Louisiana Hurricane Risk Reduction Project Awarded $23.3M to Cycle Construction Company

Contract Overview

Contract Amount: $23,308,424 ($23.3M)

Contractor: Cycle Construction Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2027-03-15

Contract Duration: 896 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WEST SHORE LAKE PONTCHARTRAIN, LA HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP 109 LEVEE AND FLOODWALL, ST JOHN THE BAPTIST PARISH, LOUISIANA

Place of Performance

Location: KENNER, JEFFERSON County, LOUISIANA, 70062

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to CYCLE CONSTRUCTION COMPANY, L.L.C. for work described as: WEST SHORE LAKE PONTCHARTRAIN, LA HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP 109 LEVEE AND FLOODWALL, ST JOHN THE BAPTIST PARISH, LOUISIANA Key points: 1. Project aims to reduce hurricane and storm damage risk in St. John the Baptist Parish, Louisiana. 2. Cycle Construction Company, L.L.C. secured the contract through full and open competition. 3. The contract is a Firm Fixed Price definitive contract with an estimated completion date of March 2027. 4. This project falls under the 'Other Heavy and Civil Engineering Construction' sector.

Value Assessment

Rating: good

The contract value of $23.3M for a levee and floodwall project appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: The investment is intended to mitigate significant future economic losses from storm damage, thus representing a long-term benefit to taxpayers by protecting infrastructure and communities.

Public Impact

Enhanced protection for residents and businesses in St. John the Baptist Parish against hurricane and storm surges. Improved resilience of critical infrastructure in Louisiana, a state highly vulnerable to coastal weather events. Potential for job creation and economic activity in the local construction sector during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to unforeseen site conditions or material price fluctuations.
Project timeline could be impacted by weather delays or supply chain disruptions.
Ensuring long-term effectiveness and maintenance of the levee and floodwall system.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Firm Fixed Price contract structure limits cost escalation risk for the government.
Project addresses a critical need for hurricane and storm damage risk reduction in a vulnerable area.

Sector Analysis

This project falls within the 'Other Heavy and Civil Engineering Construction' sector, which includes large-scale infrastructure development like flood control systems. Spending in this sector is often driven by government initiatives for disaster preparedness and resilience.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to Cycle Construction Company, L.L.C. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for overseeing this project. Standard oversight mechanisms for federal construction contracts, including progress monitoring and quality assurance, should be in place.

Related Government Programs

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

Risk Flags

Potential for scope creep or change orders impacting final cost.
Dependency on stable funding throughout the project lifecycle.
Environmental impact assessments and mitigation strategies.
Coordination with local and state authorities for seamless integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to CYCLE CONSTRUCTION COMPANY, L.L.C.. WEST SHORE LAKE PONTCHARTRAIN, LA HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, WSLP 109 LEVEE AND FLOODWALL, ST JOHN THE BAPTIST PARISH, LOUISIANA

Who is the contractor on this award?

The obligated recipient is CYCLE CONSTRUCTION COMPANY, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-03-15.

What is the projected economic benefit of this project in terms of avoided damages?

While the contract value is $23.3M, the projected economic benefit in terms of avoided damages is not explicitly stated in the provided data. However, given Louisiana's vulnerability to hurricanes, the long-term value of such risk reduction projects is typically substantial, potentially saving billions in disaster recovery and infrastructure repair costs over the project's lifespan.

What are the key performance indicators for assessing the effectiveness of the levee and floodwall system post-construction?

Key performance indicators would likely include the system's ability to withstand specific storm surge levels, maintain structural integrity under pressure, and effectively divert or contain floodwaters. Regular inspections, stress tests, and monitoring of water levels during storm events would be crucial for assessing long-term effectiveness and identifying maintenance needs.

Are there any provisions for adaptive management or future upgrades to the system given potential climate change impacts?

The provided data does not specify provisions for adaptive management or future upgrades. However, for critical infrastructure projects in coastal areas, it is prudent for the Army Corps of Engineers to consider climate change projections and incorporate flexibility for future enhancements to ensure the system's continued efficacy against evolving environmental threats.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912P824B0026

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 E 3RD ST, KENNER, LA, 70062

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

Financial Breakdown

Contract Ceiling: $23,308,424

Exercised Options: $23,308,424

Current Obligation: $23,308,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline