Army awards $130M for dredging services, with a significant portion for Pine Bluff Sand and Gravel Company

Contract Overview

Contract Amount: $129,797,114 ($129.8M)

Contractor: Pine Bluff Sand and Gravel Company

Awarding Agency: Department of Defense

Start Date: 2001-07-09

End Date: 2014-10-31

Contract Duration: 4,862 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200111!000262!96CE!CW66 !USA ENGINEER DISTRICT MEMPHIS !DACW6601C0016 !A!N!*!N! !20010709!20070701!006341861!006341861!006341861!N!PINE BLUFF SAND AND GRAVEL COM!1501 PORTROAD !PINE BLUFF !AR!71611!48000!157!47!MEMPHIS !SHELBY !TENNESSEE !+000000001000!N!N!000000000000!Z216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234990!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!J!2!002!A! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001!

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38103

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $129.8 million to PINE BLUFF SAND AND GRAVEL COMPANY for work described as: 200111!000262!96CE!CW66 !USA ENGINEER DISTRICT MEMPHIS !DACW6601C0016 !A!N!*!N! !20010709!20070701!006341861!006341861!006341861!N!PINE BLUFF SAND AND GRAVEL COM!1501 PORTROAD !PINE BLUFF !AR!71611!48000!157!47!MEMPHIS !SHELB… Key points: 1. Contract awarded for essential dredging services, supporting critical waterway maintenance. 2. The contract value indicates a substantial investment in maintaining navigable waterways. 3. Competition dynamics suggest a healthy market for specialized dredging services. 4. Performance period spans over a decade, implying long-term infrastructure needs. 5. The award to a single primary contractor warrants scrutiny for potential price efficiencies. 6. Geographic focus on Memphis and surrounding areas highlights regional infrastructure priorities.

Value Assessment

Rating: fair

The total award amount of $129,797,114.09 for dredging services over its duration appears substantial. Benchmarking this against similar large-scale dredging contracts is challenging without more specific service details. However, the duration of the contract (over 13 years from award to final delivery) suggests a long-term need, which could justify the overall expenditure if the services provided are consistently critical. The firm fixed-price nature of the contract offers some cost certainty, but the lack of detailed per-unit cost data makes a precise value-for-money assessment difficult.

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. The data shows 2 bids were received. This level of competition is generally positive for price discovery and ensuring the government receives competitive pricing. However, with only two bids, it's important to understand if this represents the full extent of the market's capacity or if other qualified contractors chose not to bid.

Taxpayer Impact: Full and open competition with two bidders suggests a reasonable, though not extensive, level of market engagement, potentially leading to fair pricing for taxpayers.

Public Impact

Benefits the U.S. Army Corps of Engineers, Memphis District, in maintaining vital inland waterways. Services delivered include dredging to ensure navigability of rivers and channels. Geographic impact is concentrated around the Mississippi River basin, particularly in Tennessee and Arkansas. Workforce implications include employment for skilled labor in the dredging and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 13 years) could lead to cost escalations if not managed tightly.
Limited number of bidders (2) might indicate potential market concentration or barriers to entry.
Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness over time.
Firm fixed-price contract may not fully account for unforeseen environmental or operational challenges.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Firm fixed-price contract provides cost certainty for the government.
Contractor has a long-term relationship with the agency, implying established trust and capability.
Focus on essential infrastructure maintenance addresses critical national needs.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy civil construction related to dredging. The dredging market is crucial for maintaining navigable waterways, supporting commerce and national security. The U.S. Army Corps of Engineers is a major player in this market, awarding numerous contracts for river and harbor maintenance. The size of this award suggests it is a significant project within the broader context of inland waterway infrastructure management.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, the primary contractor, Pine Bluff Sand and Gravel Company, is a substantial entity, suggesting that subcontracting opportunities for small businesses might exist but are not explicitly detailed in this award information. The overall impact on the small business ecosystem would depend on the specific subcontracting plans, which are not visible here.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, Memphis District. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases, but detailed operational oversight and performance monitoring would be internal to the agency. The Inspector General for the Department of Defense would have jurisdiction for investigating fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Inland Waterway Maintenance
Civil Works Construction Contracts
Department of Defense Infrastructure Projects

Risk Flags

Limited competition (2 bidders)
Long contract duration
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $129.8 million to PINE BLUFF SAND AND GRAVEL COMPANY. 200111!000262!96CE!CW66 !USA ENGINEER DISTRICT MEMPHIS !DACW6601C0016 !A!N!*!N! !20010709!20070701!006341861!006341861!006341861!N!PINE BLUFF SAND AND GRAVEL COM!1501 PORTROAD !PINE BLUFF !AR!71611!48000!157!47!MEMPHIS !SHELBY !TENNESSEE !+000000001000!N!N!000000000000!Z216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234990!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is PINE BLUFF SAND AND GRAVEL COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $129.8 million.

What is the period of performance?

Start: 2001-07-09. End: 2014-10-31.

What is the historical spending pattern for dredging services by the U.S. Army Corps of Engineers, Memphis District?

Historical spending on dredging by the U.S. Army Corps of Engineers, Memphis District, is substantial, reflecting the critical need to maintain the navigability of the Mississippi River and its tributaries. While specific figures for this district are not readily available in this dataset, the Corps as a whole awards billions of dollars annually for dredging and related civil works. This particular contract, valued at approximately $130 million over its lifespan, represents a significant but not unprecedented investment. Analyzing past contracts would reveal trends in contract values, durations, and the types of dredging services procured, helping to contextualize the current award. Factors such as environmental regulations, infrastructure investment priorities, and economic conditions influencing riverine commerce all play a role in shaping historical spending.

How does the per-unit cost of this dredging contract compare to industry benchmarks?

Determining a precise per-unit cost for this dredging contract is challenging without more granular data on the specific services rendered (e.g., cubic yards dredged, miles of channel cleared, type of material removed). The contract is a firm fixed-price award totaling $129,797,114.09. Industry benchmarks for dredging can vary widely based on location, material type (sand, silt, rock), depth, and equipment used. For instance, per-cubic-yard costs can range from a few dollars for soft material in accessible areas to hundreds of dollars for hard rock or in remote locations. Given the scale and duration, this contract likely involves significant mobilization, demobilization, and operational costs beyond just the volume of material moved. A detailed analysis would require breaking down the contract into specific work items and comparing those to published rates or data from similar Army Corps projects.

What is the track record of Pine Bluff Sand and Gravel Company with federal contracts?

Pine Bluff Sand and Gravel Company has a significant track record with federal contracts, particularly with the U.S. Army Corps of Engineers. The data indicates this specific contract (DACW6601C0016) is a substantial award to them. A deeper dive into federal procurement databases would reveal the full scope of their contract history, including other awards, performance ratings, and any past issues or disputes. Companies with extensive experience in dredging and civil works often secure long-term, large-value contracts due to their specialized equipment, expertise, and established relationships with agencies like the Corps. Their ability to win and perform on contracts of this magnitude suggests a proven capability in the field.

What are the potential risks associated with a long-duration contract like this?

Long-duration contracts, such as this one spanning over 13 years from award to completion, carry several potential risks. For the government, there's the risk of cost escalation if the fixed-price contract doesn't adequately account for inflation or unforeseen market changes in labor and material costs. Performance degradation over time is another concern; the contractor's capabilities or commitment might wane. Conversely, the contractor faces risks related to changing regulatory environments, technological obsolescence, or unexpected site conditions that could increase costs beyond initial estimates. Effective contract management, including regular performance reviews and clear change order processes, is crucial to mitigate these risks for both parties.

How does the competition level (2 bidders) impact the value for taxpayers?

A competition level with only two bidders presents a mixed picture for taxpayer value. On one hand, having at least two bidders generally ensures some level of price competition, preventing a single source from dictating terms. This is preferable to a sole-source award. On the other hand, a limited pool of bidders might indicate that the market for this specific type of specialized dredging service is concentrated, or that barriers to entry are high. This could mean that the government did not achieve the most competitive pricing possible, as a larger number of bidders often drives prices down further. Taxpayers may be paying a fair price, but potentially not the best possible price achievable in a more robustly competitive market.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1501 PORTROAD, PINE BLUFF, AR, 71611

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline