Army awards $28.2M contract for Savannah Harbor dredging, with Marinex Construction Inc. as the prime

Contract Overview

Contract Amount: $28,198,112 ($28.2M)

Contractor: Marinex Construction Inc

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2024-07-08

Contract Duration: 374 days

Daily Burn Rate: $75.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY23 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 $28.2 million to MARINEX CONSTRUCTION INC for work described as: FY23 SAVANNAH INNER HARBOR MAINTENANCE DREDGING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 3. The duration of 374 days suggests a significant scope of work for the dredging project. 4. The award amount is substantial for a single maintenance dredging contract. 5. The project is located in Georgia, impacting regional infrastructure and waterways. 6. The contractor, Marinex Construction Inc., is the sole awardee for this specific contract. 7. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction.

Value Assessment

Rating: good

The contract value of $28.2 million for harbor maintenance dredging appears to be within a reasonable range for such large-scale civil engineering projects. Benchmarking against similar Army Corps of Engineers dredging contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government, contributing to predictable spending. However, without specific details on the scope of work (e.g., cubic yards dredged, depth achieved), a direct comparison of unit costs is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (implied by 'full and open') generally fosters price competition, leading to potentially better pricing for the government. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the most cost-effective solution for essential infrastructure maintenance, preventing potential overpayment.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the maritime industry relying on the Savannah Inner Harbor. The contract delivers essential maintenance dredging services to ensure navigability of a critical port. The geographic impact is focused on Savannah, Georgia, and its surrounding coastal region. The project supports employment within the heavy and civil engineering construction sector, particularly for skilled labor involved in dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen conditions significantly increase dredging volume or complexity beyond initial estimates, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure maintenance task could pose risks if performance issues arise.
Environmental impact of large-scale dredging operations requires careful monitoring and mitigation.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
The contractor, Marinex Construction Inc., has experience in civil engineering projects, though specific dredging track record needs further review.
The project addresses a critical need for maintaining the navigability of a major U.S. port.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging services. The U.S. Army Corps of Engineers is a major client for such services, responsible for maintaining navigable waterways across the nation. The market for large-scale dredging is specialized, with a limited number of qualified contractors. Spending on port maintenance and infrastructure is a significant component of federal investment in transportation and commerce.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Marinex Construction Inc., there is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for specialized services related to this large-scale construction project.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, which manages dredging and waterway maintenance projects. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases like SAM.gov. The Inspector General for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Federal Highway Administration - Port and Intermodal Development

Risk Flags

Potential for cost overruns due to unforeseen subsurface conditions.
Risk of project delays due to weather or equipment issues.
Environmental compliance and sediment management challenges.
Contractor performance risk due to single awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to MARINEX CONSTRUCTION INC. FY23 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 $28.2 million.

What is the period of performance?

Start: 2023-06-30. End: 2024-07-08.

What is Marinex Construction Inc.'s track record with similar Army Corps of Engineers dredging contracts?

A review of publicly available contract data indicates that Marinex Construction Inc. has been awarded contracts by the U.S. Army Corps of Engineers, including some related to construction and infrastructure. However, specific details regarding their experience with large-scale maintenance dredging projects of this magnitude, including past performance reviews and any issues encountered, would require a deeper dive into historical contract awards and performance reports. Assessing their prior success in meeting deadlines, budget adherence, and quality standards on comparable projects is crucial for understanding their capability to execute the Savannah Inner Harbor Maintenance Dredging contract effectively.

How does the $28.2 million award compare to historical spending on Savannah Harbor dredging?

To assess the value of the $28.2 million award, historical spending data for Savannah Harbor maintenance dredging is essential. The Army Corps of Engineers typically undertakes periodic dredging to maintain channel depth and width. Analyzing past contracts for similar dredging volumes, frequency, and scope in Savannah would reveal if this award represents an increase, decrease, or stable level of investment. Factors such as inflation, changes in dredging technology, and evolving environmental regulations can influence costs over time, so a direct comparison should account for these variables. Without specific historical figures for Savannah Harbor dredging, it's difficult to definitively state if this award is high or low relative to past expenditures.

What are the primary risks associated with this specific dredging contract?

The primary risks associated with this dredging contract include potential environmental impacts, such as the disturbance of sensitive habitats or the release of contaminated sediments, which require stringent monitoring and mitigation. Unforeseen subsurface geological conditions (e.g., harder materials, buried obstructions) could increase dredging time and costs, even under a fixed-price contract, potentially leading to change orders or disputes. Operational risks involve equipment failure, weather delays (especially during hurricane season in Georgia), and logistical challenges in managing dredged material disposal. Furthermore, the reliance on a single prime contractor, Marinex Construction Inc., introduces performance risk; any delays or quality issues on their part could impact port operations.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined and risks are manageable. For the Savannah Inner Harbor Maintenance Dredging, the FFP structure shifts the primary cost risk to the contractor, Marinex Construction Inc. This incentivizes the contractor to perform efficiently and control their own costs to maximize profit. The government benefits from cost certainty, as the final price is largely predetermined, barring significant unforeseen circumstances that warrant contract modification. However, if the scope is underestimated or unexpected conditions arise, the contractor might face financial strain, potentially impacting quality or leading to claims. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to manage inherent project risks.

What is the typical duration and cost range for similar federal maintenance dredging contracts?

The typical duration and cost range for federal maintenance dredging contracts can vary significantly based on the size of the waterway, the volume of material to be removed, the type of material, and the geographic location. Contracts awarded by the Army Corps of Engineers for major harbor maintenance can range from several million to tens of millions of dollars, with durations often spanning several months to over a year. The $28.2 million award for the Savannah Inner Harbor project, with a duration of 374 days, appears to be within the upper end of the typical range for significant maintenance dredging operations. Factors like specialized equipment requirements, environmental compliance costs, and disposal site availability also influence both duration and cost.

What are the implications of this contract being awarded to a single entity (Marinex Construction Inc.)?

Awarding this significant contract to a single entity, Marinex Construction Inc., streamlines project management and communication for the Army Corps of Engineers. It establishes a clear point of responsibility for the successful execution of the dredging work. However, it also concentrates risk; the government is reliant on the performance capabilities and financial stability of this one contractor. If Marinex Construction Inc. encounters difficulties, such as equipment breakdowns, labor shortages, or financial distress, it could lead to project delays and potentially impact the navigability of the Savannah Inner Harbor. The government's oversight and performance monitoring become critical to ensure the contractor meets all contractual obligations.

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: W912HN23B5002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1903, PITTSBURGH AVENUE, CHARLESTON SC, SC, 29405

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

Financial Breakdown

Contract Ceiling: $28,611,962

Exercised Options: $28,198,112

Current Obligation: $28,198,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline