Army awards $30.2M contract for Delaware River maintenance dredging to Norfolk Dredging Company
Contract Overview
Contract Amount: $30,180,843 ($30.2M)
Contractor: Norfolk Dredging Company
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2020-09-30
Contract Duration: 366 days
Daily Burn Rate: $82.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MAINTENANCE DREDGING DELAWARE RIVER
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112
Plain-Language Summary
Department of Defense obligated $30.2 million to NORFOLK DREDGING COMPANY for work described as: MAINTENANCE DREDGING DELAWARE RIVER Key points: 1. Contract value appears reasonable given the scope of river maintenance dredging. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Contract duration of one year aligns with typical maintenance cycles. 5. Geographic focus on Pennsylvania is noted. 6. The contract falls within the 'Other Heavy and Civil Engineering Construction' sector.
Value Assessment
Rating: good
The contract value of $30.2 million for maintenance dredging of the Delaware River appears to be within a reasonable range for such a project. Benchmarking against similar Army Corps of Engineers dredging contracts indicates that pricing for this type of work can vary significantly based on location, depth, and material removed. However, the firm fixed-price nature of this contract provides cost certainty for the government, assuming the contractor accurately estimated their costs. The awarded amount is also notably lower than the reported 'br' (budgeted rate or similar metric) of $82,461, suggesting potential cost savings or a favorable bid.
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. While the specific number of bids received is not detailed in the provided data (only 'no': 2, which might refer to something else or be incomplete), full and open competition generally fosters a competitive environment. This process is designed to encourage multiple bidders to offer their best pricing and technical solutions, leading to a more efficient use of taxpayer funds.
Taxpayer Impact: A competitive bidding process helps ensure that the government receives the best possible price for the services rendered, preventing potential overcharges and maximizing the value of federal investment in critical infrastructure maintenance.
Public Impact
Benefits the U.S. Army Corps of Engineers by ensuring navigable waterways for commerce and defense. Delivers essential maintenance dredging services to the Delaware River. Geographic impact is concentrated in Pennsylvania, supporting regional economic activity. Supports the maritime industry and associated workforce reliant on clear shipping channels.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen dredging conditions arise, though mitigated by fixed-price contract.
- Dependence on contractor's expertise for successful project completion.
- Environmental impact of dredging activities requires careful monitoring.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a robust bidding process.
- Contract awarded to a known entity in the dredging industry (Norfolk Dredging Company).
Sector Analysis
This contract falls under the Heavy and Civil Engineering Construction sector, specifically related to maritime infrastructure maintenance. The Army Corps of Engineers is a major client for dredging services, essential for maintaining navigable waterways across the United States. Spending in this sector is often driven by federal infrastructure priorities, economic development goals, and national security requirements. Comparable spending benchmarks would typically be found within the Army Corps' historical contract data for similar river systems.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is unlikely. However, the prime contractor, Norfolk Dredging Company, may engage small businesses as subcontractors, depending on their procurement practices and the specific needs of the project. Further analysis would be required to determine subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, likely through a contracting officer's representative (COR) who monitors performance, quality, and adherence to contract terms. Transparency is generally maintained through public contract databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Inland Waterways Trust Fund
- Port Infrastructure Development Program
- National Defense Authorization Act appropriations for infrastructure
Risk Flags
- Potential for cost variance if 'br' value is a direct budget comparison.
- Environmental compliance monitoring is critical.
- Geopolitical or economic factors impacting shipping could indirectly affect project urgency.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, maintenance-dredging, norfolk-dredging-company, other-heavy-and-civil-engineering-construction, pennsylvania, river-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.2 million to NORFOLK DREDGING COMPANY. MAINTENANCE DREDGING DELAWARE RIVER
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 $30.2 million.
What is the period of performance?
Start: 2019-09-30. End: 2020-09-30.
What is the historical performance record of Norfolk Dredging Company with the Department of Defense?
Norfolk Dredging Company has a history of performing contracts with the Department of Defense and other federal agencies, primarily in the area of dredging and marine construction. While specific performance metrics for past contracts are not detailed in the provided data, their repeated selection for such projects suggests a generally satisfactory performance history. Federal procurement databases often contain past performance information, which contracting officers consider during source selection. A deeper dive into these databases would reveal specific contract awards, values, and any documented performance issues or commendations for Norfolk Dredging Company on similar federal projects.
How does the awarded price compare to the estimated cost or budgeted amount for this dredging project?
The provided data includes a 'br' value of $82,461, which is significantly lower than the awarded contract value of $30,180,842.83. It is crucial to understand what 'br' represents; if it is a per-unit cost or a budget for a smaller segment, the comparison is not direct. However, if 'br' represents a total budget or a benchmark rate that was substantially exceeded, it would raise concerns. Assuming 'br' is a relevant benchmark, the awarded amount appears considerably higher. Without further clarification on the 'br' metric, a definitive value comparison is difficult, but the large discrepancy warrants further investigation into the project's scope and the basis of the 'br' figure.
What are the primary risks associated with this maintenance dredging contract?
The primary risks associated with this maintenance dredging contract include unforeseen subsurface conditions (e.g., encountering unexpected debris, hard material, or contaminated sediments) that could increase costs or delay the project, despite the firm fixed-price structure. Environmental risks are also significant, including potential impacts on aquatic life, water quality, and historical artifacts, requiring strict adherence to environmental regulations and mitigation plans. Operational risks involve potential equipment failure, weather disruptions (especially during certain seasons), and logistical challenges in managing disposal sites. Finally, there's a risk related to the accuracy of the initial surveys and the contractor's cost estimations.
What is the expected effectiveness of this dredging in maintaining the Delaware River's navigability?
The effectiveness of this maintenance dredging contract is expected to be high in maintaining the navigability of the Delaware River for its intended purpose. Maintenance dredging is a routine and essential activity undertaken by the Army Corps of Engineers to remove accumulated sediment and restore channel depths to authorized project dimensions. This ensures safe passage for commercial vessels, supports regional economic activity dependent on maritime transport, and facilitates naval operations if required. The contract's duration and scope are designed to address the typical sedimentation rates in the river, thereby preserving its functionality as a vital transportation artery.
What have been the historical spending patterns for Delaware River dredging by the Army Corps of Engineers?
Historical spending patterns for Delaware River dredging by the Army Corps of Engineers typically show consistent, significant investment due to the river's importance as a major commercial waterway. Annual or periodic maintenance dredging contracts are common, with values fluctuating based on the extent of sedimentation, required depth, and specific project scopes (e.g., capital dredging vs. maintenance). Spending is influenced by federal appropriations, infrastructure priorities, and the overall condition of the river channel. Analyzing past Army Corps contracts for this specific reach of the Delaware River would reveal trends in contract values, frequency, and the types of contractors awarded work, providing context for the current $30.2 million award.
Are there any specific performance metrics or KPIs tied to this contract?
While the provided data does not explicitly list Key Performance Indicators (KPIs) or specific performance metrics for this contract, maintenance dredging contracts typically include requirements related to the volume of material removed, the final depth and width of the channel achieved, and adherence to environmental compliance standards. Performance is usually evaluated based on meeting these physical specifications within the agreed-upon timeframe and budget. The Army Corps of Engineers' contracting officers and their representatives (CORs) monitor these aspects closely. Contract clauses often detail acceptable tolerances and procedures for addressing deficiencies, ensuring the project's success in maintaining navigational capacity.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912BU19B0021
Offers Received: 2
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: $32,230,843
Exercised Options: $30,180,843
Current Obligation: $30,180,843
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2021-02-04
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