Army awards $50.3M for Herbert Hoover Dike rehabilitation, focusing on critical culvert replacements
Contract Overview
Contract Amount: $50,309,917 ($50.3M)
Contractor: Thalle Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2013-09-13
End Date: 2021-04-15
Contract Duration: 2,771 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HERBERT HOOVER DIKE: REHABILITATION STRUCTURE REPLACEMENTS S-273 (CULVERT 10) AND S-275 (CULVERT 12) INCLUDES THE DEMOLITION AND REMOVAL OF EXISTING HHD CULVERTS 10&12 AND THE CONSTRUCTION OF NEW WATER CONTROL STRUCTURES S-273 AND S-275 AT THE EXISTING LOCATIONS OF CULVERTS 10&12.
Place of Performance
Location: PAHOKEE, PALM BEACH County, FLORIDA, 33476
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $50.3 million to THALLE CONSTRUCTION CO INC for work described as: HERBERT HOOVER DIKE: REHABILITATION STRUCTURE REPLACEMENTS S-273 (CULVERT 10) AND S-275 (CULVERT 12) INCLUDES THE DEMOLITION AND REMOVAL OF EXISTING HHD CULVERTS 10&12 AND THE CONSTRUCTION OF NEW WATER CONTROL STRUCTURES S-273 AND S-275 AT THE EXISTING LOCATIONS OF CULVERTS 10&12… Key points: 1. The contract addresses essential infrastructure upgrades at the Herbert Hoover Dike, enhancing water control structures. 2. A firm-fixed-price contract was utilized, indicating a defined scope and cost structure for the project. 3. The project duration of 2771 days suggests a long-term commitment to complex civil engineering work. 4. The award was made under full and open competition, implying a broad market solicitation. 5. The contractor, Thalle Construction Co Inc, has secured a significant civil engineering project. 6. The rehabilitation aims to improve the structural integrity and operational efficiency of the dike's water management system.
Value Assessment
Rating: good
The contract value of $50.3 million for the rehabilitation of two culverts at the Herbert Hoover Dike appears reasonable given the scope of work, which includes demolition, removal, and new construction of water control structures. Benchmarking against similar large-scale civil engineering projects for federal infrastructure would provide a more precise value-for-money assessment. However, the firm-fixed-price nature of the contract suggests that the government has a clear understanding of the costs involved, potentially mitigating cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The solicitation process likely involved a comprehensive review of proposals to select the most advantageous offer for the government. The presence of multiple bidders, suggested by the 'no' field indicating 4 bids received, generally fosters competitive pricing and encourages contractors to offer their best value.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and ensures that the government receives the best possible value for its investment by leveraging the widest possible market.
Public Impact
The primary beneficiaries are the communities surrounding the Herbert Hoover Dike, who will experience enhanced flood protection and water management. The project delivers critical infrastructure improvements, specifically the replacement of aging culverts with modern water control structures. The geographic impact is concentrated in Florida, where the Herbert Hoover Dike is located. The project will likely involve a significant construction workforce, contributing to local employment in the civil engineering and construction sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2771 days) could present risks related to material cost fluctuations and potential delays.
- The complexity of rehabilitating existing water control structures may lead to unforeseen challenges during execution.
- Reliance on a single contractor for such a substantial infrastructure project requires robust oversight.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award under full and open competition suggests a competitive bidding process that likely secured a fair price.
- The project addresses critical infrastructure needs, ensuring long-term safety and operational improvements.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on water infrastructure and flood control. The Department of the Army, through the U.S. Army Corps of Engineers, is a major investor in such projects nationwide. The market for large-scale civil engineering and construction services is competitive, with significant players capable of undertaking complex, multi-year projects. Spending in this sector is often driven by the need to maintain and upgrade aging federal infrastructure, as well as address environmental and safety concerns.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor may engage small businesses as subcontractors for specialized services or materials, contributing indirectly to the small business ecosystem. Further analysis of the subcontracting plan would be needed to fully assess the impact.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, the contracting agency. Mechanisms likely include regular progress reports, site inspections, and performance reviews. Accountability is ensured through the firm-fixed-price contract terms, which stipulate deliverables and timelines. Transparency is generally maintained through contract award databases and public reporting, though specific project details and ongoing oversight activities may not always be fully public.
Related Government Programs
- Herbert Hoover Dike
- U.S. Army Corps of Engineers Civil Works Projects
- Water Resource Development Projects
- Flood Control Infrastructure
- Infrastructure Rehabilitation Contracts
Risk Flags
- Long project duration
- Potential for unforeseen site conditions
- Reliance on single contractor for critical infrastructure
Tags
construction, department-of-defense, department-of-the-army, civil-engineering, infrastructure-rehabilitation, water-control-structures, herbert-hoover-dike, firm-fixed-price, full-and-open-competition, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.3 million to THALLE CONSTRUCTION CO INC. HERBERT HOOVER DIKE: REHABILITATION STRUCTURE REPLACEMENTS S-273 (CULVERT 10) AND S-275 (CULVERT 12) INCLUDES THE DEMOLITION AND REMOVAL OF EXISTING HHD CULVERTS 10&12 AND THE CONSTRUCTION OF NEW WATER CONTROL STRUCTURES S-273 AND S-275 AT THE EXISTING LOCATIONS OF CULVERTS 10&12.
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 $50.3 million.
What is the period of performance?
Start: 2013-09-13. End: 2021-04-15.
What is the historical spending pattern for the Herbert Hoover Dike rehabilitation project?
The provided data focuses on a single contract award of $50.3 million for specific rehabilitation tasks (culvert replacements S-273 and S-275) from September 2013 to April 2021. This represents a significant investment for these particular components. However, the Herbert Hoover Dike is a massive structure, and its overall rehabilitation has been a multi-year, multi-phase effort involving substantial federal funding over decades. Comprehensive historical spending would encompass numerous contracts for various aspects like seepage control, structural integrity improvements, and vegetation management, likely totaling hundreds of millions or even billions of dollars over the dike's lifecycle. This single contract is a piece of a much larger, ongoing federal commitment to maintaining this critical piece of infrastructure.
How does the cost of this contract compare to similar federal infrastructure rehabilitation projects?
Directly comparing the $50.3 million cost for two culvert replacements to other federal infrastructure projects requires careful consideration of scope, complexity, and location. Projects involving large-scale dam rehabilitation, bridge construction, or extensive levee system upgrades can vary widely in cost. For instance, major dam safety projects can run into hundreds of millions or even billions. However, for specific component replacements like culverts within a large dike system, $50.3 million suggests a substantial undertaking. Benchmarking against other Army Corps of Engineers projects for similar water control structure replacements would be most relevant. Without specific comparable project data, it's difficult to definitively state if this represents high or low cost, but the firm-fixed-price nature and full competition suggest an effort to secure value.
What are the primary risks associated with this specific contract?
The primary risks associated with this contract include potential construction delays due to the long duration (2771 days), which could be exacerbated by weather events, unforeseen site conditions, or supply chain disruptions. Cost overruns, while mitigated by the firm-fixed-price structure, remain a risk if significant scope changes or unforeseen complexities arise that necessitate contract modifications. Performance risk also exists, concerning the contractor's ability to meet quality standards and technical specifications for critical water control structures. Furthermore, environmental risks related to construction activities in a sensitive ecosystem and the potential for impacts on water levels and flow during rehabilitation must be managed.
What is the track record of Thalle Construction Co Inc with federal contracts?
Thalle Construction Co Inc has a history of performing federal contracts, particularly within the civil engineering and construction domain. While this specific $50.3 million award for the Herbert Hoover Dike is substantial, their track record likely includes other projects for agencies like the Army Corps of Engineers or other departments involved in infrastructure development. A thorough review would involve examining past performance ratings, any history of contract disputes or terminations, and the types and scale of projects previously completed. Generally, securing a contract of this magnitude suggests they possess the necessary experience, financial capacity, and technical expertise to handle complex federal infrastructure work.
How effective are the oversight mechanisms for this type of federal construction contract?
Oversight mechanisms for federal construction contracts like this one are typically robust, involving multiple layers of review and monitoring. The contracting agency (Department of the Army) employs contracting officers, project managers, and quality assurance specialists to oversee performance, adherence to specifications, and schedule. Regular progress meetings, site inspections, and independent testing of materials are standard. For large projects, an Independent Government Cost Estimate (IGCE) is often used as a benchmark. While effective, the success of oversight also depends on adequate staffing, clear communication, and the contractor's commitment to quality and compliance. Inspector General (IG) offices also provide an independent layer of oversight to detect fraud, waste, and abuse.
What are the long-term implications of this contract for the Herbert Hoover Dike's structural integrity?
The long-term implications of this contract for the Herbert Hoover Dike's structural integrity are positive and critical. By replacing aging culverts (S-273 and S-275) with new water control structures, the project directly addresses potential points of failure and enhances the dike's overall reliability. Modernized structures are designed to meet current engineering standards, improving their capacity to manage water flow and withstand environmental pressures. This rehabilitation contributes to the dike's primary mission of flood protection for surrounding areas and ensures its continued serviceability for decades to come, reducing the risk of catastrophic failure and the need for more extensive, costly repairs in the future.
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: W912EP13R0023
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tully Construction CO - Thalle Construction CO LLC
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: $50,309,917
Exercised Options: $50,309,917
Current Obligation: $50,309,917
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-13
Current End Date: 2021-04-15
Potential End Date: 2021-04-15 00:00:00
Last Modified: 2024-07-17
More Contracts from Thalle Construction CO Inc
- Central Everglades Planning Project (cepp) Contract 11B, Everglades Agricultural Area (EAA) A-2 Reservoir Embankment and Structures, Palm Beach County, Florida — $771.1M (Department of Defense)
- Construction of Downstream Monoliths for the Kentucky Lock, Grand Rivers, Kentucky — $405.0M (Department of Defense)
- TAS::96 3134::TAS Recovery Project Number 116941 Kentucky Lock and DAM, TN River, KY Concrete Construction of 9 Upstream Monoliths AT the NEW 1200 Foot Long Navigation Lock Landward and Adjacent to the Existing 600 Foot Long KY Lock AT Mile 22.4 of the TN River — $110.2M (Department of Defense)
- Center Hill DAM, Auxiliary DAM Reinforcing Berm&left RIM Stabilization, Lancaster, Dekalb County, Tennessee Igf::ot::igf — $49.3M (Department of Defense)
- RAW Water Storage Impoundment Savannah Harbor Expansion Project — $43.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)