Dutra Dredging Company awarded $19.3M contract for mobilization and demobilization services

Contract Overview

Contract Amount: $19,258,389 ($19.3M)

Contractor: Dutra Dredging Company

Awarding Agency: Department of Defense

Start Date: 2009-05-15

End Date: 2012-01-25

Contract Duration: 985 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOBILIZATION AND DEMOBILIZATION

Place of Performance

Location: SAINT PAUL ISLAND, ALEUTIANS WEST County, ALASKA, 99660

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to DUTRA DREDGING COMPANY for work described as: MOBILIZATION AND DEMOBILIZATION Key points: 1. Contract value appears reasonable for mobilization and demobilization services, a critical but often short-term component of larger construction projects. 2. Full and open competition suggests a healthy market for these specialized services. 3. The contract duration of 985 days indicates a significant project scope or phased execution. 4. Fixed-price contract type shifts risk to the contractor, potentially leading to cost savings if managed efficiently. 5. Geographic focus on Alaska (AK) suggests specialized logistical challenges and requirements. 6. The contract was awarded by the Department of the Army, indicating a defense-related infrastructure need.

Value Assessment

Rating: good

The contract value of $19.3 million for mobilization and demobilization is within a reasonable range for large-scale civil engineering projects, especially those involving specialized equipment and logistics in remote areas like Alaska. Without specific benchmarks for similar mobilization/demobilization efforts in the region, a direct per-unit cost comparison is difficult. However, the fixed-price nature of the contract suggests that the government sought to control costs upfront, relying on the contractor's expertise to manage expenses within the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a competitive environment for this type of specialized construction service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices through market forces and encouraging efficient service delivery from contractors.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other entities requiring dredging and civil engineering support in Alaska. The services delivered include the critical logistical tasks of mobilizing and demobilizing equipment and personnel for construction projects. The geographic impact is concentrated in Alaska (AK), a region with unique environmental and logistical considerations for construction. The contract supports a workforce involved in heavy civil engineering and maritime construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen logistical challenges arise in Alaska.
  • Risk of delays impacting larger project timelines if mobilization/demobilization is not executed efficiently.

Positive Signals

  • Fixed-price contract provides cost certainty for the government.
  • Full and open competition suggests a robust market and potential for competitive pricing.
  • Contractor's experience in heavy civil engineering is likely a positive factor.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on the logistical aspects of project execution. The market for specialized dredging and heavy equipment mobilization is often characterized by a limited number of highly experienced firms capable of undertaking complex projects in challenging environments like Alaska. Comparable spending benchmarks would typically be found within large-scale infrastructure projects, port development, or military construction initiatives.

Small Business Impact

There is no indication of small business set-asides for this contract, and the contractor, Dutra Dredging Company, is likely a large business. Subcontracting opportunities for small businesses may exist, particularly for support services, logistics, or specialized labor, but this would depend on the prime contractor's strategy. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting plans are implemented.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful completion of mobilization and demobilization phases. Transparency is generally maintained through contract award databases, though specific project details and performance metrics may be less publicly accessible.

Related Government Programs

  • Army Corps of Engineers Dredging Projects
  • Military Construction Projects
  • Alaska Infrastructure Development
  • Maritime Construction Services

Risk Flags

  • Potential for cost overruns due to logistical complexity in Alaska.
  • Risk of schedule delays impacting larger project timelines.
  • Dependence on contractor's specialized equipment and expertise.

Tags

construction, department-of-defense, department-of-the-army, alaska, definitive-contract, large-contract, full-and-open-competition, firm-fixed-price, heavy-and-civil-engineering-construction, mobilization-and-demobilization

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to DUTRA DREDGING COMPANY. MOBILIZATION AND DEMOBILIZATION

Who is the contractor on this award?

The obligated recipient is DUTRA DREDGING 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 $19.3 million.

What is the period of performance?

Start: 2009-05-15. End: 2012-01-25.

What is Dutra Dredging Company's track record with federal contracts, particularly for mobilization and demobilization services?

Dutra Dredging Company has a history of federal contracting, primarily with the Department of the Army Corps of Engineers, often related to dredging and marine construction. Their experience typically involves large-scale projects requiring significant mobilization and demobilization efforts. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide further insight into their capability to execute this specific award efficiently and within budget. Reviewing contract close-out data and any past performance evaluations would be crucial for a comprehensive assessment.

How does the $19.3 million contract value compare to similar mobilization and demobilization contracts awarded by the Department of the Army?

Benchmarking the $19.3 million value requires comparing it to contracts with similar scope, duration, and geographic location. Mobilization and demobilization costs can vary significantly based on the complexity of the equipment, distance of transport, and logistical challenges, especially in remote areas like Alaska. If this contract represents a significant portion of a larger project's budget, it suggests a substantial undertaking. Without access to a database of comparable contracts, it's difficult to provide a precise comparison, but the value appears substantial, reflecting the specialized nature and potential logistical hurdles involved.

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

Key risks include logistical challenges in Alaska (weather, terrain, remote access), potential for equipment damage during transit, and schedule delays impacting subsequent project phases. Mitigation strategies likely involve detailed planning by Dutra Dredging Company, adherence to strict safety and transport protocols, and robust oversight from the Army Corps of Engineers. The fixed-price nature of the contract incentivizes the contractor to manage these risks effectively to avoid cost overruns. The contract duration of 985 days also allows for some flexibility in scheduling around potential disruptions.

What is the expected effectiveness of these mobilization and demobilization services in supporting larger Army construction projects?

Effective mobilization and demobilization are foundational to the success of any large construction project. These services ensure that the necessary equipment, materials, and personnel are in place when and where needed, and are efficiently removed upon project completion. For Army construction projects, particularly those in strategic or remote locations like Alaska, timely and cost-effective execution of these logistical phases is critical for maintaining project timelines and operational readiness. The contract's value and duration suggest it is a significant enabler for a larger, likely complex, engineering endeavor.

What are the historical spending patterns for mobilization and demobilization services by the Department of the Army, and how does this contract fit?

The Department of the Army, particularly through the Army Corps of Engineers, frequently procures mobilization and demobilization services as integral parts of larger construction and dredging contracts. Historical spending patterns show a consistent need for these services, especially for overseas deployments and domestic infrastructure projects in challenging environments. This $19.3 million contract appears to be a substantial, but not unprecedented, investment for a project of significant scale and duration, fitting within the typical procurement profile for major civil engineering works undertaken by the Army.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB09R0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2350 KERNER BLVD, SAN RAFAEL, CA, 94901

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

Financial Breakdown

Contract Ceiling: $19,258,389

Exercised Options: $19,258,389

Current Obligation: $19,258,389

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2009-05-15

Current End Date: 2012-01-25

Potential End Date: 2012-01-25 00:00:00

Last Modified: 2020-09-27

More Contracts from Dutra Dredging Company

View all Dutra Dredging Company federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending