Army awards $36.3M for Olmsted Locks and Dam demo, highlighting significant civil engineering investment
Contract Overview
Contract Amount: $36,264,162 ($36.3M)
Contractor: C. J. Mahan Construction Company, LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-21
End Date: 2023-12-31
Contract Duration: 1,227 days
Daily Burn Rate: $29.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: OLMSTED L&D 53 DEMO - PHASE II
Place of Performance
Location: GRAND CHAIN, PULASKI County, ILLINOIS, 62941
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $36.3 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC for work described as: OLMSTED L&D 53 DEMO - PHASE II Key points: 1. Contract value represents a substantial investment in critical infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this project. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Project duration indicates a long-term commitment to infrastructure development. 5. Geographic focus on Illinois points to regional infrastructure priorities. 6. The contract falls within a sector requiring specialized heavy civil engineering expertise.
Value Assessment
Rating: good
The $36.3 million award for the Olmsted L&D 53 Demo - Phase II appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale dam and lock repair projects would provide further context, but the firm fixed-price nature suggests a degree of cost control. The contract's value is significant, reflecting the complexity and scale of the work required for federal infrastructure.
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 approach generally fosters a competitive environment, potentially leading to better pricing and value for the government. The presence of two bidders suggests a moderate level of competition for this specialized construction project.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, driving down costs and ensuring the government receives the best possible value for its investment.
Public Impact
The U.S. Army Corps of Engineers benefits from the completion of this critical infrastructure project. Services delivered include demolition and construction related to the Olmsted Locks and Dam. The project has a geographic impact primarily in Illinois. The contract supports the heavy and civil engineering construction workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
- Delays in project completion could impact downstream navigation and commerce.
- Contractor performance risk associated with large-scale, complex civil engineering projects.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Awarded under full and open competition, suggesting competitive pricing.
- Project addresses critical infrastructure needs for the U.S. Army Corps of Engineers.
Sector Analysis
This contract falls under the heavy and civil engineering construction sector, specifically related to water infrastructure. This sector is characterized by large-scale projects, significant capital investment, and specialized expertise. The Olmsted Locks and Dam project is a key component of the nation's inland waterway system, crucial for transportation and commerce. Comparable spending benchmarks would involve other major Army Corps of Engineers civil works projects.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was made to a large business. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award information. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or materials.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, likely through contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports may not always be publicly accessible.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Inland Waterways Navigation Projects
- Infrastructure Improvement Projects
- Heavy and Civil Engineering Construction Contracts
Risk Flags
- Potential for unforeseen site conditions impacting fixed-price contract.
- Risk of project delays affecting navigation and commerce.
- Contractor performance on complex, large-scale civil engineering projects.
Tags
department-of-defense, department-of-the-army, construction, heavy-civil-engineering, infrastructure, full-and-open-competition, firm-fixed-price, definitive-contract, illinois, olmsted-locks-and-dam, large-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC. OLMSTED L&D 53 DEMO - PHASE II
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 $36.3 million.
What is the period of performance?
Start: 2020-08-21. End: 2023-12-31.
What is the track record of C. J. Mahan Construction Company, LLC with federal contracts, particularly within the Army Corps of Engineers?
C. J. Mahan Construction Company, LLC has a history of federal contracting, including work with the Department of the Army and other agencies. Analyzing their past performance on similar civil engineering and construction projects, especially those involving water infrastructure or large-scale demolition, would provide insight into their capabilities and reliability. A review of their contract history, including any past performance evaluations or disputes, is crucial for assessing their suitability for complex projects like the Olmsted L&D 53 Demo. Their experience with firm fixed-price contracts and adherence to project timelines and budgets on previous federal awards would be key indicators.
How does the $36.3 million cost compare to similar large-scale dam demolition and construction projects undertaken by the federal government?
Benchmarking the $36.3 million cost requires comparing it to similar large-scale civil engineering projects, specifically those involving dam demolition and reconstruction or significant lock and dam system upgrades. Factors such as project complexity, geographic location, specific environmental considerations, and the duration of the project significantly influence costs. While a direct cost-per-unit comparison is difficult without detailed project specifications, this award appears substantial, reflecting the inherent costs associated with critical federal infrastructure development. Further analysis would involve examining the scope of work, material costs, labor rates, and any unique challenges identified in the contract.
What are the primary risks associated with this specific contract, and how are they being mitigated?
The primary risks associated with this contract include potential unforeseen site conditions during demolition and construction, which could lead to cost overruns despite the firm fixed-price nature. Delays in project completion are another significant risk, potentially impacting the operational efficiency of the inland waterway system and associated commerce. Contractor performance risk, inherent in any large-scale civil engineering project, also exists. Mitigation strategies likely include detailed site investigations prior to award, robust project management by the Army Corps of Engineers, clear contractual performance metrics, and contingency planning within the project schedule and budget. The fixed-price structure incentivizes the contractor to manage these risks effectively.
How effective is the firm fixed-price contract type in ensuring value for money for this infrastructure project?
The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for well-defined projects like infrastructure demolition and construction, as it shifts the risk of cost overruns to the contractor. This incentivizes the contractor to control costs and complete the project efficiently within the agreed-upon price. For the Olmsted L&D 53 Demo - Phase II, the FFP structure provides budget certainty for the government. However, its effectiveness can be diminished if the scope of work is not precisely defined or if unforeseen conditions necessitate significant change orders, which can increase the overall cost. Careful contract administration and scope management are crucial for maximizing the value derived from an FFP award.
What is the historical spending trend for similar heavy and civil engineering construction contracts awarded by the Department of the Army?
Historical spending trends for similar heavy and civil engineering construction contracts awarded by the Department of the Army reveal a consistent and significant investment in infrastructure. The Army Corps of Engineers, responsible for managing many of these projects, allocates substantial funds annually towards maintaining and upgrading critical assets like locks, dams, levees, and navigation channels. Spending in this category can fluctuate based on national infrastructure priorities, the condition of existing assets, and the initiation of new major projects. Analyzing past fiscal years would show periods of increased investment driven by large-scale initiatives and periods of more moderate spending focused on maintenance and smaller upgrades.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: SALVAGE SERVICES › DEMOLITION OF NONBUILDING FACILITY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912QR20B0013
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 250 N HARTFORD AVE, COLUMBUS, OH, 43222
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,539,771
Exercised Options: $36,264,162
Current Obligation: $36,264,162
Actual Outlays: $11,367,068
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-21
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2024-06-18
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