Texas Levee Reinforcement Project Awarded $97.1M for Coastal Storm Risk Management
Contract Overview
Contract Amount: $97,124,138 ($97.1M)
Contractor: Flatiron Dragados Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-31
End Date: 2028-02-05
Contract Duration: 1,619 days
Daily Burn Rate: $60.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BID-BUILD REINFORCEMENT OF EXISTING LEVEES FROM SABINE PASS TO GALVESTON BAY, PORT ARTHUR AND VICINITY JEFFERSON COUNTY, TEXAS FOR COASTAL STORM RISK MANAGEMENT AND ECOSYSTEM RESTORATION AND HURRICANE FLOOD PROTECTION
Place of Performance
Location: PORT ARTHUR, JEFFERSON County, TEXAS, 77640
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $97.1 million to FLATIRON DRAGADOS CONSTRUCTORS, INC. for work described as: DESIGN-BID-BUILD REINFORCEMENT OF EXISTING LEVEES FROM SABINE PASS TO GALVESTON BAY, PORT ARTHUR AND VICINITY JEFFERSON COUNTY, TEXAS FOR COASTAL STORM RISK MANAGEMENT AND ECOSYSTEM RESTORATION AND HURRICANE FLOOD PROTECTION Key points: 1. Significant investment in critical infrastructure for hurricane flood protection. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk of cost overruns or delays exists given the project's scale and duration. 4. Sector focus is heavy civil engineering, crucial for regional resilience.
Value Assessment
Rating: good
The contract value of $97.1M for a 5-year project appears reasonable for large-scale civil engineering. Benchmarking against similar levee reinforcement projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The firm fixed-price structure further aims to control costs.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure improvements that will mitigate future storm damage and enhance ecosystem health.
Public Impact
Enhances hurricane flood protection for Port Arthur and surrounding Jefferson County, Texas. Supports ecosystem restoration efforts along the Texas coast. Invests in critical infrastructure resilience against extreme weather events. Creates jobs and economic activity in the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 5 years) increases risk of scope creep and cost escalation.
- Geographic location in Texas is prone to severe weather, potentially causing delays.
- Reliance on a single definitive contract for a large project.
Positive Signals
- Full and open competition should foster competitive pricing.
- Firm fixed-price contract provides cost certainty.
- Project addresses critical needs for storm risk management and ecosystem restoration.
Sector Analysis
This project falls within the heavy civil engineering construction sector, focusing on critical infrastructure for flood control and environmental enhancement. Spending in this sector is often driven by government initiatives for resilience and disaster recovery.
Small Business Impact
While the prime contractor is likely a large entity, opportunities for small businesses may exist as subcontractors for specialized services or material supply within this large civil engineering project.
Oversight & Accountability
The Department of the Army, through the U.S. Army Corps of Engineers, is responsible for this project. Oversight will be crucial to ensure adherence to schedule, budget, and quality standards throughout the multi-year execution.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation due to long project duration.
- Risk of weather-related delays in hurricane-prone region.
- Complexity of integrating storm risk management with ecosystem restoration.
- Dependence on a single definitive contract for a large-scale project.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.1 million to FLATIRON DRAGADOS CONSTRUCTORS, INC.. DESIGN-BID-BUILD REINFORCEMENT OF EXISTING LEVEES FROM SABINE PASS TO GALVESTON BAY, PORT ARTHUR AND VICINITY JEFFERSON COUNTY, TEXAS FOR COASTAL STORM RISK MANAGEMENT AND ECOSYSTEM RESTORATION AND HURRICANE FLOOD PROTECTION
Who is the contractor on this award?
The obligated recipient is FLATIRON DRAGADOS CONSTRUCTORS, 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 $97.1 million.
What is the period of performance?
Start: 2023-08-31. End: 2028-02-05.
What is the estimated cost per mile or per linear foot of levee reinforced?
Without specific details on the total linear footage or mileage of levees being reinforced, calculating a precise cost per unit is challenging. However, the total contract value of $97.1M over approximately 1619 days suggests a significant investment in hardening critical coastal defenses against storm surge and flooding.
What are the primary risks associated with the long duration and fixed-price nature of this contract?
The primary risks with a long-duration, fixed-price contract include potential cost overruns for the contractor if material prices or labor costs escalate unexpectedly, leading to potential claims or reduced quality. For the government, the risk is that the fixed price may not reflect the true cost if unforeseen conditions arise, potentially impacting the scope or quality of the final deliverable.
How effectively will this project contribute to long-term coastal storm risk management and ecosystem restoration?
The effectiveness will depend on the engineering design, construction quality, and the specific ecological restoration components integrated. Successful completion should significantly enhance flood protection for the specified region. Long-term monitoring will be essential to assess the sustained performance of the reinforced levees and the success of ecosystem restoration efforts.
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: W912HY23R5223
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 385 INTERLOCKEN CRES STE 900, BROOMFIELD, CO, 80021
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $102,717,558
Exercised Options: $97,124,138
Current Obligation: $97,124,138
Actual Outlays: $7,637,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-31
Current End Date: 2028-02-05
Potential End Date: 2028-02-05 00:00:00
Last Modified: 2025-09-25
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