Army awards $50M for Louisiana Hurricane Risk Reduction Project to Dynamic Group, LLC
Contract Overview
Contract Amount: $50,090,083 ($50.1M)
Contractor: Dynamic Group, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-07
End Date: 2027-07-04
Contract Duration: 1,396 days
Daily Burn Rate: $35.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WEST SHORE LAKE PONTCHARTRAIN, LOUISIANA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, LEVEES AND I-10 WEST T-WALL CROSSING, WSLP-106, ST JOHN THE BAPTIST PARISH, LOUISIANA
Place of Performance
Location: RESERVE, ST JOHN THE BAPTIST County, LOUISIANA, 70084
Plain-Language Summary
Department of Defense obligated $50.1 million to DYNAMIC GROUP, LLC for work described as: WEST SHORE LAKE PONTCHARTRAIN, LOUISIANA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, LEVEES AND I-10 WEST T-WALL CROSSING, WSLP-106, ST JOHN THE BAPTIST PARISH, LOUISIANA Key points: 1. Project focuses on critical infrastructure for storm damage reduction in St. John the Baptist Parish. 2. Dynamic Group, LLC, a single awardee, secured the contract. 3. The contract is a Firm Fixed Price definitive contract, indicating clear cost expectations. 4. This project falls under 'Other Heavy and Civil Engineering Construction' with a significant budget.
Value Assessment
Rating: good
The $50.1M contract value appears reasonable for a large-scale civil engineering project of this nature, involving significant levee and wall construction. Benchmarking against similar hurricane protection projects would provide a more precise assessment.
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 limited competition scenario. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for a critical infrastructure project aimed at protecting a community from severe weather events, representing a necessary investment in resilience.
Public Impact
Enhances community resilience against hurricane and storm damage. Protects vital transportation infrastructure (I-10 West T-Wall Crossing). Supports long-term economic stability by safeguarding a populated area. Addresses a critical need for flood and storm surge mitigation in Louisiana.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have impacted final price.
- Potential for cost overruns in large civil engineering projects.
- Long project duration (nearly 4 years) increases risk exposure.
Positive Signals
- Addresses a critical infrastructure need.
- Firm Fixed Price contract provides cost certainty.
- Project located in a high-risk storm area.
Sector Analysis
This project falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure resilience. Spending in this sector is often driven by government initiatives for public safety and disaster preparedness, with project costs varying widely based on scale and complexity.
Small Business Impact
The contract was awarded to Dynamic Group, LLC, and there is no indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small business goals were considered or met.
Oversight & Accountability
The Department of the Army, through the Department of Defense, is responsible for oversight. The definitive contract structure and defined end date suggest a framework for accountability, but ongoing monitoring of progress and expenditures is crucial.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may restrict optimal pricing.
- Potential for scope creep or unforeseen costs in large construction.
- Long project duration increases exposure to external risks.
- Dependence on a single contractor for critical infrastructure.
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 $50.1 million to DYNAMIC GROUP, LLC. WEST SHORE LAKE PONTCHARTRAIN, LOUISIANA, HURRICANE AND STORM DAMAGE RISK REDUCTION PROJECT, LEVEES AND I-10 WEST T-WALL CROSSING, WSLP-106, ST JOHN THE BAPTIST PARISH, LOUISIANA
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 $50.1 million.
What is the period of performance?
Start: 2023-09-07. End: 2027-07-04.
What specific factors led to the exclusion of other sources in this 'limited' full and open competition?
The exclusion of sources suggests that only specific contractors met the stringent requirements for this specialized project, potentially due to unique technical capabilities, past performance on similar projects, or specific security clearances. Understanding these criteria is key to assessing if the competition was appropriately limited or if it unnecessarily restricted the field of potential bidders, impacting overall value.
How does the $50.1M cost compare to similar hurricane and storm damage reduction projects in the region?
Benchmarking this $50.1M contract against comparable projects in the Gulf Coast region is essential for a thorough value assessment. Factors like project scope, levee length, material costs, and environmental considerations can significantly influence pricing. A detailed comparison would reveal if this contract represents a competitive price point or if potential cost efficiencies were missed.
What are the key performance indicators (KPIs) and risk mitigation strategies for this long-duration project?
Given the nearly four-year duration, robust KPIs and proactive risk mitigation are vital. This includes tracking construction milestones, budget adherence, quality control, and environmental compliance. Strategies should address potential delays from weather, supply chain disruptions, or unforeseen site conditions to ensure project completion within scope, on time, and within budget.
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: W912P823B0039
Offers Received: 2
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: $50,449,678
Exercised Options: $50,090,083
Current Obligation: $50,090,083
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-07
Current End Date: 2027-07-04
Potential End Date: 2027-07-04 00:00:00
Last Modified: 2025-10-20
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