Department of the Army awards $97M contract for residuals treatment facility, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $97,070,356 ($97.1M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-19

End Date: 2012-09-30

Contract Duration: 1,656 days

Daily Burn Rate: $58.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RESIDUALS TREATMENT FACILITY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $97.1 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: RESIDUALS TREATMENT FACILITY Key points: 1. Contract value of $97.1 million indicates a substantial investment in water infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The definitive contract type with a firm fixed price offers cost certainty for the government. 4. The contract duration of 1656 days points to a complex, long-term project. 5. The project's focus on water supply and irrigation systems addresses critical environmental and resource management needs. 6. The award to Archer Western Contractors, LLC, signifies a major player in the construction sector for government projects.

Value Assessment

Rating: good

The contract value of $97.1 million for a residuals treatment facility appears to be a significant investment. Benchmarking against similar large-scale water infrastructure projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract provides a degree of cost control. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging, but the scale of the project suggests a critical need being addressed.

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 presence of 5 bids suggests a healthy level of interest and competition for this significant infrastructure project. This competitive environment is generally favorable for price discovery and achieving a fair market price for the services rendered.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through multiple bids, ensuring the government receives the best value for its investment in essential infrastructure.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially surrounding communities that rely on the water supply and irrigation systems managed by the facility. The contract delivers a critical residuals treatment facility, essential for managing wastewater and ensuring environmental compliance. The geographic impact is concentrated in the District of Columbia, where the facility is located. The project implies significant workforce implications, requiring skilled labor in construction, engineering, and facility operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on a large, multi-year construction project if not meticulously managed.
Dependence on a single contractor for a critical piece of infrastructure could pose risks if performance issues arise.
Long project duration increases exposure to changing regulatory environments or technological advancements.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition suggests a competitive bidding process that likely secured a reasonable price.
The scale of the project indicates a significant commitment to addressing a vital infrastructure need.

Sector Analysis

This contract falls within the construction and engineering sector, specifically focusing on environmental infrastructure. The residuals treatment facility is a specialized type of construction project crucial for water management and environmental protection. The market for such large-scale public works is often dominated by a few large, experienced contractors capable of handling complex projects. The $97.1 million award is substantial and indicative of the significant capital investment required for modern water treatment infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Archer Western Contractors, LLC may engage small businesses as subcontractors, the primary award is to a large entity. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities and their impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is generally facilitated through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Environmental Protection Agency Water Infrastructure Programs
Department of the Interior Bureau of Reclamation Projects

Risk Flags

Long project duration may increase risk of cost escalation or obsolescence.
Complexity of residuals treatment requires specialized expertise and rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.1 million to ARCHER WESTERN CONTRACTORS, LLC. RESIDUALS TREATMENT FACILITY

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, 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 $97.1 million.

What is the period of performance?

Start: 2008-03-19. End: 2012-09-30.

What is the historical spending pattern for residuals treatment facilities by the Department of the Army?

Historical spending data for residuals treatment facilities by the Department of the Army is not readily available in a consolidated format. However, the Army Corps of Engineers manages numerous water-related infrastructure projects, including wastewater treatment and water supply systems, which often involve significant capital investments. Analyzing past large-scale construction contracts awarded by the Army for similar environmental infrastructure can provide context. For instance, projects related to flood control, navigation, and environmental restoration often exceed tens or hundreds of millions of dollars. The $97.1 million awarded for this specific facility suggests a substantial, but not unprecedented, investment for a critical piece of infrastructure. Trends in federal infrastructure spending, particularly post-2008 economic stimulus or recent infrastructure bills, would also influence historical patterns.

How does the per-unit cost of this residuals treatment facility compare to similar projects?

Determining a precise per-unit cost for this residuals treatment facility is challenging without detailed specifications of its capacity (e.g., gallons per day treated, cubic yards of residuals processed). However, the total contract value of $97.1 million for a facility of this nature suggests a significant investment. Benchmarking against publicly available data for similar large-scale water or wastewater treatment plants, particularly those built for federal agencies or municipalities, would be necessary. Factors such as location, specific treatment technologies employed, site preparation complexity, and regulatory requirements heavily influence per-unit costs. Generally, specialized environmental infrastructure projects of this magnitude can range from tens of millions to hundreds of millions of dollars, depending on these variables. Without more granular data on the facility's output or capacity, a direct per-unit cost comparison remains speculative.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the detailed performance measurement structure for this contract. However, for a residuals treatment facility construction project, typical KPIs would likely include adherence to project schedules, quality of construction meeting specified standards (e.g., engineering blueprints, material specifications), safety compliance on-site, and timely completion of project milestones. The firm fixed-price contract structure implies that the contractor is incentivized to meet these performance expectations to avoid financial penalties or ensure full payment. The government's contracting officer and technical representatives would be responsible for monitoring progress against the contract requirements and ensuring deliverables meet the agreed-upon standards.

What is Archer Western Contractors, LLC's track record with similar federal contracts?

Archer Western Contractors, LLC has a significant track record with federal contracts, particularly within the Department of Defense and other agencies involved in large-scale construction and infrastructure projects. They have been involved in various projects including civil works, building construction, and infrastructure development. A review of federal procurement databases would reveal numerous awards to Archer Western across different agencies and contract types. Their experience likely includes managing complex projects with firm fixed-price terms and navigating the requirements of government contracting. The scale of this $97.1 million award suggests the government has confidence in their capabilities based on past performance, though a detailed analysis of their specific performance on prior residuals treatment or similar environmental infrastructure contracts would provide a more complete picture.

What are the potential risks associated with the long duration (1656 days) of this contract?

The 1656-day duration (approximately 4.5 years) of this contract presents several potential risks. Firstly, there is an increased risk of cost escalation due to inflation or unforeseen material price increases, although the firm fixed-price nature aims to mitigate this for the government. Secondly, the extended timeline increases the possibility of encountering unforeseen site conditions or encountering regulatory changes that may necessitate design modifications or additional work, potentially leading to change orders. Thirdly, technological advancements in residuals treatment could emerge during the project lifecycle, potentially making the completed facility less efficient or requiring upgrades sooner than anticipated. Finally, contractor performance can degrade over long periods, and maintaining consistent quality and oversight requires sustained effort from both the contractor and the government.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR07R0032

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 3715 NORTHSIDE PKWY BG 100 STE 550, ATLANTA, GA, 30327

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

Financial Breakdown

Contract Ceiling: $98,551,356

Exercised Options: $97,070,356

Current Obligation: $97,070,356

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline