Case Study: Supply Chain Bottlenecks Delay Houston Flood Control Project (2023)
Project Overview
• Name: Houston Buffalo Bayou Flood Control Expansion
• Location: Houston, Texas
• Year: 2023
• Project Size: $380 million
• Scope: Construction of flood barriers, pump stations, and drainage tunnels
• Lead Agencies/Contractors: Harris County Flood Control District /
Category of the Issue, Problem, or Challenge
• Supply Chain Disruption
• Materials and Equipment Procurement
Summary of the Issue, Problem, or Challenge
Delays arose due to shortages and late deliveries of critical electrical components and heavy-duty pumps sourced internationally. Global semiconductor shortages and transport delays impacted availability.
Root Cause Analysis
- Over-reliance on international suppliers for key electrical and mechanical components.
- Underestimation of lead times during project planning.
- Limited inventory buffer for specialized equipment.
- Disruptions in shipping lanes and customs clearance delays.
Impacts Due to the Issue, Problem, or Challenge
• 3-month delay in pump station commissioning and system testing.
• Cost escalation due to expedited freight and substitute equipment (~$4 million).
• Disruption to coordinated scheduling of downstream civil works.
Corrective Actions Taken
- Developed dual sourcing strategies including domestic suppliers.
- Increased inventory buffers for critical electrical and mechanical items.
- Engaged logistics specialists to monitor and expedite customs and shipping processes.
Lessons Learned
- Critical components sourced internationally require early procurement and risk mitigation.
- Supply chain disruptions in tech components can ripple into heavy civil timelines.
- Multi-sourcing and logistics expertise are key to resilience.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are critical components sourced internationally, and what are the lead times?
- Are domestic suppliers identified and qualified as backups?
- Is there a logistics plan to navigate customs and shipping risks?