Army awards $32.2M for Muddy River flood damage reduction, highlighting long-term infrastructure investment

Contract Overview

Contract Amount: $32,252,823 ($32.3M)

Contractor: Charter Environmental, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-08-10

End Date: 2018-11-01

Contract Duration: 2,274 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MUDDY RIVER FLOOD DAMAGE REDUCTION PROJECT PHASE 1

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02215

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to CHARTER ENVIRONMENTAL, INC. for work described as: MUDDY RIVER FLOOD DAMAGE REDUCTION PROJECT PHASE 1 Key points: 1. Contract value represents a significant investment in critical civil engineering infrastructure. 2. Competition dynamics suggest a robust bidding process for this large-scale project. 3. Project duration of over 6 years indicates a complex, multi-phase undertaking. 4. Firm Fixed Price contract type offers cost certainty for the government. 5. Geographic focus on Massachusetts points to regional infrastructure needs. 6. The project aligns with broader federal efforts in environmental resilience and disaster mitigation.

Value Assessment

Rating: good

The contract value of $32.2 million for the Muddy River Flood Damage Reduction Project Phase 1 appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale flood control and infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost overruns, which is a positive indicator for government spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. With 6 bidders, the competition level suggests a healthy market response for this type of specialized construction service. This level of competition is generally expected to drive competitive pricing and ensure the government receives fair market value.

Taxpayer Impact: A competitive bidding process for this project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Residents and businesses in the Muddy River area benefit from reduced flood risk and improved infrastructure. The project delivers essential civil engineering services focused on flood damage reduction. The geographic impact is concentrated in Massachusetts, addressing specific regional environmental challenges. The project likely supports a skilled construction workforce, including engineers, laborers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 6 years) could introduce risks related to cost escalation or scope creep if not managed effectively.
Reliance on a single phase (Phase 1) suggests potential for future funding needs and contract modifications.

Positive Signals

Firm Fixed Price contract provides cost predictability and limits the government's exposure to cost overruns.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Award to Charter Environmental, Inc. indicates a potentially experienced contractor in this specialized field.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is crucial for national infrastructure development and maintenance. The market for such projects is characterized by large, complex undertakings often requiring specialized expertise and significant capital investment. Federal spending in this area supports critical public works, environmental protection, and disaster resilience initiatives. Comparable spending benchmarks would typically involve other large-scale flood control, dam construction, or major infrastructure repair projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Charter Environmental, Inc., there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine the extent of small business participation in this project.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract, financial oversight would focus on adherence to the agreed-upon price and scope. The duration of the project suggests ongoing monitoring by the contracting officer and potentially program managers. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
National Flood Insurance Program
Infrastructure Investment and Jobs Act Projects
Environmental Protection Agency Superfund Sites

Risk Flags

Long project duration
Potential for cost escalation
Reliance on phased funding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to CHARTER ENVIRONMENTAL, INC.. MUDDY RIVER FLOOD DAMAGE REDUCTION PROJECT PHASE 1

Who is the contractor on this award?

The obligated recipient is CHARTER ENVIRONMENTAL, 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 $32.3 million.

What is the period of performance?

Start: 2012-08-10. End: 2018-11-01.

What is the track record of Charter Environmental, Inc. on similar federal contracts?

A review of federal contract databases indicates that Charter Environmental, Inc. has a history of performing environmental and construction services for various government agencies. Specific details on their performance on large-scale flood damage reduction projects would require a deeper dive into past performance reviews and contract close-out data. Analyzing their portfolio for projects of similar size, complexity, and duration would provide insight into their capabilities and reliability in executing major civil engineering endeavors. Past performance is a critical factor in federal contracting, and understanding their success rate on comparable projects is key to assessing the risk associated with this award.

How does the awarded amount compare to the estimated cost or initial budget for this project?

The awarded amount of $32.2 million represents the final contract value. Without access to the initial project estimates, budget allocations, or any pre-award cost analyses, it is difficult to definitively state how this compares to the government's initial expectations. However, the fact that it was awarded under full and open competition with 6 bidders suggests that the pricing was deemed competitive and likely within an acceptable range for the government. Further investigation into the solicitation documents and any publicly available budget information for the Muddy River Flood Damage Reduction Project would be necessary for a direct comparison.

What are the primary risks associated with a multi-year, firm-fixed-price contract for heavy civil engineering?

For a multi-year, firm-fixed-price contract in heavy civil engineering, key risks include potential cost overruns if initial estimates were inaccurate, contractor performance issues leading to delays, unforeseen site conditions (e.g., geological, environmental), and material price fluctuations. While the firm-fixed-price structure protects the government from cost increases, it places the risk on the contractor, potentially leading to quality compromises or contractor default if margins are too thin. The long duration also increases the risk of scope creep if changes are not managed rigorously. Effective project management, contingency planning, and robust oversight are crucial to mitigate these risks.

What is the historical spending trend for flood damage reduction projects by the Department of the Army?

The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a long history of investing in flood damage reduction projects. Historical spending trends show significant and consistent federal investment in this area, often driven by major flood events and a national focus on infrastructure resilience. Annual outlays can fluctuate based on congressional appropriations, the number of active projects, and the specific needs identified in different regions. Analyzing multi-year budget data for USACE Civil Works programs would reveal patterns in funding allocation towards flood control and related infrastructure, highlighting the sustained commitment to mitigating flood risks across the nation.

How does the number of bidders (6) influence the perceived value for money in this contract?

A competition with 6 bidders is generally considered robust and indicates a healthy level of market interest and capacity for this type of project. A higher number of bidders typically leads to more competitive pricing as companies vie for the contract. This increased competition enhances the government's ability to secure a fair market price and potentially achieve better value for taxpayer dollars. It also reduces the risk of awarding the contract to a single entity that might otherwise have less incentive to offer the most cost-effective solution. Therefore, 6 bidders suggest a strong likelihood of good value for money.

What are the potential long-term implications of this project for regional infrastructure and environmental resilience?

This project's long-term implications are significant for regional infrastructure and environmental resilience. By addressing flood damage reduction, it aims to protect critical public and private assets, reduce economic losses from flooding, and enhance the safety of communities in the Muddy River area. Improved flood control infrastructure contributes to greater resilience against extreme weather events, which are becoming more frequent and intense due to climate change. The project's success can serve as a model for other regions facing similar challenges and underscores the federal government's role in supporting essential infrastructure upgrades that have lasting benefits for public safety and economic stability.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912WJ11R0019

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 560 HARRISON AVE STE 500, BOSTON, MA, 02118

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

Financial Breakdown

Contract Ceiling: $35,823,641

Exercised Options: $35,823,641

Current Obligation: $32,252,823

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline