DoD Awards $57.1M for Lake Pontchartrain Levee and Pipeline Crossing Floodwall to Dynamic Group, LLC
Contract Overview
Contract Amount: $57,135,678 ($57.1M)
Contractor: Dynamic Group, LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-25
End Date: 2028-01-29
Contract Duration: 1,618 days
Daily Burn Rate: $35.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WEST SHORE LAKE PONTCHARTRAIN, WSLP-104 LEVEE AND PIPELINE CROSSING FLOODWALL
Place of Performance
Location: LAPLACE, ST JOHN THE BAPTIST County, LOUISIANA, 70068
Plain-Language Summary
Department of Defense obligated $57.1 million to DYNAMIC GROUP, LLC for work described as: WEST SHORE LAKE PONTCHARTRAIN, WSLP-104 LEVEE AND PIPELINE CROSSING FLOODWALL Key points: 1. The contract is for a critical infrastructure project in Louisiana, addressing flood protection. 2. Dynamic Group, LLC, secured the award, indicating their capability in heavy civil engineering. 3. The project's fixed-price nature aims to control costs, but the duration presents potential for unforeseen expenses. 4. Construction sector spending is robust, and this project aligns with infrastructure improvement trends.
Value Assessment
Rating: good
The $57.1 million award for a significant civil engineering project appears reasonable given the scope. Benchmarking against similar large-scale flood control and infrastructure projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific pre-qualification or limitations. This method can impact price discovery by potentially narrowing the field of bidders.
Taxpayer Impact: The fixed-price contract aims to protect taxpayer funds by setting a ceiling on costs, though the long duration could introduce risks.
Public Impact
Enhances flood protection for the West Shore Lake Pontchartrain region, safeguarding communities and infrastructure. Supports critical infrastructure development, contributing to regional resilience against natural disasters. The project creates construction jobs and stimulates economic activity in Louisiana. Addresses long-term environmental and safety concerns related to levee and pipeline integrity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 4 years) increases risk of cost escalation and scope creep.
- Exclusion of sources in competition may limit optimal price discovery.
- Project complexity in a sensitive environmental area could lead to delays and cost overruns.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Award to a single entity streamlines project management.
- Addresses a critical need for flood protection in a vulnerable area.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is vital for national infrastructure. Spending in this sector is often driven by government initiatives for resilience and modernization, with project costs varying significantly based on scale and complexity.
Small Business Impact
The contract was awarded to Dynamic Group, LLC, and the data indicates that small business participation (sb: false) was not a primary factor in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured procurement process. However, the exclusion of sources warrants scrutiny to ensure fairness and maximize competition. Oversight will be crucial to manage the long-term contract effectively.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to long contract duration.
- Limited competition may have resulted in a suboptimal price.
- Complexity of construction in a potentially sensitive environmental area.
- Lack of explicit small business participation noted.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.1 million to DYNAMIC GROUP, LLC. WEST SHORE LAKE PONTCHARTRAIN, WSLP-104 LEVEE AND PIPELINE CROSSING FLOODWALL
Who is the contractor on this award?
The obligated recipient is DYNAMIC GROUP, 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 $57.1 million.
What is the period of performance?
Start: 2023-08-25. End: 2028-01-29.
What specific criteria led to the exclusion of certain sources in the competition, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique qualifications are required that only a limited number of contractors possess. This can be justified for complex projects but may reduce competitive pressure, potentially leading to a higher price than if a broader range of firms could compete. A thorough review of the solicitation documents and award justification would clarify the rationale and its pricing implications.
Given the 5-year duration, what mechanisms are in place to mitigate risks associated with inflation and material cost fluctuations?
While the contract is firm fixed-price, long-duration projects often include clauses addressing significant economic price adjustments or contingency planning for unforeseen market volatility. The Department of Defense likely has established protocols for monitoring economic indicators and managing such risks. However, the specific contract language regarding escalation or unforeseen cost increases is critical to understanding the true taxpayer exposure over the project's life.
How will the effectiveness of the levee and pipeline crossing floodwall be measured post-construction to ensure long-term flood protection?
Effectiveness will likely be measured through a combination of initial performance testing, adherence to engineering specifications, and ongoing monitoring and maintenance protocols. Post-construction inspections, flood simulation exercises, and regular structural integrity assessments will be key. The long-term success hinges on the quality of construction and the implementation of a robust maintenance plan by the responsible agency.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912P823B0051
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3045 WESTFORK DR, BATON ROUGE, LA, 70816
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,135,678
Exercised Options: $57,135,678
Current Obligation: $57,135,678
Actual Outlays: $5,346,993
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-25
Current End Date: 2028-01-29
Potential End Date: 2028-01-29 00:00:00
Last Modified: 2025-11-14
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