Army awards $24.6M contract for river construction and maintenance, with a 2-year duration

Contract Overview

Contract Amount: $24,641,785 ($24.6M)

Contractor: Luhr Crosby, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-01

End Date: 2026-06-10

Contract Duration: 1,013 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION & MAINTENANCE OF RIVERS

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to LUHR CROSBY, LLC for work described as: CONSTRUCTION & MAINTENANCE OF RIVERS Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over two years indicates a significant undertaking. 5. The contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The awardee, LUHR CROSBY, LLC, is a new entity in federal contracting data.

Value Assessment

Rating: good

The contract value of $24.6 million for river construction and maintenance over approximately two years appears to be within a reasonable range for this type of heavy civil engineering work. Benchmarking against similar projects is challenging without more specific details on the scope of work, but the firm-fixed-price structure suggests that the initial bid was deemed competitive and offered good value. The award amount is slightly below the estimated value of $24.3 million, indicating potential cost savings or a well-priced bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The use of full and open competition suggests that the agency did not identify any specific barriers to entry or proprietary requirements that would limit the bidder pool.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars by ensuring multiple companies vie for the contract. This process increases the likelihood of obtaining services at a fair market price.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the public through improved river infrastructure and navigation. Services delivered include construction and maintenance of rivers, likely involving dredging, bank stabilization, or other civil works. The geographic impact is focused on the Missouri region, as indicated by the 'MO' state code. Workforce implications may include employment opportunities for construction workers and engineers in the Missouri area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to fully assess value for money.
Limited information on the number of bidders in the full and open competition.
The awardee, LUHR CROSBY, LLC, has a limited track record in federal contracting data, raising questions about past performance.
No specific small business subcontracting plan details are available.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps control costs and manage financial risk.
The contract duration is clearly defined, providing a predictable timeline for project completion.
The project addresses essential infrastructure needs related to river maintenance.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to water resource management and infrastructure. The market for such services is often characterized by specialized firms capable of undertaking large-scale projects. Comparable spending benchmarks would typically involve other Army Corps of Engineers projects or similar federal agency contracts focused on riverine environments, dredging, and flood control. The total federal spending in NAICS code 237990 (Other Heavy and Civil Engineering Construction) can be substantial, reflecting ongoing investments in national infrastructure.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
River and Harbor Improvements
Flood Control Projects
Dredging Services
Waterway Maintenance

Risk Flags

Limited Contractor Past Performance Data
Potential for Unforeseen Site Conditions in River Construction
Environmental Compliance Risks
Long-Term Funding Stability Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to LUHR CROSBY, LLC. CONSTRUCTION & MAINTENANCE OF RIVERS

Who is the contractor on this award?

The obligated recipient is LUHR CROSBY, 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 $24.6 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-06-10.

What is the specific scope of work for the 'CONSTRUCTION & MAINTENANCE OF RIVERS' contract?

The provided data indicates the contract is for 'CONSTRUCTION & MAINTENANCE OF RIVERS' under NAICS code 237990 (Other Heavy and Civil Engineering Construction). While the exact scope is not detailed, this typically involves activities such as dredging channels to maintain navigable depths, constructing or repairing levees and floodwalls, stabilizing riverbanks to prevent erosion, and potentially managing aquatic vegetation or debris. The specific tasks would be outlined in the contract's Statement of Work (SOW), which is not included in the abbreviated data. The duration of over two years suggests a substantial project, possibly involving multiple phases or ongoing maintenance activities.

How does the award amount of $24.6 million compare to similar river construction and maintenance contracts?

Direct comparison of the $24.6 million award value is difficult without specific details on the scope, location, and complexity of similar contracts. However, for large-scale civil engineering projects involving riverine environments, this amount is within a plausible range. Contracts for major dredging operations, extensive levee construction, or significant bank stabilization efforts can easily reach tens of millions of dollars. The firm-fixed-price nature suggests this was the agreed-upon cost after competitive bidding. To provide a more precise benchmark, one would need to analyze contracts with similar geographic constraints, environmental considerations, and specific engineering requirements.

What are the potential risks associated with a firm-fixed-price contract for river construction?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty. However, risks can still exist. For river construction, unforeseen subsurface conditions (e.g., unexpected rock formations, highly permeable soils) could increase contractor costs, potentially leading to claims or disputes if not adequately addressed in the contract's contingency clauses. Environmental factors, such as extreme weather events or discovery of hazardous materials, could also cause delays and cost increases. While the FFP shifts most cost risk to the contractor, significant unforeseen issues could still impact project timelines or lead to contract modifications, albeit at a predetermined price.

What is the significance of LUHR CROSBY, LLC being a relatively new entity in federal contracting?

The limited federal contracting history of LUHR CROSBY, LLC, as suggested by the data, presents a mixed picture. On one hand, it could indicate a newer, potentially more agile company entering the market. On the other hand, a lack of extensive past performance data makes it harder for the government to assess the contractor's reliability, experience, and ability to successfully execute complex projects like river construction. Agencies typically mitigate this by requiring detailed proposals, potentially conducting thorough pre-award surveys, and closely monitoring performance during the contract execution phase. The award itself suggests the contracting officer found sufficient evidence of capability.

What are the implications of the contract being awarded in the Missouri region?

Awarding the contract in the Missouri region (indicated by 'SN': 'MISSOURI') implies that the river construction and maintenance activities are geographically focused within or adjacent to this state. This has several implications: 1) Local economic impact: It likely benefits the regional economy through job creation for local labor and utilization of local suppliers and subcontractors. 2) Environmental considerations: The specific environmental regulations and ecological characteristics of Missouri's rivers will be pertinent to the project's execution. 3) Logistical advantages: For the contractor, proximity to the work site can reduce transportation costs and improve project management efficiency. 4) Agency focus: It suggests the Department of the Army has identified specific needs within this region's waterways.

How does the contract duration of 1013 days (approx. 2.7 years) influence project risk and management?

A contract duration of 1013 days (approximately 2.7 years) for river construction and maintenance signifies a substantial and potentially complex undertaking. This extended timeline allows for more thorough planning, execution, and potentially phased work, which can be beneficial for managing large civil engineering projects. However, it also introduces risks related to long-term funding stability, potential changes in project requirements or environmental conditions over time, and the need for sustained contractor engagement. Effective project management, clear communication, and robust oversight are crucial to ensure milestones are met, quality is maintained, and the project stays on track despite the extended duration.

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: W912P923B0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 250 W SAND BANK RD, COLUMBIA, IL, 62236

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

Financial Breakdown

Contract Ceiling: $24,641,785

Exercised Options: $24,641,785

Current Obligation: $24,641,785

Actual Outlays: $3,403,213

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P923D0012

IDV Type: IDC

Timeline