Army awards $62.2M bridge construction contract to Archer Western Construction LLC in Virginia

Contract Overview

Contract Amount: $62,215,153 ($62.2M)

Contractor: Archer Western Construction LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-19

End Date: 2026-09-12

Contract Duration: 1,242 days

Daily Burn Rate: $50.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEEP CREEK BRIDGE CONSTRUCTION

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23323

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $62.2 million to ARCHER WESTERN CONSTRUCTION LLC for work described as: DEEP CREEK BRIDGE CONSTRUCTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a clear scope of work and pricing. 3. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 4. The contract duration of 1242 days points to a significant, long-term infrastructure project. 5. The project falls under the Highway, Street, and Bridge Construction NAICS code. 6. The award value is substantial, reflecting the scale of the bridge construction.

Value Assessment

Rating: good

The contract value of $62.2 million for bridge construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale bridge projects managed by the Department of the Army would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract helps in cost predictability, but the final cost will depend on the contractor's efficiency and management of unforeseen issues.

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 bids. With three bidders participating, the competition level suggests a healthy market for this type of construction service. This level of competition is generally expected to drive competitive pricing and encourage efficiency from the winning contractor.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the construction services. The presence of multiple bidders increases the likelihood that the awarded price reflects a fair market value.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the local community in Virginia through improved infrastructure. The contract will deliver essential highway, street, and bridge construction services. The geographic impact is concentrated in Virginia, where the bridge construction will take place. The project will likely create or sustain jobs in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price nature.
Ensuring timely completion within the 1242-day timeframe is critical to avoid extended disruption.
Quality control and adherence to construction standards will be paramount for the longevity of the bridge.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Archer Western Construction LLC, is likely experienced in large-scale infrastructure projects.
The project addresses a critical infrastructure need for the Department of the Army.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering projects like bridge building. The market for large-scale bridge construction is competitive, with a few major players capable of undertaking such complex projects. The $62.2 million award is significant and aligns with the typical scale of major federal infrastructure investments in transportation and defense-related facilities.

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 Archer Western Construction LLC, there is no explicit information on subcontracting plans for small businesses within the provided data. Further review of the contract details would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within budget. Transparency would be facilitated through contract award databases and potentially public project updates from the Army Corps of Engineers or relevant agency.

Related Government Programs

Federal Highway Administration (FHWA) construction projects
Department of Transportation (DOT) infrastructure grants
Army Corps of Engineers civil works projects
Military construction projects (MILCON)

Risk Flags

Long contract duration increases exposure to market fluctuations.
Potential for unforeseen geological or environmental conditions impacting cost and schedule.
Contractor's capacity to manage a project of this scale and complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.2 million to ARCHER WESTERN CONSTRUCTION LLC. DEEP CREEK BRIDGE CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $62.2 million.

What is the period of performance?

Start: 2023-04-19. End: 2026-09-12.

What is Archer Western Construction LLC's track record with similar large-scale bridge construction contracts awarded by the Department of Defense or other federal agencies?

Archer Western Construction LLC has a significant history of undertaking large-scale construction projects, including bridges and other infrastructure. While specific details on past DoD bridge contracts require deeper database searches, their portfolio generally includes complex civil engineering works. Analyzing their past performance on similar projects, including any history of cost overruns, delays, or contract disputes, would be crucial for a comprehensive risk assessment. Their experience with firm-fixed-price contracts and managing projects of this magnitude is a positive indicator, but a thorough review of their performance history is recommended to ensure they meet the project's demanding requirements and timelines.

How does the awarded amount of $62.2 million compare to the average cost of similar bridge construction projects of comparable size and complexity managed by the Department of the Army?

Benchmarking the $62.2 million award against similar Department of the Army bridge construction projects requires access to a broader dataset of historical contract awards. Factors such as project location, specific engineering requirements (e.g., span length, load capacity, soil conditions), and the prevailing economic climate at the time of award significantly influence costs. However, for a project of this scale, involving definitive contract terms and firm-fixed pricing over a multi-year period, the amount appears within a plausible range for major infrastructure. A detailed comparison would involve analyzing the cost per linear foot or per square foot of bridge deck for projects with similar technical specifications and geographic considerations.

What are the primary risk indicators associated with this specific contract, considering its firm-fixed-price nature and long duration?

The primary risk indicators for this firm-fixed-price contract with a 1242-day duration include potential for contractor cost overruns due to unforeseen site conditions, material price escalation beyond contract contingencies, or labor shortages. While the fixed price shifts cost risk to the contractor, significant issues could lead to contractor default or claims. Delays are another risk, potentially stemming from weather, permitting issues, or supply chain disruptions, which could impact project completion and operational readiness. Ensuring robust quality control throughout the extended construction period is also critical to prevent long-term structural issues. The government's risk is primarily related to ensuring the contractor has the capacity and management expertise to deliver the project successfully within the agreed terms.

What is the expected effectiveness of this bridge construction project in meeting the Department of the Army's infrastructure or operational needs?

The effectiveness of this bridge construction project hinges on its ability to provide a reliable and durable piece of infrastructure that meets the Department of the Army's specific operational or logistical requirements. Assuming the bridge is critical for troop movement, equipment transport, or access to a military installation, its successful and timely completion will directly enhance readiness and operational capability. The long-term effectiveness will depend on the quality of construction and the bridge's capacity to handle projected traffic loads and environmental stresses over its intended lifespan. Without specific details on the bridge's strategic purpose, its effectiveness is inferred from its classification as a necessary infrastructure component.

How has historical spending on bridge construction by the Department of the Army trended over the past five fiscal years, and does this award align with those patterns?

Analyzing historical spending trends for bridge construction by the Department of the Army over the past five fiscal years would reveal patterns in investment levels, types of contracts utilized, and average award values. This $62.2 million award for DEEP CREEK BRIDGE CONSTRUCTION appears to be a significant single investment. If the Army's historical spending shows a consistent need for bridge repair and new construction to support its installations and operations, this award would align with those patterns. Conversely, if historical spending has been declining or focused on smaller projects, this larger award might represent a shift in priorities or a response to a specific critical infrastructure need. A detailed trend analysis would require accessing historical federal procurement data.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W9123622B2001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Archer Western Construction LLC

Address: 4343 ANCHOR PLAZA PKWY STE 155, TAMPA, FL, 33634

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: $62,215,153

Exercised Options: $62,215,153

Current Obligation: $62,215,153

Actual Outlays: $8,527,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline