Army awards $30.4M contract for Philadelphia dredging to Norfolk Dredging Company

Contract Overview

Contract Amount: $30,407,016 ($30.4M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2023-02-09

End Date: 2023-10-25

Contract Duration: 258 days

Daily Burn Rate: $117.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MD DREDGIN DE RIVER PHILADELPHIA TO SEA_ WILMINGTON HARBOR-CHRISTIANA RIVER

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to NORFOLK DREDGING COMPANY for work described as: MD DREDGIN DE RIVER PHILADELPHIA TO SEA_ WILMINGTON HARBOR-CHRISTIANA RIVER Key points: 1. Contract awarded via full and open competition. 2. Firm Fixed Price contract type suggests clear scope and cost control. 3. Project duration of 258 days indicates a significant undertaking. 4. The award amount is substantial for a single dredging project.

Value Assessment

Rating: good

The award amount of $30.4M for this specific dredging project appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering construction contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for necessary infrastructure projects.

Public Impact

Enhances navigation and economic activity in the Delaware River. Supports critical maritime infrastructure for regional commerce. Ensures safe passage for vessels in a key waterway.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen subsurface conditions arise.
  • Environmental impact and mitigation requirements need careful management.

Positive Signals

  • Clear contract type (FFP) for cost certainty.
  • Competitive award process likely secured favorable pricing.
  • Project addresses essential infrastructure needs.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which includes large-scale infrastructure projects like dredging. Spending in this sector is often driven by government investment in transportation and commerce.

Small Business Impact

The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. Analysis of subcontractor participation would be needed to assess small business impact.

Oversight & Accountability

The Department of the Army, through its contracting activities, is responsible for overseeing the execution of this contract to ensure compliance with terms and conditions and successful project completion.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for unforeseen subsurface conditions.
  • Environmental compliance and mitigation costs.
  • Dependence on a single contractor for a critical task.
  • Weather-related delays impacting project timeline.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, pa, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to NORFOLK DREDGING COMPANY. MD DREDGIN DE RIVER PHILADELPHIA TO SEA_ WILMINGTON HARBOR-CHRISTIANA 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 $30.4 million.

What is the period of performance?

Start: 2023-02-09. End: 2023-10-25.

What is the historical cost performance of Norfolk Dredging Company on similar federal contracts?

Analyzing Norfolk Dredging Company's past performance on comparable federal contracts is crucial for assessing future reliability and cost control. Reviewing their track record for adherence to schedules, budget management, and quality of work on similar dredging or civil engineering projects would provide valuable insights into their capabilities and potential risks.

Are there any specific environmental risks associated with this dredging project that could impact the final cost?

Environmental risks, such as the discovery of contaminated sediment or protected species, could significantly impact the project's cost and timeline. Thorough environmental impact assessments and contingency planning are essential. The contract's provisions for handling unforeseen environmental issues and the associated costs need careful scrutiny to understand potential taxpayer exposure.

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

Comparing the awarded price to the government's independent cost estimate (ICE) is a key indicator of value for money. If the awarded price is significantly lower than the ICE, it suggests strong competition and efficient pricing. Conversely, a price close to or exceeding the ICE might warrant further investigation into the bidding process and cost assumptions.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912BU22B0008

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: $30,407,016

Exercised Options: $30,407,016

Current Obligation: $30,407,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-02-09

Current End Date: 2023-10-25

Potential End Date: 2023-10-25 00:00:00

Last Modified: 2024-02-07

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