Army awards $87.4M contract for Norfolk Harbor deepening, boosting navigation capacity

Contract Overview

Contract Amount: $87,443,996 ($87.4M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2022-08-19

End Date: 2025-10-07

Contract Duration: 1,145 days

Daily Burn Rate: $76.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NORFOLK HARBOR 55FT DEEPENING

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $87.4 million to NORFOLK DREDGING COMPANY for work described as: NORFOLK HARBOR 55FT DEEPENING Key points: 1. Contract value represents a significant investment in critical maritime infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this project. 3. Project duration indicates a long-term commitment to enhancing port capabilities. 4. Fixed-price contract type offers cost certainty for the government. 5. Geographic focus on Norfolk highlights the strategic importance of the port. 6. The contract falls within the heavy and civil engineering construction sector.

Value Assessment

Rating: good

The contract value of $87.4 million for the Norfolk Harbor deepening project appears reasonable given the scope of civil engineering work involved. Benchmarking against similar large-scale dredging and port infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, contributing to a positive value assessment.

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 bids. With four bidders participating, the competition level suggests a healthy market for this type of specialized heavy construction. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: Full and open competition with multiple bidders typically leads to more favorable pricing for taxpayers by fostering a competitive environment that drives down costs.

Public Impact

Benefits commercial shipping by enabling larger vessels to access the port. Enhances national security by improving the operational capacity of a key military port. Supports economic activity in the Hampton Roads region through improved logistics. Creates employment opportunities in the construction and maritime industries. Improves the efficiency of goods movement through the Port of Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting project completion and benefits realization.
Environmental impact of dredging activities requires careful monitoring and mitigation.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award to a known dredging company suggests established capability.
Full and open competition indicates a robust market response.

Sector Analysis

This contract falls within the Other Heavy and Civil Engineering Construction sector, a critical area for national infrastructure development. The market for large-scale dredging and port improvement projects is specialized, often dominated by a few experienced firms. The $87.4 million award is substantial, reflecting the complexity and scale of deepening a major harbor. Comparable projects might include other port expansions or major waterway improvements across the country.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this large-scale civil engineering project. Given the specialized nature and significant value, it is unlikely that small businesses would be primary contractors. However, opportunities for subcontracting to small businesses in areas like equipment supply, logistics, or specialized support services may exist, though this is not explicitly detailed in the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of the Army, as the awarding agency, will monitor performance and compliance. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The firm fixed-price nature of the contract also provides a degree of financial oversight.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
Maritime Security Programs
Inland Waterways Trust Fund Projects

Risk Flags

Environmental impact of dredging
Potential for unforeseen subsurface conditions
Schedule adherence risks due to weather or logistics
Ensuring long-term economic viability of port improvements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.4 million to NORFOLK DREDGING COMPANY. NORFOLK HARBOR 55FT DEEPENING

Who is the contractor on this award?

The obligated recipient is NORFOLK 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 $87.4 million.

What is the period of performance?

Start: 2022-08-19. End: 2025-10-07.

What is the track record of Norfolk Dredging Company on similar large-scale federal contracts?

Norfolk Dredging Company has a history of performing significant civil engineering and dredging projects for federal agencies, including the Army Corps of Engineers. While specific details on past performance for projects of this exact scale and complexity require deeper database analysis, their established presence in the industry suggests a capacity to handle such undertakings. Reviewing past contract performance metrics, any past performance issues, and the types of projects they have successfully completed would offer a more comprehensive understanding of their reliability and expertise for the Norfolk Harbor 55ft Deepening project.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates an awarded amount of $87,443,995.77. Without access to the government's initial cost estimates or budget allocations for the Norfolk Harbor 55ft Deepening project, a direct comparison is not possible. However, the fact that it was awarded under full and open competition with four bidders suggests that the bids received were likely within a reasonable range of the government's expectations. Further analysis would involve obtaining pre-solicitation estimates or post-award budget information to assess if the contract represents cost efficiency or potential overruns relative to the planned expenditure.

What are the primary risks associated with a project of this magnitude and duration?

Projects of this magnitude and duration, such as the Norfolk Harbor deepening, carry several inherent risks. Environmental risks are significant, including potential impacts on marine ecosystems, water quality, and the discovery of historical artifacts during dredging, requiring robust mitigation strategies. Schedule risks include weather delays, unforeseen subsurface conditions (e.g., harder rock than anticipated), and potential labor or equipment issues. Financial risks, though mitigated by the firm fixed-price contract, could still arise from scope creep if not managed tightly or from unexpected regulatory changes. Geopolitical or economic shifts could also indirectly impact the project's long-term strategic value.

What is the expected impact of the 55ft deepening on vessel capacity and port efficiency?

Deepening Norfolk Harbor to 55 feet is expected to significantly enhance its capacity to accommodate larger, modern cargo vessels, including the largest container ships currently in operation. This increased draft capability will allow the Port of Virginia to attract more high-volume shipping lines, reduce vessel turnaround times, and improve overall logistical efficiency. The project directly addresses the trend towards larger ships in global trade, ensuring the port remains competitive and can handle growing cargo volumes, thereby boosting regional economic activity and facilitating international commerce.

How has federal spending on similar heavy and civil engineering construction projects evolved over the past five years?

Federal spending on heavy and civil engineering construction projects has generally seen fluctuations driven by infrastructure initiatives and economic conditions. Following periods of underinvestment, there has been a renewed focus on upgrading critical infrastructure, including ports, waterways, and transportation networks. While specific aggregate data requires detailed analysis of federal spending reports, major infrastructure bills and agency-specific budget allocations often signal trends. Spending in this sector is typically project-driven, with significant investments concentrated in large-scale projects like harbor deepening, bridge construction, and highway expansions, often influenced by national security and economic competitiveness priorities.

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: SEALED BID

Solicitation ID: W9123622B5000

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 CENTERVILLE TPKE N, CHESAPEAKE, VA, 23320

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

Financial Breakdown

Contract Ceiling: $87,443,996

Exercised Options: $87,443,996

Current Obligation: $87,443,996

Actual Outlays: $4,733,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline