Army awards $52.4M civil engineering contract for Pinellas County flood protection

Contract Overview

Contract Amount: $52,368,598 ($52.4M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2017-09-27

End Date: 2019-01-24

Contract Duration: 484 days

Daily Burn Rate: $108.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF PINELLAS COUNTY SHORT PROTECTION PROJECT

Place of Performance

Location: CLEARWATER BEACH, PINELLAS County, FLORIDA, 33767

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to NORFOLK DREDGING COMPANY for work described as: IGF::CT::IGF PINELLAS COUNTY SHORT PROTECTION PROJECT Key points: 1. Contract value appears reasonable given the scope of major civil engineering projects. 2. Full and open competition suggests a healthy market for this type of service. 3. Project duration and fixed-price nature may mitigate cost overrun risks. 4. This project addresses critical infrastructure needs in a vulnerable coastal area. 5. The contractor has experience in similar large-scale civil engineering endeavors. 6. Spending aligns with federal infrastructure investment priorities.

Value Assessment

Rating: good

The contract value of $52.4 million for the Pinellas County Short Protection Project is within a reasonable range for large-scale civil engineering and coastal protection initiatives. While specific benchmarks for this exact project type are difficult to ascertain without more granular data, similar Army Corps of Engineers projects involving significant dredging, levee construction, or flood barrier implementation often fall within this multi-million dollar bracket. The firm-fixed-price contract type suggests that the government has a clear understanding of the scope and has negotiated a price that aims to control costs, implying good value if the project is executed as planned.

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 two bids suggests a competitive environment, though a higher number of bidders would typically indicate even stronger price discovery. The fact that it was competed fully is a positive sign for achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive bidding process that can drive down prices and encourage efficiency from contractors.

Public Impact

Residents and businesses in Pinellas County, Florida, will benefit from enhanced protection against storm surges and flooding. The project delivers critical civil engineering services aimed at improving coastal resilience. The geographic impact is concentrated in Pinellas County, Florida, a region prone to coastal hazards. The project is expected to support jobs in the construction and engineering sectors during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen environmental conditions arise during construction.
Dependence on a single contractor for a critical infrastructure project requires close monitoring.
Weather delays could impact project timeline and potentially increase indirect costs.

Positive Signals

Firm-fixed-price contract helps control costs.
Full and open competition suggests a competitive market and potentially better pricing.
Project addresses a clear and present need for flood protection in a vulnerable area.
Contract duration is defined, providing a clear timeline for completion.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on coastal protection and flood control. This sector is characterized by large-scale projects often undertaken by government entities to manage natural resources, improve infrastructure, and mitigate disaster risks. The market involves specialized equipment, skilled labor, and significant capital investment. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' civil works program, which funds numerous similar projects nationwide aimed at flood damage reduction and navigation.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. Given the scale and specialized nature of major civil engineering projects like this, prime contracts are often awarded to larger, established firms. Further analysis would be needed to determine if small business subcontracting plans were a requirement or if they were actively pursued.

Oversight & Accountability

Oversight for this project would typically fall under the purview of the U.S. Army Corps of Engineers, the contracting agency. They would be responsible for monitoring contract performance, ensuring compliance with specifications, and managing payments. The Department of Defense's Inspector General may also conduct audits or investigations into contract execution to ensure accountability and prevent fraud, waste, and abuse. Transparency is generally maintained through contract award databases and public reporting requirements.

Related Government Programs

Army Corps of Engineers Civil Works Program
National Flood Insurance Program
Coastal Zone Management Programs
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for unforeseen site conditions
Weather-related schedule delays
Contractor performance risk
Environmental compliance challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to NORFOLK DREDGING COMPANY. IGF::CT::IGF PINELLAS COUNTY SHORT PROTECTION PROJECT

Who is the contractor on this award?

The obligated recipient is NORFOLK 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 $52.4 million.

What is the period of performance?

Start: 2017-09-27. End: 2019-01-24.

What is the track record of Norfolk Dredging Company on similar federal contracts?

Norfolk Dredging Company has a history of performing large-scale dredging and marine construction projects for federal agencies, including the U.S. Army Corps of Engineers. Their portfolio often includes navigation channel maintenance, beach nourishment, and coastal defense construction. Reviewing their past performance on contracts of similar size and complexity, particularly those involving flood protection or levee construction, would provide insight into their capabilities and reliability. Data from contract databases like FPDS-NG or SAM.gov can offer details on past awards, performance ratings, and any reported disputes or issues. A consistent record of successful project completion within budget and schedule on comparable projects would be a positive indicator.

How does the awarded price compare to similar flood protection projects?

Benchmarking the $52.4 million award for the Pinellas County Short Protection Project against similar flood protection contracts requires careful consideration of project scope, location, and specific engineering requirements. Projects involving extensive levee construction, complex pumping systems, or significant environmental mitigation can vary widely in cost. For instance, a project focused solely on beach renourishment might cost less per mile than one involving the construction of substantial concrete floodwalls or the acquisition of significant land easements. The Army Corps of Engineers' historical data on civil works projects, particularly those in the Gulf Coast region with similar storm surge risks, would be the most relevant comparison. Without direct access to detailed cost breakdowns or a comprehensive database of comparable projects, a precise value-for-money assessment is challenging, but the firm-fixed-price nature suggests a negotiated value based on the defined scope.

What are the primary risks associated with this type of civil engineering contract?

Primary risks for a civil engineering contract of this nature include unforeseen geological or environmental conditions encountered during excavation or construction, which could lead to scope changes and cost increases. Weather-related delays, particularly in coastal Florida, are a significant risk that can impact project schedules and potentially incur additional costs, even under a fixed-price contract if extensions are granted. Contractor performance and quality control are also risks; ensuring the structural integrity and long-term effectiveness of flood protection measures is paramount. Furthermore, potential permitting delays or changes in environmental regulations during the project lifecycle could introduce complexities. The firm-fixed-price structure aims to mitigate cost overrun risks for the government, but schedule adherence and quality remain key areas of oversight.

How effective are Army Corps of Engineers projects in providing long-term flood protection?

Army Corps of Engineers projects are generally designed to provide significant, long-term flood protection, often based on extensive hydrological studies and engineering analyses. Their effectiveness is typically measured by the reduction in flood damage experienced by protected areas during storm events. Many Corps projects have demonstrably reduced flood losses over decades. However, effectiveness can be influenced by factors such as the severity of storm events exceeding design parameters, the maintenance of the infrastructure, and changes in environmental conditions like sea-level rise. Continuous monitoring, regular maintenance, and periodic reassessment of project designs against evolving threats are crucial for sustained effectiveness. The Pinellas County project aims to address specific vulnerabilities identified for that region.

What has been the historical spending trend for similar Army civil engineering projects?

Historical spending on Army civil engineering projects, particularly those managed by the Army Corps of Engineers for flood control and coastal protection, has been substantial and often cyclical, influenced by federal budget appropriations, infrastructure priorities, and the occurrence of major natural disasters. Following significant events like hurricanes, there is often an increase in funding allocated to such projects. Over the past decade, federal investment in infrastructure, including civil works, has seen fluctuations but remains a consistent area of government expenditure. The total annual budget for the Corps' Civil Works program typically runs into billions of dollars, supporting a wide array of projects across the nation. Spending on specific types of projects, like coastal resilience, has gained prominence due to increasing climate change impacts.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EP10R0026

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 CENTERVILLE TPKE N, CHESAPEAKE, VA, 23320

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

Financial Breakdown

Contract Ceiling: $52,368,598

Exercised Options: $52,368,598

Current Obligation: $52,368,598

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EP13D0010

IDV Type: IDC

Timeline