Army awards $228M C-44 Reservoir project to Barnard Construction, highlighting significant civil engineering investment in Florida

Contract Overview

Contract Amount: $227,984,961 ($228.0M)

Contractor: Barnard Construction Company, Incorporated

Awarding Agency: Department of Defense

Start Date: 2015-09-11

End Date: 2021-11-19

Contract Duration: 2,261 days

Daily Burn Rate: $100.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C-44 RESERVOIR/STA PROJECT, CONTRACT NO. 2, MARTIN COUNTY, FLORIDA IGF::CT::IGF

Place of Performance

Location: INDIANTOWN, MARTIN County, FLORIDA, 34956

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $228.0 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED for work described as: C-44 RESERVOIR/STA PROJECT, CONTRACT NO. 2, MARTIN COUNTY, FLORIDA IGF::CT::IGF Key points: 1. The contract represents a substantial investment in critical infrastructure, focusing on water management and flood control. 2. Barnard Construction, the sole awardee, has a track record in large-scale civil engineering projects. 3. The project's duration of over 2000 days suggests a complex, multi-year undertaking with inherent schedule risks. 4. Awarded under full and open competition, the contract aimed to secure the best value for this significant public works project. 5. The firm-fixed-price structure shifts performance risk to the contractor, but requires careful scope management. 6. This project aligns with broader Army Corps of Engineers missions for environmental restoration and infrastructure development.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparable project data. However, the award to Barnard Construction, a company with demonstrated experience in large civil projects, suggests a competitive selection process. The firm-fixed-price contract type indicates an expectation of cost control, though the total value reflects the scale and complexity of the C-44 Reservoir project. Further analysis would require comparing unit costs for specific construction elements against industry standards and other Army Corps of Engineers projects of similar scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The solicitation process likely involved a thorough evaluation of technical capabilities and price. While the number of bidders is not explicitly stated, the 'full and open' designation suggests a robust competitive environment, which is generally favorable for price discovery and achieving value for the government.

Taxpayer Impact: A competitive bidding process for large infrastructure projects like this helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are residents and ecosystems in Martin County, Florida, through improved water management and flood control. The project delivers critical civil engineering services for the construction of the C-44 Reservoir and associated features. Geographic impact is concentrated in Martin County, Florida, a region prone to water management challenges. The project will likely create numerous jobs in construction and related trades within the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or scope creep occurs, despite the fixed-price nature.
Schedule delays are a risk given the project's multi-year duration and the complexities of large-scale civil engineering.
Environmental compliance and permitting challenges could impact project timelines and costs.
Coordination with multiple stakeholders and local authorities adds layers of complexity and potential for conflict.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely secured a fair price.
Firm-fixed-price contract type shifts cost risk to the contractor, promoting budget certainty.
Barnard Construction's experience in similar large-scale civil projects indicates a higher likelihood of successful execution.
The project addresses a critical need for water management and flood control in the region.
The Army Corps of Engineers has a strong track record in managing complex infrastructure projects.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to water infrastructure. The market for such projects is characterized by large, specialized firms capable of undertaking complex, multi-year endeavors. Spending in this sector is often driven by government initiatives for infrastructure renewal, environmental protection, and disaster mitigation. Comparable spending benchmarks would typically involve analyzing other large reservoir, dam, or levee construction projects managed by federal agencies like the Army Corps of Engineers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Consequently, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Barnard Construction, may still engage small businesses as subcontractors to fulfill specific project needs, contributing to the broader small business ecosystem. The scale of this project suggests that opportunities for specialized small businesses in areas like materials supply, equipment rental, or specific trades could exist.

Oversight & Accountability

Oversight for this Army Corps of Engineers project is typically managed through the agency's internal project management and quality assurance processes. The firm-fixed-price contract structure provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through public reporting of contract awards and project milestones. The Inspector General's office within the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Florida Water Management Districts
Everglades Restoration Projects
Flood Control Infrastructure Projects
Large-Scale Civil Construction Contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Complexity of stakeholder coordination

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $228.0 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED. C-44 RESERVOIR/STA PROJECT, CONTRACT NO. 2, MARTIN COUNTY, FLORIDA IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is BARNARD CONSTRUCTION COMPANY, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $228.0 million.

What is the period of performance?

Start: 2015-09-11. End: 2021-11-19.

What is Barnard Construction's track record with similar large-scale civil engineering projects, particularly those involving water management or reservoir construction?

Barnard Construction Company, Inc. has a significant history of undertaking large-scale civil engineering projects. While specific details on every project are not provided here, their portfolio typically includes complex infrastructure, such as bridges, dams, highways, and tunnels. Their experience with water-related infrastructure, like reservoirs and flood control systems, is a key factor in their selection for the C-44 Reservoir project. A deeper dive into their past performance, including project completion times, budget adherence, and client satisfaction on similar Army Corps of Engineers or other federal projects, would provide further insight into their capabilities and reliability for this specific contract.

How does the awarded price of $227.98 million compare to the estimated cost or budget for the C-44 Reservoir project?

The provided data shows the awarded contract price at $227,984,960.57. Without access to the original cost estimates, budget allocations, or pre-award negotiation details for the C-44 Reservoir project, it is impossible to definitively state how the awarded price compares to the government's initial expectations. However, the fact that it was awarded under 'full and open competition' suggests that the bids received were evaluated against the government's cost objectives. If the award was significantly below estimates, it could indicate effective competition or favorable market conditions. Conversely, if it was at or above estimates, it might reflect the complexity and anticipated costs of the project, or potentially less competitive bidding than anticipated.

What are the primary risks associated with the C-44 Reservoir project, and how are they being mitigated?

The primary risks for the C-44 Reservoir project include potential schedule delays due to the project's multi-year duration (2261 days), unforeseen geological or environmental conditions at the construction site, and the complexities of coordinating with various stakeholders. Given the firm-fixed-price contract type, the contractor, Barnard Construction, bears significant financial risk for cost overruns. Mitigation strategies likely involve robust project management by the Army Corps of Engineers, detailed site investigations prior to and during construction, contingency planning for environmental compliance, and clear communication protocols with local authorities and the public. The contractor's experience is also a key factor in mitigating execution risks.

What is the historical spending pattern for similar civil engineering and water management projects undertaken by the Army Corps of Engineers in Florida?

Historical spending on civil engineering and water management projects by the Army Corps of Engineers in Florida is substantial, reflecting the state's unique environmental and hydrological challenges. This includes significant investments in hurricane protection, navigation channels, flood control structures, and ecosystem restoration, such as the Everglades. Projects often span multiple years and involve large contract values, similar to the C-44 Reservoir project. Analyzing past contracts for projects like the Herbert Hoover Dike rehabilitation or various Biscayne Bay initiatives would reveal spending trends, typical contract durations, and the range of costs for comparable infrastructure development in the region. This context helps in assessing whether the $228 million for the C-44 project is within the expected range for such undertakings.

How does the contract type (Firm Fixed Price) influence the risk allocation and potential for cost growth on this project?

The Firm Fixed Price (FFP) contract type is designed to provide the government with cost certainty by establishing a ceiling price that is not subject to adjustment based on the contractor's actual costs. This shifts the primary financial risk of cost overruns to the contractor, Barnard Construction. If the contractor incurs higher-than-expected costs due to inefficiencies, poor estimating, or unforeseen site conditions (beyond what is contractually allowed for equitable adjustments), their profit margin will be reduced, or they could incur a loss. Conversely, if they manage costs effectively and complete the project under budget, their profit increases. This structure incentivizes the contractor to control costs and manage the project efficiently, but it also means the government has limited recourse if costs escalate beyond the agreed-upon price, unless specific contract clauses for changes or unforeseen circumstances are invoked.

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: W912EP14R0016

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Barnard Spencer Joint Venture

Address: 701 GOLD AVE, BOZEMAN, MT, 59715

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

Financial Breakdown

Contract Ceiling: $228,824,961

Exercised Options: $227,984,961

Current Obligation: $227,984,961

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $54,245,828

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline