Army Awards $771M Everglades Project Contract to Thalle Construction for A-2 Reservoir Embankment
Contract Overview
Contract Amount: $771,144,399 ($771.1M)
Contractor: Thalle Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2034-12-02
Contract Duration: 3,718 days
Daily Burn Rate: $207.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CENTRAL EVERGLADES PLANNING PROJECT (CEPP) CONTRACT 11B, EVERGLADES AGRICULTURAL AREA (EAA) A-2 RESERVOIR EMBANKMENT AND STRUCTURES, PALM BEACH COUNTY, FLORIDA
Place of Performance
Location: BELLE GLADE, PALM BEACH County, FLORIDA, 33430
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $771.1 million to THALLE CONSTRUCTION CO INC for work described as: CENTRAL EVERGLADES PLANNING PROJECT (CEPP) CONTRACT 11B, EVERGLADES AGRICULTURAL AREA (EAA) A-2 RESERVOIR EMBANKMENT AND STRUCTURES, PALM BEACH COUNTY, FLORIDA Key points: 1. Significant investment in Everglades restoration infrastructure. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with large-scale, long-term civil engineering projects. 4. Construction sector spending, particularly on major civil works.
Value Assessment
Rating: good
The contract value of $771.14 million for a 12-year duration appears substantial for the scope of work. Benchmarking against similar large-scale civil engineering projects would be necessary for a precise assessment, but the firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value through a transparent bidding process.
Taxpayer Impact: Taxpayer funds are being allocated to a major environmental infrastructure project with the expectation of long-term ecological benefits and flood control improvements.
Public Impact
Enhances water storage capacity in the Everglades Agricultural Area. Aims to improve water quality and flow to Florida Bay. Supports regional flood control and drought resilience. Contributes to the broader Comprehensive Everglades Restoration Plan (CERP). Potential for job creation in construction and related industries.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long project duration increases risk of cost overruns or delays.
- Environmental complexities in the Everglades ecosystem.
- Potential for unforeseen site conditions impacting construction.
Positive Signals
- Firm-fixed-price contract limits cost escalation for the government.
- Full and open competition suggests competitive pricing.
- Project aligns with significant national environmental restoration goals.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to large-scale environmental infrastructure. Spending in this area is often driven by government initiatives for public works, environmental protection, and disaster resilience.
Small Business Impact
The contract was awarded to Thalle Construction Co Inc, a large business. There is no indication of specific small business subcontracting goals or participation in this award notice, which could be an area for further review.
Oversight & Accountability
The Department of the Army, through the U.S. Army Corps of Engineers, is responsible for overseeing this project. Robust oversight will be crucial given the project's scale, duration, and environmental sensitivity to ensure adherence to timelines, budget, and environmental regulations.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (over 12 years).
- Complexity of Everglades ecosystem and restoration goals.
- Potential for unforeseen geological or hydrological conditions.
- Reliance on a single prime contractor for a large scope of work.
- Significant taxpayer investment requires diligent oversight.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $771.1 million to THALLE CONSTRUCTION CO INC. CENTRAL EVERGLADES PLANNING PROJECT (CEPP) CONTRACT 11B, EVERGLADES AGRICULTURAL AREA (EAA) A-2 RESERVOIR EMBANKMENT AND STRUCTURES, PALM BEACH COUNTY, FLORIDA
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 $771.1 million.
What is the period of performance?
Start: 2024-09-27. End: 2034-12-02.
What is the projected return on investment for the Everglades restoration efforts funded by this contract?
The return on investment for Everglades restoration is multifaceted, encompassing ecological improvements, enhanced water quality, increased water supply reliability, and improved flood control. Quantifying a direct financial ROI is challenging, but the long-term economic and environmental benefits, including tourism and reduced flood damage costs, are expected to significantly outweigh the investment.
What are the primary environmental risks associated with constructing the A-2 Reservoir embankment and structures?
Key environmental risks include potential impacts on existing wetland habitats, disruption of water flow patterns during construction, management of construction-related pollutants (sediment, fuel), and the long-term stability of the embankment within the sensitive Everglades ecosystem. Mitigation strategies and strict environmental monitoring are critical to address these risks.
How effectively does the firm-fixed-price contract mitigate potential cost overruns given the project's long duration?
The firm-fixed-price (FFP) contract is designed to shift most of the cost risk to the contractor, Thalle Construction Co Inc. While FFP provides significant cost certainty for the government, the 12-year duration introduces inherent risks of unforeseen conditions or material price fluctuations that could lead to contractor claims or potential disputes, even under an FFP agreement.
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: W912EP24R0002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tully Construction CO - Thalle Construction CO LLC
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, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,044,713,749
Exercised Options: $3,044,713,749
Current Obligation: $771,144,399
Actual Outlays: $77,183,365
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-27
Current End Date: 2034-12-02
Potential End Date: 2034-12-02 00:00:00
Last Modified: 2025-12-23
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