Tule River Basin Phase 2 Contract Awarded to Michels Construction for $55.5M by DoD
Contract Overview
Contract Amount: $55,500,000 ($55.5M)
Contractor: Michels Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-12-10
End Date: 2025-04-30
Contract Duration: 1,237 days
Daily Burn Rate: $44.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TULE RIVER BASIN PHASE 2
Place of Performance
Location: PORTERVILLE, TULARE County, CALIFORNIA, 93258
Plain-Language Summary
Department of Defense obligated $55.5 million to MICHELS CONSTRUCTION, INC. for work described as: TULE RIVER BASIN PHASE 2 Key points: 1. The $55.5 million contract for the Tule River Basin Phase 2 project was awarded to Michels Construction, Inc. 2. This project falls under 'Other Heavy and Civil Engineering Construction' and is managed by the Department of the Army. 3. The contract type is a Firm Fixed Price Definitive Contract, indicating a set price for the scope of work. 4. The project duration is 1237 days, with an expected completion date in April 2025. 5. The award value of $55.5 million represents a significant investment in civil engineering infrastructure.
Value Assessment
Rating: good
The contract value of $55.5 million appears reasonable for a large-scale civil engineering project of this nature. Benchmarking against similar Army Corps of Engineers projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by driving down costs through market forces.
Public Impact
Enhances water management and flood control capabilities in the Tule River Basin. Supports regional infrastructure development and economic activity through construction. Provides critical environmental and public safety benefits by mitigating flood risks. Represents a significant federal investment in California's water infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological or environmental issues arise.
- Contract duration is lengthy, increasing exposure to market fluctuations and potential delays.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract provides cost certainty for the government.
- Project addresses critical infrastructure needs for flood control and water management.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is vital for public infrastructure. Spending in this sector is often driven by government initiatives for water resource management, transportation, and environmental protection.
Small Business Impact
While Michels Construction, Inc. is the prime contractor, the contract details do not specify any subcontracting goals for small businesses. Further investigation into subcontracting plans would be necessary to assess small business participation.
Oversight & Accountability
The Department of the Army, likely through the Army Corps of Engineers, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects should be in place to ensure compliance and quality.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen geological or environmental issues impacting cost and schedule.
- Long project duration increases exposure to market volatility and potential delays.
- Lack of explicit small business subcontracting goals in the provided data.
- Reliance on a single prime contractor for a large, complex project.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.5 million to MICHELS CONSTRUCTION, INC.. TULE RIVER BASIN PHASE 2
Who is the contractor on this award?
The obligated recipient is MICHELS CONSTRUCTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $55.5 million.
What is the period of performance?
Start: 2021-12-10. End: 2025-04-30.
What is the historical cost performance of Michels Construction, Inc. on similar large-scale civil engineering projects?
Analyzing Michels Construction's past performance on comparable projects is crucial for assessing their capability and potential cost control effectiveness. Reviewing their track record with the Army Corps of Engineers or other federal agencies can reveal patterns in budget adherence, project completion times, and any significant change orders or disputes. This historical data provides a valuable benchmark for evaluating the current Tule River Basin Phase 2 contract's risk profile and expected value.
Are there any specific environmental or geological risks associated with the Tule River Basin Phase 2 project that could impact the fixed price?
The Tule River Basin is known for its complex geological formations and potential for seismic activity, which could introduce unforeseen challenges during construction. Environmental factors, such as endangered species habitats or water quality regulations, may also necessitate design modifications or extended timelines. A thorough risk assessment should detail these potential issues and outline mitigation strategies, as well as contingency plans, to understand how they might affect the project's fixed price and overall feasibility.
How effectively will the completed Tule River Basin Phase 2 project contribute to regional flood control and water management goals?
The effectiveness of the Tule River Basin Phase 2 project hinges on its ability to demonstrably reduce flood risks and improve water resource management for the region. Key performance indicators should be established to measure its impact, such as reduced flood damage claims, improved water storage capacity, or enhanced ecosystem health. Post-completion monitoring and evaluation will be essential to confirm that the project meets its intended objectives and provides a tangible return on the federal investment.
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: SEALED BID
Solicitation ID: W9123821B0010
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 817 MAIN ST, BROWNSVILLE, WI, 53006
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,003,096
Exercised Options: $55,500,000
Current Obligation: $55,500,000
Actual Outlays: $4,218,624
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-10
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-07-12
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