State Department awards $34.8M for Sunland Park levee repairs, highlighting critical infrastructure needs

Contract Overview

Contract Amount: $34,800,627 ($34.8M)

Contractor: Odin Environmental Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-09-29

End Date: 2025-10-14

Contract Duration: 1,111 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIRS TO SUNLAND PARK LEVEE

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79902

State: Texas Government Spending

Plain-Language Summary

Department of State obligated $34.8 million to ODIN ENVIRONMENTAL SOLUTIONS, LLC for work described as: REPAIRS TO SUNLAND PARK LEVEE Key points: 1. Contract value appears reasonable given the scope of major civil engineering work. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include project delays and cost overruns common in large construction. 4. This contract addresses essential infrastructure maintenance for border security and community safety. 5. The award falls within the heavy and civil engineering construction sector. 6. Performance will be monitored closely due to the critical nature of the levee.

Value Assessment

Rating: good

The contract value of $34.8 million for levee repairs seems aligned with the scale of such infrastructure projects. Benchmarking against similar large-scale civil engineering contracts would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost certainty, but the duration of the contract (over 3 years) necessitates careful management to control potential scope creep or unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders participating, the competition level suggests a healthy market interest for this type of specialized construction service. This broad competition is generally favorable for achieving competitive pricing and ensuring a wide pool of qualified contractors is considered.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government receives the best value for its investment in critical infrastructure.

Public Impact

Residents and businesses in the Sunland Park area benefit from improved flood protection. Services delivered include essential repairs and maintenance to a vital levee system. Geographic impact is concentrated in the Sunland Park, Texas region along the border. Workforce implications include employment opportunities for construction labor and specialized engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen geological or environmental conditions impacting schedule and cost.
Coordination challenges with multiple stakeholders, including international bodies.
Ensuring long-term durability and effectiveness of repairs under extreme weather conditions.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Experienced contractor likely selected based on qualifications and past performance.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which encompasses the building and maintenance of infrastructure like levees, dams, and bridges. The market for such specialized services is often characterized by a limited number of highly qualified firms capable of undertaking large-scale, complex projects. Spending in this sector is driven by government investment in public works and infrastructure resilience.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is ODIN ENVIRONMENTAL SOLUTIONS, LLC, there is no explicit information on subcontracting plans for small businesses within this award. Further review of the contract details would be needed to assess potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the International Boundary and Water Commission (IBWC), a U.S. agency responsible for water and boundary issues with Mexico. The firm fixed-price nature of the contract provides a degree of cost control. Transparency will depend on the IBWC's reporting practices and public availability of project progress and financial updates.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
Department of Homeland Security Border Infrastructure Projects
Federal Emergency Management Agency (FEMA) Flood Control Grants

Risk Flags

Potential for scope creep due to the extended duration.
Environmental or geological surprises impacting schedule.
Coordination complexity with international border considerations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $34.8 million to ODIN ENVIRONMENTAL SOLUTIONS, LLC. REPAIRS TO SUNLAND PARK LEVEE

Who is the contractor on this award?

The obligated recipient is ODIN ENVIRONMENTAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).

What is the total obligated amount?

The obligated amount is $34.8 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-10-14.

What is the track record of ODIN ENVIRONMENTAL SOLUTIONS, LLC in completing similar large-scale civil engineering projects?

A review of federal procurement data indicates that ODIN ENVIRONMENTAL SOLUTIONS, LLC has been awarded contracts primarily in the environmental remediation and heavy construction sectors. While specific details on past levee repair projects of this magnitude are not immediately available in summary data, their contract history suggests experience with complex engineering tasks. Further investigation into their past performance reports and client feedback would be necessary to fully assess their capability and reliability for the Sunland Park levee repairs. The company's size and scope of previous awards will be a key indicator of their capacity to manage a project valued at $34.8 million over an extended period.

How does the awarded amount compare to the estimated cost or market rates for similar levee repair projects?

The awarded amount of $34.8 million for the Sunland Park levee repairs needs to be benchmarked against similar projects to assess value for money. Without specific cost breakdowns or detailed project scopes for comparable federal or state levee repair initiatives, a precise comparison is challenging. However, large-scale civil engineering projects of this nature, involving significant earthwork, structural reinforcement, and potentially specialized materials, typically command substantial budgets. The firm fixed-price nature of this contract suggests that the initial bids were competitive and reflected the perceived market cost at the time of award. A detailed cost analysis of the bid components would be required for a definitive value assessment.

What are the primary risks associated with this specific levee repair project, and how are they being mitigated?

The primary risks associated with the Sunland Park levee repair project include potential unforeseen site conditions (e.g., soil instability, underground obstructions), extreme weather events impacting construction schedules, and coordination challenges given the border location and potential international implications. Mitigation strategies likely involve thorough geotechnical surveys prior to construction, flexible scheduling to accommodate weather, and robust project management protocols. The firm fixed-price contract helps mitigate cost overrun risks for the government, provided the scope is well-defined. The International Boundary and Water Commission's oversight is crucial for monitoring progress and addressing emergent issues.

What is the historical spending pattern for levee maintenance and repair by the International Boundary and Water Commission?

Historical spending data for the International Boundary and Water Commission (IBWC) on levee maintenance and repair would provide context for the $34.8 million award. While specific annual figures for levee work are not detailed here, the IBWC's mission inherently involves significant investment in border infrastructure, including levees and water control structures. Analyzing past IBWC budgets and contract awards for similar projects over the last 5-10 years would reveal trends in spending, the typical scale of projects, and the frequency of major repair initiatives. This historical perspective is essential for understanding if this award represents a typical investment or a significant increase/decrease in expenditure for levee upkeep.

How does the duration of this contract (1111 days) impact the assessment of project risk and value?

The contract duration of approximately three years (1111 days) for the Sunland Park levee repairs is substantial and introduces specific considerations for risk and value assessment. Longer durations increase the exposure to potential changes in economic conditions, material costs, and regulatory requirements. It also necessitates sustained project management and oversight. For value, a longer timeframe might allow for more thorough execution and potentially phased repairs, but it also means funds are committed over an extended period. The firm fixed-price structure helps lock in costs, but the contractor bears the risk of cost escalation over this duration. Careful milestone tracking and performance reviews will be critical.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 191BWC22R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4740 ROCKLIN RD, ROCKLIN, CA, 95677

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,800,627

Exercised Options: $34,800,627

Current Obligation: $34,800,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline