Army awards $11.7M contract for dredging services, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $11,756,575 ($11.8M)

Contractor: Inland Dredging Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2002-05-17

End Date: 2011-01-26

Contract Duration: 3,176 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39183

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to INLAND DREDGING COMPANY, L.L.C. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3176 days indicates a significant, long-term commitment to dredging services. 3. Firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. Awarded to Inland Dredging Company, L.L.C., suggesting a focus on established providers. 5. The contract's value of $11.7 million reflects substantial investment in maintaining waterways. 6. Geographic location in Mississippi points to specific regional infrastructure requirements.

Value Assessment

Rating: good

The contract value of $11.7 million for a duration of over 8 years appears reasonable for specialized dredging services. Without specific details on the scope of work (e.g., cubic yards dredged, location specifics), a direct per-unit cost comparison is difficult. However, the firm fixed-price nature suggests that the initial bid was considered a fair value for the expected services. The long duration implies potential for economies of scale and consistent service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specialized service. While not an extremely high number of bidders, it demonstrates that multiple companies were interested and capable of performing the work, which generally supports price discovery and potentially competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers and potentially commercial shipping interests that rely on navigable waterways. Services delivered include essential dredging operations to maintain or improve water depth and flow in specified areas. The geographic impact is concentrated in Mississippi, addressing specific regional needs for water infrastructure. Workforce implications may include employment opportunities for skilled labor in the maritime and construction sectors within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Potential for scope creep if the definition of 'dredging services' is not precisely defined.
Reliance on a single contractor for an extended period might reduce future competitive pressure.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a fair and transparent procurement process.
Award to a single entity for a long duration can ensure continuity of essential services.

Sector Analysis

This contract falls within the broader 'Construction of Waterways and Water Supply Facilities' sector, a critical component of national infrastructure. The dredging market involves specialized equipment and expertise, often dominated by a few key players. The Army Corps of Engineers is a major procurer in this space, consistently investing in maintaining and improving the nation's waterways for navigation, flood control, and environmental management. Benchmarks for similar dredging contracts would depend heavily on the specific volume of material moved, distance of disposal, and environmental considerations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Inland Dredging Company, L.L.C. is likely a medium to large-sized enterprise given the contract value and duration. There is no explicit information on subcontracting requirements, but large infrastructure contracts often include provisions for small business participation. Without specific subcontracting goals, the direct impact on the small business ecosystem is unclear, though it represents a significant portion of the federal construction spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers district responsible for the Mississippi region. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the contract award being made under full and open competition, with details available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Navigation Projects
Port and Harbor Maintenance
Flood Control Infrastructure
Environmental Dredging Projects

Risk Flags

Long contract duration may increase risk of price escalation or performance issues.
Limited number of bidders (3) could indicate potential market concentration or high barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to INLAND DREDGING COMPANY, L.L.C.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is INLAND DREDGING COMPANY, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2002-05-17. End: 2011-01-26.

What specific dredging activities are covered under this contract?

The provided data does not specify the exact dredging activities. However, 'dredging services' typically encompass the removal of sediment, debris, and other materials from the bottom of bodies of water. This can include maintenance dredging to keep channels at their authorized depths, new work dredging to create or deepen channels, and environmental dredging to remove contaminated sediments. The specific scope would be detailed in the contract's statement of work, outlining the locations, quantities, methods, and disposal requirements for the dredged material.

How does the $11.7 million value compare to similar dredging contracts awarded by the Army Corps of Engineers?

Comparing the $11.7 million value requires context on the scope and duration. For a definitive contract spanning over 8 years (3176 days), this value suggests a significant, ongoing dredging requirement. The Army Corps of Engineers awards numerous dredging contracts annually, ranging from small, localized maintenance projects to massive capital investments in major waterways. Contracts for large-scale capital projects or extensive maintenance in major ports can easily exceed this amount. Without knowing the specific cubic yards to be dredged, the type of material, and the disposal methods, a precise benchmark is difficult, but the value appears consistent with substantial, long-term waterway infrastructure support.

What are the potential risks associated with a firm fixed-price contract of this duration?

While firm fixed-price contracts offer cost certainty, a long duration (over 8 years) introduces specific risks. The primary risk is that the initial price may become uncompetitive or insufficient if market conditions change significantly (e.g., fuel costs, labor rates, equipment maintenance). The contractor bears the risk of cost overruns, but if unforeseen conditions arise that genuinely increase costs beyond reasonable estimation, it could lead to disputes or contractor performance issues. Conversely, the government might be paying a premium upfront to cover the contractor's risk over such an extended period. Careful contract administration and potential for economic price adjustments (if included) are crucial.

What is the historical spending pattern for dredging services by the Department of the Army in Mississippi?

The provided data only includes this single contract award. To assess historical spending patterns, one would need to analyze multiple contracts awarded by the Department of the Army (and specifically the Army Corps of Engineers) for dredging services within Mississippi over several fiscal years. This analysis would reveal trends in contract values, types of services procured, competition levels, and the primary contractors utilized. Without access to a broader dataset, it's impossible to determine if this $11.7 million award represents a typical, increased, or decreased level of investment for the region.

What is the track record of Inland Dredging Company, L.L.C. with federal contracts?

The data indicates Inland Dredging Company, L.L.C. was awarded this specific contract. To assess their track record, a comprehensive review of their past federal contract awards would be necessary. This would involve examining the number of contracts awarded, their values, the agencies involved, contract types, performance history (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A positive track record with similar dredging projects would increase confidence in their ability to successfully execute this current contract.

How does the number of bidders (3) impact the value for taxpayers?

Having three bidders in a full and open competition suggests a moderate level of competition. While more bidders generally lead to lower prices, three bidders can still provide sufficient price discovery and pressure. It indicates that the market is not overly concentrated, and multiple firms were willing and able to compete for the work. This level of competition is generally considered adequate to achieve reasonable pricing for taxpayers, avoiding the potential for significantly inflated costs that might occur with fewer than three bidders or a sole-source situation.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1385 FLOWERING DOGWOOD LAN, DYERSBURG, TN, 38024

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline