DoD's $62.5M contract for temporary retaining structures awarded to Hill Brothers Construction Company, Inc

Contract Overview

Contract Amount: $62,551,161 ($62.6M)

Contractor: Hill Brothers Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-27

End Date: 2013-10-18

Contract Duration: 1,878 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TEMPORARY RETAINING STRUCTURES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70126

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $62.6 million to HILL BROTHERS CONSTRUCTION COMPANY, INC. for work described as: TEMPORARY RETAINING STRUCTURES Key points: 1. The contract value of $62.5 million represents a significant investment in civil engineering construction. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of 1878 days indicates a long-term need for the services provided. 4. The firm fixed-price contract type suggests that cost risks were largely borne by the contractor. 5. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy civil engineering. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 7. The contract was performed in Louisiana, indicating a specific geographic focus for the project.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work for the temporary retaining structures. However, the total award of $62.5 million over approximately five years suggests a substantial project. The firm fixed-price nature of the contract implies that the contractor assumed the primary cost risk, which can be a positive indicator of value if the final cost aligns with the initial bid. Further analysis would require comparing the unit costs or project complexity to similar Army Corps of Engineers projects or other large-scale civil engineering endeavors.

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 a bid. The presence of 4 bids suggests a competitive environment for this type of specialized construction service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that multiple companies were willing and able to compete for this substantial project implies a healthy market for temporary retaining structure construction.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces. It ensures that the government is not limited to a single provider, fostering a more cost-effective procurement process and maximizing the use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Army Corps of Engineers, who receive the necessary infrastructure support for their operations. The services delivered include the construction and maintenance of temporary retaining structures, crucial for managing soil, water, or other materials during construction or operational phases. The geographic impact is concentrated in Louisiana, where the project was performed, potentially supporting local employment and businesses. Workforce implications include the employment of skilled construction labor, engineers, and project managers in the region where the contract was executed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Contract duration is lengthy, increasing the risk of material price fluctuations or labor availability issues over time.
Dependence on a single contractor for an extended period could limit flexibility if project requirements change significantly.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor, potentially leading to better cost control.
Full and open competition suggests a competitive bidding process, likely resulting in a fair market price.
Long contract duration indicates a sustained need, suggesting the structures are critical for ongoing operations or projects.

Sector Analysis

The construction industry, specifically the heavy and civil engineering construction sub-sector (NAICS 237990), encompasses projects like dams, levees, tunnels, and bridges. This contract for temporary retaining structures fits within this category, often supporting larger infrastructure development or environmental management projects. The market for such specialized construction can be competitive, with a mix of large and small firms capable of undertaking complex civil works. Government contracts, particularly from the Department of Defense and Army Corps of Engineers, represent a significant portion of spending in this sector.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The large value of the contract suggests it was likely awarded to a larger, established construction firm. Without explicit small business participation goals or reporting, the direct impact on the small business ecosystem is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and project management offices. The firm fixed-price nature of the contract implies that oversight would focus on ensuring adherence to contract specifications, timelines, and quality standards rather than detailed cost monitoring. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of Defense Infrastructure Modernization
Federal Highway Administration Construction Contracts
Disaster Recovery and Resilience Infrastructure

Risk Flags

Contract Duration
Potential for Cost Overruns
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.6 million to HILL BROTHERS CONSTRUCTION COMPANY, INC.. TEMPORARY RETAINING STRUCTURES

Who is the contractor on this award?

The obligated recipient is HILL BROTHERS CONSTRUCTION COMPANY, 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 $62.6 million.

What is the period of performance?

Start: 2008-08-27. End: 2013-10-18.

What specific types of temporary retaining structures were included in this contract, and what were their intended purposes?

The contract data specifies 'TEMPORARY RETAINING STRUCTURES' under NAICS code 237990 (Other Heavy and Civil Engineering Construction). While the exact types are not detailed, these structures typically serve to support excavations, stabilize slopes, manage water flow, or protect existing infrastructure during construction or demolition phases. Examples could include sheet pile walls, soldier pile and lagging systems, cofferdams, or temporary earth retention systems. Their purpose is critical for ensuring the safety and stability of construction sites and surrounding areas, particularly in complex civil engineering projects undertaken by the Army Corps of Engineers, which often involve significant earthmoving and water management.

How does the $62.5 million award compare to typical spending on similar civil engineering projects by the Department of the Army?

The $62.5 million award for temporary retaining structures is a substantial sum, indicative of a large-scale or long-duration project. The Department of the Army, primarily through the Army Corps of Engineers, manages numerous civil works and military construction projects annually, many of which run into tens or hundreds of millions of dollars. Projects involving major infrastructure, such as flood control, navigation improvements, or base construction, often exceed this amount. However, for a contract specifically focused on temporary structures, $62.5 million suggests a significant undertaking, possibly related to a major new construction initiative, a large-scale environmental remediation, or a critical infrastructure repair project requiring extensive temporary support systems over an extended period.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration (1878 days)?

The primary risk for the government in a firm fixed-price (FFP) contract is that the contractor may deliver a product or service that meets the minimum requirements but does not offer exceptional value or innovation, as there is less incentive for the contractor to go above and beyond. For a contract of this magnitude ($62.5M) and duration (approx. 5 years), the contractor assumes significant risk related to material cost escalation, labor availability, and unforeseen site conditions. If these risks materialize, the contractor might face financial losses, potentially impacting their ability to complete the contract or leading to disputes. Conversely, if the contractor manages these risks effectively, the FFP structure can provide excellent cost certainty for the government. The government's main risk is ensuring the contractor's performance meets all quality and schedule requirements within the fixed price.

Given the 'full and open competition' and 4 bidders, what does this suggest about the contractor's track record and the market for these services?

The fact that this contract was awarded under full and open competition with four bidders suggests a healthy and competitive market for temporary retaining structure construction services. It indicates that multiple firms possess the capability, resources, and experience to undertake such a project for the Department of the Army. Hill Brothers Construction Company, Inc. winning this bid implies they were deemed the most advantageous offer, likely based on a combination of price, technical approach, past performance, and other evaluation factors. A competitive environment generally leads to better pricing for the government. The presence of multiple bidders also suggests that Hill Brothers Construction Company, Inc. likely has a solid track record and competitive pricing to secure such a significant award against other capable firms.

What are the potential long-term implications for the Department of Defense's infrastructure if these temporary structures are critical components?

If the temporary retaining structures are critical components for larger, long-term Department of Defense (DoD) infrastructure projects, their successful and timely completion is paramount. Failure or delays in these temporary structures could directly impede the progress of essential permanent facilities, impacting operational readiness, training capabilities, or housing for personnel. The longevity and effectiveness of these temporary structures, even if eventually removed, contribute to the overall stability and safety during the construction phase of permanent assets. Ensuring their proper design, installation, and maintenance, as managed under this contract, is vital for the successful realization of the DoD's strategic infrastructure goals and the avoidance of costly rework or safety incidents.

How has federal spending on heavy and civil engineering construction (NAICS 237990) trended in recent years, and where does this contract fit?

Federal spending on heavy and civil engineering construction, categorized under NAICS 237990, fluctuates based on infrastructure priorities, defense spending, and economic conditions. Historically, agencies like the Army Corps of Engineers, Department of Transportation, and Department of Energy are significant contributors to this spending. This $62.5 million contract for temporary retaining structures represents a notable investment within this sector. While specific year-over-year trends for this precise sub-category are complex to isolate without granular data, overall federal investment in infrastructure has seen periods of increase driven by national needs for upgrades and new developments. This contract aligns with the government's role in funding large-scale engineering projects essential for national security, transportation, and environmental management.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912P808R0053

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20831 HIGHWAY 15, FALKNER, MS, 38629

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

Financial Breakdown

Contract Ceiling: $62,551,161

Exercised Options: $62,551,161

Current Obligation: $62,551,161

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline