Army awards $9.5M civil engineering contract to Odin Environmental Solutions for Natomas Basin work

Contract Overview

Contract Amount: $9,495,916 ($9.5M)

Contractor: Odin Environmental Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-08

End Date: 2025-11-18

Contract Duration: 649 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NATOMAS BASIN, REACH D HIGHWAY 99

Place of Performance

Location: PLEASANT GROVE, SUTTER County, CALIFORNIA, 95668

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.5 million to ODIN ENVIRONMENTAL SOLUTIONS, LLC for work described as: NATOMAS BASIN, REACH D HIGHWAY 99 Key points: 1. Contract value appears reasonable for the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 649 days indicates a significant, multi-year project. 4. Fixed-price contract type shifts risk to the contractor. 5. Geographic focus on California's Natomas Basin highlights regional infrastructure needs. 6. Odin Environmental Solutions, LLC is the sole awardee, requiring scrutiny of their capacity.

Value Assessment

Rating: good

The contract value of $9.5 million for heavy and civil engineering construction over approximately two years seems within a reasonable range for projects of this nature. Benchmarking against similar Army Corps of Engineers projects in California would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps the contractor's potential earnings and limits cost overruns.

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. With three bids received, the competition level suggests a moderate degree of market interest. While three bidders is better than one or two, a higher number could potentially drive prices down further. The agency's ability to secure multiple bids is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. The presence of multiple bidders suggests that the government is likely receiving a fair market price for the services rendered.

Public Impact

The primary beneficiaries are the Department of the Army and potentially local communities in the Natomas Basin region through improved infrastructure. Services delivered include heavy and civil engineering construction, likely related to flood control, environmental remediation, or infrastructure maintenance. The geographic impact is concentrated in the Natomas Basin, California. Workforce implications may include job creation for skilled construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not rigidly defined.
Reliance on a single contractor for a significant duration requires robust performance monitoring.
Ensuring compliance with environmental regulations during construction is critical.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a potentially competitive pricing structure.
Award to a single entity can streamline project management and execution.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of national infrastructure development and maintenance. The Army Corps of Engineers is a major procurer in this space, often focusing on projects related to water management, flood control, and environmental restoration. Spending in this sector can fluctuate based on federal infrastructure initiatives and specific regional needs, such as those in flood-prone areas like the Natomas Basin.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the awardee, Odin Environmental Solutions, LLC, is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The agency's overall small business utilization goals and subcontracting plans would need to be reviewed separately to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through the Army Corps of Engineers district responsible for the Natomas Basin. Accountability measures are typically embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases and public reporting, though specific project details may be limited.

Related Government Programs

Army Corps of Engineers Civil Works Programs
California Infrastructure Projects
Flood Control and Environmental Restoration Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Contract Duration
Number of Bidders
Contractor Performance History (Requires further investigation)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to ODIN ENVIRONMENTAL SOLUTIONS, LLC. NATOMAS BASIN, REACH D HIGHWAY 99

Who is the contractor on this award?

The obligated recipient is ODIN ENVIRONMENTAL SOLUTIONS, 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 $9.5 million.

What is the period of performance?

Start: 2024-02-08. End: 2025-11-18.

What is Odin Environmental Solutions, LLC's track record with the Department of Defense and Army Corps of Engineers?

A review of federal procurement data would be necessary to fully assess Odin Environmental Solutions, LLC's track record. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Understanding their experience with similar-sized projects, specific types of civil engineering work, and their performance history with the Army Corps of Engineers is crucial for evaluating their capability to successfully execute this $9.5 million contract. Without this specific historical data, the assessment relies on the assumption that the agency conducted adequate due diligence during the procurement process.

How does the $9.5 million contract value compare to similar Army Corps of Engineers projects in California?

To benchmark the $9.5 million contract value, one would need to analyze recent Army Corps of Engineers contracts for heavy and civil engineering construction in California. Key comparison points would include project scope (e.g., flood control, levee construction, environmental remediation), contract duration, and the specific geographic region within California. For instance, comparing this award to other projects in the Sacramento area or other flood-prone regions would provide relevant context. If similar projects of comparable complexity and duration have been awarded for significantly less or more, it would indicate whether this contract represents a strong or weak value proposition. The firm fixed-price nature also suggests a well-defined scope, which aids in comparison.

What are the primary risks associated with this firm fixed-price contract for heavy civil engineering construction?

While firm fixed-price contracts are generally advantageous for the government by capping costs, they can introduce risks for the contractor, which may indirectly affect the project. For Odin Environmental Solutions, LLC, the primary risk is underestimating project costs, leading to reduced profit margins or potential financial strain if unforeseen issues arise during construction. For the government, risks include the contractor potentially cutting corners on quality or safety to maintain profitability if margins are too thin, or contractor default if they face significant financial difficulties. Given the 649-day duration, risks related to material price fluctuations or labor availability could also impact the contractor's ability to deliver within the fixed price, potentially leading to claims or disputes if not managed proactively.

How effective are the competition dynamics in ensuring optimal value for taxpayers on this contract?

The contract was awarded under full and open competition, with three bids received. This level of competition is generally considered moderate. While it indicates that multiple firms were interested and capable of performing the work, a higher number of bidders (e.g., five or more) often correlates with more aggressive pricing and potentially greater innovation. The effectiveness in ensuring optimal value for taxpayers depends on the thoroughness of the agency's cost/price analysis and negotiation strategy. If the agency determined that the price was fair and reasonable based on the bids received and market research, then the competition dynamics were likely effective. However, further analysis of the bid spread and the agency's evaluation process would be needed for a definitive conclusion.

What is the historical spending pattern for similar heavy and civil engineering construction contracts by the Department of the Army?

The Department of the Army, particularly through the Army Corps of Engineers, consistently awards significant contracts for heavy and civil engineering construction. Historical spending patterns reveal a substantial and ongoing investment in infrastructure, flood control, environmental restoration, and military construction projects. Annual spending in this category often runs into the billions of dollars nationwide. Factors influencing these patterns include federal budget allocations, national infrastructure priorities, and specific regional needs, such as disaster recovery or environmental compliance mandates. Analyzing trends over the past 5-10 years would show fluctuations based on economic conditions, administration priorities, and major events like natural disasters.

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: W9123824B0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4740 ROCKLIN RD, ROCKLIN, CA, 95677

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: $9,495,916

Exercised Options: $9,495,916

Current Obligation: $9,495,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline