Army Awards $78M Contract for Chickamauga Lock Construction to C. J. Mahan Construction
Contract Overview
Contract Amount: $78,174,994 ($78.2M)
Contractor: C. J. Mahan Construction Company, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-21
End Date: 2026-01-30
Contract Duration: 1,592 days
Daily Burn Rate: $49.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: UPSTREAM APPROACH WALLS, CHICKAMAUGA LOCK, CHATTANOOGA TN.
Place of Performance
Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37415
Plain-Language Summary
Department of Defense obligated $78.2 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC for work described as: UPSTREAM APPROACH WALLS, CHICKAMAUGA LOCK, CHATTANOOGA TN. Key points: 1. Significant investment in critical infrastructure for the Army. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with large-scale civil engineering projects and long durations. 4. Construction sector spending is substantial, with this contract representing a portion of that.
Value Assessment
Rating: good
The contract value of $78.2 million for a multi-year construction project appears reasonable given the scope. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment, but the firm fixed-price nature suggests cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The use of a definitive contract indicates a clear scope of work was established prior to award.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, which can have long-term economic benefits through improved transportation and commerce.
Public Impact
Enhances critical navigation infrastructure on the Tennessee River. Supports regional economic development through improved waterway transport. Creates jobs in the construction sector in Tennessee.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1592 days) increases risk of cost overruns and delays.
- Potential for unforeseen site conditions in large civil engineering projects.
- Dependence on a single prime contractor for a complex undertaking.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Addresses critical infrastructure needs.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is a significant area of government spending. Benchmarks for similar large-scale infrastructure projects would be necessary for a detailed comparison, but the value reflects the complexity and scale of lock construction.
Small Business Impact
While the prime contractor is C. J. Mahan Construction Company, LLC, the data does not specify the extent of small business participation in subcontracting. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The Department of the Army is responsible for oversight of this contract. The definitive contract structure and firm fixed-price terms provide a framework for accountability, but ongoing monitoring will be crucial for successful project completion.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration
- Large contract value
- Complexity of civil engineering
- Potential for unforeseen site conditions
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.2 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC. UPSTREAM APPROACH WALLS, CHICKAMAUGA LOCK, CHATTANOOGA TN.
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 $78.2 million.
What is the period of performance?
Start: 2021-09-21. End: 2026-01-30.
What is the projected economic benefit of the Chickamauga Lock upgrade to regional commerce and transportation?
The upgrade to the Chickamauga Lock is expected to significantly improve navigation efficiency on the Tennessee River, reducing transit times and costs for commercial vessels. This enhanced capacity and reliability can lead to increased freight movement, supporting regional industries and potentially attracting new businesses. The long-term economic impact is tied to the continued viability and competitiveness of riverine transportation as a cost-effective logistics solution.
What are the primary risks associated with the long duration and complexity of this civil engineering project?
The primary risks include potential cost escalation due to inflation over the 1592-day period, unforeseen geological or environmental conditions at the site that could necessitate design changes or delays, and contractor performance issues. Weather disruptions and supply chain volatility also pose significant threats. Effective risk mitigation strategies, including robust contingency planning and diligent project management, are essential to manage these challenges.
How does the firm fixed-price contract structure ensure value for taxpayers despite the project's complexity?
The firm fixed-price (FFP) structure shifts the risk of cost overruns to the contractor, C. J. Mahan Construction Company. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs, provided the scope of work is met. This provides budget certainty for taxpayers and incentivizes the contractor to manage costs efficiently and complete the project within the fixed price.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P521R0002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3458 LEWIS CENTRE WAY, 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: $78,174,994
Exercised Options: $78,174,994
Current Obligation: $78,174,994
Actual Outlays: $3,060,107
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-21
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-11-25
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