Army awards $55.6M contract for Fargo diversion inlet structure, highlighting significant civil engineering investment

Contract Overview

Contract Amount: $55,553,414 ($55.6M)

Contractor: Ames Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-12-06

End Date: 2025-10-27

Contract Duration: 3,247 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FARGO DIVERSION INLET STRUCTURE

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58102

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $55.6 million to AMES CONSTRUCTION, INC. for work described as: IGF::OT::IGF FARGO DIVERSION INLET STRUCTURE Key points: 1. Contract value represents a substantial investment in critical infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of project. 3. Contract duration indicates a long-term commitment to project completion. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Project location in North Dakota points to regional infrastructure development focus.

Value Assessment

Rating: good

The contract value of $55.6 million for the Fargo diversion inlet structure appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests an effort to manage cost overruns, which is a positive indicator for budget adherence.

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 7 bidders participating, the competition level appears healthy, suggesting that the government received a range of proposals and pricing. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are residents and businesses in the Fargo area, who will gain enhanced flood protection. The project delivers critical civil engineering infrastructure, specifically a diversion inlet structure. The geographic impact is localized to North Dakota, addressing specific regional needs. The project will likely involve a significant construction workforce, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Schedule delays could impact the timely delivery of flood protection benefits.
Ensuring quality of construction for long-term durability is paramount.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests competitive pricing was sought.
Long contract duration allows for thorough execution and quality control.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a critical component of national infrastructure development. The market for such projects is often characterized by large, specialized firms capable of undertaking complex, high-value undertakings. Spending in this sector is driven by government investment in public works, flood control, transportation, and utilities. Comparable benchmarks would include other large-scale flood control projects or major infrastructure build-outs.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside objective, as the 'sb' field is false. However, the prime contractor, Ames Construction, Inc., may engage small businesses as subcontractors to fulfill specific project needs. The extent of subcontracting to small businesses will be a key factor in assessing the broader impact on the small business ecosystem for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with potential involvement from agency-level contracting officers and quality assurance representatives. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
FEMA Flood Mitigation Programs
Infrastructure Investment and Jobs Act Projects
Department of Transportation Major Projects

Risk Flags

Potential for unforeseen site conditions impacting schedule or cost.
Environmental compliance risks during construction.
Coordination challenges with multiple stakeholders in a populated area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.6 million to AMES CONSTRUCTION, INC.. IGF::OT::IGF FARGO DIVERSION INLET STRUCTURE

Who is the contractor on this award?

The obligated recipient is AMES CONSTRUCTION, 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 $55.6 million.

What is the period of performance?

Start: 2016-12-06. End: 2025-10-27.

What is the historical spending pattern for similar diversion inlet structure projects by the Department of the Army?

Analyzing historical spending for similar diversion inlet structures by the Department of the Army requires access to detailed contract databases and project histories. Generally, such projects are large-scale civil engineering endeavors with costs ranging from tens to hundreds of millions of dollars, depending on complexity, location, and environmental factors. Factors influencing cost include geological conditions, required capacity, material sourcing, and the duration of construction. The Fargo diversion inlet structure's $55.6 million award falls within a typical range for significant flood control infrastructure, but a precise historical comparison would necessitate identifying projects with comparable scope, scale, and geographic context. Trends in construction material costs and labor rates over time also play a crucial role in understanding historical spending patterns for these types of capital-intensive projects.

How does the number of bidders (7) compare to the average for similar large-scale civil engineering contracts?

A total of 7 bidders for a large-scale civil engineering contract like the Fargo diversion inlet structure is generally considered a healthy level of competition. For major infrastructure projects, the average number of bidders can vary significantly based on the project's complexity, specialized requirements, and the number of qualified firms in the relevant geographic or industry market. While some highly specialized or niche projects might see fewer bidders, a range of 5-10 bidders often indicates sufficient market interest and competitive pressure. Fewer than 3 bidders might raise concerns about market concentration or potential barriers to entry, while an unusually high number could suggest a less complex project or a particularly attractive market opportunity. The 7 bidders in this case suggest a reasonably competitive environment, likely contributing to fair pricing.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract?

Key performance indicators (KPIs) for a contract of this nature, focused on constructing a diversion inlet structure, would typically revolve around schedule adherence, cost control, quality of work, and safety. Specific KPIs might include: 1. On-time completion milestones: Tracking progress against the project schedule to ensure timely delivery of flood protection. 2. Budget variance: Monitoring expenditures against the firm fixed-price to identify any potential deviations, though the fixed price limits direct cost overruns for the government. 3. Quality assurance metrics: Measuring compliance with design specifications, material standards, and construction tolerances through inspections and testing. 4. Safety incident rates: Tracking the number and severity of workplace accidents to ensure adherence to safety protocols. 5. Environmental compliance: Ensuring all work is performed in accordance with environmental regulations and permits.

What is the track record of Ames Construction, Inc. with similar Army Corps of Engineers projects?

Ames Construction, Inc. has a significant track record with the U.S. Army Corps of Engineers and other federal agencies on large-scale civil engineering and infrastructure projects. Their portfolio often includes dams, levees, flood control structures, bridges, and heavy industrial facilities. Examining their past performance on similar projects would involve reviewing contract histories for on-time delivery, adherence to budget (especially on fixed-price contracts), quality of work, and safety records. Positive past performance with the Corps of Engineers suggests familiarity with their standards, processes, and requirements, which can be a mitigating factor for project risk. A detailed review would look at specific project values, durations, and any reported issues or commendations.

Are there any specific environmental or regulatory risks associated with this Fargo diversion inlet structure project?

Yes, large-scale civil engineering projects like the Fargo diversion inlet structure inherently carry environmental and regulatory risks. These can include impacts on local hydrology, potential disruption to aquatic habitats, management of stormwater runoff during construction, and compliance with permits related to water quality, endangered species, and land use. The project's location near the Red River may also involve specific regulatory considerations related to floodplains and wetlands. Mitigation strategies typically involve thorough environmental impact assessments, adherence to best management practices during construction, and ongoing monitoring. The contract likely includes clauses requiring compliance with all applicable federal, state, and local environmental laws and regulations, and potential delays or increased costs could arise if unforeseen environmental issues emerge or regulatory requirements change.

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: W912ES16R0002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 AMES DR, BURNSVILLE, MN, 55306

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,704,414

Exercised Options: $55,553,414

Current Obligation: $55,553,414

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline