Army awards $5.8M contract for dewatering lock chamber work in Kentucky

Contract Overview

Contract Amount: $5,784,857 ($5.8M)

Contractor: C. J. Mahan Construction Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-13

End Date: 2025-11-07

Contract Duration: 420 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEWATER LOCK CHAMBER

Place of Performance

Location: WARSAW, GALLATIN County, KENTUCKY, 41095

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC for work described as: DEWATER LOCK CHAMBER Key points: 1. Contract awarded to C. J. Mahan Construction Company, LLC for essential infrastructure maintenance. 2. The contract falls under 'Other Heavy and Civil Engineering Construction,' a critical sector for national infrastructure. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. The delivery order has a duration of 420 days, indicating a medium-term project. 5. Fixed-price contract type helps manage cost certainty for the government. 6. The contract is for work in Kentucky, potentially impacting local employment and economy.

Value Assessment

Rating: good

The contract value of approximately $5.8 million for dewatering lock chamber services appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar projects is challenging without more specific details on the exact nature of the dewatering required (e.g., depth, duration, complexity of the lock system). However, the fixed-price nature of the contract provides cost control. The bid amount of $13,773 is significantly lower than the awarded value, which could indicate a highly competitive bidding environment or a substantial difference between initial estimates and final negotiated prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value. Even with two bidders, the competitive pressure helps ensure fair pricing.

Public Impact

The U.S. Army benefits from the maintenance and operational readiness of critical lock chamber infrastructure. Services delivered include dewatering operations, essential for inspection, repair, and maintenance of lock chambers. The geographic impact is focused on Kentucky, where the lock chamber is located, potentially supporting local jobs and businesses. The project may involve skilled labor in heavy construction and engineering, contributing to the specialized workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during dewatering, despite fixed-price contract.
Dependence on a single contractor for a critical infrastructure maintenance task.
Limited competition with only two bidders could mean less aggressive pricing than a more crowded field.

Positive Signals

Fixed-price contract type offers cost certainty for the government.
Awarded through full and open competition, ensuring a fair process.
Contract duration is defined, providing a clear timeline for the project.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which is vital for maintaining and upgrading national infrastructure, including waterways and transportation systems. The market for such specialized construction services is often characterized by a mix of large, established firms and smaller, niche contractors. Government contracts represent a significant portion of demand in this sector. Benchmarking against similar dewatering projects for lock chambers is difficult without more granular data, but the value appears consistent with the specialized nature of the work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, C. J. Mahan Construction Company, LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Army Corps of Engineers, responsible for managing civil works projects. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is provided through contract award notices like this one. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterways Navigation System
Infrastructure Rehabilitation Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Anomalous bid vs. award value discrepancy
Limited competition (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to C. J. MAHAN CONSTRUCTION COMPANY, LLC. DEWATER LOCK CHAMBER

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 $5.8 million.

What is the period of performance?

Start: 2024-09-13. End: 2025-11-07.

What is the track record of C. J. Mahan Construction Company, LLC with federal contracts, particularly with the Department of the Army?

C. J. Mahan Construction Company, LLC has a history of receiving federal contracts, primarily with the Department of the Army and the U.S. Army Corps of Engineers. Their contract history often includes work related to heavy civil engineering, construction, and infrastructure maintenance, aligning with the nature of this dewatering lock chamber award. Analyzing their past performance on similar projects, including adherence to schedules, budget, and quality standards, would provide a clearer picture of their reliability. Specific details on past contract values, durations, and any performance issues or commendations would be crucial for a comprehensive assessment of their track record.

How does the awarded value of $5.8 million compare to the initial bid of $13,773?

The significant discrepancy between the awarded value of $5,784,856.63 and the bid amount of $13,773 is highly unusual and warrants further investigation. Typically, the awarded value is close to the winning bid, especially in fixed-price contracts. This vast difference could indicate several possibilities: a typo in the provided data for either the bid or the award amount, a misunderstanding of what the $13,773 represents (e.g., a bid bond amount, a preliminary estimate, or a bid for a very small, separate component of the overall project), or a substantial negotiation and modification process after the initial bid submission that dramatically increased the scope or price. Without clarification, this data point is anomalous.

What are the specific risks associated with dewatering lock chambers, and how are they mitigated in this contract?

Dewatering lock chambers involves significant risks, including potential structural damage to the chamber from hydrostatic pressure changes, groundwater infiltration, and the complexity of managing large volumes of water. Environmental risks, such as sediment disturbance and potential contamination release, are also present. This contract, being a firm-fixed-price delivery order, aims to mitigate financial risks by setting a ceiling on costs. However, the contractor assumes the risk of unforeseen site conditions or technical challenges. Mitigation strategies would likely involve detailed engineering plans, environmental assessments, robust pumping systems, and strict adherence to safety protocols, all of which should be specified in the contract's statement of work.

What is the historical spending pattern for dewatering lock chamber services by the Department of the Army?

Historical spending on dewatering lock chamber services by the Department of the Army is likely tied to the broader budget allocations for the Army Corps of Engineers' Civil Works program, which focuses on maintaining and improving the nation's waterways and infrastructure. Spending in this specific category can fluctuate based on the age and condition of existing lock systems, the urgency of repairs needed, and overall infrastructure investment priorities. Analyzing multi-year spending trends for similar heavy civil engineering construction contracts awarded by the Army would reveal patterns, identify peak spending periods, and highlight any consistent investment in lock maintenance.

How does the competition level (2 bidders) impact the value for money achieved in this contract?

A competition level with only two bidders suggests a moderate, rather than robust, competitive environment. While competition is present, it may not be sufficient to drive prices down to the lowest possible point achievable in a market with more active bidders. The value for money achieved could be considered 'good' rather than 'excellent' if a higher number of bidders might have resulted in more aggressive pricing. The specific bid amounts and the evaluation process would determine if the government secured a fair price, but a limited number of bidders inherently reduces the pressure for optimal price discovery.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $5,921,157

Exercised Options: $5,883,157

Current Obligation: $5,784,857

Actual Outlays: $4,267,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123722D0030

IDV Type: IDC

Timeline