Army awards $45.9M contract to Norfolk Dredging for Delaware River and Wilmington Harbor maintenance
Contract Overview
Contract Amount: $45,937,897 ($45.9M)
Contractor: Norfolk Dredging Company
Awarding Agency: Department of Defense
Start Date: 2021-11-13
End Date: 2022-10-01
Contract Duration: 322 days
Daily Burn Rate: $142.7K/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 AND WILIMINGTON HARBOR
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112
Plain-Language Summary
Department of Defense obligated $45.9 million to NORFOLK DREDGING COMPANY for work described as: MX DREDGING: DELAWARE RIVER, PHILADELPHIA TO SEA AND WILIMINGTON HARBOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm fixed-price definitive contract, providing cost certainty for the government. 3. The duration of 322 days indicates a focused scope of work for the specified period. 4. The contract falls under 'Other Heavy and Civil Engineering Construction,' a critical infrastructure sector. 5. The award amount of approximately $45.9 million represents a significant investment in waterway maintenance.
Value Assessment
Rating: good
The contract value of $45.9 million for dredging services appears reasonable given the scope of maintaining a major waterway like the Delaware River and Wilmington Harbor. Benchmarking against similar large-scale civil engineering projects would provide a more precise value assessment. The firm fixed-price structure helps control costs, but the absence of detailed cost breakdowns makes a granular value-for-money assessment challenging without further data.
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. This suggests a robust bidding environment, which typically leads to more competitive pricing and better value for the government. The specific number of bidders is not provided, but the designation implies multiple interested parties participated.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best possible price for essential services like waterway maintenance.
Public Impact
Benefits commercial shipping and navigation by ensuring clear channels in the Delaware River and Wilmington Harbor. Supports economic activity by facilitating the movement of goods and materials through a vital port. Impacts the regional economy of Pennsylvania and Delaware through infrastructure maintenance. Ensures the operational readiness of a key segment of the nation's maritime transportation system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen conditions arise during dredging, despite fixed-price nature.
- Dependence on a single contractor for a critical infrastructure maintenance task.
- Environmental impact considerations during dredging operations require careful monitoring.
Positive Signals
- Firm fixed-price contract provides budget certainty.
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor has experience in dredging, indicated by the award.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The Army Corps of Engineers frequently awards contracts for dredging and waterway maintenance, which are essential for national commerce and defense. The market for such services is specialized, involving a limited number of experienced firms capable of undertaking large-scale projects. Spending in this area is often cyclical, tied to infrastructure needs and budget allocations.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the primary award was not targeted towards small businesses. However, the prime contractor, Norfolk Dredging Company, may engage small businesses as subcontractors for specialized services or supplies, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army, likely managed by the Army Corps of Engineers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is generally maintained through contract award databases and public reporting, though specific performance monitoring details are not provided.
Related Government Programs
- Army Corps of Engineers Dredging Contracts
- Inland Waterways Navigation Projects
- Port Infrastructure Maintenance
- Maritime Transportation System Improvement Projects
Risk Flags
- Potential for unforeseen subsurface conditions impacting cost and schedule.
- Environmental compliance and monitoring requirements.
- Dependence on contractor's specialized equipment and personnel.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, infrastructure, maritime, pennsylvania, philadelphia, river-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.9 million to NORFOLK DREDGING COMPANY. MX DREDGING: DELAWARE RIVER, PHILADELPHIA TO SEA AND WILIMINGTON HARBOR
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 $45.9 million.
What is the period of performance?
Start: 2021-11-13. End: 2022-10-01.
What is Norfolk Dredging Company's track record with similar Army Corps of Engineers contracts?
Norfolk Dredging Company has a history of performing dredging and marine construction services for the U.S. Army Corps of Engineers. While specific details of past contracts are not provided here, their selection for this significant Delaware River project suggests they possess the necessary experience, equipment, and qualifications. Reviewing their contract history would reveal the scale and types of previous projects, their performance ratings, and any past issues or successes. This information is crucial for assessing their capability to successfully execute the current contract and for understanding their overall reliability as a government contractor in the maritime construction domain.
How does the $45.9 million award compare to historical spending on Delaware River and Wilmington Harbor dredging?
To assess the value of the $45.9 million award, historical spending data for similar dredging projects in the Delaware River and Wilmington Harbor is essential. Without this comparative data, it is difficult to definitively state whether this contract represents an increase, decrease, or stable level of investment. Analyzing past contract awards for dredging in this specific geographic area, considering factors like project scope, duration, and inflation, would provide context. This comparison would help determine if the current award is in line with previous investments, potentially indicating consistent maintenance needs or a shift in funding priorities for this critical waterway.
What are the primary risks associated with this firm fixed-price dredging contract?
The primary risks associated with this firm fixed-price dredging contract, despite the cost certainty it offers, include potential for unforeseen subsurface conditions (e.g., encountering unexpected debris, rock formations, or contaminated sediments) that could increase the contractor's costs or delay the project. While the fixed price aims to mitigate cost escalation for the government, significant unforeseen issues could lead to contract modifications or disputes. Another risk is the contractor's ability to meet the performance schedule and quality standards, which could impact navigation. Environmental risks, such as accidental spills or impacts on marine life, also require careful management and monitoring throughout the contract duration.
How effective are firm fixed-price contracts in ensuring value for taxpayer money in large-scale construction projects?
Firm fixed-price (FFP) contracts are generally considered effective in ensuring value for taxpayer money in large-scale construction projects when the scope of work is well-defined and risks are understood. The FFP structure shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently and complete the project within budget. This provides budget certainty for the government. However, for projects with high uncertainty or complex, evolving requirements, FFP contracts can sometimes lead to contractors inflating their bids to cover potential risks, or to disputes if unforeseen conditions arise. In such cases, other contract types like cost-plus-incentive-fee might offer better value by allowing for shared risk and performance incentives.
What is the typical duration for similar waterway maintenance contracts awarded by the Army Corps of Engineers?
The typical duration for waterway maintenance contracts awarded by the Army Corps of Engineers can vary significantly based on the scope, complexity, and specific objectives of the project. Dredging contracts, like the one for the Delaware River, can range from a few months for targeted maintenance to over a year for extensive capital improvements or complex channel deepening. Factors such as the volume of material to be moved, the type of dredging equipment used, environmental windows for work, and the overall project management plan influence the duration. A 322-day duration for this contract suggests a substantial but defined scope of work, likely encompassing routine maintenance and potentially some targeted improvements within a specific operational period.
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: W912BU21B0006
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: $45,937,897
Exercised Options: $45,937,897
Current Obligation: $45,937,897
Actual Outlays: $26,381,632
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-11-13
Current End Date: 2022-10-01
Potential End Date: 2022-10-01 00:00:00
Last Modified: 2022-12-21
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