Department of Defense awards $30M contract for Oxbow Valley Storage Sites A&C, highlighting significant civil engineering construction needs
Contract Overview
Contract Amount: $30,077,836 ($30.1M)
Contractor: Thalle Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2015-08-27
End Date: 2021-08-13
Contract Duration: 2,178 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONSTRUCT OXBOW VALLEY STORAGE SITES A&C, FORT WORTH, TEXAS, PERIOD OF PERFOMANCE: FROM CONTRACT AWARD THROUGH 465 DAYS AFTER NTP IS ISSUED.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to THALLE CONSTRUCTION CO INC for work described as: IGF::OT::IGF CONSTRUCT OXBOW VALLEY STORAGE SITES A&C, FORT WORTH, TEXAS, PERIOD OF PERFOMANCE: FROM CONTRACT AWARD THROUGH 465 DAYS AFTER NTP IS ISSUED. Key points: 1. Contract value indicates substantial investment in infrastructure development. 2. Full and open competition suggests a robust market for these services. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of over 2000 days points to a long-term project. 5. Geographic focus on Texas suggests regional infrastructure priorities. 6. The award to Thalle Construction Co Inc represents a significant single award within this category.
Value Assessment
Rating: good
The contract value of approximately $30 million for civil engineering construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects within the Department of Defense or other federal agencies would provide further context. The firm fixed-price nature of the contract suggests that the initial pricing was determined to be competitive and acceptable, with the contractor bearing cost overruns.
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 expected to yield fair market prices and encourage efficiency from the winning contractor. The presence of at least two bidders (as indicated by 'no': 2) suggests a degree of market interest and competition for this type of work.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best value for its investment.
Public Impact
The primary beneficiaries are the Department of Defense and potentially military personnel stationed in or utilizing facilities related to the Oxbow Valley Storage Sites. The services delivered involve heavy and civil engineering construction, likely for the development or enhancement of storage infrastructure. The geographic impact is concentrated in Texas, specifically within the area of Fort Worth. Workforce implications include the creation of jobs for construction workers, engineers, project managers, and support staff in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
- Delays in project completion could impact operational readiness or facility availability.
- Contractor performance issues could lead to disputes or require corrective actions.
Positive Signals
- Firm fixed-price contract aligns incentives for contractor efficiency.
- Full and open competition suggests a competitive bidding process that should yield value.
- Long contract duration allows for thorough project execution and management.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, a critical component of national infrastructure development. The market for such services is often characterized by large, complex projects requiring specialized expertise and significant capital investment. Federal spending in this area supports both military readiness and broader economic activity, with comparable projects often involving billions of dollars in annual federal outlays across various agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. While there is no explicit information on subcontracting plans, large federal construction contracts often involve opportunities for small businesses to participate as subcontractors, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Army Corps of Engineers Construction Projects
- Department of Defense Infrastructure Modernization
- Federal Civil Engineering Contracts
- Military Base Construction and Maintenance
- Heavy Construction Services
Risk Flags
- Long contract duration may increase risk of cost escalation or obsolescence.
- Potential for unforeseen site conditions impacting project timeline and cost.
- Dependence on specific contractor's performance over an extended period.
Tags
construction, department-of-defense, department-of-the-army, texas, fort-worth, heavy-and-civil-engineering, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to THALLE CONSTRUCTION CO INC. IGF::OT::IGF CONSTRUCT OXBOW VALLEY STORAGE SITES A&C, FORT WORTH, TEXAS, PERIOD OF PERFOMANCE: FROM CONTRACT AWARD THROUGH 465 DAYS AFTER NTP IS ISSUED.
Who is the contractor on this award?
The obligated recipient is THALLE 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 $30.1 million.
What is the period of performance?
Start: 2015-08-27. End: 2021-08-13.
What is the historical spending pattern for similar heavy and civil engineering construction contracts awarded by the Department of the Army in Texas?
Analyzing historical spending for similar contracts by the Department of the Army in Texas requires access to comprehensive federal procurement data. Typically, such contracts are awarded through competitive bidding processes, with values varying significantly based on project scope, complexity, and duration. Factors influencing spending patterns include military readiness requirements, infrastructure modernization initiatives, and regional economic conditions. For instance, major base expansions, new facility constructions, or significant upgrades to existing infrastructure would drive higher spending. The average contract value and the frequency of awards for projects of comparable scale would provide a benchmark against which the $30 million Oxbow Valley Storage Sites contract can be assessed for its relative significance within the historical context of Army construction spending in the region.
How does the awarded amount compare to the estimated cost or initial budget for the Oxbow Valley Storage Sites project?
Determining how the awarded amount of $30,077,835.68 compares to the estimated cost or initial budget requires access to pre-award documentation, such as the contract's independent government cost estimate (IGCE) or the initial budget allocation. Without this information, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition suggests that the final negotiated price was deemed acceptable and competitive. If the awarded amount is significantly lower than the IGCE, it could indicate successful cost negotiation or a highly competitive bidding environment. Conversely, if it is close to or exceeds the IGCE, it might suggest that the initial estimates were accurate or that market conditions influenced the final price. Further analysis would necessitate reviewing the contract file for budget and estimate details.
What specific types of storage facilities are being constructed or improved under this contract?
The contract description 'OXBOW VALLEY STORAGE SITES A&C' (Acquisition & Construction) and the North American Industry Classification System (NAICS) code 237990 (Other Heavy and Civil Engineering Construction) suggest the construction or improvement of large-scale storage infrastructure. This could encompass a variety of facilities, such as ammunition storage bunkers, fuel depots, water reservoirs, or general warehousing, depending on the specific needs of the Department of Defense at the Oxbow Valley site. The 'A&C' designation implies new construction or significant upgrades rather than simple maintenance. Detailed project specifications within the contract documents would provide precise information on the type, capacity, and intended use of the storage facilities being developed.
What is the track record of Thalle Construction Co Inc on similar federal construction projects?
Thalle Construction Co Inc has a history of performing federal construction projects, including significant civil engineering work. A review of their contract history with federal agencies, particularly the Department of Defense and the Army Corps of Engineers, would reveal their experience with projects of similar scale and complexity. Key performance indicators to examine include on-time completion rates, adherence to budget, quality of work, and any history of contract disputes or performance issues. Their past performance on large infrastructure projects, such as highways, bridges, dams, or military installations, would be particularly relevant to assessing their capability to successfully execute the Oxbow Valley Storage Sites contract.
What are the potential risks associated with the long duration (over 2000 days) of this construction contract?
The extended duration of this contract, spanning over 2000 days (approximately 5.5 years), introduces several potential risks. Firstly, there is an increased risk of cost escalation due to inflation over such a long period, even with a firm fixed-price contract, if certain escalation clauses are included or if unforeseen circumstances necessitate contract modifications. Secondly, material availability and labor market fluctuations can become more pronounced over an extended timeline. Thirdly, changes in military requirements or technological advancements during the contract period could render the constructed facilities less optimal or necessitate costly design changes. Finally, managing a project over such a long duration requires sustained oversight and contractor commitment to prevent scope creep, maintain quality, and ensure timely completion despite potential shifts in priorities or personnel.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G15R0035
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 900 NC HIGHWAY 86 N, HILLSBOROUGH, NC, 27278
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,902,836
Exercised Options: $30,077,836
Current Obligation: $30,077,836
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-08-27
Current End Date: 2021-08-13
Potential End Date: 2021-08-13 00:00:00
Last Modified: 2021-09-02
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