Army Awards $1.28 Billion for McGregor HREP Stage 2 Construction, Dubuque Barge and Fleeting Service Selected

Contract Overview

Contract Amount: $12,810,420 ($12.8M)

Contractor: Dubuque Barge and Fleeting Service CO

Awarding Agency: Department of Defense

Start Date: 2022-10-15

End Date: 2025-09-15

Contract Duration: 1,066 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCGREGOR HREP - STAGE 2 CONSTRUCTION PROJECT

Place of Performance

Location: MARQUETTE, GREEN LAKE County, WISCONSIN, 53947

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to DUBUQUE BARGE AND FLEETING SERVICE CO for work described as: MCGREGOR HREP - STAGE 2 CONSTRUCTION PROJECT Key points: 1. Significant investment in heavy civil engineering construction. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk associated with long-duration project and firm fixed-price contract. 4. Sector focus on construction, specifically heavy and civil engineering.

Value Assessment

Rating: fair

The contract value of $1.28 billion is substantial for a construction project. Benchmarking against similar large-scale civil engineering projects is necessary to assess if the pricing is competitive, especially given the 'full and open competition after exclusion of sources' method.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a limited competitive field. This method may impact price discovery, potentially leading to higher costs than a truly open competition.

Taxpayer Impact: The large contract value means significant taxpayer funds are allocated. Ensuring the limited competition did not inflate costs is crucial for maximizing taxpayer value.

Public Impact

Project aims to improve infrastructure, potentially benefiting regional development. Long project duration (over 3 years) means sustained economic activity and employment. Taxpayers are funding a major construction effort with long-term implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may lead to higher costs.
  • Firm fixed-price contract on a long-duration project carries risk.
  • Exclusion of sources in competition needs justification.

Positive Signals

  • Project addresses critical infrastructure needs.
  • Clear contract type (FFP) provides cost certainty for the government.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is vital for infrastructure development. Spending benchmarks in this sector vary widely based on project scope and location, but $1.28 billion represents a major investment.

Small Business Impact

The data indicates the prime contractor is Dubuque Barge and Fleeting Service Co. Further analysis is needed to determine if small businesses were subcontracted for portions of this large project.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets project milestones and quality standards throughout the 3-year duration. The contracting agency, Department of the Army, should have robust mechanisms in place for monitoring progress and managing risks.

Related Government Programs

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

Risk Flags

  • Limited competition.
  • Long project duration.
  • Firm fixed-price contract risk.
  • Potential for cost overruns impacting value.
  • Justification for source exclusion.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, wi, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to DUBUQUE BARGE AND FLEETING SERVICE CO. MCGREGOR HREP - STAGE 2 CONSTRUCTION PROJECT

Who is the contractor on this award?

The obligated recipient is DUBUQUE BARGE AND FLEETING SERVICE CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2022-10-15. End: 2025-09-15.

What specific factors led to the exclusion of certain sources in the competition process, and how were these justified?

The justification for excluding sources in a 'full and open competition after exclusion of sources' award typically relates to specific technical requirements, unique capabilities, or prior performance that only a limited number of contractors can meet. The agency must document these reasons thoroughly to ensure the exclusion was necessary and did not unduly restrict competition.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project of this magnitude?

The primary risk for the government with a firm fixed-price (FFP) contract on a long-duration project is that the contractor may face unforeseen cost increases (e.g., material prices, labor shortages) and absorb them, potentially impacting quality or leading to disputes. Conversely, if costs are lower than anticipated, the contractor benefits significantly. Effective oversight is crucial to mitigate risks related to scope creep and contractor performance.

How does the 'exclusion of sources' procurement method impact the overall value for taxpayers compared to a fully open competition?

Excluding sources inherently limits the competitive pool, which can reduce downward pressure on prices. While the agency may argue specific needs justify the exclusion, it generally presents a higher risk of paying more than in a fully open competition where all qualified vendors can bid. The value for taxpayers depends heavily on the rigor of the justification for exclusion and the subsequent price negotiations.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912ES22B0012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 JONES ST STE 2, DUBUQUE, IA, 52001

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

Financial Breakdown

Contract Ceiling: $12,810,420

Exercised Options: $12,810,420

Current Obligation: $12,810,420

Actual Outlays: $4,624,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-10-15

Current End Date: 2025-09-15

Potential End Date: 2025-09-15 00:00:00

Last Modified: 2025-10-14

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