Army awards $42.6M for Missouri construction, exceeding initial estimates by 3.85%

Contract Overview

Contract Amount: $42,578,579 ($42.6M)

Contractor: Bauer Foundation Corp

Awarding Agency: Department of Defense

Start Date: 2019-11-14

End Date: 2022-11-23

Contract Duration: 1,105 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: A9480-ESTL DEEP CUTOFF WALL CONSTRUCTION

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63103

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $42.6 million to BAUER FOUNDATION CORP for work described as: A9480-ESTL DEEP CUTOFF WALL CONSTRUCTION Key points: 1. Contract value of $42.6M for heavy civil engineering construction. 2. Awarded to BAUER FOUNDATION CORP under a firm-fixed-price definitive contract. 3. Competition was full and open, with 4 bidders. 4. Project duration was 1105 days, spanning from November 2019 to November 2022. 5. The contract is for deep cutoff wall construction. 6. The final award was 3.85% higher than the initial estimate.

Value Assessment

Rating: fair

The contract value of $42.6 million for deep cutoff wall construction appears within a reasonable range for large-scale civil engineering projects. However, the final award exceeded the initial estimate by 3.85%, suggesting potential scope adjustments or unforeseen cost escalations during the project lifecycle. Benchmarking against similar heavy civil engineering contracts would provide a clearer picture of value for money, but the slight overage warrants attention.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders participating, there was a reasonable level of competition, which typically helps in achieving competitive pricing. The firm-fixed-price contract type further incentivizes the contractor to manage costs effectively.

Taxpayer Impact: A full and open competition with multiple bidders generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the surrounding environment through the completed construction. The project delivers essential heavy and civil engineering construction services. The geographic impact is localized to Missouri, where the construction took place. Workforce implications include employment for construction workers and related support staff during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns, as evidenced by the final award exceeding the initial estimate.
The long duration of the contract (1105 days) increases the risk of market fluctuations impacting costs.
Complexity of deep cutoff wall construction can introduce unforeseen technical challenges.

Positive Signals

Firm-fixed-price contract type helps control costs and shifts risk to the contractor.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The contractor, BAUER FOUNDATION CORP, was awarded the contract, implying they met the technical and cost requirements.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on specialized construction like deep cutoff walls. This sector is critical for infrastructure development and often involves large-scale projects with significant capital investment. Comparable spending benchmarks would typically be found in large public works projects, such as dam construction, tunnel building, or major foundation work, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests the contract was not specifically set aside for small businesses, and the prime contractor is likely a large business. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed price. Transparency is generally facilitated through contract award databases, though detailed project performance and oversight reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Construction Projects
Heavy and Civil Engineering Construction Contracts
Infrastructure Development Projects
Department of Defense Construction Awards

Risk Flags

Potential cost increase from estimate to award
Long project duration increases exposure to market volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.6 million to BAUER FOUNDATION CORP. A9480-ESTL DEEP CUTOFF WALL CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is BAUER FOUNDATION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.6 million.

What is the period of performance?

Start: 2019-11-14. End: 2022-11-23.

What specific type of deep cutoff wall was constructed, and what was its purpose?

The provided data does not specify the exact type of deep cutoff wall or its precise purpose. Deep cutoff walls are typically engineered barriers constructed below ground level to control the flow of groundwater or contain contaminants. In a military context, such construction could be related to flood control for bases, containment for hazardous materials, or structural support for significant infrastructure. Further details would require examining the contract's statement of work or technical specifications.

How does the 3.85% difference between the initial estimate and the final award compare to typical variances in similar large-scale construction contracts?

A 3.85% variance between the initial estimate and the final award for a contract of this magnitude ($42.6 million) is generally considered moderate. Large civil engineering projects often encounter unforeseen site conditions, material price fluctuations, or design modifications during execution, leading to adjustments. While a variance below 5% is often viewed favorably, it's crucial to analyze the reasons for the increase. If it was due to scope expansion requested by the government, it might represent good value. If it was due to contractor underestimation or unforeseen issues that could have been anticipated, it might indicate a less optimal outcome for taxpayers.

What were the key performance indicators (KPIs) for this contract, and how did BAUER FOUNDATION CORP perform against them?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract or details on BAUER FOUNDATION CORP's performance. Typically, for construction contracts, KPIs would relate to schedule adherence, quality of work (meeting specifications), safety compliance, and budget management. The firm-fixed-price nature of the contract implies that meeting the defined scope within the agreed price is a primary performance metric. Without access to contract performance reports or inspection records, a detailed assessment of their performance against specific KPIs is not possible.

What is the historical spending pattern for deep cutoff wall construction by the Department of the Army or similar agencies?

Historical spending data for 'deep cutoff wall construction' specifically is not readily available in aggregated public databases without more granular searching. However, the Department of the Army, primarily through the Army Corps of Engineers, frequently engages in large-scale civil works and infrastructure projects that may involve such specialized construction. Annual spending on military construction and civil works can run into billions of dollars. Contracts for specialized foundation and earth retention systems like cutoff walls are typically awarded on a project-by-project basis, with values varying significantly based on scale, complexity, and location. This $42.6 million award appears to be a substantial, but not unprecedented, investment for such a specialized task.

Were there any significant risks identified during the bidding process or contract execution, and how were they mitigated?

The provided data does not explicitly detail risks identified during the bidding or execution phases. However, common risks in large civil engineering projects include unforeseen geological conditions, extreme weather events, material availability and cost fluctuations, and labor issues. The firm-fixed-price contract structure inherently shifts much of the cost-related risk to the contractor, BAUER FOUNDATION CORP. Mitigation strategies would typically involve thorough site investigations prior to bidding, robust contract clauses addressing unforeseen conditions, and proactive project management by both the contractor and the government's contracting officer's representative (COR).

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P919R0024

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bauer AG

Address: 13203 BYRD LEGG DR, ODESSA, FL, 33556

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,578,579

Exercised Options: $42,578,579

Current Obligation: $42,578,579

Actual Outlays: $6,180,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline