Army awards $12M for Nogales flood control, Meridian Engineering to lead project
Contract Overview
Contract Amount: $12,053,229 ($12.1M)
Contractor: Meridian Engineering CO
Awarding Agency: Department of Defense
Start Date: 2007-09-21
End Date: 2012-12-31
Contract Duration: 1,928 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CHULA VISTA CHANNEL PROJECT, NOGALES WASH AND TRIBUTARIES, NOGALES, ARIZONA. CAR NO. 07-1090
Place of Performance
Location: NOGALES, SANTA CRUZ County, ARIZONA, 85621
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to MERIDIAN ENGINEERING CO for work described as: CHULA VISTA CHANNEL PROJECT, NOGALES WASH AND TRIBUTARIES, NOGALES, ARIZONA. CAR NO. 07-1090 Key points: 1. Contract value represents a significant investment in regional infrastructure. 2. Meridian Engineering's selection suggests confidence in their specialized capabilities. 3. Project duration indicates a complex, multi-year undertaking. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The project's focus on flood control highlights critical environmental and safety needs. 6. Geographic focus on Arizona points to specific regional vulnerabilities.
Value Assessment
Rating: good
The contract value of approximately $12 million for the CHULA VISTA CHANNEL PROJECT is within a reasonable range for large-scale civil engineering projects of this nature. Benchmarking against similar flood control and waterway management contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, but actual value depends on the final scope and any potential change orders.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for achieving competitive pricing and ensuring that the most capable contractor is selected. The presence of multiple bidders suggests a healthy market for these types of civil engineering services.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among qualified contractors.
Public Impact
Residents and businesses in Nogales, Arizona, will benefit from improved flood protection. The project aims to mitigate damage from flooding along the Nogales Wash and its tributaries. Geographic impact is concentrated in the Nogales, Arizona area, addressing specific local risks. The project will likely involve a workforce of engineers, construction workers, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological or environmental challenges arise during construction.
- Risk of project delays due to weather patterns or permitting issues.
- Dependence on Meridian Engineering's performance for successful project completion.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a robust selection process.
- Focus on critical infrastructure like flood control addresses significant public safety needs.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on water infrastructure and flood control. This sector is characterized by large-scale projects requiring specialized engineering expertise and significant capital investment. Comparable spending benchmarks would involve other Army Corps of Engineers projects or similar federal and state initiatives for waterway management and flood mitigation.
Small Business Impact
The provided data does not indicate any specific small business set-asides for this contract. Meridian Engineering is the prime contractor. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this project.
Oversight & Accountability
Oversight for this Department of the Army contract would typically be managed by the Army Corps of Engineers, with potential involvement from the Department of Defense's Inspector General. Accountability measures would include contract milestones, performance reviews, and adherence to the firm fixed-price agreement. Transparency is generally maintained through contract award databases and public reporting mechanisms.
Related Government Programs
- Army Corps of Engineers Civil Works Program
- Federal Flood Mitigation Projects
- Arizona Water Management Initiatives
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays from weather or regulatory issues.
- Contractor performance risk.
Tags
construction, civil-engineering, flood-control, water-management, department-of-defense, department-of-the-army, army-corps-of-engineers, arizona, nogales, definitive-contract, firm-fixed-price, full-and-open-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to MERIDIAN ENGINEERING CO. CHULA VISTA CHANNEL PROJECT, NOGALES WASH AND TRIBUTARIES, NOGALES, ARIZONA. CAR NO. 07-1090
Who is the contractor on this award?
The obligated recipient is MERIDIAN ENGINEERING CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2007-09-21. End: 2012-12-31.
What is Meridian Engineering's track record with similar Army Corps of Engineers projects?
A review of Meridian Engineering's contract history with the Army Corps of Engineers would be necessary to assess their track record on similar civil engineering and flood control projects. This would involve examining past performance evaluations, project completion success rates, and any history of disputes or contract modifications. Understanding their experience with projects of comparable scale, complexity, and geographic location would provide insight into their capability to successfully execute the CHULA VISTA CHANNEL PROJECT.
How does the $12 million award compare to the estimated cost of similar flood control projects?
Benchmarking the $12 million award against similar flood control and waterway management projects undertaken by the Army Corps of Engineers or other federal agencies is crucial for assessing value for money. Factors such as project scope, geographic location, environmental conditions, and the specific engineering challenges involved can significantly influence costs. A detailed comparison would require identifying comparable projects and analyzing their contract values relative to their scope and duration to determine if this award is competitive.
What are the primary risks associated with the CHULA VISTA CHANNEL PROJECT?
The primary risks associated with the CHULA VISTA CHANNEL PROJECT likely include unforeseen geological or environmental conditions during excavation and construction, potential weather-related delays impacting the project timeline, and the possibility of scope creep or change orders that could increase costs beyond the initial $12 million award. Additionally, the successful completion relies heavily on Meridian Engineering's project management and execution capabilities. The firm fixed-price nature of the contract helps mitigate cost risk for the government, but contractor performance remains a key factor.
How effective are firm fixed-price contracts in managing costs for large civil engineering projects?
Firm fixed-price (FFP) contracts are generally considered effective in managing costs for large civil engineering projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the cost risk, agreeing to a set price regardless of their actual costs. This provides budget certainty for the government. However, if unforeseen issues arise that significantly alter the scope, change orders can become costly. For complex projects, careful initial scope definition and robust oversight are essential to maximize the cost-control benefits of FFP.
What is the historical spending trend for flood control projects in Arizona by the Army Corps of Engineers?
Analyzing historical spending trends for flood control projects in Arizona by the Army Corps of Engineers would provide context for the $12 million CHULA VISTA CHANNEL PROJECT award. This would involve examining the frequency and value of similar contracts awarded over the past several years. Understanding whether spending in this area has been consistent, increasing, or decreasing can indicate the agency's priorities and the overall investment in regional flood mitigation infrastructure. It could also reveal patterns in contractor selection and project durations.
What are the potential long-term benefits of the Nogales flood control project?
The long-term benefits of the Nogales flood control project are expected to be substantial, primarily centered on enhanced public safety and economic stability for the region. By mitigating the risks associated with flooding along the Nogales Wash and its tributaries, the project aims to prevent property damage, protect critical infrastructure, and reduce the potential for loss of life. Improved flood control can also encourage economic development by making the area more attractive for investment and reducing insurance costs for businesses and residents. Furthermore, the project contributes to environmental resilience by managing water flow and potentially improving water quality.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912PL07B0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3855 N BUSINESS CENTER DR, TUCSON, AZ, 85705
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $18,932,363
Exercised Options: $15,756,363
Current Obligation: $12,053,229
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-21
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2025-09-17
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