Army awards $39.9M for Herbert Hoover Dike rehabilitation, focusing on culvert reconstruction
Contract Overview
Contract Amount: $39,877,308 ($39.9M)
Contractor: Thalle Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2013-08-30
End Date: 2020-07-20
Contract Duration: 2,516 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HERBERT HOOVER DIKE REHABILITATION - STRUCTURE REPLACEMENT S-281 (5A CULVERT) AND S-282 (5 CULVERT) RECONSTRUCTION
Place of Performance
Location: MOORE HAVEN, GLADES County, FLORIDA, 33471
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $39.9 million to THALLE CONSTRUCTION CO INC for work described as: HERBERT HOOVER DIKE REHABILITATION - STRUCTURE REPLACEMENT S-281 (5A CULVERT) AND S-282 (5 CULVERT) RECONSTRUCTION Key points: 1. The contract value represents a significant investment in critical infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of work. 3. The firm-fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of approximately 7 years indicates a long-term commitment to infrastructure repair. 5. The contract falls within the 'Other Heavy and Civil Engineering Construction' NAICS code, a broad category for infrastructure projects. 6. The award to Thalle Construction Co. Inc. warrants examination of their past performance in similar projects.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the scope of work for culvert replacement. However, the $39.9 million award for two culverts suggests a substantial undertaking. Comparing this to similar large-scale civil engineering projects would provide better context for value for money. The firm-fixed-price structure implies that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control if the initial pricing was competitive.
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 solicited. With three bidders, the competition level appears moderate. This suggests that the government received a range of proposals, potentially leading to a more competitive price. However, the specific number of proposals received and the bid spread would offer a clearer picture of the intensity of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.
Public Impact
The primary beneficiaries are the communities and ecosystems protected by the Herbert Hoover Dike, which is crucial for flood control in South Florida. The services delivered include the reconstruction of two culverts (S-281 and S-282), essential components of the dike's water management system. The geographic impact is concentrated in Florida, specifically in the areas surrounding Lake Okeechobee. The project supports jobs in the heavy and civil engineering construction sector, including skilled labor and project management roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2516 days) increases the risk of scope creep or unforeseen issues impacting cost and schedule.
- Reliance on a single contractor for a significant portion of dike rehabilitation could pose risks if performance issues arise.
- The specific nature of culvert reconstruction within a large dike system may involve complex engineering challenges not fully captured in the award data.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm-fixed-price contract type helps to mitigate cost escalation risks for the government.
- The project addresses critical infrastructure needs, contributing to public safety and environmental protection.
Sector Analysis
This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure development and repair projects. The market for such services is substantial, driven by federal, state, and local government investments in transportation, water management, and public works. Comparable spending benchmarks would involve analyzing other large-scale dike, levee, or dam rehabilitation projects awarded by agencies like the Army Corps of Engineers.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Thalle Construction Co. Inc., there is no explicit information on subcontracting plans for small businesses. Further investigation into the subcontracting goals and actual performance would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for the Herbert Hoover Dike. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet specific deliverables and quality standards. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress reports may be less accessible.
Related Government Programs
- Herbert Hoover Dike Rehabilitation Program
- Army Corps of Engineers Civil Works Projects
- Flood Control Infrastructure
- Water Management Systems
- Heavy and Civil Engineering Construction Contracts
Risk Flags
- Long project duration
- Potential for unforeseen site conditions
- Contractor performance risk over extended period
Tags
construction, department-of-the-army, florida, definitive-contract, large-contract, full-and-open-competition, firm-fixed-price, civil-engineering, infrastructure, flood-control
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to THALLE CONSTRUCTION CO INC. HERBERT HOOVER DIKE REHABILITATION - STRUCTURE REPLACEMENT S-281 (5A CULVERT) AND S-282 (5 CULVERT) RECONSTRUCTION
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 $39.9 million.
What is the period of performance?
Start: 2013-08-30. End: 2020-07-20.
What is the historical spending pattern for the Herbert Hoover Dike Rehabilitation Program?
The Herbert Hoover Dike Rehabilitation Program has seen significant investment over the years, with numerous contracts awarded for various components of the dike. This specific contract for culvert replacement is part of a larger, ongoing effort to ensure the structural integrity and safety of the dike, which surrounds Lake Okeechobee. Historical data from the Army Corps of Engineers and federal procurement databases would reveal a pattern of substantial, multi-year funding allocations for major repairs, upgrades, and component replacements, reflecting the dike's critical role in South Florida's flood control infrastructure. Analyzing past awards for similar rehabilitation phases can provide context for the scale and cost of the current culvert reconstruction effort.
How does Thalle Construction Co. Inc.'s performance on this contract compare to their previous federal contracts?
Assessing Thalle Construction Co. Inc.'s performance requires a review of their contract history with the federal government, particularly with the Department of the Army and the Army Corps of Engineers. Key performance indicators would include on-time delivery, adherence to budget (especially relevant for fixed-price contracts), quality of work, and any instances of contract disputes or terminations. Examining past projects of similar scale and complexity, such as other civil engineering or heavy construction contracts, would provide a more direct comparison. A positive track record on previous federal projects would indicate a lower risk for this current contract, while a history of issues might raise concerns about potential delays or cost overruns, despite the fixed-price nature.
What are the primary risks associated with the long duration of this contract?
The 2516-day duration (approximately 7 years) for the Herbert Hoover Dike culvert reconstruction presents several risks. Firstly, the extended timeline increases the likelihood of encountering unforeseen site conditions or material degradation that were not apparent during the initial assessment, potentially leading to change orders and cost increases, even under a firm-fixed-price contract. Secondly, prolonged construction can lead to wear and tear on equipment and potential labor force fluctuations. Thirdly, regulatory environments or environmental standards might evolve during the project's lifespan, necessitating design modifications. Finally, the extended duration means the dike's vulnerability during the reconstruction period needs careful management to maintain adequate flood protection.
What is the estimated value of the work performed per year on average?
With a total contract value of $39,877,308.37 and a duration of 2516 days (approximately 6.9 years), the average annual spending on this contract would be roughly $5.78 million per year ($39.88M / 6.9 years). This figure represents an average and does not account for potential variations in the pace of work throughout the project lifecycle. Actual spending could be front-loaded, back-loaded, or more evenly distributed depending on the project's phasing, resource allocation, and specific milestones.
How does the number of bidders (3) impact price discovery for this type of infrastructure project?
Having three bidders for this contract suggests a moderate level of competition. While more bidders generally lead to more robust price discovery, three offers can still provide a reasonable basis for comparison and negotiation. It indicates that the project was attractive enough to draw multiple qualified firms. However, if the three bidders were very similar in their capabilities and cost structures, the price discovery might be less dynamic than if there were five or more distinct proposals. The government's ability to negotiate effectively based on these three bids is crucial for ensuring taxpayer value.
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: W912EP13R0021
Offers Received: 3
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: $39,877,308
Exercised Options: $39,877,308
Current Obligation: $39,877,308
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-30
Current End Date: 2020-07-20
Potential End Date: 2020-07-20 00:00:00
Last Modified: 2023-05-05
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