Prado Dam Sewage Treatment Plant Phase II contract awarded to Stronghold Engineering Inc. for over $14.9 million

Contract Overview

Contract Amount: $14,951,434 ($15.0M)

Contractor: Stronghold Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2007-04-20

End Date: 2009-12-31

Contract Duration: 986 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEWAGE TREATMENT PLANT, PHASE II PRADO DAM

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92880

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to STRONGHOLD ENGINEERING INC for work described as: SEWAGE TREATMENT PLANT, PHASE II PRADO DAM Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a flexible agreement for services over a period. 3. The firm-fixed-price nature of the contract aims to control costs for the government. 4. The project duration of 986 days suggests a significant construction undertaking. 5. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The total award amount of over $14.9 million for a sewage treatment plant construction project in California appears within a reasonable range for such infrastructure, but a detailed cost analysis would be needed to assess true value for money. The firm-fixed-price contract type suggests an effort to manage cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'full and open' aspect implies a broad solicitation, the 'exclusion of sources' clause suggests specific criteria or pre-qualification might have been applied, potentially limiting the initial pool of bidders. The number of bidders is not explicitly stated, but the 'full and open' designation generally aims for maximum competition, which should theoretically lead to better price discovery.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are the Department of Defense and potentially surrounding military installations that rely on the sewage treatment infrastructure. The services delivered include the construction of a sewage treatment plant, a critical piece of environmental and operational infrastructure. The geographic impact is localized to the Prado Dam area in California. The contract likely created jobs in the construction sector within California, including skilled labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause, while potentially justified, could limit competition and needs clear justification to ensure fairness.
Lack of detailed cost breakdowns makes it difficult to assess the efficiency of resource allocation.
The definitive contract type, while flexible, can sometimes lead to scope creep if not managed tightly.

Positive Signals

Awarded under full and open competition, indicating a commitment to competitive bidding.
Firm-fixed-price contract type helps in cost control and predictability.
The project addresses essential infrastructure needs for the Department of Defense.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to environmental infrastructure. The market for such projects is driven by government funding for public works and military base improvements. Comparable spending benchmarks would typically involve other large-scale wastewater treatment facility constructions, either for government or municipal clients. The size of this contract, over $14.9 million, places it as a significant project within its specific niche.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary award was likely made to a large business. There is no explicit information on subcontracting plans for small businesses, which would be a key area to investigate for their inclusion in the broader ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed price. Transparency would be enhanced through contract award databases and potentially through public reporting on project milestones, though specific oversight reports are not detailed here.

Related Government Programs

Military Construction Projects
Environmental Infrastructure Projects
Department of Defense Facilities Management
Wastewater Treatment Facility Construction

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed cost breakdown for value assessment.
Need for further investigation into contractor performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to STRONGHOLD ENGINEERING INC. SEWAGE TREATMENT PLANT, PHASE II PRADO DAM

Who is the contractor on this award?

The obligated recipient is STRONGHOLD ENGINEERING 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 $15.0 million.

What is the period of performance?

Start: 2007-04-20. End: 2009-12-31.

What was the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' award?

The justification for excluding certain sources in a 'full and open competition after exclusion of sources' award typically relates to specific technical requirements, security clearances, or unique capabilities that only a limited number of contractors possess. For a sewage treatment plant construction, this might involve specialized environmental engineering expertise, patented technologies, or specific site access requirements. Without the detailed contract award documentation, the precise reasons remain speculative. However, the contracting agency must have documented that the exclusion was necessary and that the remaining pool still constituted adequate competition to meet the government's needs effectively and efficiently.

How does the $14.9 million award compare to the average cost of similar sewage treatment plant construction projects for the Department of Defense?

Comparing the $14.9 million award to average costs for similar Department of Defense (DoD) sewage treatment plant projects requires access to historical DoD contract data and project specifics. Factors like plant capacity, technological complexity, location (which affects labor and material costs), and specific environmental regulations significantly influence project costs. Generally, large-scale civil engineering projects like this can range widely. A $14.9 million project might be considered moderate to large depending on its scope. To provide a precise comparison, one would need to analyze contracts for facilities of similar size and complexity awarded over a comparable timeframe, adjusting for inflation and regional cost differences.

What are the key performance indicators (KPIs) used to measure the success of this construction contract?

Key performance indicators for a construction contract like the Prado Dam Sewage Treatment Plant Phase II would typically focus on schedule adherence, cost control, quality of work, and safety compliance. Specific KPIs might include: completion of milestones by specified dates, adherence to the firm-fixed-price budget with minimal change orders, compliance with construction quality standards and specifications (e.g., material testing, structural integrity), and maintaining a low incident rate for workplace safety. The final acceptance of the facility by the government, confirming it meets all operational and environmental requirements, would be the ultimate measure of success.

What is the track record of Stronghold Engineering Inc. in completing large-scale civil engineering projects for the federal government?

Assessing Stronghold Engineering Inc.'s track record requires a review of their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or litigation. Information available through federal procurement data systems (like FPDS or SAM.gov) can reveal the types and values of contracts they have previously held, their on-time and on-budget performance, and client satisfaction. A thorough analysis would look for patterns in project completion, adherence to contract terms, and overall reliability in delivering complex civil engineering projects, particularly those for agencies like the Department of Defense.

What are the potential long-term operational and maintenance costs associated with the completed sewage treatment plant?

The long-term operational and maintenance (O&M) costs associated with the completed sewage treatment plant are not directly detailed in the contract award data. However, these costs are a critical consideration for the owning agency (Department of the Army). O&M expenses typically include energy consumption, chemical supplies, labor for operation and routine maintenance, periodic repairs, and eventual replacement of components. The design and technology chosen for the plant during construction significantly influence these future costs. A well-designed, efficient plant will generally have lower O&M expenses over its lifecycle compared to a less efficient or outdated system.

How has spending on similar heavy and civil engineering construction projects by the Department of the Army trended over the past decade?

To analyze spending trends on similar heavy and civil engineering construction projects by the Department of the Army (DoA) over the past decade, one would need to aggregate and analyze contract data using relevant NAICS codes (like 237990) and contract types. This analysis would reveal fluctuations in budget allocations, major project initiatives, and the overall investment in infrastructure. Factors influencing these trends include national defense priorities, infrastructure modernization needs, base realignment and closure actions, and federal budget cycles. A decade-long view would likely show periods of increased investment during specific modernization efforts or decreased spending during budget austerity.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912PL07B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3421 GATO COURT, RIVERSIDE, CA, 92507

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,951,434

Exercised Options: $14,951,434

Current Obligation: $14,951,434

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline