Army awards $49.3M for Center Hill Dam reinforcement, with 6 bidders competing for the fixed-price contract
Contract Overview
Contract Amount: $49,293,483 ($49.3M)
Contractor: Thalle Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2016-06-29
End Date: 2022-01-13
Contract Duration: 2,024 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CENTER HILL DAM, AUXILIARY DAM REINFORCING BERM&LEFT RIM STABILIZATION, LANCASTER, DEKALB COUNTY, TENNESSEE IGF::OT::IGF
Place of Performance
Location: LANCASTER, DEKALB County, TENNESSEE, 38569
Plain-Language Summary
Department of Defense obligated $49.3 million to THALLE CONSTRUCTION CO INC for work described as: CENTER HILL DAM, AUXILIARY DAM REINFORCING BERM&LEFT RIM STABILIZATION, LANCASTER, DEKALB COUNTY, TENNESSEE IGF::OT::IGF Key points: 1. The contract value of $49.3 million represents a significant investment in critical infrastructure. 2. Competition dynamics indicate a healthy market for heavy civil engineering construction services. 3. The fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. Performance context is crucial, as the project involves reinforcing a dam and associated structures. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a vital area for public works. 6. The duration of the contract, spanning over 2000 days, suggests a complex and lengthy undertaking.
Value Assessment
Rating: good
Benchmarking this contract's value against similar dam reinforcement projects is challenging without more specific project scope and location data. However, the $49.3 million award for a project involving auxiliary dam reinforcement and berm stabilization suggests a substantial undertaking. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the contractor's bid was competitive and realistic. Further analysis would require comparing the unit costs of specific construction elements (e.g., cubic yards of concrete, linear feet of stabilization) to industry averages.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with six bidders submitting proposals. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing. The presence of multiple bidders suggests that the market for this type of heavy civil engineering construction is robust enough to support significant project awards. The specific details of the bidding process, such as the range of bids received, would provide further insight into the competitiveness of the award.
Taxpayer Impact: A competitive bidding process for infrastructure projects like this helps ensure that taxpayer dollars are used efficiently, leading to potentially lower costs and better value for the public.
Public Impact
The primary beneficiaries are the residents and communities in DeKalb County, Tennessee, who rely on the structural integrity of the Center Hill Dam. The services delivered include critical reinforcement and stabilization of the dam's auxiliary structures and berms, enhancing public safety. The geographic impact is localized to Lancaster, Tennessee, but the dam's function serves a broader regional water management and flood control purpose. The project likely supports a significant number of construction jobs, contributing to the local and regional workforce in the heavy civil engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large, long-duration civil engineering projects.
- Ensuring adherence to environmental regulations during extensive construction activities.
- Managing contractor performance over a multi-year project timeline.
Positive Signals
- Firm fixed-price contract structure mitigates cost overrun risk for the government.
- Full and open competition suggests a competitive market and potentially good pricing.
- The project addresses critical infrastructure needs, enhancing public safety and resilience.
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of projects including dams, highways, bridges, and other public works. The market for such services is often characterized by large, specialized firms capable of undertaking complex, multi-year projects. Spending in this sector is heavily influenced by government infrastructure investment initiatives and economic conditions. Comparable spending benchmarks would typically be found in reports from industry associations or government agencies tracking infrastructure spending, often measured by project type and scale.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and specialized nature of dam reinforcement and stabilization, it is common for such large civil engineering projects to be awarded to larger prime contractors. However, the prime contractor, Thalle Construction Co. Inc., may engage small businesses as subcontractors to fulfill specific portions of the work, contributing to the small business ecosystem. Further investigation into the subcontracting plan would reveal the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for civil works projects. Accountability measures would include contract milestones, performance reviews, and adherence to technical specifications. Transparency is generally maintained through public contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Center Hill Dam Operations and Maintenance
- Army Corps of Engineers Civil Works Projects
- Tennessee River Valley Infrastructure Projects
- Federal Dam Safety and Improvement Programs
Risk Flags
- Potential for unforeseen site conditions in civil engineering projects.
- Long project duration increases exposure to market fluctuations and regulatory changes.
- Dependence on federal funding appropriations for multi-year infrastructure projects.
Tags
construction, heavy-civil-engineering, dam-infrastructure, army-corps-of-engineers, department-of-defense, tennessee, dekalb-county, firm-fixed-price, definitive-contract, full-and-open-competition, large-contract, infrastructure-rehabilitation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.3 million to THALLE CONSTRUCTION CO INC. CENTER HILL DAM, AUXILIARY DAM REINFORCING BERM&LEFT RIM STABILIZATION, LANCASTER, DEKALB COUNTY, TENNESSEE IGF::OT::IGF
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 $49.3 million.
What is the period of performance?
Start: 2016-06-29. End: 2022-01-13.
What is the historical spending pattern for Center Hill Dam reinforcement and related infrastructure projects by the Army Corps of Engineers?
Analyzing historical spending for Center Hill Dam requires accessing specific project histories and budget allocations for the Army Corps of Engineers. Generally, dam maintenance and reinforcement projects are cyclical, driven by infrastructure assessments, safety concerns, and federal funding appropriations. Large-scale reinforcement projects like the one awarded to Thalle Construction Co. Inc. often represent significant capital investments that may occur over several fiscal years. Historical data would likely show periods of increased spending during major rehabilitation efforts and lower spending during routine maintenance phases. Comparing the $49.3 million award to previous expenditures on the dam would indicate if this is a typical investment or an unusually large one, potentially reflecting a critical need or a new phase of upgrades.
How does the awarded price compare to the estimated cost or other bids for this Center Hill Dam project?
The provided data indicates that the contract was awarded under full and open competition with six bidders. While the award amount is $49,293,483.27, the specific estimated cost or the range of bids from the other five competitors is not detailed. To assess the value for money, one would need to compare the awarded price against the government's independent government cost estimate (IGCE) and the bids submitted by other firms. If the awarded price is significantly below the IGCE and the next closest bid, it suggests strong competition and potentially excellent value. Conversely, if it is close to the IGCE or other bids were much lower, it might warrant further scrutiny. Without this comparative bid data, it's difficult to definitively state if the price was optimal.
What are the specific risks associated with reinforcing a dam's auxiliary structures and berms, and how are they mitigated in this contract?
Reinforcing dam auxiliary structures and berms carries inherent risks related to geological stability, water management during construction, material integrity, and unforeseen site conditions. Potential risks include landslides or erosion of berms, structural failure of auxiliary components, and impacts on dam operations due to construction activities. Mitigation strategies typically involve detailed geotechnical surveys, robust engineering designs, phased construction to manage water levels, strict quality control for materials, and contingency planning for unexpected findings. The firm fixed-price contract structure transfers some financial risk of unforeseen conditions to the contractor, incentivizing them to manage these risks effectively. The Army Corps of Engineers' oversight and inspection protocols are critical for ensuring that mitigation measures are properly implemented.
What is the track record of Thalle Construction Co. Inc. on similar large-scale civil engineering and dam construction projects?
Thalle Construction Co. Inc. has a track record in heavy civil engineering and infrastructure projects. To assess their suitability for this specific $49.3 million contract for the Center Hill Dam, a review of their past performance on similar projects is essential. This would include examining their experience with dam construction, embankment stabilization, and large-scale civil works. Key performance indicators to consider are their history of completing projects on time and within budget, their safety record, and any past performance issues or disputes. Information on their capacity to manage complex projects, their technical expertise, and their financial stability would also be relevant in evaluating their capability to successfully execute this critical infrastructure undertaking.
What is the expected impact of this contract on the local economy in DeKalb County, Tennessee, in terms of job creation and business opportunities?
This $49.3 million contract for reinforcing the Center Hill Dam is expected to have a positive impact on the local economy of DeKalb County, Tennessee. Large-scale civil engineering projects typically require a substantial workforce, including skilled laborers, equipment operators, engineers, and project managers. This can lead to direct job creation within the county and surrounding areas. Furthermore, the prime contractor and any subcontractors may procure materials and services locally, benefiting local suppliers and businesses. The duration of the project, spanning over 2000 days, suggests a sustained period of economic activity. While the contract was not specifically set aside for small businesses, there may be opportunities for local small businesses to participate as subcontractors.
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: W912P514R0003
Offers Received: 6
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: $49,293,483
Exercised Options: $49,293,483
Current Obligation: $49,293,483
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-29
Current End Date: 2022-01-13
Potential End Date: 2022-01-13 00:00:00
Last Modified: 2022-01-18
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