DoD Awards $32.7M for Baltimore Harbor Dredging to Cashman Dredging

Contract Overview

Contract Amount: $32,719,705 ($32.7M)

Contractor: Cashman Dredging & Marine Contracting CO LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-12

End Date: 2023-10-27

Contract Duration: 168 days

Daily Burn Rate: $194.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY23 BALTIMORE HARBOR & CHANNELS MAINTENANCE DREDGING, CHESAPEAKE BAY, MD.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC for work described as: FY23 BALTIMORE HARBOR & CHANNELS MAINTENANCE DREDGING, CHESAPEAKE BAY, MD. Key points: 1. Significant investment in critical infrastructure maintenance. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the fixed-price contract type. 4. Construction sector spending is substantial, with this contract falling within typical project ranges.

Value Assessment

Rating: good

The contract value of $32.7 million for harbor maintenance dredging appears reasonable for a project of this 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 that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance, ensuring the continued navigability of a key waterway.

Public Impact

Ensures continued economic activity by maintaining a vital shipping channel. Supports maritime trade and transportation in the Chesapeake Bay region. Contributes to the upkeep of national infrastructure, benefiting commerce and defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen conditions arise during dredging.
  • Dependence on a single contractor for project execution.

Positive Signals

  • Clear project scope and objectives.
  • Fixed-price contract helps control costs.
  • Awarded under full and open competition.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which is crucial for maintaining national infrastructure. Spending in this sector can fluctuate based on government priorities and infrastructure needs.

Small Business Impact

The contract was awarded to Cashman Dredging & Marine Contracting Co LLC, a large business. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for this contract. Standard oversight mechanisms for federal construction projects would apply.

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 challenges.
  • Contractor performance risk.
  • Schedule delays due to weather or operational issues.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC. FY23 BALTIMORE HARBOR & CHANNELS MAINTENANCE DREDGING, 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 $32.7 million.

What is the period of performance?

Start: 2023-05-12. End: 2023-10-27.

What is the historical cost performance of similar dredging projects awarded by the Army Corps of Engineers?

Historical data on similar dredging projects awarded by the Army Corps of Engineers would be valuable for assessing cost-effectiveness. Analyzing past projects for cost overruns, change orders, and final costs against initial estimates can reveal trends and potential risks associated with large-scale dredging operations.

Are there any environmental risks associated with the dredging process in Baltimore Harbor that could impact project timelines or costs?

Environmental risks, such as the discovery of contaminated sediment or protected marine species, could significantly impact project timelines and costs. A thorough environmental impact assessment and contingency planning are crucial to mitigate these potential risks and ensure the project stays within budget and schedule.

How effectively does the fixed-price contract structure mitigate risks for the government in this specific dredging project?

The fixed-price contract structure is designed to transfer most of the cost risk to the contractor, providing the government with cost certainty. However, its effectiveness depends on the accuracy of the initial cost estimates and the contractor's ability to manage unforeseen challenges within the agreed-upon price.

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: W912DR23B0009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cashman Dredging and Marine Contracting CO. LLC

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: $32,719,705

Exercised Options: $32,719,705

Current Obligation: $32,719,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-05-12

Current End Date: 2023-10-27

Potential End Date: 2023-10-27 00:00:00

Last Modified: 2023-11-27

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