Army's $27.7M Alamogordo Flood Control Project awarded to PATE CONSTRUCTION CO., INC. for civil engineering

Contract Overview

Contract Amount: $27,740,190 ($27.7M)

Contractor: Pate Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-25

End Date: 2022-12-17

Contract Duration: 1,422 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ALAMOGORDO FLOOD CONTROL PROJECT, MCKINLEY CHANNEL PHASE VIII, OTERO COUNTY, NEW MEXICO

Place of Performance

Location: ALAMOGORDO, OTERO County, NEW MEXICO, 88310

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to PATE CONSTRUCTION CO., INC. for work described as: ALAMOGORDO FLOOD CONTROL PROJECT, MCKINLEY CHANNEL PHASE VIII, OTERO COUNTY, NEW MEXICO Key points: 1. Value for money assessed through competitive bidding and fixed-price contract. 2. Competition dynamics indicate a robust bidding process for this civil engineering project. 3. Risk indicators include contract duration and fixed-price nature, potentially impacting cost overruns. 4. Performance context is within heavy civil engineering construction, a specialized field. 5. Sector positioning is in infrastructure development, crucial for regional resilience.

Value Assessment

Rating: good

The contract value of $27.7 million for the Alamogordo Flood Control Project appears reasonable given the scope of heavy civil engineering and the duration of the project (over three years). While specific benchmarks for similar flood control projects in New Mexico are not readily available, the firm fixed-price structure suggests an effort to control costs. The number of bids received (4) indicates a degree of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bids received. This level of competition is generally positive as it allows multiple qualified contractors to bid, fostering price discovery and potentially leading to more competitive pricing for the government. The presence of four bidders suggests sufficient market capacity and interest in this type of civil engineering work.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price and value for the flood control infrastructure.

Public Impact

Residents and businesses in Alamogordo, Otero County, New Mexico, benefit from improved flood protection. The project delivers essential civil engineering services for critical infrastructure. Geographic impact is localized to Otero County, New Mexico, enhancing community safety. Workforce implications include employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term civil engineering projects.
Fixed-price contracts can sometimes lead to quality compromises if not closely monitored.
Weather-related delays are a common risk in construction projects of this nature.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Project addresses a critical need for flood control infrastructure.

Sector Analysis

The contract falls within the heavy and civil engineering construction sector, which is vital for public infrastructure development. This sector involves large-scale projects such as dams, highways, and flood control systems. The market size for such specialized construction can be significant, with government contracts forming a substantial portion. Benchmarking this specific contract's value against similar flood control projects nationally or regionally would require detailed project specifications and local cost indices.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor utilizes small businesses for subcontracting opportunities, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Disaster Mitigation and Infrastructure Projects
Otero County Public Works Initiatives

Risk Flags

Long contract duration increases exposure to economic fluctuations.
Fixed-price nature may incentivize cost-cutting if unforeseen issues arise.
Potential for weather-related delays in civil engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to PATE CONSTRUCTION CO., INC.. ALAMOGORDO FLOOD CONTROL PROJECT, MCKINLEY CHANNEL PHASE VIII, OTERO COUNTY, NEW MEXICO

Who is the contractor on this award?

The obligated recipient is PATE CONSTRUCTION CO., 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 $27.7 million.

What is the period of performance?

Start: 2019-01-25. End: 2022-12-17.

What is the historical spending pattern for flood control projects in Otero County, New Mexico, by the Department of the Army?

Analyzing historical spending for flood control in Otero County by the Department of the Army requires access to detailed federal procurement databases and specific project records. Without direct access to such granular data, it's challenging to establish a precise historical spending pattern. However, federal agencies like the Army Corps of Engineers are often involved in significant infrastructure projects, especially in areas prone to natural disasters. The Alamogordo Flood Control Project, Phase VIII, suggests a multi-phase, long-term commitment to addressing flood risks in the region. The $27.7 million awarded for this phase indicates a substantial investment. To understand the pattern, one would look for previous phases of this project, other flood control initiatives in the county, and the total federal investment over time, considering factors like project lifecycles, funding appropriations, and the frequency of such large-scale infrastructure needs.

How does the cost per mile or per unit of flood control infrastructure for this contract compare to national averages?

Determining a precise cost per mile or per unit for this flood control project is difficult without detailed specifications of the infrastructure being built (e.g., length of levees, capacity of channels, type of materials used). The contract value of $27.7 million covers the McKinley Channel Phase VIII, which is a specific segment of a larger flood control effort. National averages for flood control infrastructure vary widely based on geography, terrain, engineering complexity, and the specific type of mitigation employed. For instance, constructing concrete channels in arid regions might have different cost structures than building earthen levees in floodplains. To make a meaningful comparison, one would need to identify the specific deliverables of Phase VIII and find comparable projects with publicly available cost breakdowns. Given the specialized nature of civil engineering and the unique environmental conditions in Otero County, direct comparisons to national averages should be made with caution.

What is PATE CONSTRUCTION CO., INC.'s track record with similar Army civil engineering projects, particularly in flood control?

PATE CONSTRUCTION CO., INC. has a history of performing civil engineering work, as evidenced by this contract. To assess their track record specifically with similar Army civil engineering projects, particularly in flood control, a review of their past performance on federal contracts would be necessary. This would involve examining contract databases for awards to PATE CONSTRUCTION CO., INC. from the Department of the Army or other federal agencies for projects involving flood control, channel construction, levee building, or related heavy civil engineering. Key aspects to evaluate would include project size, complexity, adherence to schedule and budget, and any reported performance issues or commendations. Without access to detailed past performance reviews or a comprehensive list of their prior relevant projects, it's difficult to definitively characterize their specific expertise and success rate in Army flood control endeavors.

What are the primary risks associated with the firm fixed-price contract type for this project, and how are they mitigated?

The primary risk associated with a firm fixed-price (FFP) contract for a large civil engineering project like this is that the contractor may face unforeseen cost increases due to factors like material price volatility, labor shortages, or unexpected site conditions. If these costs exceed the fixed price, the contractor might be incentivized to cut corners on quality or scope to maintain profitability, potentially impacting the long-term effectiveness of the flood control system. Mitigation strategies employed by the government typically include thorough pre-award cost analysis, detailed scope definition, robust quality assurance and inspection protocols during project execution, and clear contract clauses addressing potential change orders or unforeseen conditions. The Army's project management team would be responsible for diligent oversight to ensure the contractor meets all specifications and quality standards despite the fixed-price constraint.

How does the duration of this contract (1422 days) impact the overall risk profile and cost-effectiveness?

A contract duration of 1422 days (approximately 3.9 years) for a civil engineering project of this magnitude introduces several risk factors and influences cost-effectiveness. Longer durations increase the exposure to economic fluctuations, such as inflation in material and labor costs, which can strain a fixed-price contract if not adequately accounted for. There's also a higher risk of design changes, regulatory updates, or environmental condition shifts over such an extended period. From a cost-effectiveness standpoint, a longer duration might allow for more efficient phasing of work and potentially better utilization of resources, but it also means prolonged project management overhead for the government and a longer wait for the full benefits of the flood control infrastructure. Effective project management, clear communication, and proactive risk mitigation are crucial to managing the complexities associated with such a lengthy undertaking.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912PP19B0005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 87 N MISSION DR, PUEBLO WEST, CO, 81007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,740,190

Exercised Options: $27,740,190

Current Obligation: $27,740,190

Actual Outlays: $4,025,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline