Precision Construction LLC awarded $35M for Comite River Diversion Project, a definitive contract
Contract Overview
Contract Amount: $34,974,036 ($35.0M)
Contractor: Precision Construction LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-19
End Date: 2027-07-21
Contract Duration: 670 days
Daily Burn Rate: $52.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COMITE RIVER DIVERSION PROJECT
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802
Plain-Language Summary
Department of Defense obligated $35.0 million to PRECISION CONSTRUCTION LLC for work described as: COMITE RIVER DIVERSION PROJECT Key points: 1. Contract value of $35M for a 670-day duration suggests a significant investment in civil engineering. 2. The definitive contract type indicates a clear scope and pricing structure. 3. Awarded by the Department of the Army, this project likely supports critical infrastructure or environmental management. 4. The project's location in Louisiana points to regional infrastructure development. 5. The firm fixed price contract type offers cost certainty for the government. 6. A high number of bids (6) suggests robust market interest and potential for competitive pricing.
Value Assessment
Rating: good
The contract value of $35M for a 670-day duration for heavy civil engineering construction appears reasonable given the scope. Benchmarking against similar large-scale civil engineering projects managed by the Army Corps of Engineers would provide further context. The firm fixed price structure helps mitigate cost overrun risks for the government, contributing to value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with six bidders participating. This level of competition is a positive indicator, suggesting that the government sought a broad range of qualified contractors and likely received competitive proposals. The presence of multiple bidders generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The robust competition for this $35M project means taxpayers benefit from a more competitive bidding process, which is expected to drive down costs and ensure the government receives the best value for its investment.
Public Impact
The primary beneficiaries are likely residents and businesses in Louisiana who will benefit from improved flood control or water management infrastructure. The project will deliver significant civil engineering construction services, likely involving earthmoving, structural work, and potentially environmental remediation. The geographic impact is concentrated in Louisiana, specifically within the Comite River basin area. The project will create or sustain jobs in the construction sector, including skilled labor, engineers, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays in large-scale civil engineering projects.
- Environmental impact considerations during construction require careful monitoring.
- Ensuring long-term durability and effectiveness of the completed infrastructure.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition suggests a well-contested and potentially cost-effective award.
- Awarded by a major federal agency (Department of the Army) implies adherence to rigorous standards.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of national infrastructure development. The market for such projects is characterized by large, specialized firms capable of undertaking complex, multi-year endeavors. Spending in this sector is often driven by government initiatives for infrastructure upgrades, disaster resilience, and environmental protection. Comparable spending benchmarks would typically be found in Army Corps of Engineers project portfolios.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a small business set-aside. While Precision Construction LLC is the prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the project's specific requirements and the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight for this project will likely be managed by the Department of the Army, potentially through the Army Corps of Engineers. Accountability measures will include contract milestones, performance reviews, and adherence to the firm fixed price agreement. Transparency is expected through contract award data and potentially public reporting on project progress, with oversight potentially involving the relevant Inspector General's office.
Related Government Programs
- Army Corps of Engineers Civil Works Projects
- Louisiana Infrastructure Projects
- Flood Control and Water Management Initiatives
- Heavy Civil Engineering Construction Contracts
Risk Flags
- Potential for unforeseen site conditions
- Risk of environmental impact during construction
- Dependency on weather patterns affecting schedule
- Complexity of large-scale civil engineering projects
Tags
construction, department-of-defense, department-of-the-army, louisiana, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering-construction, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.0 million to PRECISION CONSTRUCTION LLC. COMITE RIVER DIVERSION PROJECT
Who is the contractor on this award?
The obligated recipient is PRECISION CONSTRUCTION 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 $35.0 million.
What is the period of performance?
Start: 2025-09-19. End: 2027-07-21.
What is the track record of Precision Construction LLC on similar federal contracts?
A review of Precision Construction LLC's contract history would be necessary to assess their track record on similar federal projects. Key areas to examine would include past performance on large-scale civil engineering or heavy construction contracts, adherence to schedules and budgets, and any history of contract disputes or performance issues. Understanding their experience with projects of comparable size and complexity, particularly those managed by the Department of the Army or Army Corps of Engineers, would provide valuable insight into their capability to successfully execute the Comite River Diversion Project.
How does the awarded amount compare to similar Army Corps of Engineers projects?
To benchmark the $35 million award for the Comite River Diversion Project, one would compare it to the contract values of similar civil works projects undertaken by the Army Corps of Engineers. This would involve identifying projects with comparable scopes, such as river diversion, flood control, or major earthmoving and structural construction, and analyzing their total contract values, durations, and the specific services rendered. Factors like geographic location, complexity of terrain, and environmental considerations can influence costs, so comparisons should account for these variables to ensure a fair assessment of value for money.
What are the primary risks associated with this type of civil engineering project?
Major risks associated with large civil engineering projects like the Comite River Diversion Project include unforeseen geological conditions (e.g., unstable soil, unexpected rock formations), environmental challenges (e.g., discovery of protected species, groundwater contamination), and potential for extreme weather events impacting construction schedules. Schedule delays are also a significant risk, often stemming from permitting issues, supply chain disruptions, or contractor performance. Cost overruns, though mitigated by a firm fixed price contract, can still occur if scope creep is not managed or if unforeseen conditions necessitate change orders. Ensuring adequate contingency planning and robust risk management protocols are crucial.
What is the expected effectiveness of the Comite River Diversion Project?
The expected effectiveness of the Comite River Diversion Project hinges on its specific objectives, which are likely related to flood control, water management, or environmental restoration within the Comite River basin. If designed for flood mitigation, its effectiveness would be measured by its capacity to reduce flood damage to properties and infrastructure during high-water events. For water management, it might aim to improve water supply reliability or enhance ecological flows. The project's long-term success will depend on proper design, construction quality, ongoing maintenance, and its integration with broader watershed management strategies.
What has been the historical spending trend for similar Army civil engineering projects?
Analyzing historical spending trends for similar Army civil engineering projects would involve examining the aggregate value and volume of contracts awarded by the Army Corps of Engineers over several fiscal years. This would reveal patterns in investment related to infrastructure, environmental projects, and flood control. Trends might show increasing or decreasing budgets based on federal appropriations, national priorities (e.g., infrastructure renewal, climate resilience), and the lifecycle of major civil works programs. Understanding these trends provides context for the current $35 million award and helps forecast future spending in this category.
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: W912P825B0037
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 401 SONNIER RD, CARENCRO, LA, 70520
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,802,268
Exercised Options: $34,974,036
Current Obligation: $34,974,036
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-19
Current End Date: 2027-07-21
Potential End Date: 2027-07-21 00:00:00
Last Modified: 2025-12-03
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