Army awards $31.4M dredging contract to Cottrell Contracting Corporation for Wilmington Harbor maintenance

Contract Overview

Contract Amount: $31,429,703 ($31.4M)

Contractor: Cottrell Contracting Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-01-28

Contract Duration: 485 days

Daily Burn Rate: $64.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHILLY TO SEA, WILMINGTON HARBOR MAINTENANCE DREDGING

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to COTTRELL CONTRACTING CORPORATION for work described as: PHILLY TO SEA, WILMINGTON HARBOR MAINTENANCE DREDGING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The duration of 485 days indicates a substantial project timeline. 4. The contract is for maintenance dredging, a recurring need for port infrastructure. 5. The award value is within a typical range for such specialized maritime construction projects. 6. The contractor, Cottrell Contracting Corporation, has a history of performing similar federal contracts.

Value Assessment

Rating: good

The contract value of $31.4 million for dredging services appears reasonable given the scope and duration. Benchmarking against similar Army Corps of Engineers dredging contracts for maintenance in comparable waterways suggests this award is competitive. The firm-fixed-price structure provides cost certainty for the government, although it may reflect a premium for contractor risk. Without specific per-unit cost data (e.g., cost per cubic yard dredged), a precise value-for-money assessment is challenging, but the competitive award process supports a positive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. While more than two bidders would typically indicate stronger price discovery, the fact that it was competed openly is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive process, which generally drives down costs and ensures the government receives services at a fair market price. Open competition reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the maritime industry relying on navigable waterways. The contract delivers essential maintenance dredging services to ensure the operational capacity of Wilmington Harbor. The geographic impact is focused on Wilmington Harbor, Delaware, and surrounding federal channels. The project will likely involve a specialized workforce in marine construction and dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions significantly increase dredging volume or complexity.
Dependence on a single contractor for a critical infrastructure maintenance task.
Environmental compliance risks associated with dredging operations in a sensitive waterway.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition, indicating a competitive market.
Contractor has experience in similar federal dredging projects.
Clear end date and defined scope of work reduce ambiguity.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on maritime infrastructure maintenance. The market for specialized dredging services is relatively concentrated, with a limited number of firms possessing the necessary equipment and expertise. Federal spending in this area is driven by the need to maintain safe and efficient navigation channels across the nation's ports and waterways, a consistent requirement managed by the Army Corps of Engineers.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor, Cottrell Contracting Corporation, may be a large business, there is potential for subcontracting opportunities for small businesses within the construction and support services required for this project. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the U.S. Army Corps of Engineers, which is responsible for contract administration and ensuring compliance with terms and conditions. The firm-fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is facilitated by the public nature of federal contract awards, and the Army Corps of Engineers often has an Inspector General's office that can investigate potential fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Waterway Infrastructure Projects
Maritime Dredging Services
Federal Navigation Channel Maintenance

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance monitoring is critical.
Contractor's financial stability and performance history should be monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to COTTRELL CONTRACTING CORPORATION. PHILLY TO SEA, WILMINGTON HARBOR MAINTENANCE DREDGING

Who is the contractor on this award?

The obligated recipient is COTTRELL CONTRACTING CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-01-28.

What is Cottrell Contracting Corporation's track record with federal dredging contracts?

Cottrell Contracting Corporation has a history of performing federal dredging and marine construction projects. Reviewing their contract history with agencies like the Army Corps of Engineers reveals multiple awards for similar maintenance dredging and construction activities in various waterways. This experience suggests a familiarity with federal acquisition regulations, performance expectations, and environmental compliance requirements. Their past performance on similar contracts is a key indicator of their capability to successfully execute the Wilmington Harbor project. While specific performance metrics from past contracts are not detailed here, the continued award of federal contracts implies a generally satisfactory performance history.

How does the $31.4 million award compare to historical spending on Wilmington Harbor maintenance dredging?

To assess the value, historical spending on Wilmington Harbor maintenance dredging would need to be analyzed. This contract's value of $31.4 million represents a significant investment. Comparing this to previous dredging cycles for Wilmington Harbor, considering factors like inflation, changes in dredging technology, and the volume of material to be removed, is crucial. If previous cycles were significantly less expensive, it could indicate rising costs or a more extensive scope. Conversely, if it aligns with or is lower than inflation-adjusted historical costs, it suggests competitive pricing. Without specific historical data points for this exact location and service, a definitive comparison is difficult, but the current award should be benchmarked against similar projects in comparable ports.

What are the primary risks associated with this dredging contract?

The primary risks associated with this dredging contract include: 1) **Environmental Risks:** Dredging can disturb sediment, potentially releasing contaminants and impacting aquatic ecosystems. Strict adherence to environmental permits and monitoring is critical. 2) **Unforeseen Site Conditions:** Subsurface conditions (e.g., hard rock, debris, unexpected sediment composition) can increase dredging difficulty, time, and cost, potentially leading to change orders if not adequately accounted for in the initial bid. 3) **Schedule Delays:** Weather, equipment breakdowns, or permitting issues can cause delays, impacting project completion and potentially incurring additional costs for the contractor. 4) **Contractor Performance:** While Cottrell Contracting Corporation has experience, there's always a risk of performance issues, quality control failures, or financial instability affecting project execution. The firm-fixed-price nature mitigates direct cost overruns for the government but could lead to contractor disputes or claims if conditions are significantly adverse.

How effective is full and open competition in ensuring value for taxpayer money in specialized construction contracts like this?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in specialized construction contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing. This process encourages contractors to offer their best prices and innovative solutions to win the contract. The presence of multiple bidders drives down costs through price pressure and allows the government to select the offer that represents the best overall value, considering not just price but also technical qualifications and past performance. While specialized markets may have fewer bidders than broader ones, open competition still provides a crucial benchmark and incentive for fair pricing.

What is the typical duration and cost range for federal maintenance dredging contracts of this scale?

The typical duration and cost range for federal maintenance dredging contracts can vary significantly based on factors like waterway size, depth, length, type of material to be dredged, environmental regulations, and geographic location. Contracts like the $31.4 million award for Wilmington Harbor, with a duration of 485 days, fall within a substantial but not extraordinary range for significant port maintenance. Smaller, routine maintenance tasks might cost less and take less time, while major capital dredging projects or those in complex environments can cost hundreds of millions and span several years. The cost per cubic yard dredged is a key metric, but it's highly variable. This contract's value suggests a project of considerable scope, likely involving the removal of a large volume of sediment to maintain critical navigation depths.

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: W912BU24B0012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 328 N BATTLEFIELD BLVD, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,429,703

Exercised Options: $31,429,703

Current Obligation: $31,429,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline