Army awards $20.4M for beachfill project in Delaware, highlighting coastal resilience efforts

Contract Overview

Contract Amount: $20,419,719 ($20.4M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-13

End Date: 2008-09-30

Contract Duration: 445 days

Daily Burn Rate: $45.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: BETHANY BEACH AND SOUTH BETHANY BEACHFILL

Place of Performance

Location: REHOBOTH BEACH, SUSSEX County, DELAWARE, 19971

State: Delaware Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to WEEKS MARINE, INC. for work described as: BETHANY BEACH AND SOUTH BETHANY BEACHFILL Key points: 1. The contract value represents a significant investment in coastal infrastructure maintenance. 2. Competition dynamics for this project are crucial for ensuring cost-effectiveness. 3. Performance risk is moderate, given the specialized nature of coastal engineering. 4. This project aligns with broader federal initiatives for environmental protection and disaster preparedness. 5. The sector involves heavy civil engineering, with a focus on marine construction.

Value Assessment

Rating: good

The contract value of $20.4 million for beachfill appears reasonable for a project of this scale and complexity. While direct comparisons are difficult without specific project details, similar coastal restoration projects often involve substantial costs for materials, equipment, and specialized labor. The fixed-price contract type suggests that the government has a clear understanding of the scope and cost, which can lead to better value if the contractor manages risks effectively. Benchmarking against other Army Corps of Engineers projects of similar scope would provide further insight into the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government. The presence of three bidders suggests a healthy level of interest and capability within the market for this type of specialized construction.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Residents and businesses in Bethany Beach and South Bethany Beach, Delaware, benefit from enhanced coastal protection. The project delivers critical beach nourishment services, crucial for tourism and property value. Geographic impact is localized to the specified coastal areas in Delaware. The project supports the local construction workforce and related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise during construction.
Dependence on specialized equipment and materials could lead to supply chain disruptions.
Weather-related delays could impact project timelines and potentially increase costs.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Fixed-price contract type helps manage cost uncertainty for the government.
Experienced contractor likely possesses the necessary expertise for this specialized work.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on marine and coastal construction. This sector is characterized by large-scale projects, significant capital investment, and specialized expertise. The market size for coastal restoration and protection projects is substantial, driven by increasing concerns about climate change, sea-level rise, and storm impacts. This project represents a typical investment in maintaining and improving vital coastal infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Weeks Marine, Inc., is a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

The Department of the Army, through its contracting and project management offices, provides oversight for this contract. The fixed-price nature of the contract shifts some risk to the contractor, but the government retains responsibility for monitoring performance, quality, and adherence to contract terms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal Zone Management Programs
Beach Erosion Control Projects
Disaster Mitigation and Infrastructure Projects

Risk Flags

Potential for environmental impact during sand sourcing and placement.
Weather dependency could lead to schedule delays.
Requires specialized marine construction equipment and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to WEEKS MARINE, INC.. BETHANY BEACH AND SOUTH BETHANY BEACHFILL

Who is the contractor on this award?

The obligated recipient is WEEKS MARINE, 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 $20.4 million.

What is the period of performance?

Start: 2007-07-13. End: 2008-09-30.

What is the track record of Weeks Marine, Inc. in performing similar coastal construction projects for the federal government?

Weeks Marine, Inc. has a significant history of performing large-scale marine construction projects, including beach nourishment, dredging, and breakwater construction, for various federal agencies, notably the U.S. Army Corps of Engineers. Their portfolio often includes projects similar in scope and complexity to the Bethany Beach and South Bethany Beachfill project. Reviewing their past performance evaluations and contract completion records would provide insight into their reliability, quality of work, and ability to manage project timelines and budgets effectively. Specific data on past project values and any performance issues or commendations would offer a more detailed assessment of their suitability for this type of work.

How does the awarded amount of $20.4 million compare to the estimated cost or budget for this beachfill project?

The awarded amount of $20.4 million represents the final contract value agreed upon after the bidding process. To assess value for money, this figure should be compared against the government's independent cost estimate (ICE) developed prior to the solicitation. If the awarded amount is significantly below the ICE, it suggests strong competition and potentially good value. Conversely, if it's close to or exceeds the ICE, further scrutiny of the bidding process and the contractor's proposal might be warranted. Without access to the ICE, it's challenging to definitively state if the price is optimal, but the full and open competition suggests a market-driven price.

What are the primary risks associated with this specific beachfill project, and how are they being mitigated?

Key risks for this beachfill project include environmental factors such as unexpected subsurface conditions (e.g., buried debris, unsuitable soil), weather disruptions (storms impacting work schedules and material placement), and potential permit compliance issues. The fixed-price contract type inherently transfers some financial risk to the contractor, incentivizing them to manage these issues proactively. Mitigation strategies likely involve thorough site investigations prior to construction, detailed project planning with weather contingencies, robust quality assurance/quality control (QA/QC) processes, and close coordination with environmental agencies. The contractor's experience in similar environments is also a mitigating factor.

What is the expected impact of this beachfill project on the local environment and coastal ecosystem?

Beachfill projects aim to restore and maintain the natural protective functions of beaches, which are vital ecosystems. The primary environmental impact is the addition of compatible sand to the shoreline, which can enhance habitat for nesting species like sea turtles and shorebirds, and provide a buffer against storm surge. However, the process of sand extraction, transport, and placement can temporarily disrupt benthic organisms and nearshore habitats. Environmental impact assessments and monitoring plans, often required as part of the contract, are designed to minimize negative effects and ensure compliance with environmental regulations, aiming for a net positive or neutral impact on the ecosystem.

How does the duration of the contract (445 days) align with typical timelines for similar coastal restoration projects?

A contract duration of 445 days (approximately 15 months) for a $20.4 million beachfill project appears reasonable and is generally in line with the timelines for similar large-scale coastal restoration efforts. These projects often involve significant logistical challenges, including sourcing large quantities of sand, mobilizing specialized equipment, coordinating with multiple stakeholders, and accounting for seasonal weather patterns that can affect construction windows. The duration allows for thorough execution while also considering potential delays. Comparing this duration to other Army Corps of Engineers beachfill projects of comparable size and complexity would provide a more precise benchmark.

What is the significance of the 'Other Heavy and Civil Engineering Construction' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' signifies that this contract falls under a broad category encompassing construction projects not elsewhere classified. This includes specialized infrastructure like dams, levees, seawalls, and, relevantly, coastal protection structures such as beachfill projects. This classification indicates the project requires specialized engineering and construction capabilities beyond typical building construction, often involving significant earthmoving, marine operations, and environmental considerations. It helps categorize the contract within the broader construction industry and identify relevant market segments.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912BU07B0013

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weeks Marine Inc (UEI: 044665230)

Address: 304 GAILLE DR, COVINGTON, LA, 70433

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,419,719

Exercised Options: $20,419,719

Current Obligation: $20,419,719

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline