Army's $55.4M Fire Island Stabilization Contract Awarded to Dutra Dredging Company

Contract Overview

Contract Amount: $55,415,917 ($55.4M)

Contractor: Dutra Dredging Company

Awarding Agency: Department of Defense

Start Date: 2014-10-22

End Date: 2017-07-31

Contract Duration: 1,013 days

Daily Burn Rate: $54.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FIRE ISLAND STABILIZATION FIMI CONTRACT 1

Place of Performance

Location: MASTIC BEACH, SUFFOLK County, NEW YORK, 11951

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $55.4 million to DUTRA DREDGING COMPANY for work described as: IGF::OT::IGF FIRE ISLAND STABILIZATION FIMI CONTRACT 1 Key points: 1. The contract, valued at $55.4 million, was awarded to Dutra Dredging Company. 2. It falls under the 'Other Heavy and Civil Engineering Construction' sector. 3. The contract utilized full and open competition. 4. The duration of the contract was 1013 days. 5. The project was located in New York.

Value Assessment

Rating: good

The contract's value of $55.4 million appears reasonable for a large-scale civil engineering project of this nature. Benchmarking against similar Army Corps of Engineers projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, driving competitive pricing and potentially leading to better value for the government.

Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the lowest possible price is achieved through market forces.

Public Impact

Environmental protection and coastal resilience for Fire Island. Infrastructure improvement in New York's coastal region. Economic activity through construction and related services. Potential impact on local tourism and recreation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration significantly exceeded initial estimates.
Potential for cost overruns due to unforeseen site conditions.
Limited information on specific performance metrics.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type limits cost risk.
Project addresses critical coastal infrastructure needs.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is crucial for national infrastructure. Spending in this sector can fluctuate based on government priorities and funding cycles. Benchmarks for similar coastal stabilization projects are essential for evaluating cost-effectiveness.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. Analysis of subcontracting opportunities for small businesses would be necessary to assess their participation.

Oversight & Accountability

The contract was awarded by the Department of the Army, suggesting oversight by military engineering commands. Further review of audit reports and performance reviews would clarify the extent of oversight and accountability.

Related Government Programs

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

Risk Flags

Contract duration significantly exceeded planned period.
Potential for cost escalation due to unforeseen circumstances.
Limited transparency on performance metrics and outcomes.
Lack of small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.4 million to DUTRA DREDGING COMPANY. IGF::OT::IGF FIRE ISLAND STABILIZATION FIMI CONTRACT 1

Who is the contractor on this award?

The obligated recipient is DUTRA 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 $55.4 million.

What is the period of performance?

Start: 2014-10-22. End: 2017-07-31.

What were the primary drivers for the contract duration exceeding initial estimates, and what was the impact on the overall cost?

The primary drivers for the contract duration exceeding initial estimates likely stemmed from unforeseen environmental conditions, weather delays, or complexities in the stabilization work itself. These extensions can lead to increased labor, equipment, and overhead costs, potentially impacting the final project expenditure beyond the initial firm fixed price, depending on contract clauses addressing such delays.

How effectively did the firm fixed price contract mitigate risks associated with potential cost overruns during the extended performance period?

A firm fixed price contract is designed to place the cost risk on the contractor. However, significant unforeseen issues or changes in scope could lead to contractor claims for equitable adjustments or even contract termination for default if not managed properly. The effectiveness hinges on the clarity of the SOW and the contractor's ability to manage risks within the fixed price.

What is the long-term effectiveness of the Fire Island stabilization efforts in protecting the coastline and infrastructure against future environmental challenges?

The long-term effectiveness depends on the design's resilience, the quality of construction, and the evolving nature of environmental threats like sea-level rise and storm intensity. Regular monitoring, maintenance, and potential future upgrades are crucial to ensure sustained protection. Independent post-project assessments would provide insights into its enduring value.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS14B0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Dutra Group (UEI: 059133509)

Address: 2350 KERNER BLVD STE 200, SAN RAFAEL, CA, 94901

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

Financial Breakdown

Contract Ceiling: $55,415,917

Exercised Options: $55,415,917

Current Obligation: $55,415,917

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline