DoD's $89.5M Chickamauga Lock project awarded to C. J. Mahan Construction for civil engineering, highlighting long-term infrastructure investment

Contract Overview

Contract Amount: $89,462,141 ($89.5M)

Contractor: C. J. Mahan Construction Company, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-15

End Date: 2011-04-08

Contract Duration: 1,666 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CHICKAMAUGA LOCK COFFERDAM CONSTRUCTION

Place of Performance

Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37415

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $89.5 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC for work described as: CHICKAMAUGA LOCK COFFERDAM CONSTRUCTION Key points: 1. The contract value represents a significant investment in critical infrastructure, specifically for lock and dam construction. 2. Competition dynamics for this large-scale civil engineering project are crucial for ensuring taxpayer value. 3. The duration of the contract suggests a complex, multi-year undertaking with potential for cost fluctuations. 4. Performance context is key, as the successful completion of such projects directly impacts regional transportation and commerce. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, indicating specialized construction needs.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its unique nature as a large-scale civil engineering project. However, the contract value of approximately $89.5 million for a multi-year construction effort like the Chickamauga Lock cofferdam suggests a substantial investment. Without comparable recent projects of identical scope and complexity, a precise value-for-money assessment is difficult. The fixed-price nature of the award offers some cost certainty, but the long duration could expose the contractor to unforeseen costs.

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 considered. This competitive process is generally expected to drive down prices and ensure the government receives the best value. The presence of two bidders suggests a degree of competition, though the specific details of the bidding process and the number of proposals received would provide a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and the broader public through improved navigation and transportation infrastructure on the Tennessee River. The project delivers essential construction services for the Chickamauga Lock, a vital component of the inland waterway system. The geographic impact is concentrated in Tennessee, specifically around the Chickamauga Lock facility, supporting regional economic activity. Workforce implications include the creation of skilled construction jobs during the multi-year project lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1666 days) increases risk of cost overruns due to inflation or unforeseen site conditions.
The specialized nature of heavy civil engineering construction can limit the pool of qualified bidders, potentially impacting competition.
Dependence on a single contractor for a critical infrastructure project raises concerns about continuity and potential for sole-source extensions if issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The firm fixed-price contract type provides cost certainty for the government, mitigating risks associated with cost-plus contracts.
The project addresses a critical infrastructure need, contributing to national transportation and economic goals.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector (NAICS 237990), which includes establishments primarily engaged in the construction of heavy civil engineering projects such as waterworks, dams, bridges, and highways. The market for such large-scale infrastructure projects is often characterized by a limited number of highly specialized firms capable of undertaking complex, multi-year endeavors. Spending in this sector is often driven by government infrastructure initiatives and public works projects.

Small Business Impact

There is no indication that this contract included a small business set-aside, nor is there information suggesting significant subcontracting opportunities for small businesses. Given the specialized and large-scale nature of heavy civil engineering construction, prime contracts of this magnitude are typically awarded to larger, established firms. The impact on the small business ecosystem is likely minimal unless specific subcontracting plans were mandated and fulfilled.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely involving project managers, contracting officers, and potentially quality assurance representatives to monitor progress, adherence to specifications, and budget. Transparency is generally maintained through contract award databases and public reporting, though detailed day-to-day oversight activities are internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Inland Waterways Navigation Improvements
Tennessee River Infrastructure Development
Large-Scale Dam and Lock Construction Contracts

Risk Flags

Long contract duration may increase risk of cost escalation.
Specialized nature of work could limit future competition.
Potential for unforeseen site conditions in civil engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.5 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC. CHICKAMAUGA LOCK COFFERDAM CONSTRUCTION

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 $89.5 million.

What is the period of performance?

Start: 2006-09-15. End: 2011-04-08.

What was the specific scope of work for the Chickamauga Lock cofferdam construction?

The scope of work for the Chickamauga Lock cofferdam construction involved the design and construction of a temporary structure (cofferdam) to dewater the existing lock chamber, allowing for repairs and rehabilitation. This typically includes excavation, placement of earth and rock fill, sheet pile installation, and dewatering systems to create a dry working environment. The objective is to facilitate necessary maintenance and upgrades to the lock structure without disrupting river traffic for an extended period. The contract value of $89.5 million suggests a comprehensive undertaking, likely encompassing detailed engineering, material procurement, construction execution, and eventual removal of the cofferdam.

How does the $89.5 million contract value compare to similar large-scale civil engineering projects undertaken by the Army Corps of Engineers?

Comparing the $89.5 million value requires context regarding the specific nature and scale of 'similar' projects. Large civil engineering projects, particularly those involving dam and lock construction or rehabilitation, can range significantly in cost. Projects involving new construction or major overhauls of existing infrastructure often run into hundreds of millions, or even billions, of dollars. A cofferdam construction for a major lock, while critical, might represent a segment of a larger rehabilitation program. Without specific details on comparable cofferdam projects or the full scope of the Chickamauga Lock's overall rehabilitation, it's difficult to definitively benchmark this $89.5 million figure. However, it represents a substantial investment for a critical component of inland waterway infrastructure.

What were the primary risks identified for this long-duration construction contract?

The primary risks for a long-duration construction contract like the Chickamauga Lock cofferdam project typically include: 1. **Schedule Delays:** Unforeseen geological conditions, weather events, or logistical challenges can extend the project timeline. 2. **Cost Overruns:** Inflationary pressures on materials and labor, changes in scope, or unexpected site issues can increase costs, especially under fixed-price contracts if not managed meticulously. 3. **Technical Complexity:** The engineering and construction of cofferdams require specialized knowledge and execution to ensure structural integrity and effective dewatering. 4. **Environmental Factors:** Potential impacts on the river ecosystem and compliance with environmental regulations add layers of risk and require careful management. 5. **Contractor Performance:** Ensuring the contractor maintains quality standards and adheres to safety protocols throughout the extended period is crucial.

What is the historical spending pattern for the Chickamauga Lock project or similar infrastructure maintenance by the Army Corps of Engineers?

Historical spending on the Chickamauga Lock and similar Army Corps of Engineers (USACE) projects is generally characterized by significant, long-term investments in maintaining and upgrading the nation's inland waterway system. USACE manages a vast portfolio of civil works infrastructure, including numerous locks and dams. Funding for these projects often comes through the Civil Works program, which is subject to annual appropriations and multi-year budget cycles. Spending can fluctuate based on infrastructure needs, congressional priorities, and available funding. Major rehabilitation or replacement projects for locks and dams can cost tens to hundreds of millions of dollars, often spread over several years. The Chickamauga Lock, being a critical component of the Tennessee River system, would have seen periodic investments for maintenance and upgrades throughout its operational life.

How effective was the competition for this contract, given only two bidders were involved?

The effectiveness of competition when only two bidders are involved can be viewed with some caution. While 'full and open competition' was utilized, a lower number of bidders compared to potentially higher numbers in other large federal contracts might suggest limitations. These limitations could stem from the highly specialized nature of the work, the specific requirements of the solicitation, or the geographic location, which may have narrowed the field of qualified and interested contractors. Two bidders do indicate some level of competition, which is preferable to a sole-source award. However, the government's ability to secure the most advantageous pricing and terms is generally enhanced with a larger number of competing proposals. Further analysis would require knowing the number of solicitations issued, the number of potential bidders identified, and the nature of the proposals received.

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: W912P506B0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $89,462,141

Exercised Options: $89,462,141

Current Obligation: $89,462,141

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline