DoD's $11.8M KRR Project in Florida awarded to Shaw Environmental & Infrastructure, Inc. for heavy civil engineering

Contract Overview

Contract Amount: $11,804,502 ($11.8M)

Contractor: Shaw Environmental & Infrastructure, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-07-22

End Date: 2010-12-30

Contract Duration: 1,622 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KRR PROJECT, ISTOKPOGA FEATURES, HIGHLANDS COUNTY, FLORIDA

Place of Performance

Location: MEXICO BEACH, BAY County, FLORIDA, 32410

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC. for work described as: KRR PROJECT, ISTOKPOGA FEATURES, HIGHLANDS COUNTY, FLORIDA Key points: 1. Contract value of $11.8 million for heavy and civil engineering construction. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates defined costs and potential for contractor risk. 4. Long duration of 1622 days suggests a complex or extensive project. 5. Project located in Highlands County, Florida, with potential local economic impact. 6. Contractor, Shaw Environmental & Infrastructure, Inc., has experience in this sector.

Value Assessment

Rating: fair

The contract value of $11.8 million for heavy and civil engineering construction appears to be within a reasonable range for a project of this nature, though specific benchmarks are unavailable without more detailed project scope. The firm fixed price contract type suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. However, the long duration of over 1600 days warrants scrutiny to ensure efficiency and prevent potential cost creep over time.

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. With 3 bidders, the competition level suggests a reasonable degree of market interest. This level of competition is generally favorable for price discovery, as it incentivizes bidders to offer competitive pricing to secure the contract.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense and potentially local residents in Highlands County, Florida, through infrastructure improvements. Services delivered include heavy and civil engineering construction, likely related to military infrastructure or support facilities. Geographic impact is concentrated in Highlands County, Florida. Workforce implications may include job creation for construction workers and related trades in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1622 days) could lead to cost inefficiencies if not managed closely.
Firm Fixed Price contracts can sometimes lead to scope disputes if requirements are not perfectly defined upfront.
Reliance on a single contractor for a long-term project may limit flexibility for future adjustments.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract structure shifts cost risk to the contractor.
The contractor, Shaw Environmental & Infrastructure, Inc., is likely experienced in heavy civil engineering.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a significant segment of the federal procurement landscape. This sector encompasses a wide range of projects, from road and bridge construction to military base development and environmental remediation. Federal spending in this area is often driven by infrastructure needs, national security requirements, and economic stimulus initiatives. Benchmarking this contract's value would require comparison to similar-sized civil engineering projects undertaken by the Department of Defense or other federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Shaw Environmental & Infrastructure, Inc. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army administrative contracting officer. Accountability measures are inherent in the firm fixed price contract type, which penalizes cost overruns for the contractor. Transparency is facilitated by the public nature of federal contract awards, though detailed project performance data may not always be readily accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Infrastructure Projects
Heavy Engineering Services
Environmental Remediation Contracts

Risk Flags

Long contract duration may indicate potential for cost overruns or inefficiencies if not managed properly.
Firm Fixed Price contracts can lead to disputes if the scope of work is not clearly defined.
Lack of specific details on 'KRR PROJECT, ISTOKPOGA FEATURES' limits full understanding of project scope and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC.. KRR PROJECT, ISTOKPOGA FEATURES, HIGHLANDS COUNTY, FLORIDA

Who is the contractor on this award?

The obligated recipient is SHAW ENVIRONMENTAL & INFRASTRUCTURE, 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 $11.8 million.

What is the period of performance?

Start: 2006-07-22. End: 2010-12-30.

What specific type of heavy and civil engineering construction was performed under this contract?

While the contract is broadly categorized under 'Other Heavy and Civil Engineering Construction' (NAICS 237990), the specific details of the 'KRR PROJECT, ISTOKPOGA FEATURES' are not fully elaborated in the provided data. Typically, this category includes projects such as the construction or repair of dams, drainage projects, flood control projects, marine construction, and other large-scale civil engineering works. Given the location in Florida and the 'Istokpoga Features' designation, it is plausible the project involved water management, land reclamation, or infrastructure related to a specific geographical feature or military installation in the area. Further investigation into the contract's statement of work would be required for precise details.

How does the $11.8 million contract value compare to similar DoD heavy civil engineering projects?

Without access to a comprehensive database of similar DoD heavy civil engineering projects with detailed scope and duration, a direct comparison of the $11.8 million value is challenging. However, for large-scale civil engineering endeavors, this amount represents a significant but not extraordinary investment. Projects like airfield construction, major facility development, or extensive infrastructure upgrades for military bases can easily reach or exceed this figure. The firm fixed price nature and the 1622-day duration suggest a project of considerable scope and complexity, making direct comparisons difficult without knowing the specific deliverables and market conditions at the time of award.

What are the potential risks associated with a firm fixed price contract of this duration?

A firm fixed price (FFP) contract, while beneficial for budget certainty, carries inherent risks, especially for a long duration project like this (1622 days). The primary risk for the contractor is underestimating costs, material price escalation, or encountering unforeseen site conditions, all of which could lead to financial losses if not adequately planned for. For the government, the risk lies in potential scope creep if requirements are not meticulously defined, or if the contractor cuts corners to maintain profitability, potentially impacting quality or long-term durability. Effective contract management, clear communication, and robust oversight are crucial to mitigate these risks over the extended performance period.

What does the presence of 3 bidders in a full and open competition imply for price discovery?

The participation of 3 bidders in a full and open competition for this contract suggests a moderately competitive market for the services required. Having multiple bidders generally leads to better price discovery, as each competitor aims to offer a compelling price to win the contract. This scenario increases the likelihood that the government receives a price that reflects the true market cost of the work, plus a reasonable profit margin. A higher number of bidders typically correlates with more aggressive pricing, while fewer bidders might indicate a more specialized service or a less robust market, potentially leading to higher prices.

What is the historical spending pattern for heavy and civil engineering construction by the Department of the Army?

The Department of the Army, as a major component of the DoD, consistently allocates substantial funds towards heavy and civil engineering construction to maintain and upgrade its vast infrastructure. Historical spending patterns reveal a continuous need for projects ranging from barracks and training facilities to airfields, roads, and environmental compliance initiatives. Annual spending can fluctuate based on military readiness requirements, base realignment and closure actions, and federal infrastructure investment priorities. While specific annual figures vary, the Army's commitment to this sector remains a significant and ongoing aspect of its budget, often involving multi-year contracts for large-scale construction endeavors.

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: SEALED BID

Solicitation ID: W912EP06B0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shaw Group Inc., the (UEI: 180038382)

Address: 312 DIRECTORS DR, KNOXVILLE, TN, 37923

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,804,502

Exercised Options: $11,804,502

Current Obligation: $11,804,502

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline