Army awards $29.2M dredging contract to American Construction Co. for Grays Harbor, WA

Contract Overview

Contract Amount: $29,238,739 ($29.2M)

Contractor: American Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2016-06-23

End Date: 2018-12-31

Contract Duration: 921 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF GRAYS HARBOR INNER HARBOR O&M AND DEEPENING DREDGING

Place of Performance

Location: ABERDEEN, GRAYS HARBOR County, WASHINGTON, 98520

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to AMERICAN CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF GRAYS HARBOR INNER HARBOR O&M AND DEEPENING DREDGING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $29.2M is significant for this type of civil engineering project. 3. Risk appears moderate given the fixed-price contract type and established contractor. 4. The sector is heavy civil engineering construction, crucial for port infrastructure.

Value Assessment

Rating: fair

The contract value of $29.2M for dredging services needs comparison to similar projects. Without specific per-unit cost data, a precise value assessment is difficult, but the duration suggests a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayer funds are utilized for essential infrastructure maintenance and improvement, with competition aiming to optimize spending.

Public Impact

Enhances maritime navigation and trade capacity for the Grays Harbor region. Supports economic activity by ensuring efficient port operations. Demonstrates federal investment in critical U.S. infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for benchmarking.
Contract duration is lengthy, potentially increasing risk of cost overruns if not managed well.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type limits cost escalation risk for the government.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on port and waterway maintenance. Spending in this area is often cyclical and tied to infrastructure needs and federal appropriations.

Small Business Impact

The data indicates the award went to American Construction Co., Inc. There is no explicit information on small business participation or subcontracting in the provided data.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve project management and contract administration by the awarding agency to ensure compliance and quality.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to long contract duration.
Environmental impact of dredging operations.
Dependence on a single contractor for a large-scale project.
Lack of detailed cost breakdown for per-unit analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to AMERICAN CONSTRUCTION CO., INC.. IGF::OT::IGF GRAYS HARBOR INNER HARBOR O&M AND DEEPENING DREDGING

Who is the contractor on this award?

The obligated recipient is AMERICAN CONSTRUCTION CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.2 million.

What is the period of performance?

Start: 2016-06-23. End: 2018-12-31.

What is the historical cost performance of American Construction Co., Inc. on similar federal contracts?

Analyzing the contractor's past performance on comparable federal projects would provide insight into their ability to manage costs and timelines effectively. This includes reviewing past contract awards, completion records, and any documented issues or disputes to gauge their reliability and efficiency in executing similar dredging and civil engineering work.

How does the awarded price compare to the government's independent cost estimate for this project?

Comparing the awarded contract price ($29.2M) to the government's estimate is crucial for assessing value. A significant difference could indicate either an exceptionally competitive bid or potential issues with the estimate's accuracy or the contractor's pricing strategy. This comparison helps determine if taxpayers received a fair deal.

What are the specific environmental considerations and mitigation measures included in this dredging contract?

Dredging projects often have significant environmental implications. Understanding the contract's stipulations regarding sediment management, potential impact on marine life, and any required environmental mitigation efforts is vital for assessing the project's overall effectiveness and compliance with environmental regulations.

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: W912DW16B0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1501 TAYLOR WAY, TACOMA, WA, 98421

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,238,739

Exercised Options: $29,238,739

Current Obligation: $29,238,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline