Army awards $34M for Charleroi Locks and Dam guard wall construction to C. J. Mahan Construction

Contract Overview

Contract Amount: $34,053,310 ($34.1M)

Contractor: C. J. Mahan Construction Company, LLC

Awarding Agency: Department of Defense

Start Date: 2009-08-27

End Date: 2012-12-31

Contract Duration: 1,222 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3134::TAS RECOVERYPROJECT#::10286::RP# CHARLEROI GUARD WALLS CONSTRUCTION OF THE UPPER AND LOWER GUARD WALLS AT CHARLEROI LOCKS AND DAM, MONONGAHELA RIVER, PA.

Place of Performance

Location: MONESSEN, WESTMORELAND County, PENNSYLVANIA, 15062

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC for work described as: TAS::96 3134::TAS RECOVERYPROJECT#::10286::RP# CHARLEROI GUARD WALLS CONSTRUCTION OF THE UPPER AND LOWER GUARD WALLS AT CHARLEROI LOCKS AND DAM, MONONGAHELA RIVER, PA. Key points: 1. Contract value represents a significant investment in critical infrastructure maintenance. 2. The project involved a single definitive contract, suggesting a focused scope or specific execution phase. 3. Fixed-price contract type aims to control costs, but requires careful monitoring of scope changes. 4. The duration of the contract (over 3 years) indicates a complex construction project. 5. Geographic focus on Pennsylvania highlights regional infrastructure needs. 6. The award was made under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of approximately $34 million for the construction of guard walls at Charleroi Locks and Dam appears reasonable for a project of this scale and complexity. While direct comparisons are difficult without specific project details, similar large-scale civil engineering projects often fall within this range. The firm-fixed-price nature of the contract suggests that the initial pricing was determined through competitive bidding, aiming for cost certainty. However, ongoing monitoring for scope creep and change orders would be crucial to ensure continued value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 5 bids suggests a healthy level of interest and competition for this type of civil engineering work. This competitive environment generally leads to more favorable pricing for the government compared to sole-source or limited competition scenarios. The government's ability to select from multiple proposals implies a robust price discovery mechanism.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives the best value for its investment in critical infrastructure.

Public Impact

The primary beneficiaries are the users of the Monongahela River waterway, including commercial shipping and potentially recreational boaters, through improved navigation safety. The project delivers essential construction services to reinforce and protect the Charleroi Locks and Dam. The geographic impact is localized to the Charleroi area in Pennsylvania, addressing specific regional infrastructure needs. The project likely supports a workforce of construction laborers, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction, despite the firm-fixed-price contract.
Risk of schedule delays due to the complexity of large-scale civil engineering projects and potential weather impacts.
Dependence on the contractor's ability to manage a multi-year project effectively.
Ensuring compliance with environmental regulations during construction in a riverine environment.

Positive Signals

Awarded under full and open competition, indicating a competitive market for this service.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs, ensuring long-term operational reliability of the locks and dam.
The contractor, C. J. Mahan Construction Company, LLC, likely has experience in similar heavy civil engineering projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water infrastructure. The market for such projects is often characterized by large, specialized firms capable of undertaking complex, multi-year endeavors. Spending in this area is driven by the need to maintain and upgrade aging infrastructure, ensure navigation, and support economic activity. Comparable benchmarks would include other lock and dam repair or construction projects undertaken by the Army Corps of Engineers or other federal agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is C. J. Mahan Construction Company, LLC, there is no explicit information on subcontracting goals for small businesses within this award. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this project would typically be managed by the U.S. Army Corps of Engineers, responsible for the execution and quality control of civil works projects. Accountability measures would include contract milestones, performance reviews, and adherence to the firm-fixed-price agreement. 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 Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterways Navigation Projects
Infrastructure Improvement Projects
Lock and Dam Modernization

Risk Flags

Potential for cost growth due to unforeseen site conditions.
Risk of schedule delays impacting navigation.
Contractor performance over extended duration.
Environmental compliance during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC. TAS::96 3134::TAS RECOVERYPROJECT#::10286::RP# CHARLEROI GUARD WALLS CONSTRUCTION OF THE UPPER AND LOWER GUARD WALLS AT CHARLEROI LOCKS AND DAM, MONONGAHELA RIVER, PA.

Who is the contractor on this award?

The obligated recipient is C. J. MAHAN CONSTRUCTION COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2009-08-27. End: 2012-12-31.

What is the track record of C. J. Mahan Construction Company, LLC on similar federal contracts?

C. J. Mahan Construction Company, LLC has a history of performing significant civil engineering and construction projects for federal agencies, including the U.S. Army Corps of Engineers. Their experience often involves heavy construction, marine work, and infrastructure development. Analyzing their past performance on similar contracts, such as lock and dam construction or repair, would provide insight into their project management capabilities, adherence to schedules, and cost control. Reviewing contract close-out data and any documented performance issues or commendations would offer a more comprehensive understanding of their reliability and expertise in executing complex federal projects.

How does the awarded amount compare to the estimated cost or initial bids?

The awarded amount of $34,053,310.21 represents the final contract value after the competitive bidding process. To assess value, this figure should be compared against the government's independent cost estimate (if available) and the bids submitted by the other four competitors. A significant difference between the awarded amount and the estimate, or a wide variance among the bids, could indicate issues with the initial solicitation, the estimating process, or the market's perception of the project's complexity and cost. Ideally, the awarded price would be close to the estimate and represent the lowest responsive bid, signifying efficient price discovery.

What are the primary risks associated with this specific construction project?

Key risks for this project include unforeseen subsurface conditions (e.g., unexpected soil types, rock formations, or groundwater issues) that could necessitate design changes or extensive remediation, leading to cost overruns despite the firm-fixed-price contract. Schedule risks are also significant due to the potential for adverse weather impacting river operations and construction timelines, as well as the inherent complexities of working on active navigation infrastructure. Furthermore, ensuring the long-term durability and performance of the guard walls requires meticulous construction quality and adherence to specifications. Contractor performance risk, related to C. J. Mahan's ability to manage resources and execute the work efficiently over the multi-year duration, is also a factor.

What is the historical spending pattern for guard wall construction or similar projects at Charleroi Locks and Dam?

Historical spending data for guard wall construction or similar maintenance and upgrade projects at the Charleroi Locks and Dam would provide crucial context for evaluating the current $34 million award. Analyzing past expenditures on related activities, such as dredging, structural repairs, or component replacements at this specific facility or comparable facilities on the Monongahela River, can reveal trends in project costs, frequency of investment, and the typical scale of such undertakings. Significant deviations from historical spending levels, either higher or lower, could warrant further investigation into the scope, complexity, or market conditions influencing the current contract.

How does the contract duration of 1222 days (approx. 3.3 years) impact the overall value and risk?

The extended duration of 1222 days for this construction project significantly influences its overall value and risk profile. From a value perspective, a longer duration often correlates with higher total project costs due to extended overhead, labor, and equipment rental. However, it also allows for more thorough execution of complex tasks and potentially less rushed work, which can improve quality. The risk associated with a longer duration includes increased exposure to market fluctuations (e.g., material costs), potential changes in regulatory requirements over time, and the possibility of contractor performance degradation or key personnel turnover. Managing risks effectively over such an extended period requires robust contract administration and proactive oversight from the government.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W911WN09B0004

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3400 SOUTHWEST BLVD, GROVE CITY, OH, 43123

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,053,310

Exercised Options: $34,053,310

Current Obligation: $34,053,310

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline