Over $24.9M for Hidalgo County levee improvements, awarded to Longhorn Excavators Inc
Contract Overview
Contract Amount: $24,976,249 ($25.0M)
Contractor: Longhorn Excavators Inc
Awarding Agency: Department of State
Start Date: 2009-08-21
End Date: 2012-02-21
Contract Duration: 914 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RECOVERY - MAIN FLOODWAY LEVEE IMPROVEMENTS IN HIDALGO COUNTY, TX. TAS::19 1079 000::TAS
Place of Performance
Location: MERCEDES, HIDALGO County, TEXAS, 78570, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of State obligated $25.0 million to LONGHORN EXCAVATORS INC for work described as: RECOVERY - MAIN FLOODWAY LEVEE IMPROVEMENTS IN HIDALGO COUNTY, TX. TAS::19 1079 000::TAS 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. 3. Contract duration of 914 days indicates a significant, long-term project. 4. Fixed-price contract shifts cost overrun risk to the contractor. 5. Project located in Texas, impacting local infrastructure and potentially workforce. 6. Agency oversight by the International Boundary and Water Commission is noted.
Value Assessment
Rating: good
The contract value of approximately $24.9 million for floodway levee improvements in Hidalgo County, Texas, seems aligned with the scale of major civil engineering projects. While direct comparisons are difficult without specific project details, the fixed-price nature of the contract suggests a benchmarked cost structure. The award to Longhorn Excavators Inc. for this substantial infrastructure project indicates a competitive market for such services, and the price appears to be a result of that competition.
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 a bid. With 6 bidders participating, this suggests a healthy level of competition for the project. The presence of multiple bidders generally leads to more competitive pricing and a greater likelihood that the government receives good value for its investment.
Taxpayer Impact: A competitive bidding process for this levee improvement project likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition award.
Public Impact
Residents and businesses in Hidalgo County, Texas, benefit from improved flood protection. The project delivers critical infrastructure upgrades to the main floodway levee system. Geographic impact is concentrated in Hidalgo County, Texas, along the Rio Grande. Potential for local job creation and economic activity during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
- Contract duration of over 3 years may lead to extended disruption in the local area.
- Dependence on a single contractor for a critical infrastructure project.
Positive Signals
- Fixed-price contract structure provides cost certainty for the government.
- Full and open competition suggests a robust selection process.
- Project addresses a critical need for flood control infrastructure.
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a significant segment of the construction industry focused on large-scale public works. The market for such projects is often characterized by specialized firms capable of handling complex engineering challenges and large budgets. Spending in this sector is driven by infrastructure needs, disaster recovery, and government investment in public safety and utilities. Comparable spending benchmarks would typically be found in other large-scale flood control, levee, or dam construction projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to Longhorn Excavators Inc., a single entity, suggests the primary contractor is likely a larger firm. This means the direct impact on the small business ecosystem for this specific contract may be limited, though the prime contractor might engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically fall under the International Boundary and Water Commission (IBWC), which manages U.S.-Mexico water and boundary issues. The IBWC likely has established project management and inspection protocols to ensure compliance with contract terms and quality standards. Transparency would be facilitated through contract award databases and potentially public reports from the IBWC regarding project progress and outcomes.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- FEMA Hazard Mitigation Grants
- State of Texas Infrastructure Projects
Risk Flags
- Long contract duration
- Potential for unforeseen site conditions
- Border region complexities
Tags
construction, heavy-civil-engineering, flood-control, department-of-state, international-boundary-and-water-commission, texas, hidalgo-county, full-and-open-competition, firm-fixed-price, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $25.0 million to LONGHORN EXCAVATORS INC. RECOVERY - MAIN FLOODWAY LEVEE IMPROVEMENTS IN HIDALGO COUNTY, TX. TAS::19 1079 000::TAS
Who is the contractor on this award?
The obligated recipient is LONGHORN EXCAVATORS INC.
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 $25.0 million.
What is the period of performance?
Start: 2009-08-21. End: 2012-02-21.
What is the track record of Longhorn Excavators Inc. on similar federal contracts?
Information regarding Longhorn Excavators Inc.'s specific track record on similar federal contracts is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases (like SAM.gov or FPDS) to examine past performance evaluations, contract history, and any reported issues or successes on projects of comparable scale and scope. Understanding their experience with flood control infrastructure, large civil engineering projects, and adherence to timelines and budgets would be crucial for assessing their reliability on this specific contract.
How does the awarded amount compare to the estimated cost or bids from other competitors?
The provided data indicates that the contract was awarded for $24,976,249.11 after a full and open competition involving 6 bidders. While the exact bid amounts of the other competitors are not listed, the fact that there were 6 bids suggests a competitive environment. To assess value, one would need to compare this award amount against the government's independent cost estimate (if available) and the range of bids received. A tight clustering of bids around the award price would generally indicate good price discovery. Without the other bid amounts, it's difficult to definitively state if this was the lowest bid or if it represents exceptional value.
What are the primary risks associated with this levee improvement project?
Key risks for this levee improvement project include potential environmental challenges during construction, such as unexpected soil conditions or the presence of protected species, which could lead to delays and cost increases. Geopolitical considerations related to the U.S.-Mexico border could also pose unique risks, although the IBWC's involvement suggests established protocols. Furthermore, the long duration (914 days) increases the risk of material price fluctuations or labor availability issues, even under a fixed-price contract. Ensuring adequate oversight to maintain quality and prevent scope creep will be critical.
How effective has the International Boundary and Water Commission been in managing similar infrastructure projects?
The effectiveness of the International Boundary and Water Commission (IBWC) in managing similar infrastructure projects can be assessed through various means, including Inspector General reports, Government Accountability Office (GAO) audits, and project completion records. The IBWC's mandate involves complex binational cooperation, suggesting a capacity for managing large-scale, sensitive projects. However, like any large agency, specific project outcomes can vary. A detailed analysis would involve reviewing the IBWC's performance metrics, historical data on project delays or cost overruns, and stakeholder feedback related to their infrastructure management capabilities.
What is the historical spending trend for levee improvements in Hidalgo County or similar border regions?
Historical spending trends for levee improvements in Hidalgo County and similar border regions are likely influenced by factors such as federal infrastructure initiatives, disaster recovery funding (e.g., post-hurricane), and ongoing border security or environmental management programs. The International Boundary and Water Commission (IBWC) is a primary agency involved in such projects along the U.S.-Mexico border. Analyzing past IBWC budgets, Army Corps of Engineers civil works spending in the region, and FEMA allocations for flood mitigation would provide insight into the typical investment levels and funding cycles for these types of critical infrastructure projects.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: IBM09B0005
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8653 FM 2759, RICHMOND, TX, 77469
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,976,249
Exercised Options: $24,976,249
Current Obligation: $24,976,249
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-08-21
Current End Date: 2012-02-21
Potential End Date: 2012-02-21 00:00:00
Last Modified: 2015-05-06
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