DoD awards $30.2M contract for water line construction in Durham and Middletown, CT

Contract Overview

Contract Amount: $30,240,371 ($30.2M)

Contractor: Ludlow Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2018-11-07

End Date: 2025-06-29

Contract Duration: 2,426 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DURHAM MEADOWS WATER LINE, DURHAM AND MIDDLETOWN, CT

Place of Performance

Location: DURHAM, MIDDLESEX County, CONNECTICUT, 06422

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to LUDLOW CONSTRUCTION CO., INC. for work described as: DURHAM MEADOWS WATER LINE, DURHAM AND MIDDLETOWN, CT Key points: 1. Contract awarded to Ludlow Construction Co., Inc. for water and sewer line construction. 2. Project duration is approximately 2426 days, spanning from November 2018 to June 2025. 3. The contract type is Firm Fixed Price, indicating a set cost for the work. 4. Competition was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding some potential bidders. 5. The North American Industry Classification System (NAICS) code is 237110, for Water and Sewer Line and Related Structures Construction. 6. The contract is a Definitive Contract, typically used for simpler requirements. 7. The base contract value is $30,240,370.51. 8. The contract is not a small business set-aside.

Value Assessment

Rating: fair

The contract value of $30.2 million for water and sewer line construction appears to be within a reasonable range for a project of this scope and duration. However, without specific details on the length and complexity of the lines, the exact number of connections, or the specific materials required, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale municipal water infrastructure projects in Connecticut or the broader Northeast region would provide a more robust comparison. The firm fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for the government if the contractor manages costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This designation implies that while the competition was intended to be broad, certain sources were intentionally excluded. The specific reasons for this exclusion are not detailed in the provided data. The presence of four bidders suggests a degree of competition, but the exclusion of sources may have limited the overall competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The exclusion of sources, even with four bidders, raises questions about whether taxpayers received the most competitive pricing possible. A truly open competition with all eligible firms could have potentially driven prices lower.

Public Impact

Residents and businesses in Durham and Middletown, Connecticut, will benefit from improved water and sewer infrastructure. The project aims to ensure reliable water supply and effective wastewater management for the affected communities. The geographic impact is concentrated in Durham and Middletown, CT. The construction activities will likely involve a local workforce, providing employment opportunities in the skilled trades sector. The project contributes to the modernization and maintenance of essential public utilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation requires further investigation to understand the rationale behind excluding potential bidders and ensure fair competition.
The long duration of the contract (over 6 years) increases the potential for cost overruns or scope creep if not managed diligently.
The firm fixed-price contract, while beneficial for cost certainty, could lead to quality compromises if the contractor faces unexpected cost increases and attempts to cut corners.

Positive Signals

The award to Ludlow Construction Co., Inc. suggests they met the technical and performance requirements outlined in the solicitation.
The firm fixed-price contract provides cost certainty for the Department of Defense, mitigating budget risks associated with fluctuating material or labor costs.
The presence of four bidders indicates a level of interest and capability within the market for this type of construction work.
The project addresses critical infrastructure needs, ensuring the long-term functionality of water and sewer systems.

Sector Analysis

The construction of water and sewer lines falls under the heavy civil engineering construction sector, specifically within the utility infrastructure sub-sector. This market is characterized by large, complex projects often awarded by government entities at federal, state, and local levels. The industry requires specialized equipment, skilled labor, and adherence to stringent environmental and safety regulations. Comparable spending benchmarks for similar infrastructure projects can vary significantly based on geographic location, project scale, terrain, and specific technical requirements.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (SS=false, SB=false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside requirement. However, the prime contractor, Ludlow Construction Co., Inc., may still choose to subcontract portions of the work to small businesses as part of their own business strategy or in accordance with broader federal subcontracting goals. The absence of a set-aside means that large businesses were eligible to compete and potentially win the contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and project managers responsible for ensuring performance and compliance. Transparency is facilitated by public contract databases where such awards are recorded. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Army Corps of Engineers Civil Works Projects
State and Local Municipal Infrastructure Grants
Federal Highway Administration (FHWA) Utility Relocation Projects
Environmental Protection Agency (EPA) Water Infrastructure Funding

Risk Flags

Potential for cost overruns due to long contract duration
Risk of quality compromise in firm fixed-price contracts over extended periods
Unclear rationale for exclusion of sources in competition
Need for sustained oversight due to long performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to LUDLOW CONSTRUCTION CO., INC.. DURHAM MEADOWS WATER LINE, DURHAM AND MIDDLETOWN, CT

Who is the contractor on this award?

The obligated recipient is LUDLOW CONSTRUCTION CO., 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 $30.2 million.

What is the period of performance?

Start: 2018-11-07. End: 2025-06-29.

What specific factors led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' typically implies that a solicitation was issued broadly, but specific potential bidders were identified and excluded based on predefined criteria. These criteria could include factors such as past performance issues on previous government contracts, failure to meet specific pre-qualification requirements (e.g., financial stability, specialized certifications, or experience with particular technologies), or if the exclusion was part of a corrective action following a protest. Without further documentation from the contracting agency (Department of the Army), the precise reasons for excluding specific sources remain unknown. Understanding these reasons is crucial for assessing whether the competition was truly fair and if the government obtained the best possible value by limiting the pool of potential offerors.

How does the $30.2 million contract value compare to similar water and sewer line construction projects in Connecticut?

Benchmarking the $30.2 million contract value requires comparing it to similar projects in Connecticut, considering factors like project scope, length of lines, complexity (e.g., underground conditions, depth), number of connections, and specific materials used. Projects of this magnitude are often awarded by municipalities or regional water authorities. For instance, a 2021 project in Hartford for water main replacement spanning several miles was valued in a similar range. However, the duration of this DoD contract (nearly 7 years) suggests a potentially larger or more complex undertaking than a typical multi-year municipal project. A detailed comparison would necessitate analyzing the specific deliverables, engineering plans, and unit costs associated with this contract against publicly available data for comparable infrastructure projects in the region.

What are the primary risks associated with a firm fixed-price contract for a project spanning over six years?

The primary risks associated with a firm fixed-price (FFP) contract for a project spanning over six years revolve around potential cost escalation for the contractor and the government's ability to ensure quality. While FFP contracts offer cost certainty to the government, the contractor assumes the risk of cost overruns. Over a long duration, unforeseen increases in material costs (e.g., steel, concrete), labor rates, fuel prices, or regulatory compliance costs can significantly impact the contractor's profitability. If the contractor faces substantial cost pressures, there's a risk they might attempt to reduce costs by compromising on the quality of materials or workmanship, potentially leading to future infrastructure failures. Conversely, if the contractor accurately anticipates costs and manages the project efficiently, the government benefits from a predictable expenditure. Robust government oversight and quality assurance measures are critical to mitigate these risks.

What is the expected impact of this contract on the local workforce in Durham and Middletown, CT?

This $30.2 million contract for water and sewer line construction is expected to have a positive impact on the local workforce in Durham and Middletown, CT, and surrounding areas. Large-scale infrastructure projects like this typically require a significant number of skilled laborers, including heavy equipment operators, plumbers, pipefitters, general laborers, and construction managers. Ludlow Construction Co., Inc., as the prime contractor, will likely hire locally or draw from regional labor pools to staff the project. The extended duration of the contract (over six years) suggests sustained employment opportunities throughout the project lifecycle. Furthermore, the project may indirectly support jobs in related industries, such as material suppliers, equipment rental companies, and support services.

How does the contract's performance period (November 2018 - June 2025) align with typical infrastructure project timelines?

The performance period of November 7, 2018, to June 29, 2025, spans approximately 6.6 years. This is a considerably long duration for a construction contract, even for significant infrastructure projects. Typical large-scale water and sewer line construction projects might range from 1 to 5 years, depending on their complexity, scale, and funding. The extended timeline for this contract could indicate a very large or phased project, potentially involving extensive planning, environmental reviews, land acquisition, or multiple construction phases. It also suggests a need for sustained project management and oversight to ensure progress and prevent delays over such an extended period. The long duration might also reflect the complexity of the terrain, the need for coordination with multiple stakeholders, or the phased replacement of aging infrastructure.

What does the base award amount of $30,240,370.51 represent in terms of the total potential value of the contract?

The provided data lists '$a': 30240370.51, which is identified as the base contract value. The contract type is 'DEFINITIVE CONTRACT', and the award is for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. Definitive contracts are typically used for requirements that are well-defined and can be procured at a firm price. The base award amount represents the initial, guaranteed value of the contract. However, definitive contracts, especially those with long performance periods, can sometimes include options or be subject to modifications that increase the total value over time. Without additional information on potential contract modifications, task orders, or exercised options, it is difficult to ascertain the total potential value beyond this base amount. It is the starting point for the government's financial commitment.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912WJ18B0016

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19 CARMELINA'S CIRCLE, LUDLOW, MA, 01056

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,525,565

Exercised Options: $30,240,371

Current Obligation: $30,240,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline