Army awards $277M Levee and Floodwall project to The Lane Construction Corporation under full and open competition

Contract Overview

Contract Amount: $277,335,851 ($277.3M)

Contractor: THE Lane Construction Corporation

Awarding Agency: Department of Defense

Start Date: 2021-05-17

End Date: 2026-08-22

Contract Duration: 1,923 days

Daily Burn Rate: $144.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARM CID ARG KC LEVEE AND FLOODWALL RAISES

Place of Performance

Location: KANSAS CITY, WYANDOTTE County, KANSAS, 66106

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $277.3 million to THE LANE CONSTRUCTION CORPORATION for work described as: ARM CID ARG KC LEVEE AND FLOODWALL RAISES Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Project duration of over 5 years indicates a long-term commitment. 4. Firm-fixed-price contract type shifts cost risk to the contractor. 5. Geographic focus on Kansas highlights regional infrastructure needs. 6. The contractor has a substantial contract award history.

Value Assessment

Rating: good

The contract value of $277.3 million for levee and floodwall raises is substantial. Benchmarking this against similar Army Corps of Engineers projects would provide better context on value for money. The firm-fixed-price structure is generally favorable for the government in managing cost certainty. However, without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

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 a bid. The presence of 5 bids suggests a healthy level of competition for this significant infrastructure project. This competitive environment is expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: A competitive bidding process for this project likely resulted in a more cost-effective outcome for taxpayers, ensuring that public funds were used efficiently to secure necessary flood control infrastructure.

Public Impact

Residents and businesses in Kansas will benefit from enhanced flood protection. The project will deliver critical upgrades to levee and floodwall infrastructure. The geographic impact is concentrated in Kansas, addressing specific regional vulnerabilities. Construction activities will likely create numerous jobs in the engineering and construction sectors within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental issues arise, despite fixed-price contract.
Contractor performance history on similar large-scale civil works projects needs careful monitoring.
Long project duration increases exposure to potential supply chain disruptions or labor availability issues.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single, experienced contractor streamlines project execution.
Full and open competition suggests a robust selection process.
Project addresses critical national infrastructure needs for flood control.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on flood control infrastructure. The Army Corps of Engineers is a major client in this sector, awarding numerous contracts for similar projects nationwide. The market for such specialized construction services is competitive, with a few large firms capable of undertaking projects of this scale. The $277 million award is significant and aligns with the typical scale of major federal civil works projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. The scale of this project typically involves large prime contractors, and while subcontracting opportunities may exist, their extent and focus on small businesses would require further investigation.

Oversight & Accountability

The Department of the Army, through its contracting and oversight mechanisms, is responsible for monitoring this contract. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency would be enhanced by public reporting on project milestones, expenditures, and any modifications. The Inspector General's office would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Flood Risk Management Programs
Infrastructure Investment and Jobs Act Projects
Disaster Mitigation and Recovery Efforts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting flood protection timelines.
Contractor performance history requires thorough vetting.
Long-term maintenance and operational costs not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $277.3 million to THE LANE CONSTRUCTION CORPORATION. ARM CID ARG KC LEVEE AND FLOODWALL RAISES

Who is the contractor on this award?

The obligated recipient is THE LANE CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $277.3 million.

What is the period of performance?

Start: 2021-05-17. End: 2026-08-22.

What is the historical performance record of The Lane Construction Corporation on similar federal contracts, particularly those managed by the Army Corps of Engineers?

The Lane Construction Corporation has a significant history of federal contracting, including numerous awards from the Department of Defense and the Army Corps of Engineers. Analyzing their past performance on large-scale civil engineering projects, such as levee construction, bridge building, and highway infrastructure, would be crucial. Key metrics to examine include on-time completion rates, adherence to budget (especially for fixed-price contracts), quality of work, and any instances of contract disputes or claims. A review of contract databases and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide a comprehensive understanding of their track record and suitability for this specific project.

How does the awarded price of $277.3 million compare to independent cost estimates or benchmarks for similar levee and floodwall construction projects?

To assess the value for money, the awarded price of $277.3 million needs to be benchmarked against independent cost estimates or data from comparable projects. This involves analyzing the scope of work, materials, labor, and geographic location. The Army Corps of Engineers typically develops its own cost estimates during the planning phase. Comparing the awarded contract value to these internal estimates, as well as to publicly available data on similar projects undertaken by other federal agencies or state governments, can reveal potential overpricing or cost savings. Factors like inflation, specific site conditions, and the complexity of the engineering design will influence these comparisons.

What are the primary risk indicators associated with this specific contract, considering its scope, duration, and contractor?

Primary risk indicators for this contract include the long duration (over 5 years), which increases exposure to economic fluctuations, material price volatility, and potential labor shortages. The firm-fixed-price nature, while beneficial for cost control, shifts the risk of unforeseen site conditions (e.g., unexpected soil instability, environmental hazards) or design challenges onto the contractor; however, significant cost overruns could still occur if these risks materialize and lead to change orders or disputes. The contractor's past performance on projects of similar scale and complexity is another key indicator; any history of delays, cost overruns, or quality issues would elevate risk. Furthermore, the specific geographic location in Kansas might present unique environmental or logistical challenges that need careful management.

What is the expected effectiveness of the completed levee and floodwall raises in mitigating flood risks for the targeted region?

The effectiveness of the completed levee and floodwall raises hinges on several factors. Firstly, the design must be based on accurate hydrological studies and projected flood levels, incorporating climate change considerations. Secondly, the construction quality must meet stringent engineering standards to ensure structural integrity during a flood event. The project's success will be measured by its ability to withstand design-level flood events, thereby reducing damage to property, protecting lives, and minimizing economic disruption in the affected areas. Post-construction monitoring and regular maintenance by the responsible authorities will be critical for sustained effectiveness over the lifespan of the infrastructure.

How has federal spending on similar civil engineering and flood control projects evolved over the past five years, and where does this contract fit within that trend?

Federal spending on civil engineering and flood control projects, particularly those managed by the Army Corps of Engineers, has seen fluctuations influenced by infrastructure priorities, disaster recovery needs, and annual appropriations. In recent years, there has been a growing emphasis on upgrading aging infrastructure and enhancing resilience against extreme weather events, potentially leading to increased investment in flood control. This $277 million contract represents a significant allocation within this category. Analyzing historical spending data for similar projects would reveal whether this award is part of a sustained increase in funding for flood mitigation or an isolated large investment. Trends in competition levels and average contract values for similar work would also provide context.

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: W912DQ20B7001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 FIELDSTONE CT, CHESHIRE, CT, 06410

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $279,463,851

Exercised Options: $277,335,851

Current Obligation: $277,335,851

Actual Outlays: $68,730,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline