Baltimore Harbor Dredging Contract Awarded for $31.6M, Boosting Chesapeake Bay Infrastructure

Contract Overview

Contract Amount: $31,606,535 ($31.6M)

Contractor: Cashman Dredging & Marine Contracting CO LLC

Awarding Agency: Department of Defense

Start Date: 2022-02-22

End Date: 2022-08-20

Contract Duration: 179 days

Daily Burn Rate: $176.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY22-1 BALTIMORE HARBOR & CHANNELS MAINTENANCE DREDGING- MARYLAND CHANNELS, CHESAPEAKE BAY, MD.

Place of Performance

Location: CURTIS BAY, BALTIMORE CITY County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC for work described as: FY22-1 BALTIMORE HARBOR & CHANNELS MAINTENANCE DREDGING- MARYLAND CHANNELS, CHESAPEAKE BAY, MD. Key points: 1. Significant investment in critical waterway maintenance for the Chesapeake Bay. 2. Competition was robust, indicating a healthy market for dredging services. 3. Risk appears moderate, with a firm fixed-price contract mitigating cost overruns. 4. Construction sector benefits from this substantial project award.

Value Assessment

Rating: good

The contract value of $31.6M for dredging services appears reasonable given the scope of work for Baltimore Harbor and Chesapeake Bay channels. Benchmarking against similar large-scale civil engineering construction projects suggests this is within expected cost ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This competitive environment likely contributed to achieving a fair market price for the dredging services required.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance, ensuring continued navigation and economic activity in the Baltimore region.

Public Impact

Ensures continued navigability of a vital East Coast shipping channel. Supports regional economic activity by facilitating trade and commerce. Contributes to the environmental health of the Chesapeake Bay through sediment management. Demonstrates federal commitment to maintaining critical maritime infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for unforeseen subsurface conditions impacting schedule or cost.
Environmental compliance challenges during dredging operations.

Positive Signals

Clear project scope and objectives.
Experienced contractor selected through competitive bidding.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. Spending in this area is crucial for national trade and transportation, with benchmarks varying based on project complexity and environmental factors.

Small Business Impact

While this specific contract was awarded to a large prime contractor, the nature of large-scale civil engineering projects often involves subcontracting opportunities for smaller businesses in specialized areas.

Oversight & Accountability

The Department of the Army, under the Department of Defense, managed this procurement. Oversight would typically involve contract administration, progress monitoring, and ensuring compliance with all terms and conditions.

Related Government Programs

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

Risk Flags

Potential for environmental impact on marine life.
Risk of encountering unexpected subsurface obstructions.
Dependence on weather conditions affecting dredging operations.
Long-term maintenance needs of the harbor infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC. FY22-1 BALTIMORE HARBOR & CHANNELS MAINTENANCE DREDGING- MARYLAND CHANNELS, CHESAPEAKE BAY, MD.

Who is the contractor on this award?

The obligated recipient is CASHMAN DREDGING & MARINE CONTRACTING CO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2022-02-22. End: 2022-08-20.

What are the long-term implications of this dredging project for the Baltimore Port's capacity and efficiency?

This maintenance dredging is crucial for sustaining the current operational capacity of the Baltimore Port. By removing accumulated sediment, it ensures that vessels of various sizes can safely navigate the channels, thereby maintaining efficient cargo movement and supporting the port's economic role. Regular maintenance prevents gradual silting that could otherwise lead to capacity reductions and increased transit times.

How does the firm fixed-price contract structure mitigate potential cost overruns in this project?

A firm fixed-price (FFP) contract establishes a set price for the work, shifting the risk of cost overruns to the contractor. Unless there are significant, unforeseen changes to the scope of work (change orders), the government is obligated to pay only the agreed-upon price. This structure incentivizes the contractor to manage costs efficiently and complete the project within budget.

What environmental monitoring protocols were in place during the dredging to minimize impact on the Chesapeake Bay ecosystem?

Environmental monitoring protocols for such projects typically include measures to control turbidity, manage dredged material disposal, and protect marine life. This often involves real-time water quality monitoring, specific dredging windows to avoid sensitive species' life cycles, and adherence to strict guidelines for the placement of dredged material to prevent habitat disruption and pollution spread within the Bay.

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: W912DR22B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 549 SOUTH ST, QUINCY, MA, 02169

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,606,535

Exercised Options: $31,606,535

Current Obligation: $31,606,535

Actual Outlays: $15,568,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline