DOD Awards $320M for Rough River Cutoff Wall to Thalle-Bauer LLC
Contract Overview
Contract Amount: $320,385,195 ($320.4M)
Contractor: Thalle - Bauer LLC
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2031-12-19
Contract Duration: 2,191 days
Daily Burn Rate: $146.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ROUGH RIVER CUTOFF WALL
Place of Performance
Location: FALLS OF ROUGH, GRAYSON County, KENTUCKY, 40119
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $320.4 million to THALLE - BAUER LLC for work described as: ROUGH RIVER CUTOFF WALL Key points: 1. Significant investment in civil engineering infrastructure. 2. Full and open competition suggests potential for competitive pricing. 3. Long contract duration (6 years) may introduce cost escalation risks. 4. Project located in Kentucky, impacting regional construction sector.
Value Assessment
Rating: fair
The contract value of $320.4 million for a 6-year duration appears substantial. Benchmarking against similar large-scale civil engineering projects is necessary to assess if the pricing is competitive, considering the firm-fixed-price structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method is generally expected to drive competitive pricing and ensure fair market value is obtained.
Taxpayer Impact: Taxpayer funds are being utilized for a significant infrastructure project, with the competitive award process aiming to maximize value for money.
Public Impact
Enhances flood control and water management in the Rough River region. Supports regional economic development through construction jobs and related activities. Long-term infrastructure improvement project with benefits extending beyond the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns due to inflation.
- Potential for scope creep or unforeseen site conditions impacting final cost.
- Dependence on a single contractor for an extended period.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition likely secured a competitive initial price.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on water management infrastructure. Spending in this sector can be cyclical, influenced by government funding priorities and infrastructure needs.
Small Business Impact
While the contract was awarded under full and open competition, it's unclear if small businesses were significantly involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army is overseeing this significant contract. Standard oversight mechanisms for large construction projects should be in place, including regular progress reviews and quality control measures.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (6 years) increases exposure to economic fluctuations.
- Firm-fixed-price contracts can be less flexible in adapting to unforeseen changes.
- Potential for contractor performance issues over an extended period.
- Dependency on specific geological conditions for project success.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ky, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $320.4 million to THALLE - BAUER LLC. ROUGH RIVER CUTOFF WALL
Who is the contractor on this award?
The obligated recipient is THALLE - BAUER 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 $320.4 million.
What is the period of performance?
Start: 2025-12-19. End: 2031-12-19.
What specific engineering challenges does the Rough River Cutoff Wall address, and how does the $320 million price reflect the complexity and risk involved?
The Rough River Cutoff Wall likely addresses critical flood control and water management issues for the region. The $320 million price tag suggests a project of considerable scale and complexity, potentially involving extensive earthwork, specialized materials, and challenging geological conditions. A detailed engineering assessment would be required to fully justify the cost against the specific risks and technical requirements of mitigating flood risks and managing water resources effectively.
Given the 6-year duration and firm-fixed-price structure, what mechanisms are in place to mitigate the risk of cost escalation due to inflation or unforeseen site conditions?
While a firm-fixed-price contract offers initial cost certainty, the long duration presents inherent inflation risks. The contract may include clauses for economic price adjustments, though these are often limited. Mitigation strategies typically rely on thorough initial site investigations to minimize unforeseen conditions and robust contractor management to ensure efficient execution. However, significant unforeseen issues could still strain the fixed price.
How will the success of this $320 million infrastructure project be measured in terms of its long-term effectiveness for flood control and community benefit?
The long-term effectiveness will be measured by the project's ability to demonstrably reduce flood damage in the protected area, maintain water levels as intended, and improve the overall resilience of the community against hydrological events. Key performance indicators could include reduced insurance claims, fewer disaster declarations, and positive environmental impact assessments post-construction. Community feedback and ongoing monitoring by relevant agencies will also gauge its success.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 900 NC HIGHWAY 86 N, HILLSBOROUGH, NC, 27278
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $655,131,250
Exercised Options: $320,385,195
Current Obligation: $320,385,195
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-19
Current End Date: 2031-12-19
Potential End Date: 2032-01-13 00:00:00
Last Modified: 2026-01-13
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