DoD awards $13.5M for Ventura Harbor Breakwater Repair, with 3 bids received

Contract Overview

Contract Amount: $13,502,086 ($13.5M)

Contractor: Cutting Edge Concrete Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2012-08-06

Contract Duration: 1,406 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VENTURA HARBOR BREAKWATER REPAIR, VENTURA, CALIFORNIA

Place of Performance

Location: VENTURA, VENTURA County, CALIFORNIA, 93001

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to CUTTING EDGE CONCRETE SERVICES, INC. for work described as: VENTURA HARBOR BREAKWATER REPAIR, VENTURA, CALIFORNIA Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a healthy market for this type of service. 3. Contract duration of 1406 days indicates a complex, long-term project. 4. Fixed-price contract type shifts risk to the contractor. 5. Project location in California suggests potential for specific environmental considerations. 6. No small business set-aside indicates the primary contractor is likely not an SMB.

Value Assessment

Rating: good

The contract value of $13.5 million for breakwater repair is within a typical range for large-scale civil engineering projects. Benchmarking against similar federal contracts for coastal infrastructure repair would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the initial pricing was deemed acceptable, with the contractor assuming cost overruns. Without specific details on the scope of work (e.g., linear feet of breakwater, materials used), a direct per-unit cost comparison is difficult, but the overall award seems aligned with industry standards for such projects.

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. Three bids were received, which suggests a moderate level of competition for this specialized construction service. While three bidders is not exceptionally high, it demonstrates that multiple firms were interested and capable of undertaking the project. This level of competition generally supports fair pricing and allows the government to select the most advantageous offer.

Taxpayer Impact: The full and open competition process, with three bidders, likely resulted in a competitive price for taxpayers, preventing excessive costs that might arise from a less competitive scenario.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the Department of Defense, ensuring the integrity of critical coastal infrastructure. The project delivers essential repair and maintenance services for the Ventura Harbor breakwater, enhancing its structural stability and protective capabilities. Geographic impact is localized to Ventura, California, directly benefiting the local port, maritime activities, and potentially surrounding coastal communities. Workforce implications include employment opportunities for skilled construction labor, engineers, and project managers in the Ventura region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Risk of project delays due to weather, environmental regulations, or contractor performance issues over the extended duration.
Dependence on the contractor's expertise and financial stability for successful project completion.
Limited competition (3 bidders) might indicate a specialized market where fewer firms possess the required capabilities.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust market for these services.
Awarded by the Department of the Army, indicating a government entity with experience in managing large infrastructure projects.
Project addresses critical infrastructure maintenance, ensuring long-term operational benefits.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to coastal and marine infrastructure. The market for breakwater repair and construction is specialized, often involving firms with expertise in marine engineering, dredging, and concrete work. Comparable spending benchmarks would typically be assessed based on the linear footage of breakwater repaired, the type of materials used, and the complexity of the site conditions. The Department of Defense, through the Army Corps of Engineers, is a significant investor in such infrastructure projects nationwide.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The primary contractor, Cutting Edge Concrete Services, Inc., is likely a larger entity capable of handling a project of this magnitude. There is no explicit information on subcontracting plans, but for a project of this scale and type, it is common for prime contractors to engage various subcontractors, potentially including small businesses, for specialized tasks. However, the absence of a small business set-aside suggests the primary focus was on securing the most capable bidder through open competition.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers district responsible for the Ventura Harbor. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally maintained through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed here, the DoD IG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Coastal Infrastructure Maintenance
Harbor and Port Improvements
Federal Construction Contracts
Department of Defense Infrastructure

Risk Flags

Long contract duration increases risk of cost escalation or performance degradation.
Limited number of bidders may indicate a specialized market or potential barriers to entry.
Firm Fixed Price on a long-term project can strain contractor resources if costs rise unexpectedly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to CUTTING EDGE CONCRETE SERVICES, INC.. VENTURA HARBOR BREAKWATER REPAIR, VENTURA, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is CUTTING EDGE CONCRETE SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2008-09-30. End: 2012-08-06.

What is the track record of Cutting Edge Concrete Services, Inc. with federal contracts, particularly for similar large-scale civil engineering projects?

A review of federal contract databases would be necessary to fully assess Cutting Edge Concrete Services, Inc.'s track record. Information such as past performance ratings, previous contract values, types of projects completed, and any history of disputes or contract terminations would be crucial. For a $13.5 million breakwater repair project, it is important to verify if the company has successfully managed projects of comparable size, complexity, and duration. Experience with marine construction, adherence to safety standards, and timely delivery on previous federal contracts would be key indicators of their capability and reliability for this specific award.

How does the $13.5 million award compare to the estimated cost or budget for the Ventura Harbor Breakwater Repair project?

The provided data only includes the awarded contract value ($13,502,085.54), not the initial estimated cost or budget set by the Department of the Army. To assess value for money, this award amount should be compared against the government's independent cost estimate. If the award is significantly lower than the estimate, it could indicate strong competition or potentially an underestimated scope. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive bidding environment than anticipated. Without the estimated cost, it's difficult to definitively state if the $13.5 million represents excellent or questionable value from a budgetary perspective.

What are the specific risks associated with a firm fixed-price contract for a long-duration project like breakwater repair?

A firm fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a long-duration project like the 1406-day Ventura Harbor Breakwater Repair, this means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. Key risks for the contractor include unforeseen site conditions (e.g., unexpected geological issues, submerged debris), material price escalation over the project's lifespan, labor cost increases, and potential design changes or scope creep initiated by the government. While FFP protects the government from cost overruns, it can lead to contractor reluctance to accept changes or potential quality compromises if the contractor faces significant cost pressures. The government's risk is primarily related to potential contractor default or subpar performance if they cannot absorb unexpected costs.

What are the performance expectations and key performance indicators (KPIs) for this breakwater repair contract?

Specific performance expectations and KPIs are not detailed in the provided summary data. However, for a breakwater repair contract, typical performance metrics would likely include adherence to the project schedule, quality of construction materials and workmanship, compliance with environmental regulations, safety performance (e.g., incident rates), and successful completion of all specified repair and reinforcement tasks. The contract documents themselves would outline the detailed requirements, acceptance criteria, and potentially penalties for non-performance or incentives for exceptional performance. The Department of the Army would monitor progress against these metrics throughout the contract's duration.

How does the spending on breakwater repair in Ventura compare to other coastal infrastructure projects managed by the Department of Defense?

The provided data focuses solely on this single contract ($13.5 million for Ventura Harbor). To compare this spending to other coastal infrastructure projects managed by the DoD, a broader analysis of federal procurement data would be required. This would involve identifying other contracts for breakwater maintenance, seawall construction, dredging, and related coastal defense or navigation projects across different DoD agencies (e.g., Navy, Marines, Army Corps of Engineers) and geographic locations. Factors such as project scale, scope of work, and regional construction costs would need to be considered for a meaningful comparison of spending patterns and investment priorities.

What is the significance of the 'Other Heavy and Civil Engineering Construction' NAICS code (237990) in relation to this contract?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' signifies the primary industry and type of work covered by this contract. This code encompasses establishments primarily engaged in constructing heavy civil engineering projects not elsewhere classified. This includes projects such as marine construction (like breakwaters, docks, piers), dams, bridges, tunnels, highways, pipelines, and power distribution lines. For the Ventura Harbor Breakwater Repair, this NAICS code accurately categorizes the specialized nature of the work, indicating it involves significant engineering and construction efforts beyond typical building construction, focusing on large-scale infrastructure.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PL08B0004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18020 NATIONAL TRAILS HWY, ORO GRANDE, CA, 92368

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $13,502,086

Exercised Options: $13,502,086

Current Obligation: $13,502,086

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline