DoD's $424M Wolf Creek Seepage Foundation Remediation contract awarded to Treviicos Soletanche JV shows fair value with 2 bidders

Contract Overview

Contract Amount: $424,238,798 ($424.2M)

Contractor: Treviicos Soletanche JV

Awarding Agency: Department of Defense

Start Date: 2008-07-23

End Date: 2015-03-01

Contract Duration: 2,412 days

Daily Burn Rate: $175.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WOLF CREEK SEEPAGEFOUNDATION REMEDIATION

Place of Performance

Location: JAMESTOWN, RUSSELL County, KENTUCKY, 42629

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $424.2 million to TREVIICOS SOLETANCHE JV for work described as: WOLF CREEK SEEPAGEFOUNDATION REMEDIATION Key points: 1. The contract's value appears reasonable given the scope of heavy civil engineering construction. 2. Competition was robust with two bidders, suggesting a competitive pricing environment. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance duration of over 2000 days indicates a long-term, complex project. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The project is located in Kentucky, impacting local and regional construction markets.

Value Assessment

Rating: fair

The total contract value of approximately $424 million for heavy civil engineering construction is substantial. Benchmarking against similar large-scale remediation projects is challenging without more specific project details. However, the firm-fixed-price contract type generally provides good value by transferring risk to the contractor. The presence of two bidders suggests that the pricing was likely competitive within the market for such specialized work.

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 offers. The fact that two bids were received suggests a healthy level of interest and competition for this significant project. While two bidders is not an extensive number, it is sufficient to establish a competitive baseline and prevent a sole-source situation.

Taxpayer Impact: The full and open competition, even with two bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the surrounding environment through remediation efforts. The contract delivers heavy and civil engineering construction services, specifically focused on seepage foundation remediation. The geographic impact is concentrated in Kentucky, where the project is located. The project likely involved a significant construction workforce, including skilled laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2412 days) could introduce risks related to material cost fluctuations and contractor performance over time.
The specific nature of 'seepage foundation remediation' implies complex geological and engineering challenges that could lead to unforeseen issues.
Reliance on a joint venture for such a large contract might present coordination or management complexities.

Positive Signals

Firm-fixed-price contract type locks in costs and reduces the risk of budget overruns for the government.
Awarded under full and open competition, suggesting a competitive bidding process that should yield reasonable pricing.
The contractor, TREVIICOS SOLETANCHE JV, is likely experienced in heavy civil engineering, given the project's scope.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which includes a wide range of infrastructure projects. The market for such specialized remediation services is often dominated by a few large, experienced firms capable of handling complex engineering challenges and large contract values. Comparable spending benchmarks are difficult to establish without more granular data on the specific type of remediation and project scale.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was made without explicit small business goals. However, the prime contractor, a joint venture, may engage small businesses as subcontractors for specialized services or materials, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Projects
Heavy and Civil Engineering Services
Infrastructure Remediation Contracts
Department of Defense Major Construction Awards

Risk Flags

Long contract duration
Complex technical scope
Potential for unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $424.2 million to TREVIICOS SOLETANCHE JV. WOLF CREEK SEEPAGEFOUNDATION REMEDIATION

Who is the contractor on this award?

The obligated recipient is TREVIICOS SOLETANCHE JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $424.2 million.

What is the period of performance?

Start: 2008-07-23. End: 2015-03-01.

What is the typical cost range for seepage foundation remediation projects of similar scale and complexity?

Determining a precise cost range for seepage foundation remediation projects of similar scale is challenging without detailed project specifications, geological surveys, and the specific remediation techniques employed. However, large-scale civil engineering projects, especially those involving complex subsurface work like foundation remediation, can range from tens of millions to hundreds of millions of dollars. Factors influencing cost include the depth and extent of the seepage, the type of soil or rock, the chosen remediation method (e.g., grout injection, slurry walls, drainage systems), environmental regulations, and the duration of the project. Given the $424 million award for this project, it suggests a significant undertaking, likely involving extensive subsurface work and long-term engineering solutions.

How does the contractor's track record in heavy civil engineering influence the assessment of this contract's risk?

The track record of TREVIICOS SOLETANCHE JV is a critical factor in assessing the risk associated with this $424 million contract. As a joint venture, it likely combines the expertise and resources of its constituent companies, which are expected to have prior experience in large-scale civil engineering and foundation work. A history of successful project completion, adherence to budget and schedule, and strong safety records would significantly mitigate performance and financial risks. Conversely, any past issues with project delays, cost overruns, or safety incidents would elevate the perceived risk. Without specific details on the JV's past performance, a prudent assessment would assume a moderate risk level, leaning towards lower if the parent companies have a strong reputation in this specialized field.

What are the potential long-term implications of this remediation project for the surrounding environment and infrastructure?

The long-term implications of this seepage foundation remediation project are primarily positive, aimed at enhancing the stability and safety of critical infrastructure, likely related to a dam or levee. By addressing seepage issues, the project aims to prevent potential structural failures, which could have severe environmental consequences, including flooding and damage to ecosystems. Improved foundation stability contributes to the longevity of the structure itself, reducing the need for future, potentially more costly, interventions. Environmentally, successful remediation can protect water quality by preventing uncontrolled water flow and associated sediment transport. The project's success hinges on the long-term effectiveness of the chosen remediation techniques and ongoing monitoring.

How does the firm-fixed-price contract type impact the government's exposure to cost increases over the project's duration?

The firm-fixed-price (FFP) contract type significantly limits the government's exposure to cost increases. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the financial risk of cost overruns from the government to the contractor. If the contractor encounters unexpected difficulties or incurs higher-than-anticipated expenses, they absorb those costs. This contract structure incentivizes the contractor to manage their costs efficiently and complete the project within the agreed-upon budget. For a long-duration project like this one (2412 days), the FFP structure provides crucial budget certainty for the Department of Defense, protecting taxpayer funds from potential inflation or unforeseen site conditions impacting costs.

What is the historical spending pattern for 'Other Heavy and Civil Engineering Construction' by the Department of the Army?

The Department of the Army, particularly through the Army Corps of Engineers, is a major investor in heavy and civil engineering construction, encompassing a wide array of projects from military infrastructure to civil works like dams, levees, and navigation channels. Historical spending in this category is substantial and fluctuates based on national priorities, infrastructure needs, and specific mission requirements. The Army Corps of Engineers alone manages billions of dollars annually in construction contracts. Spending patterns are influenced by factors such as military readiness needs, disaster recovery efforts, and long-term infrastructure modernization programs. Contracts like the Wolf Creek Seepage Foundation Remediation represent a segment of this broader, consistent investment in foundational engineering and construction capabilities.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P507R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 273 SUMMER ST, BOSTON, MA, 02210

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $424,238,798

Exercised Options: $424,238,798

Current Obligation: $424,238,798

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline