Boardwalk replacement at Canaveral National Seashore awarded for $5.6M to Hydra Engineering & Construction

Contract Overview

Contract Amount: $5,632,124 ($5.6M)

Contractor: Hydra Engineering & Construction, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-24

End Date: 2026-06-30

Contract Duration: 644 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BOARDWALK REPLACEMENT - CANAVERAL NATIONAL SEASHORE

Place of Performance

Location: NEW SMYRNA BEACH, VOLUSIA County, FLORIDA, 32169

State: Florida Government Spending

Plain-Language Summary

Department of the Interior obligated $5.6 million to HYDRA ENGINEERING & CONSTRUCTION, LLC for work described as: BOARDWALK REPLACEMENT - CANAVERAL NATIONAL SEASHORE Key points: 1. Contract value appears reasonable for a significant infrastructure project of this nature. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Contract duration of 644 days indicates a substantial project timeline. 4. Firm fixed-price contract type mitigates cost overrun risk for the government. 5. Project is located in Florida, a state with significant coastal infrastructure needs. 6. The award to Hydra Engineering & Construction, LLC warrants a review of their past performance in similar projects.

Value Assessment

Rating: good

The contract value of $5.6 million for boardwalk replacement at Canaveral National Seashore seems aligned with typical infrastructure projects of this scale. Benchmarking against similar federal or state projects for coastal park infrastructure would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has locked in costs, which is a positive indicator for budget predictability. However, without specific details on the scope of work and materials, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were excluded for specific reasons. This could be due to specialized capabilities, past performance issues with certain contractors, or other documented justifications. With 6 bidders, the competition level appears moderate, suggesting that there were multiple interested parties capable of performing the work. This level of competition is generally sufficient to promote price discovery, but the exclusion of sources might limit the ultimate breadth of competitive pricing.

Taxpayer Impact: The moderate competition, despite the exclusion of some sources, likely resulted in a fair market price. Taxpayers benefit from having multiple bids, which helps ensure the selected price is not excessively high, though the exclusion of certain bidders could have potentially led to even lower prices if they had been included.

Public Impact

The primary beneficiaries are visitors to Canaveral National Seashore, who will gain access to improved and safer boardwalks. The project will deliver essential infrastructure maintenance and upgrades within a protected natural area. The geographic impact is localized to Canaveral National Seashore in Florida. The project will likely create temporary employment opportunities for construction workers and related trades in the local Florida area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen environmental or structural issues arise during construction.
Reliance on a single contractor for a critical infrastructure project necessitates close monitoring of performance and quality.
The 'exclusion of sources' clause warrants scrutiny to ensure it was justified and did not unduly limit competition.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Moderate number of bidders (6) suggests a competitive environment was established.
Project addresses critical infrastructure needs within a national park, enhancing visitor experience and safety.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on boardwalk and coastal infrastructure. The market for such specialized construction can be competitive, particularly in regions with significant coastal development and environmental considerations. The $5.6 million award is a substantial sum, indicating a project of considerable scope. Comparable spending benchmarks would involve looking at other boardwalk, pier, or similar coastal structure replacements undertaken by federal agencies like the National Park Service or state park systems.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This means the competition was open to all eligible contractors, regardless of size. While there's no explicit small business set-aside, the prime contractor, Hydra Engineering & Construction, LLC, may still engage small businesses as subcontractors. The impact on the small business ecosystem would depend on whether Hydra utilizes them and the nature of their subcontracting plans, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified work within the agreed budget. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

National Park Service Infrastructure Projects
Coastal Resilience and Restoration Programs
Federal Civil Engineering and Construction Contracts
Department of the Interior Capital Improvement Projects

Risk Flags

Potential for environmental impact during construction.
Risk of weather-related delays in coastal Florida.
Need for robust project management due to contract complexity.
Ensuring long-term durability against saltwater and UV exposure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.6 million to HYDRA ENGINEERING & CONSTRUCTION, LLC. BOARDWALK REPLACEMENT - CANAVERAL NATIONAL SEASHORE

Who is the contractor on this award?

The obligated recipient is HYDRA ENGINEERING & CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-06-30.

What is the track record of Hydra Engineering & Construction, LLC on similar federal infrastructure projects?

A review of Hydra Engineering & Construction, LLC's past performance on federal contracts is crucial for assessing their capability to successfully execute this boardwalk replacement project. Specifically, examining their history with projects involving coastal environments, boardwalk construction, or similar civil engineering tasks would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Data from contract databases (like FPDS) can reveal their award history, contract types, and any reported performance issues or commendations. Understanding their experience with firm fixed-price contracts and managing projects of comparable value ($5.6M) is also important. A strong track record on similar projects would increase confidence in successful project completion, while a history of delays, cost overruns, or quality issues would raise concerns.

How does the $5.6 million contract value compare to similar boardwalk replacement projects in national parks?

The $5.6 million contract value for the boardwalk replacement at Canaveral National Seashore needs to be benchmarked against similar projects to assess value for money. This comparison should ideally include projects of similar scope, scale, and complexity, particularly those undertaken by the National Park Service or other federal agencies in coastal or environmentally sensitive areas. Factors such as the length and width of the boardwalk, materials used (e.g., wood, composite, concrete), site accessibility, and environmental mitigation requirements significantly influence cost. If comparable projects of similar scope have been awarded for substantially less, it might indicate potential overpricing or scope differences. Conversely, if costs align with or are lower than benchmarks, it suggests a fair price was negotiated. Without specific comparable project data, a definitive assessment remains preliminary.

What are the specific risks associated with constructing boardwalks in a national seashore environment?

Constructing boardwalks in a national seashore environment presents several unique risks. Environmental sensitivity is paramount; work must be carefully managed to minimize impact on fragile ecosystems, wildlife habitats, and water quality. This can lead to increased costs for specialized equipment, protective measures, and environmental monitoring. Weather conditions, such as hurricanes, storms, and high tides, pose significant risks to construction schedules and material integrity, potentially causing delays and damage. Permitting and regulatory compliance can be complex, involving multiple agencies and stringent environmental reviews. Furthermore, the remote or limited accessibility of some national seashore locations can complicate logistics for material delivery and workforce mobilization, increasing costs and potential for delays. Finally, ensuring the long-term durability of boardwalk materials against saltwater corrosion and UV exposure is critical for reducing future maintenance burdens.

How effective are firm fixed-price contracts in managing costs for infrastructure projects like this?

Firm fixed-price (FFP) contracts are generally considered effective tools for managing costs in infrastructure projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the risk for cost overruns, agreeing to complete the project for a predetermined price. This provides the government with cost certainty and predictability, making budgeting easier. For a project like boardwalk replacement, where the scope is likely well-established through design and specifications, an FFP contract incentivizes the contractor to control costs efficiently to maximize profit. However, if unforeseen issues arise that significantly alter the scope (requiring contract modifications), the cost certainty can diminish. The success of an FFP contract also relies heavily on the thoroughness of the initial scope definition and the government's ability to manage the contract effectively to prevent scope creep.

What is the historical spending trend for boardwalk and related infrastructure maintenance within the National Park Service?

Analyzing historical spending trends for boardwalk and related infrastructure maintenance within the National Park Service (NPS) provides context for the current $5.6 million award. The NPS manages a vast network of facilities, many of which are aging and require significant investment. Spending on infrastructure, including boardwalks, trails, and visitor centers, has historically been subject to budget appropriations, which can fluctuate based on federal funding priorities and legislative actions. There has been a growing recognition of the deferred maintenance backlog within federal agencies, including the NPS, leading to increased calls for dedicated funding for infrastructure renewal. Understanding whether recent spending aligns with or deviates from historical patterns, and whether it reflects a strategic effort to address maintenance backlogs, is key. This specific contract's value should be viewed within the broader context of NPS infrastructure investment needs and available funding.

What does 'Full and Open Competition After Exclusion of Sources' imply for potential bidders and pricing?

The procurement method 'Full and Open Competition After Exclusion of Sources' indicates a nuanced approach to competition. Initially, the solicitation was intended to be open to all responsible sources. However, specific sources were subsequently excluded from consideration. The reasons for exclusion must be documented and justifiable, often related to capability, past performance, or specific requirements not met by those excluded. This method implies that while multiple bidders (in this case, 6) were involved, the pool of potential competitors was intentionally narrowed. For potential bidders, it means understanding the criteria for exclusion is important. For pricing, the exclusion of certain sources might limit the downward pressure on prices that could have resulted from a broader competitive field. While 6 bidders suggest a degree of competition, the exclusion could mean that the ultimate lowest price achievable was not realized.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140PS124R0009

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 36 JASPER THOMAS RD, CRAWFORDVILLE, FL, 32327

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,632,124

Exercised Options: $5,632,124

Current Obligation: $5,632,124

Actual Outlays: $4,432,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline