary contractor was deemed the most capable for the full scope of work.

Oversight & Accountability

Oversight for this project will likely be managed by the U.S. Army Corps of Engineers, the contracting agency. Accountability measures are inherent in the firm fixed-price contract, which incentivizes the contractor to meet specifications within budget. Transparency is typically maintained through contract award databases and public reporting, though specific project-level oversight details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Hurricane and Storm Damage Risk Reduction System (HSDRRS)
US Army Corps of Engineers Civil Works Projects
Louisiana Coastal Protection and Restoration Authority (CPRA) Projects
Infrastructure Investment and Jobs Act (IIJA) funded projects

Risk Flags

Potential for unforeseen site conditions impacting fixed-price contract.
Schedule risk due to weather and potential supply chain issues.
Contractor performance and quality control over a long duration.
Environmental compliance and permitting complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to EVCO DEVELOPMENT LLC. WEST SHORE LAKE PONTCHARTRAIN, LA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP - 108, T-WALL AND DRAINAGE STRUCTURE

Who is the contractor on this award?

The obligated recipient is EVCO DEVELOPMENT 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 $27.5 million.

What is the period of performance?

Start: 2023-08-25. End: 2027-03-09.

What is the track record of EVCO DEVELOPMENT LLC on similar federal contracts, particularly those involving large-scale civil engineering and flood control?

A review of federal contract databases indicates that EVCO DEVELOPMENT LLC has a history of performing civil engineering and construction work. While specific details on past hurricane and storm damage risk reduction projects are not immediately available in this summary, their award on this significant $27.5 million contract suggests they possess the necessary qualifications and experience. Further analysis would involve examining their performance ratings on previous Army Corps of Engineers or similar agency contracts, looking for any past issues related to cost, schedule, or quality on projects of comparable complexity and scale. Understanding their historical performance is key to assessing the risk associated with this current project.

How does the awarded amount of $27.5 million compare to the estimated cost or budget for the West Shore Lake Pontchartrain project?

The provided data indicates the awarded amount is $27,500,000. Without access to the government's initial cost estimates or the specific budget allocated for this phase of the West Shore Lake Pontchartrain project, a direct comparison is not possible. However, the fact that it was awarded under 'full and open competition after exclusion of sources' with 5 bidders suggests that the award price is likely competitive and reflects market rates. To assess value for money, one would ideally compare this award to pre-solicitation estimates, benchmark against similar projects by the Army Corps of Engineers, and analyze the number and competitiveness of the bids received.

What are the primary risks associated with the T-wall and drainage structure construction for the West Shore Lake Pontchartrain project?

The primary risks for this T-wall and drainage structure construction project include potential unforeseen subsurface conditions (e.g., soil stability, groundwater issues) that could impact foundation work and increase costs, despite the firm fixed-price contract. Schedule delays are a significant risk, stemming from weather disruptions common in Louisiana, potential permitting issues, or supply chain disruptions for specialized materials. Contractor performance risk is also present, given the scale and duration (1292 days), requiring robust project management and quality control from EVCO DEVELOPMENT LLC. Finally, environmental compliance and the need for ongoing coordination with local stakeholders present ongoing risks that must be actively managed.

What is the historical spending pattern for hurricane and storm damage risk reduction projects by the Department of the Army in Louisiana?

The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a substantial and consistent history of spending on hurricane and storm damage risk reduction projects, particularly in Louisiana due to its vulnerability. Historical spending patterns show significant investments in coastal restoration, levee construction and upgrades, and related infrastructure following major events like Hurricanes Katrina and Rita. This spending is often multi-year and involves large-scale civil works contracts. The WSLP project aligns with this established pattern of federal investment in critical coastal defense infrastructure for the state. Analyzing past appropriations and contract awards would reveal trends in project types, funding levels, and geographic focus within Louisiana.

How effective are T-walls and drainage structures in providing long-term storm damage risk reduction compared to other mitigation strategies?

T-walls (often sheet pile or concrete walls) and drainage structures are critical components of engineered storm surge protection systems. T-walls are designed to act as levees, providing a physical barrier against high water levels and wave action. Drainage structures are essential for managing interior water levels, preventing flooding from rainfall and residual water after a storm surge recedes. Their effectiveness is generally high in reducing direct inundation from storm surges and managing rainfall, but they are part of a larger system. Long-term effectiveness depends on proper design, construction, maintenance, and integration with other measures like marsh creation, dune restoration, and robust evacuation plans. They are highly effective against specific threats but do not eliminate all risks, especially from extreme events exceeding design capacity or from other natural hazards.

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: W912P823B0044

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 FAIRLANE DR, LAFAYETTE, LA, 70507

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,711,487

Exercised Options: $27,470,365

Current Obligation: $27,470,365

Actual Outlays: $5,365,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline