Army awards $79.2M civil engineering contract for Florida strand restoration, highlighting long-term infrastructure investment

Contract Overview

Contract Amount: $79,213,550 ($79.2M)

Contractor: Archer Western Construction LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-05

End Date: 2018-07-30

Contract Duration: 1,789 days

Daily Burn Rate: $44.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PICAYUNE STRAND RESTORATION PROJECT, MILLER PUMPING STATION, COLLIER COUNTY, FLORIDA

Place of Performance

Location: NAPLES, COLLIER County, FLORIDA, 34102

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $79.2 million to ARCHER WESTERN CONSTRUCTION LLC for work described as: PICAYUNE STRAND RESTORATION PROJECT, MILLER PUMPING STATION, COLLIER COUNTY, FLORIDA Key points: 1. Contract value represents a significant investment in environmental restoration and civil engineering. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of nearly five years indicates a complex, long-term project. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Project location in Florida points to specific regional environmental needs. 6. The North American Industry Classification System (NAICS) code 237990 signifies a focus on heavy and civil engineering construction.

Value Assessment

Rating: good

The contract value of $79.2 million for the PICAYUNE STRAND RESTORATION PROJECT appears reasonable for a large-scale civil engineering and environmental restoration effort spanning nearly five years. Benchmarking against similar large-scale Army Corps of Engineers projects for wetland restoration or coastal defense would provide a more precise value-for-money assessment. The firm fixed-price structure incentivizes contractor efficiency, but the total value should be evaluated against the project's scope and expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bids received, the competition level suggests a healthy market interest for this type of specialized civil engineering work. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs. Multiple bidders increase the likelihood of selecting a contractor offering the best value at a fair price.

Public Impact

Benefits the environmental ecosystem of Collier County, Florida, through restoration efforts. Delivers critical civil engineering services for infrastructure and environmental resilience. Geographic impact is concentrated in Southwest Florida, addressing specific regional ecological challenges. Supports a workforce skilled in heavy civil engineering, construction, and environmental management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration could introduce risks related to cost escalation or scope creep if not managed tightly.
Environmental restoration projects can face unforeseen ecological challenges requiring adaptive management and potential budget adjustments.
Reliance on a single contractor for such a significant project necessitates robust oversight to ensure quality and adherence to specifications.

Positive Signals

Firm fixed-price contract aligns contractor incentives with project completion and cost control.
Full and open competition suggests a competitive bidding process that likely secured a fair market price.
The project addresses a critical environmental need, indicating a positive impact on ecological health and resilience.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on environmental restoration. This sector is crucial for public infrastructure development and environmental management. The Army Corps of Engineers frequently awards contracts for similar projects, involving complex environmental remediation, water management, and habitat restoration. Spending in this area is often driven by regulatory requirements, environmental protection initiatives, and long-term infrastructure planning.

Small Business Impact

The contract was awarded to Archer Western Construction LLC and was not set aside for small businesses. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside requirements or reported subcontracting goals, the direct impact on the small business ecosystem for this particular contract is unclear, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for ensuring adherence to contract terms, specifications, and quality standards. The firm fixed-price nature of the contract shifts much of the performance risk to the contractor, but government oversight is still critical for monitoring progress, managing changes, and verifying deliverables. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Environmental Restoration Programs
South Florida Ecosystem Restoration Initiative
Coastal and Shoreline Protection Projects
Infrastructure Development Contracts

Risk Flags

Long project duration
Environmental restoration complexity
Potential for unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.2 million to ARCHER WESTERN CONSTRUCTION LLC. PICAYUNE STRAND RESTORATION PROJECT, MILLER PUMPING STATION, COLLIER COUNTY, FLORIDA

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONSTRUCTION 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 $79.2 million.

What is the period of performance?

Start: 2013-09-05. End: 2018-07-30.

What is the historical spending pattern for similar civil engineering and environmental restoration projects by the Department of the Army in Florida?

The Department of the Army, primarily through the Army Corps of Engineers, has a significant history of investing in civil engineering and environmental restoration projects, particularly in Florida due to its unique ecological landscape and vulnerability to environmental changes. Historical data indicates numerous contracts awarded for Everglades restoration, coastal defense, hurricane protection, and wetland mitigation. These projects often involve substantial funding, ranging from tens to hundreds of millions of dollars, and can span several years. The 'PICAYUNE STRAND RESTORATION PROJECT' aligns with these established patterns of federal investment in environmental infrastructure. Analyzing past awards for similar scope and complexity can provide benchmarks for cost-effectiveness and project duration, revealing trends in pricing, contractor performance, and the typical challenges encountered in large-scale ecological restoration efforts within the state.

How does the awarded amount compare to the estimated cost or budget for the PICAYUNE STRAND RESTORATION PROJECT?

The awarded amount of $79,213,550.26 represents the final contract value agreed upon after the bidding process. Without access to the initial government cost estimate or the bids submitted by other contractors, a direct comparison to the budget is not possible from the provided data. However, the fact that it was awarded under full and open competition with five bidders suggests that the final price was competitive. If the awarded amount was significantly lower than the government's estimate, it could indicate efficient procurement or potentially an underestimation of project complexity by the government. Conversely, if it was close to or exceeded the estimate, it might suggest that the market perceived higher costs or risks. Further analysis would require comparing the awarded value against the bids received and the government's independent cost estimate.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how are they measured?

While the specific Key Performance Indicators (KPIs) and detailed deliverables are not explicitly listed in the provided summary, typical expectations for a 'PICAYUNE STRAND RESTORATION PROJECT' under a civil engineering contract would include successful completion of specified construction activities (e.g., canal backfilling, levee construction, culvert installation), adherence to environmental mitigation plans, and achievement of ecological restoration goals. Performance would likely be measured through site inspections, progress reports, environmental monitoring data (e.g., water quality, habitat improvement metrics), and final project acceptance by the Army Corps of Engineers. The contract likely includes detailed technical specifications and quality assurance provisions to ensure the restoration efforts meet the intended environmental and engineering standards.

What is the track record of Archer Western Construction LLC in executing similar large-scale civil engineering and environmental projects for the federal government?

Archer Western Construction LLC is a significant player in the heavy civil construction market, with a documented history of undertaking large-scale infrastructure projects. Their portfolio often includes work for federal agencies, state departments of transportation, and local governments, encompassing areas like bridges, highways, water infrastructure, and environmental remediation. To assess their track record specifically for similar federal environmental restoration projects, a deeper dive into their past performance ratings, any past performance issues or awards, and the scale and complexity of comparable projects they have completed for agencies like the Army Corps of Engineers would be necessary. This would involve reviewing contract databases, agency performance reports, and industry news to gauge their reliability, technical expertise, and ability to manage complex environmental undertakings within budget and schedule.

What are the potential long-term environmental and economic impacts of the PICAYUNE STRAND RESTORATION PROJECT?

The long-term environmental impacts of the PICAYUNE STRAND RESTORATION PROJECT are expected to be positive, focusing on restoring natural hydrological patterns, improving water quality, enhancing habitat for native species, and increasing the resilience of the ecosystem to climate change impacts. Economically, such projects can stimulate local economies through job creation during the construction phase and potentially enhance tourism and recreational opportunities post-restoration. Furthermore, improved environmental conditions can reduce the long-term costs associated with environmental degradation and disaster recovery. The project's success in achieving its restoration goals will be crucial for realizing these benefits, contributing to the overall ecological health and economic vitality of the region.

How does the contract's firm fixed-price (FFP) structure influence risk and potential cost overruns?

The firm fixed-price (FFP) contract structure places the primary responsibility for cost overruns on the contractor, Archer Western Construction LLC. This structure is generally favored by the government when the scope of work is well-defined and risks can be reasonably assessed. It incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. However, if unforeseen issues arise that are outside the contractor's control (e.g., significant subsurface conditions, major regulatory changes), the government may still be obligated to consider equitable adjustments. The success of an FFP contract hinges on thorough initial planning and a clear definition of work to minimize the likelihood of scope creep or unexpected complexities that could lead to disputes or claims.

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: W912EP13R0013

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 4343 ANCHOR PLAZA PKWY STE 155, TAMPA, FL, 33634

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

Financial Breakdown

Contract Ceiling: $84,389,350

Exercised Options: $79,213,550

Current Obligation: $79,213,550

Subaward Activity

Number of Subawards: 2876

Total Subaward Amount: $2,145,919,083

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline