Army Corps of Engineers awards $144M contract for Lake Pontchartrain levee enlargement to Archer Western Contractors

Contract Overview

Contract Amount: $144,111,958 ($144.1M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-30

End Date: 2011-09-06

Contract Duration: 525 days

Daily Burn Rate: $274.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAKE PONTCHARTRAIN AND VICINITY 109.02A, LEVEE ENLARGEMEMT FOR SOUTH POINT TO CSX RAILROAD AND US 11 ND US 90

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $144.1 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: LAKE PONTCHARTRAIN AND VICINITY 109.02A, LEVEE ENLARGEMEMT FOR SOUTH POINT TO CSX RAILROAD AND US 11 ND US 90 Key points: 1. Contract value represents a significant investment in critical coastal infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The project's duration and scope indicate potential for schedule and cost overruns. 4. This contract is part of a larger effort to enhance hurricane protection in the region. 5. The firm-fixed-price structure shifts cost risk to the contractor. 6. The project's success hinges on effective project management and adherence to engineering standards.

Value Assessment

Rating: good

The contract value of $144.1 million for levee enlargement appears substantial, reflecting the scale and complexity of civil engineering projects. Benchmarking against similar large-scale civil works contracts would provide a clearer picture of value for money. The firm-fixed-price contract type generally aims for cost certainty, but the final cost can be influenced by unforeseen site conditions or scope changes. Without specific cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging, but the scale suggests a significant investment in public safety infrastructure.

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. The presence of 7 bids suggests a healthy level of interest and competition for this significant civil engineering project. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process for this levee enlargement project likely resulted in a more favorable price for taxpayers by encouraging contractors to offer their best terms.

Public Impact

Residents and businesses in the Lake Pontchartrain vicinity will benefit from enhanced flood protection. The project delivers critical civil engineering services focused on levee system improvements. The geographic impact is concentrated in Louisiana, specifically around the Lake Pontchartrain area. The project will likely create numerous construction jobs, benefiting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's scale and complexity.
Risk of encountering unforeseen geological or environmental conditions impacting cost and timeline.
Ensuring long-term structural integrity and maintenance requirements post-construction.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive pricing environment.
Project addresses critical infrastructure needs for hurricane protection.

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, established firms capable of undertaking complex, high-value undertakings. Spending in this sector is driven by government investment in public works, disaster recovery, and national security infrastructure. Comparable spending benchmarks would typically involve other large-scale levee, dam, or transportation infrastructure projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Archer Western Contractors, LLC is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the availability of qualified small business firms for specialized services required in the project.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the Army Corps of Engineers project management office. Accountability measures would include adherence to contract specifications, performance milestones, and quality control. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight information may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Hurricane Protection Projects
Coastal Restoration Initiatives
Civil Works Construction
US Army Corps of Engineers Projects

Risk Flags

Potential for cost overruns despite fixed-price contract
Schedule delays due to complex construction environment
Environmental compliance challenges
Long-term maintenance and sustainability concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.1 million to ARCHER WESTERN CONTRACTORS, LLC. LAKE PONTCHARTRAIN AND VICINITY 109.02A, LEVEE ENLARGEMEMT FOR SOUTH POINT TO CSX RAILROAD AND US 11 ND US 90

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $144.1 million.

What is the period of performance?

Start: 2010-03-30. End: 2011-09-06.

What is the track record of Archer Western Contractors, LLC on similar large-scale civil engineering projects?

Archer Western Contractors, LLC, a subsidiary of The Walsh Group, has a significant track record in heavy civil construction, including infrastructure projects such as bridges, highways, dams, and wastewater treatment facilities. They have been involved in numerous large-scale projects across the United States. For instance, they have managed complex projects for transportation departments and other federal agencies. Their experience in managing large budgets, complex logistics, and diverse teams suggests a capacity to handle projects like the Lake Pontchartrain levee enlargement. A detailed review of their past performance on projects of similar scope, complexity, and value would be necessary to fully assess their suitability and historical success rate in delivering such critical infrastructure.

How does the $144.1 million contract value compare to similar levee enlargement projects in the US?

The $144.1 million contract value for the Lake Pontchartrain levee enlargement is substantial and reflects the significant scale and complexity typical of major civil engineering infrastructure projects. To benchmark this value effectively, comparisons should be made with other large-scale levee construction or rehabilitation projects undertaken by federal agencies like the Army Corps of Engineers or state transportation departments. Factors such as project scope (e.g., length of levee, height, material requirements), geological conditions, environmental mitigation needs, and regional construction cost indices significantly influence project costs. Without access to a database of comparable projects with detailed cost breakdowns, it's challenging to definitively state if this represents excellent, fair, or concerning value. However, given the critical nature of hurricane protection infrastructure, such investments are often substantial.

What are the primary risks associated with this levee enlargement project, and how are they being managed?

The primary risks associated with this levee enlargement project include potential schedule delays due to unforeseen site conditions (e.g., soil instability, subsurface obstructions), environmental challenges (e.g., permitting, wildlife impact mitigation), and potential cost overruns, although the firm-fixed-price contract shifts much of the cost risk to the contractor. Weather disruptions are also a significant risk in coastal Louisiana. Management of these risks would involve thorough geotechnical investigations prior to and during construction, robust environmental compliance monitoring, detailed project scheduling with contingency planning, and strong contract administration by the Army Corps of Engineers. The contractor's experience and financial stability are also key risk mitigation factors.

What is the expected effectiveness of the completed levee enlargement in enhancing hurricane protection for the region?

The effectiveness of the completed levee enlargement is expected to significantly enhance hurricane protection for the Lake Pontchartrain and vicinity region. This project is part of a broader strategy to bolster the region's defenses against storm surge and flooding, which are critical concerns for coastal Louisiana. The specific improvements to the levee system aim to increase its structural integrity and height, thereby raising the level of protection against anticipated storm events. The success of this enhancement is contingent upon the quality of construction, adherence to design specifications, and the long-term maintenance of the upgraded levee. Its effectiveness will be measured by its performance during future hurricane events.

How has federal spending on similar civil engineering and coastal protection projects trended in recent years?

Federal spending on civil engineering and coastal protection projects has generally seen significant investment, particularly in recent decades, driven by increasing awareness of climate change impacts, aging infrastructure, and the need for enhanced disaster resilience. Agencies like the Army Corps of Engineers consistently receive substantial appropriations for flood control, navigation, and coastal storm damage reduction projects. Spending trends are often influenced by major storm events, congressional appropriations cycles, and national infrastructure priorities. While specific figures fluctuate annually, there has been a sustained focus on upgrading and expanding critical infrastructure, including coastal defenses, to mitigate risks associated with natural disasters.

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: W912P810B0042

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 2121 AVE J STE 103, ARLINGTON, TX, 76006

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

Financial Breakdown

Contract Ceiling: $144,111,958

Exercised Options: $144,111,958

Current Obligation: $144,111,958

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline