Army awards $23.2M dredging contract to Western Marine Construction for Valdez navigation improvements

Contract Overview

Contract Amount: $23,236,467 ($23.2M)

Contractor: Western Marine Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-10-30

End Date: 2018-01-02

Contract Duration: 1,160 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DREDGING MAINTENANCE SERVICES FOR VALDEZ NAVIGATION IMPROVEMENT, VALDEZ, AK

Place of Performance

Location: VALDEZ, VALDEZ CORDOVA County, ALASKA, 99686

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to WESTERN MARINE CONSTRUCTION, INC. for work described as: IGF::OT::IGF DREDGING MAINTENANCE SERVICES FOR VALDEZ NAVIGATION IMPROVEMENT, VALDEZ, AK Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration of approximately 3 years indicates a significant, long-term project. 4. The definitive contract type suggests a single, established agreement for services. 5. Fixed-price contract type helps mitigate cost overrun risks for the government. 6. Geographic focus on Alaska highlights specialized requirements for Arctic conditions.

Value Assessment

Rating: good

The contract value of $23.2 million for dredging and navigation improvements in Valdez, Alaska, falls within a reasonable range for heavy civil engineering projects of this nature. While specific benchmarks for Alaskan dredging are scarce, the fixed-price nature of the contract provides cost certainty. The number of bidders (6) suggests a degree of market interest and potential for competitive pricing, although a direct comparison to similar contracts would be needed for a more precise value assessment.

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. Six bidders participated in the competition, suggesting a healthy level of interest and a reasonably competitive environment for this specialized service. The open competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government secures the best value for its investment.

Public Impact

The U.S. Army Corps of Engineers benefits from improved navigation infrastructure in Valdez, Alaska. The contract supports the maintenance and improvement of critical maritime access for commercial and military vessels. The geographic impact is concentrated in Valdez, Alaska, a key port in the region. The project likely involves a specialized workforce skilled in marine construction and dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts associated with dredging activities in a sensitive Arctic ecosystem.
Logistical challenges and increased costs associated with operating in remote Alaskan locations.
Dependence on a single contractor for a multi-year, critical infrastructure project.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost predictability for the government.
Project addresses essential navigation improvements for a key Alaskan port.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine infrastructure. The dredging and navigation improvement services are critical for maintaining port functionality and facilitating maritime trade. Comparable spending in this sector can vary widely based on project scope, location, and environmental considerations. The market for specialized marine construction in remote areas like Alaska is often characterized by a limited number of qualified firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, the contracting agency. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Harbor Maintenance
Maritime Navigation Infrastructure
Alaska Infrastructure Projects

Risk Flags

Environmental Sensitivity
Geographic Isolation
Logistical Complexity
Potential for Unforeseen Conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to WESTERN MARINE CONSTRUCTION, INC.. IGF::OT::IGF DREDGING MAINTENANCE SERVICES FOR VALDEZ NAVIGATION IMPROVEMENT, VALDEZ, AK

Who is the contractor on this award?

The obligated recipient is WESTERN MARINE CONSTRUCTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2014-10-30. End: 2018-01-02.

What is the track record of Western Marine Construction, Inc. with federal contracts, particularly with the Department of Defense?

Western Marine Construction, Inc. has a history of federal contracting, primarily with agencies like the Department of Defense and the Department of the Interior. Their contract awards often involve marine construction, dredging, and related heavy civil engineering services. Analyzing their past performance on similar projects, including adherence to schedules, budget management, and quality of work, is crucial for assessing their capability to execute this Valdez contract successfully. A review of their contract history would reveal the volume and types of projects they have undertaken, providing insights into their experience and reliability as a federal contractor.

How does the awarded amount of $23.2 million compare to similar dredging and navigation improvement projects in comparable geographic regions or under similar conditions?

Benchmarking this $23.2 million contract requires comparing it to similar dredging and navigation improvement projects, considering factors like project scope, volume of material moved, environmental complexities, and geographic location. Projects in remote or environmentally sensitive areas, such as Alaska, often incur higher logistical and operational costs. While specific public data on comparable Alaskan dredging projects is limited, the number of bidders (6) suggests a competitive market that likely influenced the final price. A detailed analysis would involve examining contract databases for projects with similar cubic yardage dredged, depth requirements, and duration to establish a robust value-for-money assessment.

What are the primary risks associated with this contract, considering its location, duration, and the nature of the work?

Key risks for this contract include environmental challenges inherent in dredging operations within Alaska's sensitive ecosystems, potentially leading to delays or increased mitigation costs. Logistical complexities and the higher cost of operating in a remote location like Valdez present significant risks to project timelines and budget. The contract's duration of approximately 1160 days (over 3 years) increases exposure to potential changes in regulations, material costs, or unforeseen site conditions. Furthermore, reliance on a single definitive contract for such a critical infrastructure project carries inherent risks if the contractor faces performance issues or financial instability.

How effective are fixed-price contracts in ensuring value for money for large-scale civil engineering projects like this one?

Fixed-price contracts, like the one awarded here, are generally effective in ensuring value for money by shifting the risk of cost overruns to the contractor. This provides the government with cost certainty, as the price is agreed upon upfront. For large-scale civil engineering projects, this predictability is highly valuable. However, the effectiveness hinges on the accuracy of the initial cost estimates and the thoroughness of the contract specifications. If the scope is not well-defined or unforeseen conditions arise, contractors may seek change orders, potentially increasing the overall cost. The competitive bidding process is crucial in ensuring the initial fixed price is reasonable.

What is the historical spending pattern for navigation improvement and dredging services by the Department of the Army in Alaska?

Historical spending patterns for navigation improvement and dredging by the Department of the Army in Alaska reveal a consistent need for such services due to the state's extensive coastline and critical port infrastructure. The Army Corps of Engineers, responsible for maintaining navigable waterways, regularly awards contracts for dredging, channel maintenance, and related construction in Alaskan ports. Spending in this region is often characterized by higher unit costs compared to the contiguous U.S. due to logistical challenges, shorter construction seasons, and specialized environmental requirements. Analyzing past contract awards in Valdez and other Alaskan ports would provide context for the $23.2 million awarded to Western Marine Construction, Inc.

What are the potential long-term benefits and implications of improved navigation in Valdez, Alaska, beyond the immediate project scope?

Improved navigation in Valdez, Alaska, offers significant long-term benefits, enhancing the efficiency and safety of maritime operations. This can lead to increased commercial activity, supporting industries such as fishing, tourism, and resource extraction. For military purposes, it ensures reliable access for naval vessels and logistical support. Economically, enhanced port functionality can attract further investment and create jobs, boosting the regional economy. The project's success contributes to the overall resilience and strategic importance of Alaskan ports within the broader national maritime infrastructure.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB14R0035

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2775 HARBOR AVE SW STE A, SEATTLE, WA, 98126

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

Financial Breakdown

Contract Ceiling: $23,236,467

Exercised Options: $23,236,467

Current Obligation: $23,236,467

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline