State Department awards $90.6M for American Canal construction, with a significant portion allocated for heavy civil engineering

Contract Overview

Contract Amount: $90,568,672 ($90.6M)

Contractor: Odin Environmental Solutions, LLC

Awarding Agency: Department of State

Start Date: 2023-08-22

End Date: 2027-09-03

Contract Duration: 1,473 days

Daily Burn Rate: $61.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AMERICAN CANAL LOWER REACH REPLACEMENT

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of State obligated $90.6 million to ODIN ENVIRONMENTAL SOLUTIONS, LLC for work described as: CONSTRUCTION OF AMERICAN CANAL LOWER REACH REPLACEMENT Key points: 1. Contract value of $90.6M indicates a substantial investment in critical infrastructure. 2. The project falls under 'Other Heavy and Civil Engineering Construction,' a sector vital for national infrastructure. 3. A single award suggests a focused approach to project execution, potentially streamlining management. 4. The firm-fixed-price contract type aims to control costs and provide predictability for the government. 5. Project duration of over 4 years highlights the complexity and scale of the canal replacement. 6. Awarded to ODIN ENVIRONMENTAL SOLUTIONS, LLC, this contract represents a significant engagement for the contractor.

Value Assessment

Rating: good

The contract value of $90.6 million for the American Canal Lower Reach Replacement is substantial. Benchmarking against similar large-scale civil engineering projects is challenging without more specific project details. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The award amount appears reasonable given the scope of replacing a significant canal section, which typically involves extensive labor, materials, and specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended to yield the best value. This approach typically fosters price discovery and encourages multiple firms to offer their best pricing and technical solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is designed to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are likely the U.S. and Mexico through improved water management and infrastructure along the border. The project will deliver the replacement of a critical section of the American Canal. Geographic impact is concentrated in the Texas region where the canal is located. The construction will likely create numerous jobs in the heavy and civil engineering sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental challenges arise during construction.
Delays in project completion could impact water management operations.
Contractor performance risk, though mitigated by fixed-price contract, requires diligent oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process aimed at securing best value.
Award to a single entity may streamline project management and execution.
Long project duration allows for thorough planning and execution of complex tasks.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a broad category encompassing large-scale infrastructure projects like canals, dams, highways, and bridges. The market for such projects is characterized by large, specialized firms capable of managing complex logistics, significant capital investment, and stringent regulatory compliance. The total federal spending in this sector can fluctuate based on infrastructure initiatives and national priorities. This specific contract represents a significant investment in water infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor, ODIN ENVIRONMENTAL SOLUTIONS, LLC, may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State and the International Boundary and Water Commission. The firm-fixed-price contract type provides a degree of cost control. Transparency is expected through contract award databases and potential public reporting on project milestones. Inspector General jurisdiction would typically fall under the Department of State's oversight.

Related Government Programs

Border Infrastructure Projects
Water Resource Management Contracts
International Boundary and Water Commission Projects
Heavy Civil Engineering Construction Contracts

Risk Flags

Potential for environmental impact during construction.
Risk of project delays due to weather or unforeseen site conditions.
Need for strong inter-agency coordination (State Dept. and IBWC).

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $90.6 million to ODIN ENVIRONMENTAL SOLUTIONS, LLC. CONSTRUCTION OF AMERICAN CANAL LOWER REACH REPLACEMENT

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 $90.6 million.

What is the period of performance?

Start: 2023-08-22. End: 2027-09-03.

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

Information regarding ODIN ENVIRONMENTAL SOLUTIONS, LLC's specific track record with large-scale civil engineering projects of this magnitude is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal contracts, including project complexity, adherence to schedule and budget, and client satisfaction. Federal procurement databases and past performance reviews would be essential resources to evaluate their capability to successfully execute the American Canal Lower Reach Replacement project.

How does the $90.6 million contract value compare to similar canal replacement projects?

Direct comparison of the $90.6 million contract value to similar canal replacement projects is difficult without more granular data on project scope, location, and specific engineering challenges. However, large-scale civil engineering projects, especially those involving critical infrastructure like international waterways, often run into tens or hundreds of millions of dollars. The value appears consistent with the complexity and scale implied by replacing a 'lower reach' of a significant canal, suggesting it is within the expected range for such undertakings.

What are the primary risks associated with this canal construction project?

The primary risks associated with this canal construction project include potential environmental challenges (e.g., soil conditions, water table fluctuations), unforeseen geological issues, weather-related delays, and the logistical complexities of working on an international boundary. Given the firm-fixed-price nature of the contract, cost overruns due to these risks would primarily impact the contractor, but significant delays could still affect the government's operational timelines and potentially lead to change orders if scope is impacted. Ensuring robust environmental assessments and contingency planning is crucial.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined and risks are understood. It shifts the primary cost risk to the contractor, incentivizing them to control expenses and complete the work within the agreed-upon price. For a project like canal construction, where unforeseen issues can arise, the FFP structure provides significant cost certainty for the government, provided the initial scope is accurately defined and change orders are managed judiciously.

What is the historical spending pattern for the International Boundary and Water Commission in this sector?

Historical spending patterns for the International Boundary and Water Commission (IBWC) in the heavy and civil engineering construction sector would likely show a focus on border infrastructure, water management facilities, and related maintenance. Specific figures would require a detailed analysis of past IBWC budgets and contract awards. However, it's reasonable to assume that projects involving significant infrastructure like canal systems represent a substantial and recurring component of their capital expenditure, reflecting their ongoing mission.

What are the implications of a 4-year duration for this construction project?

A 4-year duration for the American Canal Lower Reach Replacement project implies a significant scale and complexity. This extended timeline allows for meticulous planning, phased construction, and the integration of advanced engineering techniques. For the government, it means a long-term commitment and the need for sustained oversight. For the contractor, it provides a stable revenue stream but also requires robust project management to maintain efficiency and control over an extended period. It also suggests that the project may involve substantial environmental considerations or phased work to minimize disruption.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2901 DOUGLAS BLVD STE 300, ROSEVILLE, CA, 95661

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: $90,568,672

Exercised Options: $90,568,672

Current Obligation: $90,568,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline