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
- Potential for scope creep and change orders.
- Risk of unforeseen site conditions impacting cost and schedule.
- Contractor performance monitoring is crucial.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition likely yielded competitive pricing.
- Project addresses a clear need for infrastructure improvement.
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
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays from weather or labor issues.
- Need for robust contract management and oversight.
- Contractor's past performance history should be reviewed.
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: 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: 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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