DoD Awards $182M Design-Build Contract for Arkansas Navigation System Weir Construction
Contract Overview
Contract Amount: $182,183,050 ($182.2M)
Contractor: Bfbc LLC
Awarding Agency: Department of Defense
Start Date: 2022-07-19
End Date: 2025-11-29
Contract Duration: 1,229 days
Daily Burn Rate: $148.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD CONSTRUCTION OF A NEW WEIR OPENING AT THE SITE OF THE MCCLELLAN-KERR ARKANSAS NAVIGATION SYSTEM, THREE RIVES, PRE-CONSTRUCTION, ENGINEERING AND DESIGN (PED), DESHA AND ARKANSAS COUNTIES, AR (HISTORIC CLOSURE STRUCTURE - 145), TICHNOR, AR
Place of Performance
Location: TICHNOR, ARKANSAS County, ARKANSAS, 72166
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $182.2 million to BFBC LLC for work described as: DESIGN-BUILD CONSTRUCTION OF A NEW WEIR OPENING AT THE SITE OF THE MCCLELLAN-KERR ARKANSAS NAVIGATION SYSTEM, THREE RIVES, PRE-CONSTRUCTION, ENGINEERING AND DESIGN (PED), DESHA AND ARKANSAS COUNTIES, AR (HISTORIC CLOSURE STRUCTURE - 145), TICHNOR, AR Key points: 1. Significant investment in critical infrastructure for the McClellan-Kerr Arkansas Navigation System. 2. BFBC LLC secured the contract, indicating potential consolidation or specialization in the heavy civil construction sector. 3. Risk of cost overruns or delays exists due to the project's scale and multi-year duration. 4. The project falls under Highway, Street, and Bridge Construction, a sector vital for transportation and commerce.
Value Assessment
Rating: fair
The contract value of $182.2 million for a design-build weir opening is substantial. Benchmarking against similar large-scale civil engineering projects is difficult without more granular cost breakdowns, but the scale suggests a complex undertaking.
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. However, the single award to BFBC LLC warrants scrutiny to ensure competitive tension was maximized.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades, which should yield long-term economic benefits through improved navigation and reduced maintenance.
Public Impact
Enhances critical waterway infrastructure, supporting regional commerce and transportation. Project completion is expected to improve the reliability and efficiency of the McClellan-Kerr Navigation System. Potential for job creation in Desha and Arkansas counties during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 3 years) increases risk of cost escalation.
- Design-build nature requires careful oversight to ensure quality and adherence to scope.
- Potential environmental impacts during construction need monitoring.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This project falls within the Highway, Street, and Bridge Construction sector, specifically focusing on civil engineering for waterway infrastructure. Spending in this sector is often driven by government investment in transportation and economic development.
Small Business Impact
The contract was awarded to BFBC LLC, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Army, through the Department of Defense, is responsible for oversight. The multi-year duration and design-build nature necessitate robust project management and regular progress reviews to ensure accountability and taxpayer value.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration increases risk of cost escalation and schedule delays.
- Complexity of design-build for critical infrastructure requires stringent oversight.
- Potential for unforeseen site conditions impacting cost and schedule.
- Reliance on a single contractor for both design and construction.
- Environmental compliance during construction needs careful management.
Tags
highway-street-and-bridge-construction, department-of-defense, ar, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $182.2 million to BFBC LLC. DESIGN-BUILD CONSTRUCTION OF A NEW WEIR OPENING AT THE SITE OF THE MCCLELLAN-KERR ARKANSAS NAVIGATION SYSTEM, THREE RIVES, PRE-CONSTRUCTION, ENGINEERING AND DESIGN (PED), DESHA AND ARKANSAS COUNTIES, AR (HISTORIC CLOSURE STRUCTURE - 145), TICHNOR, AR
Who is the contractor on this award?
The obligated recipient is BFBC 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 $182.2 million.
What is the period of performance?
Start: 2022-07-19. End: 2025-11-29.
What is the projected long-term economic benefit of this weir opening to the McClellan-Kerr Navigation System and the surrounding region?
The weir opening is expected to enhance the operational efficiency and reliability of the McClellan-Kerr Navigation System, a vital artery for freight transportation in Arkansas. This could lead to reduced shipping costs, increased cargo capacity, and improved navigation during various water level conditions, ultimately boosting regional economic activity and supporting industries reliant on waterway transport.
What are the primary risks associated with the design-build delivery method for this complex civil engineering project?
The primary risks with a design-build approach for this project include potential scope creep if the design is not fully defined upfront, challenges in coordinating between design and construction phases, and ensuring the contractor maintains quality standards throughout. Effective oversight is crucial to mitigate these risks and ensure the final structure meets all requirements and performs as intended.
How will the effectiveness of the new weir opening be measured post-construction to ensure it meets its intended purpose?
Effectiveness will likely be measured through post-construction performance monitoring, including assessing the weir's ability to regulate water levels, improve navigation channel depth and stability, and reduce operational disruptions. Key performance indicators may include reduced transit times for vessels, decreased maintenance requirements for the system, and successful operation during peak usage periods.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 701 GOLD AVE, BOZEMAN, MT, 59715
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: $182,183,050
Exercised Options: $182,183,050
Current Obligation: $182,183,050
Actual Outlays: $25,341,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G19D0034
IDV Type: IDC
Timeline
Start Date: 2022-07-19
Current End Date: 2025-11-29
Potential End Date: 2025-11-29 00:00:00
Last Modified: 2025-10-30
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