DOD Awards $109M for Louisville Engineer District Construction, TGM Constructors Selected
Contract Overview
Contract Amount: $304,266,530 ($304.3M)
Contractor: TGM Constructors
Awarding Agency: Department of Defense
Start Date: 2002-09-24
End Date: 2009-06-01
Contract Duration: 2,442 days
Daily Burn Rate: $124.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200212!000520!96CE!CW27 !USA ENGINEER DIST LOUISVILLE !DACW2702C0023 !A!N! !N! !20020924!20061231!109146980!109146980!109146980!N!TGM CONSTRUCTORS !835 N CONGRESS AVE !EVANSVILLE !IN!47715!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !+000000030000!N!N!000000000000!Y219!OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!B! !D!N!C! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40201
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $304.3 million to TGM CONSTRUCTORS for work described as: 200212!000520!96CE!CW27 !USA ENGINEER DIST LOUISVILLE !DACW2702C0023 !A!N! !N! !20020924!20061231!109146980!109146980!109146980!N!TGM CONSTRUCTORS !835 N CONGRESS AVE !EVANSVILLE !IN!47715!48000!111!21!LOUISVILLE !JEFFE… Key points: 1. The contract awarded to TGM Constructors for $109,146,980 is for construction services. 2. This award represents a significant investment in infrastructure development by the Department of Defense. 3. The project falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 4. Competition was full and open, suggesting a robust bidding process.
Value Assessment
Rating: fair
The contract value of $109,146,980 is substantial. Benchmarking against similar large-scale civil engineering projects would be necessary to fully assess its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bids were likely received. This method generally promotes competitive pricing and value for the government.
Taxpayer Impact: The significant contract value means taxpayer funds are being utilized for infrastructure projects, with the expectation of value for money through competitive bidding.
Public Impact
Supports military readiness and infrastructure needs through construction services. Potential for job creation in the construction sector within Kentucky. Contributes to the broader economic activity related to large-scale civil engineering projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is lengthy (2442 days).
- Fixed-price contract type may shift risk to the contractor.
- No specific small business set-aside mentioned.
Positive Signals
- Full and open competition utilized.
- Awarded by a major federal agency (DOD).
Sector Analysis
This contract falls within the construction sector, specifically heavy and civil engineering. Federal spending in this area often supports national infrastructure, defense facilities, and public works projects.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The Department of Defense, through the Army Corps of Engineers, is responsible for overseeing this contract. Robust oversight is crucial for ensuring project completion, quality, and adherence to budget.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is extensive.
- Potential for cost escalation not fully mitigated by fixed-price.
- Lack of explicit small business participation noted.
- Specific project details are not provided in the summary data.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ky, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $304.3 million to TGM CONSTRUCTORS. 200212!000520!96CE!CW27 !USA ENGINEER DIST LOUISVILLE !DACW2702C0023 !A!N! !N! !20020924!20061231!109146980!109146980!109146980!N!TGM CONSTRUCTORS !835 N CONGRESS AVE !EVANSVILLE !IN!47715!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !+000000030000!N!N!000000000000!Y219!OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234990!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is TGM CONSTRUCTORS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $304.3 million.
What is the period of performance?
Start: 2002-09-24. End: 2009-06-01.
What specific types of construction are included in this contract, and how do they align with the Louisville Engineer District's mission?
The contract is categorized under 'Other Heavy and Civil Engineering Construction.' This likely encompasses a range of projects such as flood control, navigation improvements, or infrastructure development within the Louisville Engineer District's operational area. Understanding the specific deliverables is key to assessing its alignment with the district's broader mission of managing water resources and infrastructure.
What are the potential risks associated with a long-duration fixed-price construction contract of this magnitude?
Long-duration fixed-price contracts carry risks such as potential cost overruns for the contractor if material prices or labor costs escalate significantly over the project's lifespan. For the government, the risk lies in ensuring the contractor maintains quality and performance over an extended period, and that the fixed price remains competitive throughout the project's execution.
How effectively does the 'full and open competition' method ensure optimal value for taxpayer money in large-scale construction projects like this?
Full and open competition is designed to maximize value by encouraging a wide range of qualified contractors to bid, fostering price reductions and innovation. For large construction projects, this method increases the likelihood of selecting a contractor that offers the best combination of price, technical capability, and past performance, thereby optimizing the use of taxpayer funds.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIXED PRICE (J)
Contractor Details
Address: 835 N CONGRESS AVE, EVANSVILLE, IN, 47715
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $258,286
Exercised Options: $258,286
Current Obligation: $304,266,530
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-24
Current End Date: 2009-06-01
Potential End Date: 2009-06-01 00:00:00
Last Modified: 2021-02-25
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