Dredging Contract Awarded for Savannah Harbor: $29M for Army Corps of Engineers

Contract Overview

Contract Amount: $28,988,500 ($29.0M)

Contractor: Marinex Construction Inc

Awarding Agency: Department of Defense

Start Date: 2018-08-15

End Date: 2020-01-03

Contract Duration: 506 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY18 SAVANNAH INNER HARBOR MAINTENANCE DREDGING

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31401

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to MARINEX CONSTRUCTION INC for work described as: FY18 SAVANNAH INNER HARBOR MAINTENANCE DREDGING Key points: 1. Significant investment in critical infrastructure maintenance. 2. MARINEX CONSTRUCTION INC secured the contract. 3. Potential for cost overruns or schedule delays exists. 4. Construction sector spending analysis needed for context.

Value Assessment

Rating: fair

The contract value of $28.99M appears reasonable for a large-scale dredging project of this duration. Benchmarking against similar Army Corps of Engineers projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price.

Public Impact

Ensures continued navigability of a key shipping channel. Supports regional economic activity reliant on port access. Potential environmental impacts from dredging activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (506 days).
No small business participation noted.
Firm Fixed Price contract may not fully account for unforeseen site conditions.

Positive Signals

Full and open competition utilized.
Definitive contract provides clear scope.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector. Spending in this sector can fluctuate based on infrastructure needs and federal appropriations.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting. Further analysis is needed to understand the impact on small business participation in federal contracting.

Oversight & Accountability

The Department of the Army awarded this contract, implying standard oversight procedures are in place. However, the long duration warrants close monitoring for performance and cost adherence.

Related Government Programs

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

Risk Flags

Long contract duration.
No small business participation.
Potential for unforeseen site conditions impacting fixed price.
Limited public data on cost benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to MARINEX CONSTRUCTION INC. FY18 SAVANNAH INNER HARBOR MAINTENANCE DREDGING

Who is the contractor on this award?

The obligated recipient is MARINEX CONSTRUCTION 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 $29.0 million.

What is the period of performance?

Start: 2018-08-15. End: 2020-01-03.

What is the benchmark cost per cubic yard for similar dredging projects in the region?

Benchmarking the cost per cubic yard for this project against similar dredging operations in the Savannah area or comparable U.S. ports is crucial. Without this data, it's difficult to definitively assess if the $28.99M contract represents a competitive price. Factors like material type, disposal methods, and environmental regulations significantly influence per-unit costs.

What are the specific risks associated with the 506-day contract duration?

A 506-day duration presents risks such as potential schedule delays due to weather, unforeseen subsurface conditions, or contractor performance issues. Inflationary pressures over such a long period could also impact the effective value of the fixed price. Robust project management and contingency planning are essential to mitigate these risks.

How effectively does the firm fixed price contract manage potential cost overruns for this project?

A firm fixed price contract places the risk of cost overruns primarily on the contractor. While this protects the government from unexpected cost increases, it could lead to contractor requests for change orders if unforeseen issues arise. The effectiveness hinges on the thoroughness of the initial scope definition and the contractor's ability to manage their own costs.

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: SEALED BID

Solicitation ID: W912HN18B5004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1903 PITTSBURGH AVE, CHARLESTON, SC, 29405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,988,500

Exercised Options: $28,988,500

Current Obligation: $28,988,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline