Corps of Engineers awards $10.6M crane barge repair contract to C. J. Mahan Construction, with 2 bids received

Contract Overview

Contract Amount: $10,663,210 ($10.7M)

Contractor: C. J. Mahan Construction Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-22

End Date: 2026-02-13

Contract Duration: 967 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DRY DOCKING, MAINTENANCE, AND REPAIR WORK ON A CRANE BARGE USED FOR MAINTENANCE AT THE OLMSTED LOCK AND DAM FOR THE CORPS OF ENGINEERS, LOUISVILLE DISTRICT.

Place of Performance

Location: GOLDEN MEADOW, LAFOURCHE County, LOUISIANA, 70357

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC for work described as: DRY DOCKING, MAINTENANCE, AND REPAIR WORK ON A CRANE BARGE USED FOR MAINTENANCE AT THE OLMSTED LOCK AND DAM FOR THE CORPS OF ENGINEERS, LOUISVILLE DISTRICT. Key points: 1. Contract addresses critical maintenance needs for the Olmsted Lock and Dam. 2. Competition was limited, with only two bids submitted. 3. The contract type is a firm-fixed-price definitive contract. 4. Performance period spans over two years, indicating a significant scope of work. 5. The contractor, C. J. Mahan Construction, has experience in marine construction. 6. Geographic focus is on Louisiana, impacting regional maritime services.

Value Assessment

Rating: fair

The contract value of $10.6 million for dry docking, maintenance, and repair of a crane barge appears reasonable given the specialized nature of the work and the critical infrastructure it supports. Benchmarking against similar large-scale marine repair contracts is challenging without more specific details on the barge's condition and required repairs. However, the firm-fixed-price structure shifts risk to the contractor, which can be beneficial for the government if costs are well-managed. The limited competition may have influenced the final price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive indicator for price discovery. However, only two bids were received, suggesting that the pool of qualified bidders for this specialized service may be limited. While competition was sought, the low number of offers could potentially lead to a less competitive price than if more firms had participated.

Taxpayer Impact: The limited number of bidders means taxpayers may not have benefited from the most competitive pricing possible. A broader range of bids could have driven down costs.

Public Impact

The Olmsted Lock and Dam, a critical piece of infrastructure for inland waterways, will receive essential maintenance. The Corps of Engineers ensures continued operational capacity for the lock and dam. The contract supports the maritime transportation industry by maintaining vital equipment. Work is expected to be performed in Louisiana, potentially impacting the local maritime repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in a higher price than a more robust bidding process.
The long performance period (967 days) increases the risk of unforeseen cost escalations, although mitigated by fixed-price.
Specialized nature of the repair work could lead to unexpected complexities and cost overruns if not managed meticulously.

Positive Signals

Firm-fixed-price contract structure transfers cost overrun risk to the contractor.
The contractor, C. J. Mahan Construction, is an established entity in marine construction.
The contract supports critical infrastructure maintenance, ensuring operational continuity.

Sector Analysis

The Ship Building and Repairing industry (NAICS 336611) is a specialized sector involving the construction, alteration, and repair of ships and marine equipment. This contract falls within the repair segment, focusing on essential maintenance for a vital piece of inland waterway infrastructure. The market for such specialized repairs is often characterized by a limited number of highly qualified firms capable of undertaking complex projects.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature and significant value of the work, it is likely that larger, more experienced firms were the primary participants. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the contract provides a degree of cost control. Accountability will be managed through contract performance monitoring by the Corps of Engineers. Transparency is facilitated by the public availability of contract awards, though detailed performance metrics are not publicly disclosed.

Related Government Programs

Olmsted Lock and Dam Maintenance
Corps of Engineers Dredging and Marine Construction
Inland Waterways Infrastructure Maintenance
US Army Corps of Engineers Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns
Critical Infrastructure Maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC. DRY DOCKING, MAINTENANCE, AND REPAIR WORK ON A CRANE BARGE USED FOR MAINTENANCE AT THE OLMSTED LOCK AND DAM FOR THE CORPS OF ENGINEERS, LOUISVILLE DISTRICT.

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 $10.7 million.

What is the period of performance?

Start: 2023-06-22. End: 2026-02-13.

What is the track record of C. J. Mahan Construction Company, LLC with the federal government, particularly for similar marine repair services?

C. J. Mahan Construction Company, LLC has a history of federal contracts, primarily with the Department of the Army and the Army Corps of Engineers. Their experience often involves marine construction, dredging, and repair services, aligning with the scope of this contract. Reviewing past performance on similar projects would be crucial to assess their capability and reliability in executing this specific crane barge repair. Data on past contract values, performance ratings, and any disputes or claims would provide further insight into their track record. Without access to detailed past performance reports, it's difficult to definitively assess their suitability beyond their general industry presence.

How does the awarded price of $10.6 million compare to similar crane barge repair contracts awarded by the Corps of Engineers or other federal agencies?

Benchmarking this $10.6 million contract requires detailed comparison with similar services. Factors such as the size and type of crane barge, the extent of required repairs (e.g., hull integrity, mechanical systems, crane functionality), and the specific location of the repair facility significantly influence pricing. Contracts for dry-docking, extensive maintenance, and component overhauls on specialized marine equipment can vary widely. Given the limited competition (two bids), it is possible that the price is on the higher end of the spectrum for comparable services. A thorough analysis would involve identifying contracts with similar scope, duration, and complexity, adjusting for inflation and regional cost differences.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential cost overruns due to unforeseen structural damage or mechanical issues discovered during the repair process, and schedule delays impacting the operational readiness of the Olmsted Lock and Dam. The firm-fixed-price contract structure mitigates financial risk for the government by capping the contractor's potential profit and shifting the burden of cost increases to them. Mitigation for schedule risk relies on robust project management, clear communication, and potentially liquidated damages clauses for late completion. The limited competition also presents a risk of suboptimal pricing. The Corps of Engineers' oversight and the contractor's experience are key factors in managing these risks.

How effective is the Olmsted Lock and Dam's crane barge maintenance program in ensuring the facility's overall operational effectiveness?

The effectiveness of the crane barge maintenance program is directly tied to the reliability and availability of the barge for its intended purpose: maintenance at the Olmsted Lock and Dam. This facility is a critical component of the inland waterway system, facilitating navigation and commerce. Regular and thorough maintenance, as addressed by this contract, is essential to prevent downtime and ensure the barge can perform its duties, thereby supporting the overall operational effectiveness of the lock and dam. The success of this specific contract in delivering timely and quality repairs will be a key indicator of the program's effectiveness in this instance.

What has been the historical spending trend for crane barge maintenance and repair by the Corps of Engineers, Louisville District?

Analyzing historical spending for crane barge maintenance and repair by the Corps of Engineers, Louisville District, would provide context for the $10.6 million award. This would involve examining past contracts for similar services, noting the frequency, value, and duration of these awards. Trends might reveal whether spending has been increasing, decreasing, or remaining stable, and whether this contract represents a typical expenditure or an outlier. Understanding historical patterns can help assess if current spending levels are justified by operational needs or if they indicate potential overspending or underspending in the past. This data is crucial for long-term budget planning and resource allocation.

What is the significance of the Olmsted Lock and Dam to the region's economy and transportation network, and how does this contract support it?

The Olmsted Lock and Dam is a vital piece of infrastructure on the Ohio River, a major artery for inland waterborne commerce. It plays a crucial role in facilitating the movement of goods such as coal, grain, and chemicals, significantly impacting regional and national supply chains and economies. The crane barge is essential for performing maintenance and repairs on the lock and dam structures, ensuring their continued functionality and preventing disruptions to navigation. This contract, by ensuring the crane barge is in good working order, directly supports the uninterrupted operation of the Olmsted Lock and Dam, thereby safeguarding regional transportation efficiency and economic activity dependent on the river.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912QR23B0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3458 LEWIS CENTRE WAY, URBANCREST, OH, 43123

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,916,490

Exercised Options: $10,663,210

Current Obligation: $10,663,210

Actual Outlays: $3,045,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline