Army awards $21.3M dredging contract to Dutra Dredging Company for West Coast Hopper Maintenance

Contract Overview

Contract Amount: $21,343,934 ($21.3M)

Contractor: Dutra Dredging Company

Awarding Agency: Department of Defense

Start Date: 2013-03-29

End Date: 2013-11-30

Contract Duration: 246 days

Daily Burn Rate: $86.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WEST COAST HOPPER MAINTENANCE DREDGING FY 2013

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to DUTRA DREDGING COMPANY for work described as: WEST COAST HOPPER MAINTENANCE DREDGING FY 2013 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm fixed price, which shifts cost risk to the contractor. 3. The duration of the contract was 246 days. 4. The contract was awarded to a single contractor, Dutra Dredging Company. 5. The contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The contract was awarded in FY 2013.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar dredging projects in the same region and year. The reported value of $21.3 million for hopper maintenance dredging over 246 days provides a general scale, but specific cost-effectiveness metrics are not readily available. The firm fixed-price nature indicates that the contractor assumed cost overruns, which can be a positive for the government if managed well.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this specific dredging service. While multiple bidders participated, the exact number and the competitiveness of their bids are not detailed, making it difficult to definitively assess if the pricing achieved was optimal.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to lower overall costs for government services.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers, ensuring the operational readiness of West Coast ports and waterways. The service delivered is essential maintenance dredging, crucial for maintaining navigation depths for commercial and military vessels. The geographic impact is focused on the West Coast of the United States, specifically Oregon. The contract supports the heavy civil engineering construction workforce involved in dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it difficult to assess true value for money.
Limited information on the specific performance metrics and quality of work delivered.
The contract was awarded in 2013, making current market comparisons less direct.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Firm fixed-price contract shifts cost risk to the contractor.
The contract addresses a critical infrastructure maintenance need.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on marine infrastructure maintenance. The dredging market is specialized, often involving significant capital investment in equipment and expertise. Comparable spending benchmarks would typically involve other Army Corps of Engineers projects or similar maritime infrastructure contracts awarded by other federal or state agencies. The $21.3 million award is a substantial sum for a single maintenance contract, reflecting the scale and complexity of hopper dredging operations.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature and scale of hopper dredging, it is less common for such contracts to be exclusively set aside for small businesses. Subcontracting opportunities for small businesses might exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, which is responsible for managing and executing dredging projects. Accountability measures would be tied to the contract's performance clauses and the firm fixed-price structure. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Waterway Dredging Contracts
Federal Maritime Infrastructure Maintenance

Risk Flags

Contract awarded in 2013, may not reflect current market conditions or pricing.
Limited data on performance metrics and quality of work.
Specific scope of work and geographic details beyond 'West Coast' are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to DUTRA DREDGING COMPANY. WEST COAST HOPPER MAINTENANCE DREDGING FY 2013

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 $21.3 million.

What is the period of performance?

Start: 2013-03-29. End: 2013-11-30.

What was the specific scope of work for this hopper maintenance dredging contract?

The provided data indicates the contract was for 'WEST COAST HOPPER MAINTENANCE DREDGING FY 2013'. Hopper dredging typically involves using specialized vessels (hopper dredges) to excavate and transport sediment from waterways, harbors, and channels. Maintenance dredging is performed to remove accumulated sediment and restore or maintain specified depths for safe navigation. The specific locations and quantities of material to be dredged would have been detailed in the contract's statement of work, but are not included in this summary data. The contract aimed to ensure the navigability of West Coast ports and channels.

How does the $21.3 million award compare to typical federal spending on dredging contracts?

The $21.3 million award for this specific contract is a significant amount, reflecting the scale and specialized nature of hopper dredging. Federal spending on dredging can vary widely based on project scope, location, and urgency. Major channel deepening projects can run into hundreds of millions of dollars, while routine maintenance contracts for smaller ports might be in the single-digit millions. This $21.3 million contract for West Coast hopper maintenance in FY 2013 appears to be a substantial, but not unprecedented, investment for ensuring critical waterway depths. Without a direct comparison of scope and duration for other similar contracts from the same period, a precise benchmark is difficult.

What are the potential risks associated with a firm fixed-price contract for dredging services?

A firm fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For dredging, potential risks include unforeseen subsurface conditions (e.g., harder-than-expected material, buried debris), equipment breakdowns, adverse weather delays, and fluctuating fuel costs. If these risks materialize and are not adequately accounted for in the contractor's bid, the contractor could incur losses. Conversely, if the contractor manages these risks effectively and completes the work under budget, they realize a higher profit. For the government, the primary benefit of FFP is cost certainty, but the risk is that the contractor may have inflated their bid to cover potential contingencies, leading to a higher initial price.

What does the number of bidders (3) suggest about the competition for this contract?

Having three bidders for this contract suggests a moderate level of competition. In the specialized field of hopper dredging, the number of qualified contractors capable of undertaking large-scale projects can be limited due to the high cost of specialized equipment and the required expertise. Three bidders indicate that the opportunity was known and accessible to multiple firms, which is generally positive for price discovery. However, it does not necessarily imply intense competition. A higher number of bidders (e.g., 5+) would typically indicate broader market interest and potentially more aggressive pricing. The specific details of the bids submitted would be necessary to fully assess the competitiveness achieved.

What is the historical spending pattern for West Coast hopper maintenance dredging by the Army Corps of Engineers?

Analyzing historical spending patterns for West Coast hopper maintenance dredging requires access to detailed historical contract data beyond this single award. The Army Corps of Engineers (USACE) is responsible for maintaining federal navigation channels nationwide, and dredging is a recurring and significant part of their budget. Spending fluctuates based on the condition of waterways, regulatory requirements, and overall appropriations. Contracts like this one are part of a larger, ongoing program of channel maintenance. To understand the pattern, one would need to examine USACE budget justifications, historical contract awards databases (like FPDS or SAM.gov), and reports on dredging activities over multiple fiscal years to identify trends in contract values, frequency, and geographic distribution.

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: W9127N13B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2350 KERNER BLVD STE 200, 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: $21,974,434

Exercised Options: $21,343,934

Current Obligation: $21,343,934

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline