Army awards $36.2M for Louisiana hurricane storm damage risk reduction system construction
Contract Overview
Contract Amount: $36,207,663 ($36.2M)
Contractor: WRS Infrastructure & Environment, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-03-22
End Date: 2011-08-20
Contract Duration: 516 days
Daily Burn Rate: $70.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF WESTBANK AND VICINITY, NEW ORLEANS, LOUISIANA HURRICANE STORM DAMAGE RISK REDUCTION SYSTEM LAKE CATAOUATCHE, WESTERN TIE-IN WBV 72: EAST WEST LEVEE ST. CHARLES PARISH, LA AWARD OF BASE ITEMS 0001-0031 ONLY.
Place of Performance
Location: RACELAND, LAFOURCHE County, LOUISIANA, 70394
Plain-Language Summary
Department of Defense obligated $36.2 million to WRS INFRASTRUCTURE & ENVIRONMENT, INC. for work described as: CONSTRUCTION OF WESTBANK AND VICINITY, NEW ORLEANS, LOUISIANA HURRICANE STORM DAMAGE RISK REDUCTION SYSTEM LAKE CATAOUATCHE, WESTERN TIE-IN WBV 72: EAST WEST LEVEE ST. CHARLES PARISH, LA AWARD OF BASE ITEMS 0001-0031 ONLY. Key points: 1. Contract awarded to WRS Infrastructure & Environment, Inc. for critical post-hurricane levee construction. 2. Project focuses on enhancing storm surge protection for Westbank and vicinity in New Orleans. 3. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The project duration is 516 days, aligning with typical construction timelines for such infrastructure. 6. This award falls under the 'Other Heavy and Civil Engineering Construction' NAICS code.
Value Assessment
Rating: good
The awarded amount of $36.2 million for the construction of the Westbank and Vicinity Hurricane Storm Damage Risk Reduction System appears reasonable for a project of this scale and complexity. While direct comparisons are difficult without specific project details, similar large-scale civil engineering projects for flood control and infrastructure repair often fall within this general cost range. The firm fixed-price contract structure suggests that the pricing was determined upfront and is intended to control costs, providing a degree of value certainty for the government. Benchmarking against other Army Corps of Engineers projects in the Gulf Coast region for similar levee and flood control work would provide a more precise value assessment.
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 bidders suggests a healthy level of competition for this significant infrastructure project. A competitive bidding process generally leads to more favorable pricing and better quality services as contractors vie for the award. The number of bidders implies that the market had sufficient interest and capacity to undertake this work, contributing to price discovery and ensuring the government receives a competitive offer.
Taxpayer Impact: Full and open competition benefits taxpayers by driving down costs through market forces. It ensures that the government is not overpaying and that the contract is awarded to the most capable and cost-effective bidder, maximizing the return on taxpayer investment.
Public Impact
Residents and businesses in the Westbank and vicinity of New Orleans, Louisiana, will benefit from enhanced protection against hurricane storm surges. The project delivers critical infrastructure improvements to the Hurricane Storm Damage Risk Reduction System. Geographic impact is concentrated in St. Charles Parish, Louisiana, specifically along the Lake Catawatche, Westem Tie-in WBV 72, and East-West Levee. The project supports the construction and engineering workforce in the region, providing employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological or environmental conditions are encountered during construction.
- Risk of project delays due to weather, supply chain disruptions, or labor shortages.
- Ensuring long-term durability and effectiveness of the constructed levees against future storm events.
Positive Signals
- Firm fixed-price contract helps to mitigate cost escalation risks.
- Award to an experienced infrastructure and environment company suggests a higher likelihood of successful execution.
- The project addresses a critical need for storm damage risk reduction in a vulnerable area.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure related to flood control and disaster preparedness. The market for such projects is often driven by government funding for public works, disaster recovery, and national security initiatives. The size of this contract, approximately $36.2 million, is substantial for a single project within this sector. Comparable spending benchmarks would include other large-scale levee construction, dam repair, or coastal protection projects managed by agencies like the Army Corps of Engineers or FEMA.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, WRS Infrastructure & Environment, Inc., may engage small businesses for subcontracting, there is no explicit information provided regarding subcontracting goals or performance in this award notice. The impact on the small business ecosystem would depend on the subcontracting opportunities generated by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for executing civil works projects. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally maintained through contract award databases and public reporting, although specific project oversight details may not be publicly disseminated. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Hurricane Storm Damage Risk Reduction System (HSDRRS)
- Army Corps of Engineers Civil Works Projects
- New Orleans Area Flood Protection Projects
- Louisiana Coastal Restoration Projects
Risk Flags
- Potential for cost overruns
- Risk of project delays
- Environmental impact considerations
- Long-term effectiveness of infrastructure
Tags
construction, defense, department-of-the-army, louisiana, new-orleans, definitive-contract, firm-fixed-price, full-and-open-competition, hurricane-protection, levee-construction, civil-engineering, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.2 million to WRS INFRASTRUCTURE & ENVIRONMENT, INC.. CONSTRUCTION OF WESTBANK AND VICINITY, NEW ORLEANS, LOUISIANA HURRICANE STORM DAMAGE RISK REDUCTION SYSTEM LAKE CATAOUATCHE, WESTERN TIE-IN WBV 72: EAST WEST LEVEE ST. CHARLES PARISH, LA AWARD OF BASE ITEMS 0001-0031 ONLY.
Who is the contractor on this award?
The obligated recipient is WRS INFRASTRUCTURE & ENVIRONMENT, 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 $36.2 million.
What is the period of performance?
Start: 2010-03-22. End: 2011-08-20.
What is the track record of WRS Infrastructure & Environment, Inc. on similar federal construction projects, particularly those involving levee or flood control systems?
WRS Infrastructure & Environment, Inc. has a history of performing large-scale civil engineering and construction projects for federal agencies, including the Army Corps of Engineers. Their portfolio often includes work related to environmental restoration, infrastructure development, and disaster recovery. Specific to levee and flood control systems, their experience would likely encompass projects similar in scope and technical requirements to the Westbank and Vicinity Hurricane Storm Damage Risk Reduction System. A detailed review of their past performance ratings, contract history, and any past performance issues or commendations would be necessary for a comprehensive assessment. This would involve examining data from sources like the Federal Procurement Data System (FPDS) and potentially CPARS (Contractor Performance Assessment Reporting System) reports, if available for this contractor and relevant projects.
How does the awarded amount of $36.2 million compare to the estimated cost or budget for this specific project, and what factors might have influenced any variance?
Without access to the government's initial cost estimates or the detailed breakdown of the winning bid, it is challenging to definitively compare the awarded amount of $36.2 million. However, the fact that it was awarded under full and open competition with four bidders suggests that the price is likely competitive and reflects market conditions. Factors that could influence variance between an estimate and the final award include the accuracy of initial site assessments, the prevailing costs of materials and labor at the time of bidding, the level of competition, and any specific technical requirements or risks identified by bidders. If the awarded amount is significantly higher than initial estimates, it could indicate unforeseen complexities or a less competitive bidding environment than anticipated. Conversely, a lower award might suggest efficient project scoping or aggressive bidding.
What are the primary risks associated with the construction of levees in the New Orleans area, and how are these risks being mitigated in this contract?
Construction of levees in the New Orleans area carries inherent risks, including challenging soil conditions (e.g., soft, compressible soils), potential for encountering buried utilities or historical artifacts, and the ever-present threat of weather disruptions. Environmental considerations, such as protecting sensitive marshland habitats, also pose risks. This contract, being a firm fixed-price definitive contract, aims to mitigate financial risks for the government by establishing a set price. Mitigation strategies for technical and schedule risks would be detailed in the contract's statement of work and performance specifications, requiring the contractor to adhere to stringent engineering standards and construction methods. The Army Corps of Engineers' oversight and quality assurance processes are critical for monitoring progress and ensuring compliance, thereby mitigating risks related to construction quality and effectiveness.
What is the historical spending pattern for hurricane storm damage risk reduction systems in the New Orleans region, and how does this award fit into that trend?
Historical spending on hurricane storm damage risk reduction systems (HSDRRS) in the New Orleans region has been substantial, particularly following major hurricanes like Katrina in 2005. Significant federal investment, primarily through the Army Corps of Engineers, has been directed towards rebuilding and enhancing the system's resilience. This $36.2 million award for the Westbank and Vicinity project is consistent with the ongoing, long-term commitment to strengthening these defenses. It represents a component of a larger, multi-year effort to fortify the region against future storm threats. Tracking annual spending on HSDRRS projects in this area would reveal a pattern of continuous investment, with individual contract awards like this one contributing to the overall goal of comprehensive flood protection.
How does the 'Other Heavy and Civil Engineering Construction' NAICS code (237990) typically encompass projects like levee construction, and what are the common contract values within this category?
The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' broadly covers establishments primarily engaged in the construction of heavy and civil engineering projects not elsewhere classified. This includes projects such as flood control systems, dams, levees, canals, waterways, and other water-related infrastructure. Projects under this code often involve significant earthmoving, concrete work, and specialized engineering expertise. Contract values within this category can vary widely, from smaller repair and maintenance jobs to multi-billion dollar mega-projects. A $36.2 million award, as seen here, is a substantial but not uncommon contract size for a significant component of a larger infrastructure program within this sector.
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 NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P810R0008
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 221 HOBBS ST STE 108, TAMPA, FL, 33619
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,227,663
Exercised Options: $36,207,663
Current Obligation: $36,207,663
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-22
Current End Date: 2011-08-20
Potential End Date: 2011-08-20 00:00:00
Last Modified: 2020-09-28
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