DoD's $1.1B Pre-Construction Services Contract Awarded to Gulf Intracoastal Constructors in 2009
Contract Overview
Contract Amount: $1,091,129,787 ($1.1B)
Contractor: Gulf Intracoastal Constructors, a Joint Venture
Awarding Agency: Department of Defense
Start Date: 2009-04-17
End Date: 2014-04-11
Contract Duration: 1,820 days
Daily Burn Rate: $599.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PRE- CONSTRUCTION SERVICES
Place of Performance
Location: WESTWEGO, JEFFERSON County, LOUISIANA, 70094
Plain-Language Summary
Department of Defense obligated $1.09 billion to GULF INTRACOASTAL CONSTRUCTORS, A JOINT VENTURE for work described as: PRE- CONSTRUCTION SERVICES Key points: 1. The contract value of $1.1 billion represents a significant investment in pre-construction services. 2. Gulf Intracoastal Constructors, a joint venture, secured this large award. 3. The contract duration of 1820 days indicates a long-term commitment to the project. 4. Awarded under full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: fair
The contract was awarded in 2009 with a firm fixed price, making direct comparison to current market rates challenging. The provided obligated amount of $1.1B suggests the scale of the project, but without specific deliverables or scope, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The firm fixed price structure aims to control costs, but the long duration and pre-construction nature mean the ultimate value realization depends on project execution.
Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently for necessary pre-construction services.
Public Impact
Significant federal investment in infrastructure development. Potential for job creation and economic activity in Louisiana. Long-term commitment to a specific region for construction services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific project details makes it hard to assess true value.
- Long contract duration could lead to cost overruns if not managed well.
- Pre-construction services are critical but their direct impact is indirect.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Significant investment indicates a high-priority project.
Sector Analysis
This contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category encompassing significant infrastructure projects. The $1.1B value is substantial for pre-construction services, suggesting a large-scale, complex undertaking.
Small Business Impact
The contract was awarded to a joint venture, and there is no explicit information regarding small business participation in this award. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's long duration and significant value necessitate robust oversight to ensure adherence to the firm fixed price and effective project management. Tracking milestones and deliverables will be key to accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed scope of work.
- Long contract duration (5 years).
- No explicit mention of small business subcontracting.
- Limited information on performance metrics and oversight.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.09 billion to GULF INTRACOASTAL CONSTRUCTORS, A JOINT VENTURE. PRE- CONSTRUCTION SERVICES
Who is the contractor on this award?
The obligated recipient is GULF INTRACOASTAL CONSTRUCTORS, A JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $1.09 billion.
What is the period of performance?
Start: 2009-04-17. End: 2014-04-11.
What specific pre-construction services were included in this $1.1 billion contract, and how do they align with the project's overall goals?
The contract details for specific pre-construction services are not provided. These typically include planning, design, feasibility studies, and site assessments. Understanding these specifics is crucial to determine if the $1.1 billion was appropriately allocated for the project's objectives and if the scope justified the investment.
What were the key performance indicators and risk mitigation strategies employed during the 5-year contract period for Gulf Intracoastal Constructors?
Information on specific KPIs and risk mitigation strategies is not available in the provided data. For a contract of this magnitude and duration, effective oversight would typically involve regular performance reviews, risk assessments, and contingency planning to address potential issues like cost overruns or schedule delays.
How did the firm fixed price structure impact the final cost and overall value realization for the Department of Defense on this contract?
The firm fixed price structure was intended to cap costs for the government. However, without knowing the final project cost or if change orders were issued, it's difficult to assess the ultimate value. The success of this pricing strategy hinges on the accuracy of initial cost estimations and effective contract management throughout the project lifecycle.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P809R0035
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13119 OLD DENTON RD, FORT WORTH, TX, 76177
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,353,329,763
Exercised Options: $1,500,593,376
Current Obligation: $1,091,129,787
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-04-17
Current End Date: 2014-04-11
Potential End Date: 2014-04-11 00:00:00
Last Modified: 2017-09-29
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