Department of Defense awards $108.6M contract for hydraulic containment structure, with construction set to begin late 2024

Contract Overview

Contract Amount: $108,639,709 ($108.6M)

Contractor: Barnard Construction Company, Incorporated

Awarding Agency: Department of Defense

Start Date: 2024-12-17

End Date: 2028-01-08

Contract Duration: 1,117 days

Daily Burn Rate: $97.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BID-BUILD OF THREE RIVERS PHASE 2 HYDRAULIC CONTAINMENT STRUCTURE AND MODIFICATIONS TO OWENS LAKE AND LA GRUES LAKE CULVERTS. WORK WILL INCLUDE, BUT NOT LIMITED TO, ACTIVITIES SUCH AS CLEARING, GRUBBING, EXCAVATION AND HAUL ROADS.

Place of Performance

Location: TICHNOR, ARKANSAS County, ARKANSAS, 72166

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $108.6 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED for work described as: DESIGN-BID-BUILD OF THREE RIVERS PHASE 2 HYDRAULIC CONTAINMENT STRUCTURE AND MODIFICATIONS TO OWENS LAKE AND LA GRUES LAKE CULVERTS. WORK WILL INCLUDE, BUT NOT LIMITED TO, ACTIVITIES SUCH AS CLEARING, GRUBBING, EXCAVATION AND HAUL ROADS. Key points: 1. The contract focuses on civil engineering construction, including excavation and road building for hydraulic containment. 2. The project involves modifications to existing lake culverts, indicating infrastructure upgrades. 3. The definitive contract type suggests a clear scope of work and pricing. 4. The firm-fixed-price nature of the award helps mitigate cost overrun risks for the government. 5. The project duration spans over three years, indicating a significant, long-term construction effort. 6. The contract is not set aside for small businesses, suggesting a focus on large-scale construction capabilities.

Value Assessment

Rating: good

The contract value of $108.6 million for a hydraulic containment structure and culvert modifications appears reasonable given the scope of heavy civil engineering construction. While specific benchmarks for this exact type of project are difficult to ascertain without more granular detail, the price is within the expected range for large-scale infrastructure development. The firm-fixed-price contract type generally indicates that the contractor has assessed the risks and costs associated with the project, and the price reflects this assessment. Further analysis would require comparison to similar Army Corps of Engineers projects or other large civil works.

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. The fact that it is a definitive contract with a single award suggests that Barnard Construction Company, Inc. was selected as the most advantageous offer. The level of competition, while not explicitly detailed in terms of the number of bidders, is presumed to be robust given the 'full and open' designation, which typically drives competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally leads to more competitive pricing and ensures that the government receives the best value by considering a wide range of qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the surrounding environment through improved hydraulic containment. The project will deliver critical infrastructure modifications to Owens Lake and La Grues Lake. The geographic impact is localized to the areas surrounding Owens Lake and La Grues Lake in Arkansas. The contract will likely create jobs in the construction sector, including skilled labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen environmental or geological conditions are encountered during excavation.
Dependency on timely material procurement and availability for a project of this scale.
Risk of weather-related delays impacting the construction schedule, especially during critical phases.

Positive Signals

Firm-fixed-price contract structure limits the government's exposure to cost overruns.
Award to a single, presumably experienced contractor streamlines project execution.
Clear project duration provides a defined timeline for completion and oversight.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure development and environmental engineering. This sector is characterized by large-scale projects requiring significant capital investment, specialized equipment, and experienced labor. The market size for such federal civil works projects is substantial, driven by ongoing needs for infrastructure maintenance, upgrades, and new construction across various government agencies. This specific contract addresses a need for hydraulic containment and culvert modifications, fitting within the broader category of water resource management and infrastructure resilience.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. This suggests that the scope and complexity of the project were deemed more suitable for larger firms with the capacity and resources to undertake such a significant civil engineering undertaking. There is no explicit mention of subcontracting requirements for small businesses, which could be a missed opportunity to engage the small business ecosystem. Future contracts of this nature could benefit from clearer subcontracting goals to ensure broader economic impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through the Army Corps of Engineers, which is responsible for many civil works projects. Accountability measures are embedded in the firm-fixed-price contract structure, which incentivizes the contractor to adhere to the agreed-upon cost and schedule. Transparency is generally maintained through contract award databases and public reporting, although specific project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Hydraulic Engineering and Water Management
Infrastructure Modernization Programs
Heavy Civil Construction Contracts

Risk Flags

Potential for environmental impact during construction.
Risk of schedule delays due to weather or unforeseen site conditions.
Contract complexity requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $108.6 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED. DESIGN-BID-BUILD OF THREE RIVERS PHASE 2 HYDRAULIC CONTAINMENT STRUCTURE AND MODIFICATIONS TO OWENS LAKE AND LA GRUES LAKE CULVERTS. WORK WILL INCLUDE, BUT NOT LIMITED TO, ACTIVITIES SUCH AS CLEARING, GRUBBING, EXCAVATION AND HAUL ROADS.

Who is the contractor on this award?

The obligated recipient is BARNARD CONSTRUCTION COMPANY, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $108.6 million.

What is the period of performance?

Start: 2024-12-17. End: 2028-01-08.

What is the track record of Barnard Construction Company, Inc. on similar Department of Defense or Army Corps of Engineers projects?

Barnard Construction Company, Inc. has a significant track record with the U.S. Army Corps of Engineers and other federal agencies, often undertaking large-scale civil works and infrastructure projects. Their experience typically includes dam construction, tunnel excavation, and heavy civil engineering. While specific project details and performance ratings are often proprietary or require deeper database access, their repeated selection for substantial federal contracts suggests a history of successful project execution and compliance with government standards. A review of past performance evaluations, if available through official channels like the Contractor Performance Assessment Reporting System (CPARS), would provide a more detailed understanding of their reliability, quality of work, and adherence to schedule and budget on comparable projects.

How does the awarded price of $108.6 million compare to similar hydraulic containment structure projects undertaken by the federal government?

Benchmarking the $108.6 million contract value requires comparing it to similar hydraulic containment structures and large civil engineering projects. Without specific details on the exact scope, size, and complexity of the modifications to Owens Lake and La Grues Lake culverts, a precise comparison is challenging. However, projects involving significant excavation, earthmoving, and concrete work for water management structures typically range from tens to hundreds of millions of dollars, depending on scale and location. Factors such as site conditions, environmental regulations, and material costs heavily influence pricing. The firm-fixed-price nature of this award suggests that Barnard Construction has factored these variables into their bid. A more robust comparison would involve analyzing data from the Federal Procurement Data System (FPDS) for contracts with similar NAICS codes (e.g., 237990) and project descriptions.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential environmental challenges during excavation, unforeseen geological conditions, weather-related delays, and the inherent complexities of modifying existing lake culverts. Environmental risks are typically mitigated through thorough site assessments, adherence to environmental protection plans, and compliance with all relevant regulations. Unforeseen conditions are managed through contract clauses that allow for adjustments to scope and cost, though the firm-fixed-price nature aims to limit the government's exposure. Weather delays are addressed by building schedule contingencies and employing construction methods that can withstand or adapt to varying conditions. The contractor's experience and the detailed design-bid-build approach are intended to mitigate risks related to execution and technical feasibility.

What is the expected effectiveness of the hydraulic containment structure and culvert modifications in achieving the project's objectives?

The effectiveness of the hydraulic containment structure and culvert modifications will be measured by their ability to manage water flow, prevent uncontrolled releases, and ensure the structural integrity of the lake systems. The 'DESIGN-BID-BUILD' approach suggests that the design phase has been completed, aiming to provide a technically sound solution. The modifications to Owens Lake and La Grues Lake culverts are intended to improve their capacity and functionality, likely related to flood control, water level management, or environmental restoration objectives. The success will depend on the quality of construction, adherence to design specifications, and the long-term performance of the materials and structures under operational stress. Post-construction monitoring and performance evaluations will be crucial to assess the achievement of these objectives.

How does historical spending on similar civil engineering projects by the Department of Defense compare to this contract's value?

Historical spending by the Department of Defense on large-scale civil engineering and infrastructure projects is substantial, often running into billions of dollars annually across various initiatives, including military base construction, environmental remediation, and water resource management. Contracts for hydraulic structures, dam modifications, and culvert work can individually range from millions to hundreds of millions of dollars. This $108.6 million contract is a significant but not unprecedented investment within the DoD's broader infrastructure portfolio. Analyzing past spending trends for projects under the Army Corps of Engineers, particularly those related to lake and riverine systems, would provide context. Such analysis would reveal patterns in contract values, types of work awarded, and the frequency of similar projects, helping to determine if this award aligns with historical investment levels for comparable needs.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127S24R0002

Offers Received: 1

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,639,709

Exercised Options: $108,639,709

Current Obligation: $108,639,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline