Army awards $45.7M contract for dredging services, with Norfolk Dredging Company as the sole awardee

Contract Overview

Contract Amount: $45,736,573 ($45.7M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2017-07-27

End Date: 2018-11-09

Contract Duration: 470 days

Daily Burn Rate: $97.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DRMCD, UPPER REACH B IGF::OT::IGF

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19107

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to NORFOLK DREDGING COMPANY for work described as: DRMCD, UPPER REACH B IGF::OT::IGF Key points: 1. The contract value represents a significant investment in maintaining critical waterways. 2. Competition dynamics for this specific dredging project require further examination. 3. The firm-fixed-price contract type suggests a defined scope and cost structure. 4. Performance duration of 470 days indicates a substantial operational undertaking. 5. The contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category. 6. Geographic focus on Pennsylvania suggests localized infrastructure needs.

Value Assessment

Rating: fair

Benchmarking the value of this $45.7 million contract is challenging without specific project details and comparable dredging projects. The 'Other Heavy and Civil Engineering Construction' category is broad. However, the award amount is substantial, suggesting a significant scope of work. Further analysis would require comparing the per-unit costs (e.g., per cubic yard dredged) against industry standards and other government contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, with only one awardee, Norfolk Dredging Company, it is important to understand if this was due to a limited number of qualified bidders or if other bids were non-responsive. The presence of multiple bidders is generally expected to drive competitive pricing.

Taxpayer Impact: Full and open competition is intended to ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better value.

Public Impact

The primary beneficiaries are likely entities reliant on navigable waterways for commerce and transportation within Pennsylvania. The services delivered involve essential dredging to maintain or improve channel depths and navigability. The geographic impact is concentrated in Pennsylvania, specifically where the dredging operations are conducted. Workforce implications may include employment opportunities for skilled labor in the dredging and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the dredging work.
The specific environmental impact and mitigation strategies employed are not detailed.
Understanding the long-term maintenance needs and future dredging requirements is crucial.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests an effort to maximize potential bidders.
The contract duration indicates a commitment to addressing a significant infrastructure need.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which includes a wide range of infrastructure projects. Dredging is a specialized subset of this sector, critical for maintaining ports, harbors, and inland waterways. The market for large-scale dredging services is often concentrated among a few specialized firms. Comparable spending benchmarks would typically involve analyzing other Army Corps of Engineers or Department of Transportation dredging contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature and scale of major dredging projects, it is common for such contracts to be awarded to larger, established firms. Subcontracting opportunities for small businesses might exist in supporting roles, but the primary awardee is a large entity.

Oversight & Accountability

Oversight for Army contracts typically involves the contracting officer, program managers, and potentially the Army Audit Agency or Inspector General, depending on the scale and nature of any issues. Transparency is generally facilitated through contract databases like FPDS. Accountability measures are built into the contract terms, including performance standards and payment schedules.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Navigation Dredging Contracts

Risk Flags

Potential for environmental impact
Unforeseen subsurface conditions
Weather-related delays
Contract performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to NORFOLK DREDGING COMPANY. DRMCD, UPPER REACH B IGF::OT::IGF

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 $45.7 million.

What is the period of performance?

Start: 2017-07-27. End: 2018-11-09.

What is the specific scope of work for this dredging contract, and what are the key performance indicators?

The provided data does not detail the specific scope of work beyond 'Other Heavy and Civil Engineering Construction' and the fact that it is a dredging contract. Key performance indicators (KPIs) are also not specified in the summary data. Typically, dredging contracts would include metrics such as cubic yards of material removed, depth achieved, disposal methods, and environmental compliance. Without these specifics, a thorough assessment of performance is not possible. The contract duration of 470 days suggests a significant undertaking, likely involving maintenance or capital dredging in a specific waterway or port area within Pennsylvania.

How does the awarded price of $45.7 million compare to similar dredging projects undertaken by the Army or other federal agencies?

Directly comparing the $45.7 million award to similar projects is difficult without more granular data on the scope, location, and specific requirements of those projects. Dredging costs vary significantly based on factors like the type of material being dredged (e.g., sand, silt, rock), the distance material must be transported for disposal, environmental regulations, and the required depth and width of the channel. To perform a robust comparison, one would need to analyze per-cubic-yard dredging costs from comparable contracts, considering the specific conditions of each project. The 'Other Heavy and Civil Engineering Construction' category is very broad, making cross-project comparisons challenging without further specialization.

What is Norfolk Dredging Company's track record with federal contracts, particularly with the Department of the Army?

Norfolk Dredging Company has a history of receiving federal contracts, including those from the Department of the Army and the Army Corps of Engineers. Their specialization in dredging and marine construction suggests they are a qualified entity for such work. A review of their contract history would reveal the types and values of previous awards, their performance ratings on past contracts (if available), and any instances of contract disputes or terminations. This information is crucial for assessing their reliability and capability in executing the current $45.7 million contract effectively and efficiently.

What are the potential risks associated with this contract, and how are they being managed?

Potential risks for a dredging contract of this magnitude include environmental compliance issues (e.g., handling contaminated sediments), unforeseen subsurface conditions (e.g., encountering unexpected rock formations), weather delays impacting the schedule, and potential cost overruns if the contract type is not strictly fixed-price or if scope changes occur. Management of these risks would typically involve detailed site investigations prior to award, robust environmental monitoring plans, contingency planning for weather, and clear change order procedures. The firm-fixed-price nature of this contract aims to mitigate cost overrun risks for the government, provided the scope is well-defined.

How does this contract fit into the broader context of Army Corps of Engineers' mission for waterway maintenance and improvement?

This contract aligns with the Army Corps of Engineers' core mission of maintaining and improving the nation's waterways for navigation, flood control, and environmental stewardship. Dredging is a fundamental activity required to keep shipping channels clear and safe for commerce, supporting economic activity. Contracts like this contribute to the overall efficiency and capacity of the U.S. transportation network. The specific location in Pennsylvania suggests it addresses regional navigation needs, potentially supporting local industries and commerce reliant on those waterways.

What is the historical spending trend for similar dredging or heavy civil engineering construction contracts awarded by the Department of the Army?

Analyzing historical spending trends for similar contracts requires access to comprehensive federal procurement data over several fiscal years. The Department of the Army, particularly through the Army Corps of Engineers, consistently awards significant contracts for dredging and civil works. Spending in this category can fluctuate based on infrastructure needs, budget allocations, and the lifecycle of major projects. A trend analysis would involve aggregating data for 'Other Heavy and Civil Engineering Construction' or more specific dredging categories to identify patterns in award values, number of contracts, and dominant awardees over time.

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: SEALED BID

Solicitation ID: W912BU17B0009

Offers Received: 3

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: $45,736,573

Exercised Options: $45,736,573

Current Obligation: $45,736,573

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline