Army awards $43.6M for Savannah Harbor Expansion Project to Thalle Construction

Contract Overview

Contract Amount: $43,615,263 ($43.6M)

Contractor: Thalle Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2015-12-11

End Date: 2018-06-22

Contract Duration: 924 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RAW WATER STORAGE IMPOUNDMENT SAVANNAH HARBOR EXPANSION PROJECT

Place of Performance

Location: PORT WENTWORTH, CHATHAM County, GEORGIA, 31407

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $43.6 million to THALLE CONSTRUCTION CO INC for work described as: IGF::OT::IGF RAW WATER STORAGE IMPOUNDMENT SAVANNAH HARBOR EXPANSION PROJECT Key points: 1. Significant investment in critical infrastructure for navigation. 2. Competition was full and open, suggesting market responsiveness. 3. Fixed-price contract aims to control costs, but requires diligent oversight. 4. Construction sector is prone to cost overruns and schedule delays.

Value Assessment

Rating: good

The award amount of $43.6M appears reasonable for a project of this scale. Benchmarking against similar heavy civil engineering construction contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing multiple bidders to participate. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for this infrastructure project.

Public Impact

Enhances maritime commerce and economic activity in the region. Improves navigation safety and efficiency for vessels. Contributes to the modernization of U.S. port infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is vital for national infrastructure. Spending benchmarks for similar port expansion projects would be relevant for comparison.

Small Business Impact

The data indicates no specific set-aside for small businesses on this contract. Larger infrastructure projects often involve prime contractors who may then subcontract portions to smaller firms.

Oversight & Accountability

Oversight will be critical to manage potential risks associated with scope changes, unforeseen conditions, and contractor performance to ensure the project stays within budget and on schedule.

Related Government Programs

Risk Flags

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, ga, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to THALLE CONSTRUCTION CO INC. IGF::OT::IGF RAW WATER STORAGE IMPOUNDMENT SAVANNAH HARBOR EXPANSION PROJECT

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 $43.6 million.

What is the period of performance?

Start: 2015-12-11. End: 2018-06-22.

What was the basis for the firm fixed-price contract selection, and how does it compare to other contract types for similar projects?

A firm fixed-price contract was likely chosen to provide maximum price certainty to the government, transferring most of the risk to the contractor. For large, complex construction projects, this is common when the scope is well-defined. However, it can sometimes lead to higher initial bids to account for contractor risk. Alternative contract types like cost-plus-incentive-fee might offer more flexibility but less price certainty.

What specific risks were identified during the procurement process that could impact the final cost or completion date?

Potential risks for such a project often include unforeseen subsurface conditions (geotechnical issues), environmental impacts requiring mitigation, weather delays, and potential labor disputes. The contracting agency likely conducted risk assessments and incorporated contingency planning into the contract terms or oversight procedures to address these possibilities.

How will the effectiveness of this project be measured in terms of its impact on navigation and economic benefits?

Effectiveness will likely be measured by comparing pre- and post-project navigation times, vessel draft limitations, and cargo throughput capacity. Economic benefits can be assessed through studies on increased trade volume, reduced shipping costs, and regional economic growth attributed to the improved harbor.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HN15R0001

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: $43,615,263

Exercised Options: $43,615,263

Current Obligation: $43,615,263

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2015-12-11

Current End Date: 2018-06-22

Potential End Date: 2018-06-22 00:00:00

Last Modified: 2020-10-03

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