Army awards $54M dredging contract to Pine Bluff Sand and Gravel Company for Arkansas waterway maintenance

Contract Overview

Contract Amount: $53,954,009 ($54.0M)

Contractor: Pine Bluff Sand and Gravel Company

Awarding Agency: Department of Defense

Start Date: 2016-07-22

End Date: 2020-09-30

Contract Duration: 1,531 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF -DUSTPAN DREDGE FIXED COSTS

Place of Performance

Location: PINE BLUFF, JEFFERSON County, ARKANSAS, 71611

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $54.0 million to PINE BLUFF SAND AND GRAVEL COMPANY for work described as: IGF::OT::IGF -DUSTPAN DREDGE FIXED COSTS Key points: 1. Contract value appears reasonable for specialized heavy civil engineering services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed price contract type mitigates cost overrun risks for the government. 4. Contract duration of over 4 years indicates a significant, long-term need. 5. Geographic focus on Arkansas waterways highlights regional infrastructure investment. 6. The North American Industry Classification System (NAICS) code 237990 covers other heavy and civil engineering construction.

Value Assessment

Rating: good

The contract value of approximately $54 million for dredging services over a 4-year period appears to be within a reasonable range for this type of specialized heavy civil engineering work. Benchmarking against similar large-scale dredging contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it shifts cost risk to the contractor. Without specific per-unit cost data or detailed scope breakdowns, a definitive comparison is challenging, but the overall award size is consistent with the scale of infrastructure projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to more competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies that multiple companies likely vied for the contract, fostering price discovery and potentially driving down costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the services rendered, maximizing the value of federal dollars spent on critical infrastructure maintenance.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and potentially commercial entities relying on navigable waterways in Arkansas. The contract delivers essential services for maintaining and improving the navigability of Arkansas waterways. Geographic impact is concentrated within Arkansas, specifically along the waterways managed by the Army Corps of Engineers. Workforce implications include employment opportunities for skilled laborers, equipment operators, and project managers within the construction and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts associated with large-scale dredging operations.
Dependence on a single contractor for a critical, long-duration service.
Risk of unforeseen geological or hydrological conditions impacting project timelines or costs, despite fixed-price structure.

Positive Signals

Firm fixed-price contract structure limits government exposure to cost increases.
Full and open competition suggests a competitive award process.
Contractor's long-standing presence in the industry may indicate experience and reliability.
Focus on essential infrastructure maintenance ensures continued economic activity and safety.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging services. This sector is critical for maintaining national infrastructure, including ports, waterways, and flood control systems. The market for large-scale dredging is often characterized by a limited number of specialized firms capable of undertaking such projects. The Army Corps of Engineers is a major client in this space, awarding numerous contracts for waterway maintenance and improvement across the country. Comparable spending benchmarks would involve analyzing other large dredging contracts awarded by federal agencies for similar scope and duration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the contract was awarded based on best value or lowest price technically acceptable without a specific small business goal. While there's no direct set-aside, the prime contractor, Pine Bluff Sand and Gravel Company, may engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting opportunities offered and the capacity of local small businesses to meet the specialized needs of this project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers district responsible for the Arkansas waterways. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
River and Harbor Improvements
Navigation Dredging Contracts
Infrastructure Investment and Jobs Act (if applicable to funding source)

Risk Flags

Potential for environmental impact
Long contract duration risks
Dependence on specific contractor capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.0 million to PINE BLUFF SAND AND GRAVEL COMPANY. IGF::OT::IGF -DUSTPAN DREDGE FIXED COSTS

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 $54.0 million.

What is the period of performance?

Start: 2016-07-22. End: 2020-09-30.

What is the historical spending pattern for dredging services by the Department of the Army in Arkansas?

Analyzing historical spending patterns for dredging services by the Department of the Army in Arkansas requires access to detailed contract databases over several fiscal years. While this specific contract is for approximately $54 million, understanding the broader trend involves looking at the frequency and value of similar contracts awarded in the region. Factors such as the condition of waterways, federal budget allocations for infrastructure, and specific project needs (e.g., deepening channels, removing sediment buildup) influence these spending patterns. Without access to a comprehensive historical dataset for this specific region and service, it's difficult to provide precise figures. However, consistent investment in waterway maintenance is typical for regions with significant commercial or military navigation needs, suggesting a recurring requirement for such services.

How does the per-unit cost of this dredging contract compare to similar projects nationwide?

Determining the per-unit cost comparison for this dredging contract requires detailed information on the volume of material dredged, the type of material, the depth and distance of material placement, and the specific dredging methods employed. The provided data lacks these granular details. Generally, dredging costs can vary significantly based on these factors, as well as geographic location, environmental regulations, and market competition. A $54 million contract over four years suggests a substantial scope. To benchmark effectively, one would need to identify comparable contracts (e.g., similar waterway types, material volumes, and geographic regions) and analyze their cost per cubic yard or per linear foot of channel maintained. Without such specific data points, a direct per-unit cost comparison is not feasible from the information provided.

What is the track record of Pine Bluff Sand and Gravel Company with federal contracts, particularly with the Department of the Army?

Pine Bluff Sand and Gravel Company has a history of federal contracting, as evidenced by this award. To assess their track record thoroughly, one would need to examine their past performance on similar contracts, including adherence to schedules, quality of work, and any history of disputes or contract terminations. Information on their previous awards, contract values, and performance evaluations (if publicly available) would be crucial. Their longevity in the industry suggests a degree of established capability. A deeper dive into contract databases and performance assessment reports would reveal the extent of their experience, particularly with the Department of the Army and the specific type of dredging services required for this contract.

What are the potential risks associated with the long duration (over 4 years) of this dredging contract?

The long duration of this contract, exceeding four years, presents several potential risks. Firstly, there's the risk of contractor performance degradation over time; maintaining consistent quality and efficiency throughout a multi-year project can be challenging. Secondly, unforeseen environmental conditions or regulatory changes could arise, potentially impacting the scope of work or necessitating costly adjustments, even under a fixed-price contract if scope changes are triggered. Thirdly, market conditions for materials, labor, or equipment could fluctuate significantly over such a long period, potentially affecting the contractor's profitability and, indirectly, their motivation or ability to perform optimally. Finally, there's the risk of technological obsolescence if newer, more efficient dredging methods emerge during the contract term.

How does the 'full and open competition' designation impact the overall value for taxpayers on this contract?

The 'full and open competition' designation is generally a positive indicator for taxpayer value on this contract. It signifies that the government actively sought bids from all qualified sources, thereby maximizing the pool of potential offerors. This increased competition typically drives down prices as contractors vie to win the award. It also encourages innovation and efficiency as companies seek to differentiate themselves on factors beyond just price, such as technical approach or past performance. For taxpayers, this process increases the likelihood that the government is securing the services at a fair market price, minimizing the risk of paying an inflated cost due to a lack of competitive pressure. The absence of specific competition metrics (like the number of bids received) limits a precise quantification of this benefit.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EQ16R0003

Offers Received: 1

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: $53,954,009

Exercised Options: $53,954,009

Current Obligation: $53,954,009

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline