Army awards $27.5M contract for Craney Island eastward expansion dredging to Norfolk Dredging Company

Contract Overview

Contract Amount: $27,520,156 ($27.5M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2025-04-04

End Date: 2026-11-03

Contract Duration: 578 days

Daily Burn Rate: $47.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CRANEY ISLAND EASTWARD EXPANSION PHASE 1C. NEW WORK DREDGING BY MECHANICAL OR BUCKET PLANT AT THE SOUTHEASTERN CELL OF THE CRANEY ISLAND DREDGE MATERIAL MANAGEMENT AREA. MATERIAL REMOVED WILL BE PLACED AT THE NORFOLK OCEAN DISPOSAL SITE

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to NORFOLK DREDGING COMPANY for work described as: CRANEY ISLAND EASTWARD EXPANSION PHASE 1C. NEW WORK DREDGING BY MECHANICAL OR BUCKET PLANT AT THE SOUTHEASTERN CELL OF THE CRANEY ISLAND DREDGE MATERIAL MANAGEMENT AREA. MATERIAL REMOVED WILL BE PLACED AT THE NORFOLK OCEAN DISPOSAL SITE Key points: 1. Contract focuses on critical infrastructure maintenance and expansion at a key dredge material management area. 2. The project involves mechanical or bucket plant dredging and placement at an ocean disposal site, indicating specialized environmental and logistical requirements. 3. A firm-fixed-price contract structure suggests a defined scope and cost, potentially mitigating budget overruns if managed effectively. 4. The duration of 578 days points to a substantial, multi-year undertaking requiring significant resource allocation. 5. The contract's value, while significant, should be benchmarked against similar large-scale civil engineering and dredging projects for a comprehensive value assessment.

Value Assessment

Rating: good

The contract value of $27.5 million for dredging and material placement appears reasonable for a project of this scale and complexity, involving specialized equipment and environmental considerations. Benchmarking against similar large-scale civil engineering projects, particularly those involving significant dredging and disposal operations, would provide a more precise value-for-money assessment. The firm-fixed-price structure offers cost certainty, which is a positive indicator for budget management. However, without detailed cost breakdowns or comparisons to recent, directly comparable projects, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 5 bidders suggests a competitive environment, which typically drives better pricing and service offerings. The level of competition is a positive sign for price discovery and ensures that the government is likely receiving a fair market price for the services rendered. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the value of public funds.

Public Impact

The primary beneficiaries are the Department of the Army and the broader maritime infrastructure, ensuring continued operational capacity for dredge material management. The project delivers essential services related to dredging, material removal, and disposal, crucial for maintaining navigable waterways and port facilities. The geographic impact is concentrated around the Craney Island Dredge Material Management Area and the Norfolk Ocean Disposal Site in Virginia. This contract supports specialized labor in the dredging and heavy civil engineering sectors, potentially creating or sustaining jobs for skilled operators and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen conditions arise during dredging, impacting cost and schedule.
Environmental compliance risks associated with ocean disposal, requiring strict adherence to regulations.
Dependence on specialized dredging equipment and potential for operational delays due to equipment availability or maintenance.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes efficient project execution.
Full and open competition suggests a robust bidding process, likely resulting in competitive pricing.
The project addresses a critical need for dredge material management, supporting long-term infrastructure sustainability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging and marine construction. This sector is vital for maintaining and expanding maritime infrastructure, including ports, waterways, and coastal defenses. The market for large-scale dredging projects is often specialized, with a limited number of experienced contractors capable of undertaking such complex operations. Spending in this area is driven by the need for ongoing maintenance, environmental compliance, and infrastructure development to support trade and national security. Comparable spending benchmarks would typically involve other Army Corps of Engineers projects or similar large-scale civil works contracts.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this is a large-scale project likely dominated by larger firms, the prime contractor, Norfolk Dredging Company, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be a key factor in assessing the contract's impact on the small business ecosystem. Without specific subcontracting plans or goals, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for executing civil works projects. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award announcements and public contract databases. The Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Craney Island Dredge Material Management Area Operations
Norfolk Harbor Deepening Projects
U.S. Army Corps of Engineers Civil Works Program
Coastal Navigation and Port Infrastructure Projects
Ocean Dredged Material Disposal Regulations

Risk Flags

Environmental Compliance Risk
Unforeseen Site Conditions
Schedule Delay Risk
Equipment Availability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to NORFOLK DREDGING COMPANY. CRANEY ISLAND EASTWARD EXPANSION PHASE 1C. NEW WORK DREDGING BY MECHANICAL OR BUCKET PLANT AT THE SOUTHEASTERN CELL OF THE CRANEY ISLAND DREDGE MATERIAL MANAGEMENT AREA. MATERIAL REMOVED WILL BE PLACED AT THE NORFOLK OCEAN DISPOSAL SITE

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 $27.5 million.

What is the period of performance?

Start: 2025-04-04. End: 2026-11-03.

What is the track record of Norfolk Dredging Company on similar large-scale dredging projects?

Norfolk Dredging Company has a long history of performing dredging and marine construction services, particularly along the East Coast of the United States. They have been involved in numerous projects for the U.S. Army Corps of Engineers, as well as private clients, encompassing channel maintenance, harbor deepening, beach nourishment, and environmental dredging. Their experience typically includes working with various dredging methods, such as mechanical (clamshell/bucket) and hydraulic dredging, and managing the disposal of dredged materials in accordance with environmental regulations. Reviewing their past performance on contracts of similar size and scope, particularly those involving ocean disposal, would provide insight into their capabilities and reliability for the Craney Island project. Specific project completion records, any past performance issues, and client satisfaction ratings would be key indicators.

How does the awarded amount compare to the estimated cost or previous similar projects?

The awarded amount of $27.5 million for the Craney Island eastward expansion Phase 1C is a significant figure for a dredging project. To assess value, this amount needs to be compared against the government's initial cost estimate for this specific project, if available, and against the costs of similar dredging and material placement contracts awarded by the Army Corps of Engineers or other agencies in recent years. Factors such as the volume of material to be dredged, the complexity of the dredging method (mechanical vs. hydraulic), the distance and method of material disposal (e.g., confined aquatic disposal, ocean disposal, upland placement), and prevailing market rates for equipment and labor will heavily influence cost. Without direct comparative data, it's challenging to definitively state if this represents excellent or fair value, but the firm-fixed-price nature and competitive bidding suggest a market-driven price.

What are the primary risks associated with this contract and how are they being mitigated?

The primary risks for this contract include potential environmental challenges related to the disposal of dredged material at the Norfolk Ocean Disposal Site, which requires strict adherence to EPA regulations and monitoring. Unforeseen subsurface conditions (e.g., hard rock, debris, hazardous materials) could lead to delays and cost increases, although the firm-fixed-price contract aims to transfer some of this risk to the contractor. Operational risks, such as equipment breakdowns or weather-related disruptions impacting the 578-day schedule, are also present. Mitigation strategies likely involve detailed site investigations prior to award, robust environmental monitoring plans, contingency planning for unforeseen conditions, and performance incentives or penalties built into the contract. The contractor's experience and the competitive bidding process also serve as risk mitigation factors.

What is the historical spending pattern for dredging and material management at Craney Island?

Craney Island has been a critical component of the U.S. Army Corps of Engineers' dredge material management strategy for decades, serving the ports of Hampton Roads. Historical spending on Craney Island operations and expansions has been substantial, reflecting the ongoing need to manage millions of cubic yards of dredged material from federal navigation projects. This specific contract, 'Phase 1C - Eastward Expansion,' represents a continuation and expansion of these efforts. Analyzing past contracts awarded for Craney Island expansions, maintenance dredging, and material placement would reveal trends in contract values, durations, and the types of services procured. Such analysis would help contextualize the $27.5 million award within the broader, long-term investment in managing this vital disposal facility and ensuring the navigability of the region's waterways.

How does the contract's duration and scope align with the overall goals of the Craney Island eastward expansion?

The 578-day duration (approximately 1.6 years) for Phase 1C of the Craney Island eastward expansion suggests a significant but manageable segment of a larger, multi-phase expansion effort. The scope, involving mechanical or bucket dredging and placement at the ocean disposal site, indicates a focus on specific types of material or site conditions within the expansion area. The eastward expansion aims to increase the capacity and lifespan of the Craney Island facility, which is crucial for ongoing maintenance dredging of the Hampton Roads harbor and channels. This contract's completion should contribute measurably to that capacity goal. The alignment is likely strong, with this phase addressing a defined portion of the overall expansion plan, contributing incrementally to the facility's long-term viability and the continued navigability of the region's vital waterways.

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: W9123625B5002

Offers Received: 5

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: $27,520,156

Exercised Options: $27,520,156

Current Obligation: $27,520,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline