Interior Awards $2.86M Contract for Limestone Mining in Louisiana to Crowley Holdings LLC
Contract Overview
Contract Amount: $2,861,110 ($2.9M)
Contractor: Crowley Holdings LLC
Awarding Agency: Department of the Interior
Start Date: 2024-09-26
End Date: 2025-09-30
Contract Duration: 369 days
Daily Burn Rate: $7.8K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FL MERRITT IS HURRICAN MULTI
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119
Plain-Language Summary
Department of the Interior obligated $2.9 million to CROWLEY HOLDINGS LLC for work described as: FL MERRITT IS HURRICAN MULTI Key points: 1. Contract value of $2.86 million for crushed and broken limestone mining. 2. Awarded to Crowley Holdings LLC, a single entity. 3. Potential risks include reliance on a single supplier and price fluctuations in raw materials. 4. The sector is mining and quarrying, essential for infrastructure and construction.
Value Assessment
Rating: fair
The contract value of $2.86 million for limestone mining appears within a reasonable range for such services, though specific benchmarks for Louisiana are not readily available. Further comparison with similar regional contracts would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment. This method may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential raw material acquisition. The efficiency of the procurement process under SAP will influence the overall value for taxpayers.
Public Impact
Ensures supply of critical raw material for potential government projects. Supports local economy in Louisiana through contract award. Potential for price volatility impacting long-term cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential price volatility
- Reliance on a single awardee
Positive Signals
- Supports essential raw material acquisition
- Awarded to a US-based company
Sector Analysis
The mining and quarrying sector is fundamental for infrastructure development and construction projects. Spending in this area is often project-driven and subject to material availability and market prices.
Small Business Impact
Analysis indicates no specific provisions or set-asides for small businesses in this contract. The award to Crowley Holdings LLC, a larger entity, suggests limited direct impact on small businesses in this specific procurement.
Oversight & Accountability
Oversight will be managed by the U.S. Fish and Wildlife Service. Accountability for delivery and quality rests with Crowley Holdings LLC, with contract performance monitored against the firm fixed price terms.
Related Government Programs
- Crushed and Broken Limestone Mining and Quarrying
- Department of the Interior Contracting
- U.S. Fish and Wildlife Service Programs
Risk Flags
- Limited competition
- Potential for price escalation
- Supply chain vulnerability
- Lack of small business participation
Tags
crushed-and-broken-limestone-mining-and-, department-of-the-interior, la, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $2.9 million to CROWLEY HOLDINGS LLC. FL MERRITT IS HURRICAN MULTI
Who is the contractor on this award?
The obligated recipient is CROWLEY HOLDINGS LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).
What is the total obligated amount?
The obligated amount is $2.9 million.
What is the period of performance?
Start: 2024-09-26. End: 2025-09-30.
What is the estimated market price for crushed and broken limestone in Louisiana for the contract duration?
Determining the precise market price for crushed and broken limestone in Louisiana over the contract's 369-day duration is complex. Factors such as extraction costs, transportation, regional demand, and fuel prices significantly influence pricing. Benchmarking against recent, similar-sized contracts in the Gulf Coast region, adjusted for inflation and specific geological conditions, would provide a more accurate estimate.
What are the risks associated with relying on a single supplier for this critical raw material?
Reliance on a single supplier, Crowley Holdings LLC, introduces several risks. These include potential supply chain disruptions due to unforeseen events (weather, equipment failure), limited leverage for price negotiation if demand increases, and potential quality control issues if competition is absent. Mitigation strategies could involve robust contract monitoring and contingency planning.
How effectively does the Simplified Acquisition Procedure (SAP) ensure cost-effectiveness for this $2.86 million contract?
SAP is designed for efficiency in acquiring goods and services below certain thresholds, aiming for faster delivery and reduced administrative burden. However, for a contract of this magnitude, SAP may limit the pool of potential bidders, potentially leading to less aggressive pricing than a full and open competition. The actual cost-effectiveness depends on the specific market conditions and the diligence of the contracting officers.
Industry Classification
NAICS: Mining, Quarrying, and Oil and Gas Extraction › Nonmetallic Mineral Mining and Quarrying › Crushed and Broken Limestone Mining and Quarrying
Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 140F0S24R0012
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3727 CANAL ST, NEW ORLEANS, LA, 70119
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,861,110
Exercised Options: $2,861,110
Current Obligation: $2,861,110
Actual Outlays: $2,861,110
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-26
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-01-22
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