Levee improvements contract awarded to Milestone Excavation Inc. for over $19 million
Contract Overview
Contract Amount: $19,058,377 ($19.1M)
Contractor: Milestone Excavation Inc
Awarding Agency: Department of State
Start Date: 2009-12-31
End Date: 2011-06-30
Contract Duration: 546 days
Daily Burn Rate: $34.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RECOVERY - CANUTILLO PHASE 1 LEVEE IMPROVEMENTS TAS::19 1079 000::TAS
Place of Performance
Location: CANUTILLO, EL PASO County, TEXAS, 79835
State: Texas Government Spending
Plain-Language Summary
Department of State obligated $19.1 million to MILESTONE EXCAVATION INC for work described as: RECOVERY - CANUTILLO PHASE 1 LEVEE IMPROVEMENTS TAS::19 1079 000::TAS Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 546 days indicates a significant project timeline. 4. Firm fixed price contract type offers cost certainty for the government. 5. Project located in Texas, potentially impacting local workforce and economy. 6. No small business set-aside, suggesting larger firms were primary bidders.
Value Assessment
Rating: good
The contract value of approximately $19 million for levee improvements aligns with typical costs for large-scale civil engineering projects. Benchmarking against similar projects would provide a more precise value-for-money assessment, but the scope suggests a substantial undertaking. The firm fixed price structure helps control costs, but the final expenditure depends on efficient project execution by Milestone Excavation Inc.
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. The presence of 7 bidders suggests a healthy level of competition for this project. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: A competitive bidding process for this levee improvement project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The primary beneficiaries are likely residents and businesses in the Canutillo area of Texas, who will benefit from improved flood protection. The project delivers critical infrastructure improvements to the levee system. Geographic impact is concentrated in the specific region of Texas where the levee is located. Workforce implications include job creation for construction workers and related support staff during the project's duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
- Delays in project completion could impact the intended flood protection timeline.
- Ensuring quality of construction for long-term levee integrity is crucial.
Positive Signals
- Firm fixed price contract provides budget certainty.
- Full and open competition suggests a robust selection process.
- Experienced contractor likely selected through competitive bidding.
- Project addresses critical infrastructure needs for flood control.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure projects like levee improvements. This sector is characterized by large-scale projects, significant capital investment, and often involves government contracts for public works. Comparable spending benchmarks for similar levee or flood control projects would be necessary for a detailed sector analysis, but the $19 million award is substantial for a single project.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Milestone Excavation Inc., is likely a larger entity capable of handling the full scope of the project. The absence of small business participation in the prime contract may limit opportunities for smaller firms within this specific project's ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Section of the International Boundary and Water Commission (IBWC), a joint U.S.-Mexico agency responsible for water and boundary issues. Accountability measures would be embedded in the contract terms, including performance milestones and quality control. Transparency is generally facilitated through contract award databases and public reporting, though specific oversight reports would need to be sought from the agency.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- FEMA Hazard Mitigation Grants
- State-level Flood Control Projects
Risk Flags
- Potential for unforeseen site conditions impacting schedule and cost.
- Weather-related delays could affect project timeline.
- Long-term maintenance and effectiveness of levee improvements require ongoing assessment.
Tags
construction, heavy-civil-engineering, infrastructure, flood-control, department-of-state, international-boundary-and-water-commission, texas, firm-fixed-price, definitive-contract, full-and-open-competition, large-project, environmental-impact
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $19.1 million to MILESTONE EXCAVATION INC. RECOVERY - CANUTILLO PHASE 1 LEVEE IMPROVEMENTS TAS::19 1079 000::TAS
Who is the contractor on this award?
The obligated recipient is MILESTONE EXCAVATION 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 $19.1 million.
What is the period of performance?
Start: 2009-12-31. End: 2011-06-30.
What is the track record of Milestone Excavation Inc. on similar federal contracts?
A review of Milestone Excavation Inc.'s federal contract history would be necessary to assess their track record on similar projects. This would involve examining past performance evaluations, any history of contract disputes or terminations, and the successful completion of projects of comparable size and complexity. Without specific data on their past performance, it is difficult to definitively assess their reliability for this levee improvement project. Federal procurement databases and agency performance reports are key resources for this type of analysis.
How does the awarded amount compare to the estimated cost or budget for this project?
The awarded amount of $19,058,377.13 represents the final contract value. To assess value for money, this figure should be compared against the government's initial cost estimates or budget allocated for the Canutillo Phase 1 Levee Improvements. If the awarded amount is significantly lower than estimates, it could indicate successful competition and cost savings. Conversely, if it is higher, it might suggest an underestimation of project costs or a less competitive bidding environment than initially perceived. Accessing pre-award estimates from the agency would be crucial for this comparison.
What are the primary risks associated with this type of heavy civil engineering construction contract?
Key risks in heavy civil engineering construction, particularly for levee improvements, include unforeseen subsurface conditions (e.g., unexpected soil types, groundwater issues), weather delays impacting the construction schedule, and potential material cost fluctuations. For a firm fixed-price contract, the contractor bears much of this risk, but significant issues could lead to claims for extensions of time or, in extreme cases, contractor default. The agency's risk mitigation strategies, such as thorough site investigations and contingency planning, are important factors.
How effective have similar levee improvement projects been in mitigating flood risks in other regions?
The effectiveness of levee improvement projects in mitigating flood risks is generally well-documented, with success contingent on proper design, construction quality, and ongoing maintenance. Studies by entities like the U.S. Army Corps of Engineers often evaluate the performance of such infrastructure. Factors influencing effectiveness include the levee's height and structural integrity relative to historical flood levels, the presence of adequate drainage systems, and the overall watershed management approach. Post-construction monitoring and periodic inspections are vital to ensure continued effectiveness.
What has been the historical spending trend for levee and flood control projects by the International Boundary and Water Commission?
Analyzing historical spending trends for levee and flood control projects by the International Boundary and Water Commission (IBWC) would provide context for the $19 million award. This would involve examining annual budgets and contract awards related to infrastructure improvements over several fiscal years. Trends could reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify any major shifts in project priorities or funding levels. Such data is typically available through agency budget documents and contract award databases.
Were there any specific technical challenges or innovations highlighted in the bidding process for this levee project?
Information regarding specific technical challenges or innovations proposed during the bidding process for this levee project would likely be detailed in the solicitation documents and the proposals submitted by the bidders. Agencies often encourage innovative solutions to complex engineering problems. Reviewing the technical evaluation criteria and any awarded innovations could provide insight into the project's specific requirements and how Milestone Excavation Inc. planned to address them. This level of detail might be found in agency procurement files or technical reports.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: IBM10B0003
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 27310 ROAD R, DOLORES, CO, 81323
Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $19,058,377
Exercised Options: $19,058,377
Current Obligation: $19,058,377
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-31
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2025-04-01
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)