Army awards $27.3M dredging contract to Marinex Construction Inc. for Savannah Harbor maintenance

Contract Overview

Contract Amount: $27,280,657 ($27.3M)

Contractor: Marinex Construction Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-15

End Date: 2025-10-09

Contract Duration: 451 days

Daily Burn Rate: $60.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY24 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 $27.3 million to MARINEX CONSTRUCTION INC for work described as: FY24 SAVANNAH INNER HARBOR MAINTENANCE DREDGING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Firm Fixed Price contract type indicates predictable costs for the government. 3. The contract duration of 451 days suggests a substantial scope of work. 4. Awarded by the Department of the Army, part of the broader Department of Defense. 5. The contract is for heavy civil engineering construction, specifically dredging. 6. The contractor, Marinex Construction Inc., is the sole awardee. 7. The contract value is approximately $27.3 million. 8. The contract is for maintenance dredging, crucial for port operations.

Value Assessment

Rating: good

The contract value of $27.3 million for harbor maintenance dredging appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, the firm fixed-price nature helps control costs. The benchmark of $60,489 for bid-related expenses suggests a structured bidding process. Further analysis would require comparing unit costs for dredging volume against similar projects in other ports.

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 a bid. The presence of two bids suggests a moderate level of competition for this specific project. A higher number of bidders typically leads to more competitive pricing, but two bids can still result in a fair market price, especially for specialized services like harbor dredging.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage efficiency. The fact that two bids were received suggests that the government received at least some price discovery, potentially leading to a more cost-effective outcome than a sole-source award.

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 the navigability of the Savannah Inner Harbor. The geographic impact is focused on Savannah, Georgia, a critical port for the southeastern United States. The contract supports the heavy and civil engineering construction sector, potentially involving specialized labor and equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered, though mitigated by fixed-price contract.
Dependence on a single contractor for a critical infrastructure maintenance task.
Risk of schedule delays due to weather or equipment issues, impacting port operations.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive process.
Contract duration is clearly defined, allowing for project planning.
The project addresses a critical need for harbor maintenance.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine construction and dredging. The market for such services is specialized, often involving a limited number of experienced contractors capable of undertaking large-scale port infrastructure projects. Spending in this sector is driven by the need to maintain and upgrade critical transportation and trade infrastructure, with federal agencies like the Army Corps of Engineers being major clients.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of harbor dredging contracts, they are often awarded to larger, established firms with the necessary equipment and expertise. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management divisions. The firm fixed-price nature provides a degree of accountability by locking in costs. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
Maritime Transportation System Investment

Risk Flags

Potential environmental impact of dredged material disposal.
Dependence on a single contractor for critical maintenance.
Risk of schedule delays affecting port operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to MARINEX CONSTRUCTION INC. FY24 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 $27.3 million.

What is the period of performance?

Start: 2024-07-15. End: 2025-10-09.

What is the historical spending pattern for Savannah Inner Harbor maintenance dredging?

Analyzing historical spending for Savannah Inner Harbor maintenance dredging requires accessing detailed contract databases over multiple fiscal years. Typically, such maintenance is a recurring need, with contracts awarded periodically to address sediment accumulation. The frequency and value of these contracts are influenced by factors such as river flow, shipping traffic volume, and environmental conditions. Without specific historical data for this exact project, it's difficult to provide precise figures, but it's reasonable to assume that similar dredging contracts have been awarded in the past to maintain the harbor's operational depth. The current award of $27.3 million suggests a significant dredging effort, potentially addressing accumulated sediment over a period of time or a specific maintenance cycle.

How does Marinex Construction Inc.'s track record compare for similar dredging projects?

Assessing Marinex Construction Inc.'s track record for similar dredging projects would involve reviewing their past performance on federal and commercial contracts. Key indicators include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. A review of publicly available contract data (e.g., through SAM.gov or FPDS) could reveal the number and value of previous dredging contracts awarded to Marinex, as well as their performance ratings if available. Companies with a strong history in large-scale civil engineering and marine construction are generally preferred for critical infrastructure projects like harbor maintenance, as they demonstrate the capacity and expertise required to execute complex operations successfully and mitigate potential risks.

What are the key performance indicators (KPIs) for this dredging contract?

Key performance indicators (KPIs) for this dredging contract would likely focus on the successful removal of a specified volume of sediment to achieve and maintain the required channel depth and width within the Savannah Inner Harbor. Performance would be measured against the contract's technical specifications, including the accuracy of dredging depth, the disposal of dredged material according to environmental regulations, and adherence to the project schedule. The firm fixed-price nature of the contract implies that meeting these technical and schedule requirements within the agreed-upon price is paramount. The government would monitor progress through site inspections, progress reports, and potentially surveys of the dredged areas to ensure compliance and satisfactory completion of the work.

What is the potential impact of this contract on the local Georgia economy?

This $27.3 million contract for Savannah Inner Harbor maintenance dredging is expected to have a positive impact on the local Georgia economy. The direct economic benefits will come from Marinex Construction Inc.'s spending on local resources, including labor, equipment rentals, fuel, and supplies. The project will likely create or sustain jobs within the heavy and civil engineering construction sector in the Savannah area and potentially across Georgia. Furthermore, by ensuring the navigability of the Savannah port, the contract indirectly supports the broader economic activity related to shipping, logistics, and trade that relies on this vital transportation hub, contributing to regional economic stability and growth.

Are there any specific environmental considerations or mitigation strategies associated with this dredging project?

Harbor dredging projects, especially those involving significant volumes of sediment, invariably have environmental considerations. The disposal of dredged material is a primary concern, requiring adherence to strict environmental regulations to prevent contamination of waterways or disruption of marine ecosystems. This contract likely includes specific requirements for the handling and placement of dredged material, which could involve upland disposal sites, beneficial reuse (e.g., in coastal restoration projects), or contained aquatic disposal. Environmental monitoring during the dredging process would also be crucial to assess impacts on water quality, marine life, and sensitive habitats. The Army Corps of Engineers, as the awarding agency, would have oversight to ensure compliance with all relevant environmental permits and laws.

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: W912HN24B5003

Offers Received: 2

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: $28,443,157

Exercised Options: $27,280,657

Current Obligation: $27,280,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline