Army awards $31M for Herbert Hoover Dike structure replacements, with 4 bidders competing
Contract Overview
Contract Amount: $31,001,308 ($31.0M)
Contractor: Thalle Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2017-08-31
End Date: 2022-04-11
Contract Duration: 1,684 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CT::IGF HERBERT HOOVER DIKE STRUCTURE REPLACEMENTS KI-1 AND KI-2
Place of Performance
Location: OKEECHOBEE, GLADES County, FLORIDA, 34974
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to THALLE CONSTRUCTION CO INC for work described as: IGF::CT::IGF HERBERT HOOVER DIKE STRUCTURE REPLACEMENTS KI-1 AND KI-2 Key points: 1. Contract value appears reasonable given the scope of major civil engineering work. 2. Full and open competition suggests a healthy market for this type of construction. 3. Long performance period indicates a complex, multi-year project. 4. Fixed-price contract type shifts risk to the contractor. 5. Project is located in Florida, a region prone to hurricane-related infrastructure needs.
Value Assessment
Rating: good
The contract value of $31 million for the replacement of two significant dike structures is within a reasonable range for large-scale civil engineering projects. Benchmarking against similar Army Corps of Engineers projects for dike or levee rehabilitation suggests that the pricing is competitive, especially considering the firm fixed-price nature of the contract which typically includes contractor risk premiums. The scope of work, involving critical infrastructure in a hurricane-prone area, justifies the investment.
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 bids. With four bidders participating, the competition level suggests a robust market for this specialized construction service. The presence of multiple bidders generally leads to more competitive pricing and better value for the government, as contractors vie for the award.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. A competitive bidding process helps prevent overpayment and encourages contractors to offer their best pricing and performance.
Public Impact
The primary beneficiaries are residents and businesses in South Florida who rely on the integrity of the Herbert Hoover Dike for flood protection. The services delivered include the replacement of critical structural components of the dike, enhancing its resilience and safety. The geographic impact is concentrated in the Lake Okeechobee region of Florida. The project supports a skilled construction workforce, including engineers, project managers, and laborers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 4 years) could lead to potential cost overruns if not managed tightly.
- Firm Fixed Price contracts can sometimes lead to contractor disputes over scope changes or unforeseen conditions.
Positive Signals
- Full and open competition indicates a healthy market and competitive pricing.
- Firm Fixed Price contract shifts performance risk to the contractor.
- Project addresses critical infrastructure needs, enhancing public safety.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on critical infrastructure like flood control systems. The market for such projects is often dominated by large, specialized construction firms capable of undertaking complex, high-value projects. Spending in this sector is heavily influenced by government infrastructure initiatives and the need to maintain and upgrade aging public works, particularly in areas vulnerable to natural disasters.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the scale and specialized nature of replacing major dike structures, it is likely that the prime contractor is a large firm. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within this project.
Oversight & Accountability
Oversight for this contract would typically be provided by the U.S. Army Corps of Engineers, which manages dike and levee systems. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details may not be publicly detailed.
Related Government Programs
- Army Corps of Engineers Civil Works Projects
- Flood Control Infrastructure
- Dike and Levee Construction/Repair
- Hurricane Protection Systems
Risk Flags
- Potential for unforeseen site conditions
- Risk of weather-related delays
- Material cost volatility
- Environmental compliance challenges
Tags
construction, heavy-civil-engineering, flood-control, infrastructure, army-corps-of-engineers, florida, firm-fixed-price, definitive-contract, full-and-open-competition, large-project, public-safety
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to THALLE CONSTRUCTION CO INC. IGF::CT::IGF HERBERT HOOVER DIKE STRUCTURE REPLACEMENTS KI-1 AND KI-2
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 $31.0 million.
What is the period of performance?
Start: 2017-08-31. End: 2022-04-11.
What is the track record of Thalle Construction Co. Inc. on similar federal contracts?
Thalle Construction Co. Inc. has a history of performing civil works and infrastructure projects for federal agencies, including the Army Corps of Engineers. While specific details on past performance for dike replacements of this magnitude would require a deeper dive into contract databases, their presence as a bidder and awardee in this sector suggests experience. Reviewing past performance evaluations and any reported disputes or contract modifications on previous federal projects would provide a clearer picture of their reliability and execution capabilities. Their ability to win a competitive bid for a project of this significance implies a level of confidence from the awarding agency based on prior experience or demonstrated capacity.
How does the awarded price compare to the estimated cost or budget for this project?
The provided data does not include the estimated cost or budget for the Herbert Hoover Dike structure replacements. Therefore, a direct comparison to assess if the awarded price of $31 million was significantly above or below expectations cannot be made. To evaluate value for money, one would need to access pre-solicitation documents, budget allocations, or post-award cost analyses if available. Without this information, we can only infer competitiveness based on the number of bidders and the firm fixed-price nature of the contract, assuming the agency did not award a contract significantly exceeding its internal cost estimates.
What are the primary risks associated with this type of infrastructure contract?
Key risks for this type of infrastructure contract include unforeseen geological or hydrological conditions encountered during excavation and construction, which could lead to delays and cost increases, particularly in a complex environment like a dike system. Weather-related delays, especially in Florida, are a significant risk factor. Material cost fluctuations and labor availability can also impact project timelines and budgets, although the firm fixed-price contract shifts much of this financial risk to the contractor. Ensuring compliance with stringent environmental regulations and managing the interface with ongoing public use or access around the dike also present challenges.
How effective has the Army Corps of Engineers been in managing similar large-scale civil works projects?
The Army Corps of Engineers has a long and extensive history of managing large-scale civil works projects, including dams, levees, and flood control systems, across the United States. Their effectiveness can vary depending on the specific project, location, and management team. Generally, they are considered highly experienced in complex engineering and construction management. However, like any large organization managing numerous projects, they face challenges such as budget constraints, environmental concerns, and contractor performance issues. Success is often measured by project completion within budget and schedule, and the long-term performance and resilience of the completed infrastructure, which for the Herbert Hoover Dike is a critical ongoing concern.
What is the historical spending trend for dike and levee maintenance and replacement by the Army Corps of Engineers?
Historical spending by the Army Corps of Engineers on dike and levee maintenance and replacement has been substantial and often cyclical, influenced by federal appropriations, infrastructure priorities, and the occurrence of major weather events. Significant investments are often made following hurricanes or major floods that highlight vulnerabilities in existing systems. The Herbert Hoover Dike, being a critical piece of infrastructure, has likely seen consistent, albeit varying, levels of funding for maintenance and upgrades over the years. Specific trends would require analyzing annual budget requests, appropriations bills, and contract award data over extended periods to identify patterns in funding allocation for such projects nationwide.
Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?
While the specific KPIs for this contract are not detailed in the provided data, typical performance metrics for large civil engineering projects managed by the Army Corps of Engineers include adherence to schedule, quality of construction, safety compliance, and budget management. For dike structure replacements, KPIs might focus on the structural integrity of the new components, the effectiveness of erosion control measures, and the minimization of environmental impact during construction. The firm fixed-price nature implies that meeting the defined scope and specifications within the agreed price is a primary performance indicator. Contract close-out reports and final inspections would formally assess the achievement of these metrics.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912EP17R0006
Offers Received: 4
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: $31,001,308
Exercised Options: $31,001,308
Current Obligation: $31,001,308
Actual Outlays: $5,855,384
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-31
Current End Date: 2022-04-11
Potential End Date: 2022-04-11 00:00:00
Last Modified: 2022-03-30
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