Army awards $19.5M dredging contract for New York/New Jersey Harbor Navigation Project

Contract Overview

Contract Amount: $19,518,595 ($19.5M)

Contractor: Cashman Dredging & Marine Contracting CO LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-01

End Date: 2025-11-17

Contract Duration: 77 days

Daily Burn Rate: $253.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAINTENANCE DREDGING ARTHUR KILL 50 REACHNEW YORK AND NEW JERSEY HARBOR FEDERAL NAVIGATION PROJECT

Place of Performance

Location: STATEN ISLAND, RICHMOND County, NEW YORK, 10303

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC for work described as: MAINTENANCE DREDGING ARTHUR KILL 50 REACHNEW YORK AND NEW JERSEY HARBOR FEDERAL NAVIGATION PROJECT Key points: 1. Contract awarded to Cashman Dredging & Marine Contracting Co LLC for maintenance dredging. 2. Project aims to ensure navigational depth in the Arthur Kill 50 Reach. 3. The contract is a firm-fixed-price definitive contract. 4. Performance period is 77 days, concluding in November 2025. 5. This award represents a significant investment in critical maritime infrastructure. 6. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The award of $19.5 million for maintenance dredging appears reasonable given the scope of work in a major harbor. Benchmarking against similar large-scale dredging projects in comparable waterways suggests this price falls within expected ranges. The firm-fixed-price structure provides cost certainty for the government, though it places risk on the contractor for cost overruns. The value proposition hinges on the successful completion of dredging to maintain specified depths, which is crucial for continued maritime commerce.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 5 bids suggests a healthy level of competition for this project. This competitive environment is expected to drive more favorable pricing and ensure the government receives the best value for its investment. The selection of Cashman Dredging & Marine Contracting Co LLC implies they offered the most advantageous proposal based on price and other factors.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where contractors must offer competitive pricing to win work. This process helps prevent inflated costs and promotes a fair marketplace.

Public Impact

Benefits commercial shipping and maritime industries by maintaining navigable waterways. Ensures the continued economic viability of ports in New York and New Jersey. Supports the workforce involved in dredging operations and related maritime services. Contributes to the overall efficiency of the nation's supply chain infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging operations if not managed properly.
Dependence on a single contractor for a critical infrastructure maintenance task.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Contract duration is relatively short, allowing for timely project completion.
Project addresses a critical need for maintaining federal navigation channels.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to maritime infrastructure maintenance. The dredging market is specialized, requiring significant capital investment in equipment and expertise. Major port authorities and federal agencies like the Army Corps of Engineers are key clients. Spending in this sector is often driven by infrastructure needs, environmental regulations, and the demands of commerce. Comparable projects involve maintaining depth and capacity in other major U.S. waterways.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. While the prime contractor is a large entity, the potential for small business involvement could exist through indirect subcontracting opportunities if Cashman Dredging & Marine Contracting Co LLC chooses to engage them. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Army Corps of Engineers typically oversees such contracts, with established procedures for monitoring progress, quality, and compliance. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Programs
Federal Navigation Projects
Maritime Transportation System

Risk Flags

Environmental compliance risk
Weather-related delays
Unforeseen subsurface conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC. MAINTENANCE DREDGING ARTHUR KILL 50 REACHNEW YORK AND NEW JERSEY HARBOR FEDERAL NAVIGATION PROJECT

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 $19.5 million.

What is the period of performance?

Start: 2025-09-01. End: 2025-11-17.

What is the historical spending pattern for maintenance dredging in the New York and New Jersey Harbor?

Historical spending on maintenance dredging for the New York and New Jersey Harbor has been substantial and recurring, reflecting the ongoing need to manage sediment accumulation in this vital commercial waterway. The Army Corps of Engineers manages these projects, often awarding multiple contracts over fiscal years to address different reaches and types of dredging. While specific annual figures fluctuate based on project scope, urgency, and available funding, the total investment over the past decade likely runs into hundreds of millions of dollars. This consistent investment underscores the critical role of dredging in maintaining port accessibility and supporting regional economic activity. Analyzing past contract awards for similar projects can provide benchmarks for cost-effectiveness and contractor performance.

How does the awarded price compare to similar dredging contracts in other major U.S. ports?

Comparing the $19.5 million award for the Arthur Kill 50 Reach to similar dredging contracts requires careful consideration of project specifics such as volume of material removed, type of dredging (e.g., hydraulic, mechanical), disposal methods, and environmental mitigation requirements. However, for a significant maintenance dredging effort in a major harbor like NY/NJ, this price appears to be within a reasonable range. Large-scale projects in comparable ports like Los Angeles/Long Beach, Houston, or Norfolk can range from tens to hundreds of millions of dollars depending on the scale and complexity. Factors like prevailing market rates for equipment, labor, and fuel, as well as the competitive landscape for bidders, influence pricing. The firm-fixed-price nature also means the contractor assumes cost risks, which can be factored into their bid.

What are the potential risks associated with this specific dredging contract?

Potential risks for this maintenance dredging contract include environmental challenges, such as encountering unexpected subsurface conditions (e.g., debris, contaminated sediments) that could increase costs or delay the project. Weather disruptions are also a significant risk, particularly during the fall performance period, as storms can halt operations and impact schedules. Contractor performance risk exists, although mitigated by the firm-fixed-price structure and the contractor's experience. Furthermore, ensuring compliance with all environmental regulations during dredging and material placement is critical to avoid penalties and project stoppages. The limited duration (77 days) also implies a need for efficient execution to meet the deadline.

What is the track record of Cashman Dredging & Marine Contracting Co LLC on federal contracts?

Cashman Dredging & Marine Contracting Co LLC has a notable track record with federal contracts, particularly with the U.S. Army Corps of Engineers, often securing awards for dredging and marine construction projects. Their history includes numerous contracts for harbor maintenance, channel deepening, and related civil works across various U.S. waterways. Publicly available contract data indicates a pattern of successful performance on projects of varying sizes and complexities. While a comprehensive review would involve examining specific past performance evaluations, their repeated selection for significant federal dredging work suggests a generally reliable capability and experience in meeting government requirements. This specific award builds upon that established relationship.

How does the competition level (5 bidders) impact the value for taxpayers?

A competition level of five bidders for this dredging contract is generally considered healthy and suggests that taxpayers are likely to receive good value. A larger number of bids typically leads to more competitive pricing as contractors vie for the award. It indicates that the market has sufficient capacity and interest in performing this type of work for the federal government. This level of competition helps ensure that the winning bid reflects efficient operations and realistic cost structures, rather than being inflated due to a lack of alternatives. The government's ability to select from multiple proposals also allows for evaluation beyond just price, potentially incorporating technical merit and past performance to secure the best overall outcome for the investment.

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: W912DS25BA008

Offers Received: 5

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: $24,649,186

Exercised Options: $24,649,186

Current Obligation: $19,518,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline