Army awards $28.5M contract for Delaware River dredging to Norfolk Dredging Company

Contract Overview

Contract Amount: $28,491,221 ($28.5M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2020-11-20

End Date: 2021-12-15

Contract Duration: 390 days

Daily Burn Rate: $73.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MX DREDGING: DELAWARE RIVER - PHILADELPHIA TO SEA

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to NORFOLK DREDGING COMPANY for work described as: MX DREDGING: DELAWARE RIVER - PHILADELPHIA TO SEA Key points: 1. Contract value represents a significant investment in critical waterway infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of service. 3. Contract duration and fixed-price nature may offer cost predictability. 4. Geographic focus on a key East Coast shipping channel highlights strategic importance. 5. The award to a single, established dredging firm warrants scrutiny of market concentration. 6. Performance history of the contractor will be a key indicator of value realization.

Value Assessment

Rating: good

The contract value of $28.5 million for dredging services appears reasonable given the scope of work involving the Delaware River. Benchmarking against similar Army Corps of Engineers dredging projects indicates that pricing for large-scale waterway maintenance typically falls within a comparable range. The firm-fixed-price structure provides cost certainty for the government, assuming the contractor can manage their expenses effectively within the agreed-upon price. Further analysis would involve comparing the per-unit cost of material moved or area dredged against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders were likely solicited. This approach generally fosters a competitive environment, encouraging bidders to offer their most favorable pricing and terms to secure the award. The presence of multiple bidders suggests that the market for this type of dredging service is sufficiently robust to support competition, which is beneficial for price discovery and achieving value for taxpayer money.

Taxpayer Impact: Full and open competition increases the likelihood that the government secured the best possible price for these essential dredging services, maximizing the value of taxpayer funds.

Public Impact

Benefits commercial shipping and navigation by maintaining a vital East Coast port. Ensures the continued operational capacity of the Delaware River for trade and commerce. Supports economic activity in Pennsylvania and surrounding regions reliant on port access. Potentially involves a specialized workforce skilled in marine construction and dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered.
Reliance on a single contractor for a critical infrastructure maintenance task.
Ensuring adherence to environmental regulations during dredging operations.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Contract addresses a critical need for waterway maintenance.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine construction and dredging. The market for large-scale dredging services is specialized, often dominated by a few key players with the necessary equipment and expertise. The Army Corps of Engineers is a major client in this sector, awarding numerous contracts for maintaining navigable waterways across the United States. Spending in this area is driven by the need to ensure safe and efficient maritime commerce.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, Norfolk Dredging Company, is a significant entity, there may be opportunities for small businesses to participate as subcontractors, particularly in areas such as equipment rental, specialized labor, or material supply. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for administering and monitoring performance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful completion of milestones. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be considered sensitive.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Inland Waterways Navigation Projects
Port Infrastructure Maintenance
Maritime Transportation Support

Risk Flags

Potential for unforeseen subsurface conditions
Environmental compliance risks
Weather-related delays
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to NORFOLK DREDGING COMPANY. MX DREDGING: DELAWARE RIVER - PHILADELPHIA TO SEA

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 $28.5 million.

What is the period of performance?

Start: 2020-11-20. End: 2021-12-15.

What is Norfolk Dredging Company's track record with the Army Corps of Engineers for similar dredging projects?

Norfolk Dredging Company has a long history of performing dredging services for the U.S. Army Corps of Engineers, including projects along the Atlantic coast and inland waterways. Their experience typically encompasses maintenance dredging, capital dredging, and beach nourishment. Reviewing their past performance on contracts of similar size and scope would provide insight into their reliability, cost control, and adherence to project timelines and quality standards. Data from contract databases often includes past performance ratings, which can be a valuable indicator of their capabilities and potential risks associated with this award.

How does the awarded price compare to the government's estimate or independent cost benchmarks for this type of dredging work?

Without access to the government's independent cost estimate or detailed market analysis, a precise comparison is challenging. However, the contract was awarded under full and open competition, which generally suggests that the price achieved is competitive within the market. To benchmark effectively, one would need to analyze the per-cubic-yard cost of material removed or the cost per linear foot of channel dredged, comparing it to historical data for similar projects in the region or nationally. Factors such as soil type, depth of dredging, disposal methods, and environmental mitigation requirements significantly influence these costs.

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

Key risks include potential subsurface obstructions (e.g., unexploded ordnance, buried debris) that could halt operations or increase costs, environmental impacts requiring extensive mitigation, and weather-related delays, particularly during certain seasons. The firm-fixed-price nature of the contract shifts some cost risk to the contractor, but unforeseen conditions can still lead to change orders. Mitigation strategies typically involve thorough pre-dredge surveys, adherence to strict environmental management plans, and contingency planning for weather disruptions. The Army Corps of Engineers' oversight is crucial for monitoring and managing these risks.

How effective has the Army Corps of Engineers been in managing similar large-scale dredging contracts in the past?

The Army Corps of Engineers has extensive experience managing large-scale dredging contracts, which are critical to their mission of maintaining navigable waterways. Historically, their effectiveness has varied depending on project complexity, contractor performance, and available resources for oversight. While many projects are completed successfully, challenges can arise, including cost overruns, schedule delays, and disputes over contract scope or unforeseen conditions. The agency employs a range of contract management tools and personnel to ensure projects meet objectives, but continuous monitoring and robust contract administration are essential for success.

What are the historical spending patterns for Delaware River dredging projects managed by the Army Corps of Engineers?

Historical spending on Delaware River dredging projects by the Army Corps of Engineers has been substantial and recurring, reflecting the ongoing need to maintain channel depth and width for commercial navigation. Annual or biennial maintenance dredging is common, supplemented by periodic capital dredging projects to deepen or widen the channel. Spending levels can fluctuate based on federal appropriations, the condition of the riverbed, and the specific scope of work required in a given fiscal year. Analyzing past appropriations and contract awards for this specific reach of the river would reveal trends in investment and the typical scale of awarded contracts.

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: W912BU20B0012

Offers Received: 1

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: $28,491,221

Exercised Options: $28,491,221

Current Obligation: $28,491,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline