Dredge Lease Contract Awarded to Pine Bluff Sand and Gravel for $54.8M by Army
Contract Overview
Contract Amount: $54,783,255 ($54.8M)
Contractor: Pine Bluff Sand and Gravel Company
Awarding Agency: Department of Defense
Start Date: 2012-06-13
End Date: 2016-07-31
Contract Duration: 1,509 days
Daily Burn Rate: $36.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LEASE OF ONE DUSTPAN HYDRAULIC PIPELINE DREDGE FULLY OPERATED WITH ATTENDANT PLANT - MISSISSIPPI RIVER - BASE YEAR (12 MONTHS)
Place of Performance
Location: MEMPHIS, SHELBY County, TENNESSEE, 38103
Plain-Language Summary
Department of Defense obligated $54.8 million to PINE BLUFF SAND AND GRAVEL COMPANY for work described as: LEASE OF ONE DUSTPAN HYDRAULIC PIPELINE DREDGE FULLY OPERATED WITH ATTENDANT PLANT - MISSISSIPPI RIVER - BASE YEAR (12 MONTHS) Key points: 1. The contract is for a hydraulic pipeline dredge lease, including operation and plant, for the Mississippi River. 2. Awarded by the Department of the Army, this contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The total value of the contract is $54.8 million over its duration.
Value Assessment
Rating: fair
The contract value of $54.8 million for a 1509-day lease of a fully operated dredge appears to be within a reasonable range for specialized heavy equipment leases, though specific benchmarks are difficult to ascertain without more granular data on dredge capabilities and operational scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required services.
Public Impact
Essential for Mississippi River maintenance and navigation, ensuring trade and transportation routes remain open. Supports critical infrastructure projects and environmental management of the river system. The lease provides specialized equipment and operational expertise for complex dredging tasks. The contract duration of over four years suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if operational requirements exceed initial estimates.
- Dependence on a single contractor for a critical, long-term service.
- Geographic concentration of service in the Mississippi River region.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Firm Fixed Price contract type helps control costs.
- Long-term lease ensures continuity of essential services.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to dredging operations. Spending in this sector can fluctuate based on infrastructure needs, environmental regulations, and major projects. Benchmarks for specialized dredge leases are highly variable.
Small Business Impact
The data indicates the awardee is Pine Bluff Sand and Gravel Company. There is no specific information provided regarding small business participation or subcontracting goals within this contract award.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract officers and program managers ensuring performance and compliance with the firm fixed price terms.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term commitment for specialized equipment.
- Potential for operational disruptions due to equipment failure.
- Geographic concentration of service.
- Lack of detailed performance metrics in award data.
- Contract duration exceeds typical shorter-term service agreements.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.8 million to PINE BLUFF SAND AND GRAVEL COMPANY. LEASE OF ONE DUSTPAN HYDRAULIC PIPELINE DREDGE FULLY OPERATED WITH ATTENDANT PLANT - MISSISSIPPI RIVER - BASE YEAR (12 MONTHS)
Who is the contractor on this award?
The obligated recipient is PINE BLUFF SAND AND GRAVEL 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 $54.8 million.
What is the period of performance?
Start: 2012-06-13. End: 2016-07-31.
What is the specific operational scope and required performance metrics for the hydraulic pipeline dredge to justify the $54.8 million lease value?
The provided data lacks specifics on the dredge's capacity, operational hours, maintenance requirements, and the precise nature of the dredging tasks. Understanding these details is crucial for a thorough value assessment. Without them, it's difficult to determine if the $54.8 million represents a fair market price for the expected output and service level over the contract's duration.
What are the potential risks associated with relying on a single hydraulic pipeline dredge for Mississippi River maintenance over a four-year period?
Key risks include equipment failure, requiring costly repairs and potential delays in critical river maintenance. Dependence on one dredge also limits flexibility if unforeseen environmental events or increased maintenance needs arise. Furthermore, if the contractor faces financial instability or operational issues, it could significantly disrupt essential river navigation and flood control efforts.
How effectively does the firm fixed price contract type mitigate cost risks for the government in this specialized dredging lease?
A firm fixed price (FFP) contract is designed to provide cost certainty to the government by locking in the price regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor. However, for highly specialized services like dredge leasing, the initial price must be carefully negotiated to reflect anticipated costs and risks, otherwise, the contractor may build in excessive contingency, leading to a higher baseline price.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912EQ12R0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1501 HEARTWOOD ST, WHITE HALL, AR, 71602
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,145,457
Exercised Options: $55,145,457
Current Obligation: $54,783,255
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-13
Current End Date: 2016-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2021-02-25
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