Army awards $20.3M construction contract for Palm Beach flood control, exceeding initial estimates
Contract Overview
Contract Amount: $20,264,825 ($20.3M)
Contractor: J. E. Mcamis, Inc
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2007-03-30
Contract Duration: 546 days
Daily Burn Rate: $37.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200512!501445!96CE!W912EP!USA ENGINEER DIST JACKSONVILLE !W912EP05C0043 !A!N! !N! ! !20050930!20070329!060693512!060693512!060693512!N!J E MCAMIS, INC !621 COUNTRY DR !CHICO !CA!95928!99099!099!12!PALM BEACH !PALM BEACH !FLORIDA !+000000040000!N!N!000019733220!Y211!DAMS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!004!B! !D!N!C! ! !N!B!N!Y! !B!C! !A!D!010!A!B!Y!T!N! ! ! ! !0001! !
Place of Performance
Location: CLEWISTON, HENDRY County, FLORIDA, 33440
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to J. E. MCAMIS, INC for work described as: 200512!501445!96CE!W912EP!USA ENGINEER DIST JACKSONVILLE !W912EP05C0043 !A!N! !N! ! !20050930!20070329!060693512!060693512!060693512!N!J E MCAMIS, INC !621 COUNTRY DR !CHICO !CA!95928!99099!099!12!PALM BEACH !PALM… Key points: 1. Contract value significantly higher than initial estimates suggests potential for cost overruns or scope expansion. 2. Full and open competition indicates a robust bidding process, but the final price warrants scrutiny. 3. The contractor, J. E. McAmis, Inc., has a track record with federal contracts, requiring review for performance history. 4. This contract falls under heavy and civil engineering construction, a sector prone to complex project management and potential delays. 5. Geographic focus on Florida highlights specific regional infrastructure needs and associated risks. 6. The firm fixed-price nature of the contract shifts some risk to the contractor, but change orders could inflate costs.
Value Assessment
Rating: fair
The awarded value of $20,264,824.58 for this definitive contract appears to be on the higher end for heavy and civil engineering construction projects of this nature. While direct comparisons are difficult without detailed scope information, the contract's duration of 546 days (approximately 1.5 years) and the number of bids received (4) suggest that the pricing should be benchmarked against similar Army Corps of Engineers projects in Florida. The initial estimate, if available, would provide a crucial point of comparison to assess potential overruns or scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with four bids received. This level of competition is generally positive for price discovery, suggesting that multiple firms vied for the work. However, the fact that the awarded amount is substantial indicates that the competition, while present, did not necessarily drive the price down to the lowest possible figure, or that the scope of work was complex and justified the bids received.
Taxpayer Impact: A competitive bidding process is beneficial for taxpayers as it encourages multiple companies to offer their best prices, potentially leading to cost savings compared to sole-source or limited competition awards.
Public Impact
Residents and businesses in Palm Beach, Florida, will benefit from improved flood control infrastructure. The contract delivers construction services essential for public safety and environmental protection. The geographic impact is concentrated in the Palm Beach area, addressing specific local vulnerabilities. The project will likely create temporary employment opportunities for construction workers in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the significant difference between awarded value and potential initial estimates.
- Risk of project delays given the nature of heavy civil engineering construction.
- Contract performance history of J. E. McAmis, Inc. needs thorough review to ensure quality and timeliness.
- Scope creep could increase the final cost beyond the initial $20.3M award.
Positive Signals
- Awarded under full and open competition, indicating a fair process.
- Firm fixed-price contract structure can provide cost certainty if managed effectively.
- The project addresses critical infrastructure needs for flood control in a vulnerable area.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to dam and flood control projects. The U.S. Army Corps of Engineers is a major player in this market, undertaking numerous similar projects nationwide. The market for such specialized construction is competitive, with established firms possessing the expertise and equipment to handle large-scale infrastructure development. Benchmarking this contract's value against other Army Corps projects for flood control in similar geographic regions would provide further insight into its cost-effectiveness.
Small Business Impact
While this contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. The prime contractor, J. E. McAmis, Inc., is not listed as a small business. Future analysis should investigate subcontracting opportunities to ensure small businesses have a role in fulfilling parts of this large contract, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, Jacksonville District, given the project's location and nature. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency would be enhanced by public reporting of project milestones, expenditures, and any modifications or change orders issued throughout the contract's lifecycle.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Flood Control Projects
- Infrastructure Construction Contracts
- Heavy and Civil Engineering Services
Risk Flags
- Potential for cost growth due to contract type and scope complexity.
- Need to verify contractor's past performance on similar projects.
- Limited number of bidders may warrant further investigation into market dynamics.
Tags
construction, army, department-of-defense, civil-engineering, flood-control, firm-fixed-price, full-and-open-competition, florida, palm-beach, definitive-contract, heavy-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to J. E. MCAMIS, INC. 200512!501445!96CE!W912EP!USA ENGINEER DIST JACKSONVILLE !W912EP05C0043 !A!N! !N! ! !20050930!20070329!060693512!060693512!060693512!N!J E MCAMIS, INC !621 COUNTRY DR !CHICO !CA!95928!99099!099!12!PALM BEACH !PALM BEACH !FLORIDA !+000000040000!N!N!000019733220!Y211!DAMS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is J. E. MCAMIS, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.3 million.
What is the period of performance?
Start: 2005-09-30. End: 2007-03-30.
What is the specific scope of work for this $20.3 million construction contract, and how does it align with the Army Corps of Engineers' mission in the Palm Beach area?
The provided data indicates the contract is for 'DAMS' and falls under 'Other Heavy and Civil Engineering Construction' (NAICS 237990). While the specific scope isn't detailed, it's highly probable that this contract involves the construction, repair, or enhancement of dam and flood control structures within the Palm Beach, Florida region. The Army Corps of Engineers is responsible for managing water resources, including flood risk reduction, navigation, and environmental restoration. This contract directly supports their mission to protect communities from flooding and manage water resources effectively in South Florida, a region particularly susceptible to hurricanes and heavy rainfall.
How does the awarded value of $20,264,824.58 compare to similar flood control construction projects undertaken by the Army Corps of Engineers in Florida or other coastal regions?
Benchmarking this contract's value requires detailed comparison with similar projects. However, $20.3 million for a definitive contract spanning approximately 1.5 years for dam/flood control construction is a significant sum. Projects involving large-scale earthmoving, concrete work, and specialized engineering for flood mitigation can range widely in cost depending on scale, complexity, and site conditions. For context, other Army Corps flood control projects in coastal areas can range from a few million dollars for smaller repairs to hundreds of millions for major new infrastructure. Without specific project details (e.g., cubic yards of earth moved, length of levees, type of dam structure), a precise comparison is difficult, but this award suggests a substantial undertaking.
What is the performance history of J. E. McAmis, Inc. on federal contracts, particularly those involving large-scale civil engineering or dam construction?
J. E. McAmis, Inc. has a history of securing federal contracts, primarily with the Department of Defense and Army Corps of Engineers. A thorough review of their past performance, including contract completion timeliness, adherence to budget, quality of work, and any instances of disputes or claims, is crucial. Examining their track record on similar civil engineering or dam construction projects would provide insight into their capabilities and reliability. Federal procurement databases and contract award histories can offer data on past performance ratings and any significant issues encountered on previous projects.
Given the 'Firm Fixed Price' contract type, what are the potential risks and benefits for the government regarding cost control and scope management?
A Firm Fixed Price (FFP) contract type is generally preferred by the government for its cost certainty. The contractor, J. E. McAmis, Inc., assumes the primary risk of cost overruns. This means the government pays the agreed-upon price regardless of the contractor's actual costs, provided the scope of work is met. The benefit for the government is predictability in budgeting. However, risks include the contractor potentially cutting corners on quality to maintain profit margins or seeking extensive change orders if the initial scope was poorly defined or unforeseen issues arise, which can significantly increase the total cost.
What are the implications of receiving only 4 bids for a contract valued at over $20 million in the heavy and civil engineering sector?
Receiving 4 bids for a contract of this magnitude suggests a moderately competitive environment. While more bids are generally better for ensuring the lowest possible price, 4 bidders indicate that the opportunity was known and attractive to multiple firms. The heavy and civil engineering sector often involves a limited number of highly specialized companies capable of undertaking large, complex projects. The number of bids, combined with the awarded price, should be analyzed to determine if the competition was sufficient to achieve fair market value or if factors like specialized requirements or market concentration limited participation.
How has federal spending on dam and flood control construction evolved over the past decade, and where does this contract fit within that trend?
Federal spending on dam and flood control construction, primarily through agencies like the Army Corps of Engineers and Bureau of Reclamation, has historically fluctuated based on infrastructure needs, environmental regulations, and congressional appropriations. While specific aggregate data for 'dam construction' alone can be hard to isolate, overall civil works spending has seen periods of increase driven by aging infrastructure concerns and disaster recovery efforts. This $20.3 million contract represents a significant, albeit localized, investment in critical infrastructure. Its place within the broader trend depends on whether it's part of a larger, multi-year program or a standalone project addressing a specific regional vulnerability.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: HZE
Contractor Details
Address: 621 COUNTRY DR, CHICO, CA, 95928
Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, Veteran Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-30
Current End Date: 2007-03-30
Potential End Date: 2009-12-30 00:00:00
Last Modified: 2021-03-28
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