Army awards $130.7M dredging contract to Norfolk Dredging Company for Charleston harbor maintenance
Contract Overview
Contract Amount: $130,693,586 ($130.7M)
Contractor: Norfolk Dredging Company
Awarding Agency: Department of Defense
Start Date: 2019-08-20
End Date: 2022-10-10
Contract Duration: 1,147 days
Daily Burn Rate: $113.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: POST 45 LOWER HARBOR NEW&MAINTENANCE DREDGING CHARLESTON, SC
Place of Performance
Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401
Plain-Language Summary
Department of Defense obligated $130.7 million to NORFOLK DREDGING COMPANY for work described as: POST 45 LOWER HARBOR NEW&MAINTENANCE DREDGING CHARLESTON, SC Key points: 1. Significant investment in critical port infrastructure. 2. Norfolk Dredging Company is a major player in the dredging industry. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector spending is influenced by infrastructure needs and economic conditions.
Value Assessment
Rating: good
The contract value of $130.7 million appears reasonable for a large-scale harbor dredging project. Benchmarking against similar Army Corps of Engineers contracts for maintenance dredging would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove a fair price. The firm fixed-price structure further supports price certainty.
Taxpayer Impact: This investment supports maritime commerce and regional economic activity, indirectly benefiting taxpayers through improved trade efficiency.
Public Impact
Ensures continued navigability of Charleston Harbor, a vital East Coast port. Supports regional economic activity by facilitating shipping and trade. Contributes to the modernization and maintenance of U.S. maritime infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for unforeseen subsurface conditions impacting cost and schedule.
- Environmental compliance requirements can add complexity and cost.
- Dependence on a single contractor for a critical infrastructure project.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. Spending in this area is often driven by federal infrastructure priorities and the need to maintain critical waterways.
Small Business Impact
The data indicates this contract was awarded to Norfolk Dredging Company, a large business. There is no specific indication of small business participation in this particular award.
Oversight & Accountability
The Army Corps of Engineers typically has robust oversight mechanisms for large construction contracts, including regular progress reports, site inspections, and quality assurance processes to ensure contract compliance and taxpayer value.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value increases financial risk.
- Potential for unforeseen subsurface conditions.
- Environmental compliance complexities.
- Dependence on a single contractor for critical infrastructure.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, sc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.7 million to NORFOLK DREDGING COMPANY. POST 45 LOWER HARBOR NEW&MAINTENANCE DREDGING CHARLESTON, SC
Who is the contractor on this award?
The obligated recipient is NORFOLK DREDGING 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 $130.7 million.
What is the period of performance?
Start: 2019-08-20. End: 2022-10-10.
What is the historical performance of Norfolk Dredging Company on similar federal contracts?
Assessing Norfolk Dredging Company's past performance on comparable federal contracts, particularly those involving harbor maintenance and dredging, is crucial. Reviewing their track record for on-time delivery, adherence to budget, and quality of work would provide insights into their reliability and capability for this project, informing future risk assessments.
Are there any specific environmental risks associated with the dredging in Charleston Harbor that could impact the project's cost or timeline?
Charleston Harbor may contain specific environmental considerations, such as sensitive ecosystems, potential contaminants in sediment, or protected marine life. Understanding these risks and the associated mitigation measures required by environmental regulations is vital. Unforeseen environmental challenges can lead to costly delays and require specialized handling, impacting the overall project budget.
How does the firm fixed-price contract structure mitigate potential cost overruns for this large-scale dredging project?
A firm fixed-price contract shifts the primary risk of cost overruns to the contractor. While this provides budget certainty for the government, it necessitates thorough initial cost estimation by the contractor. Any unexpected increases in labor, materials, or unforeseen site conditions are generally absorbed by Norfolk Dredging Company, unless specific contract clauses allow for adjustments.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912HP18B0004
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 110 CENTERVILLE TPKE N, CHESAPEAKE, VA, 23320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $130,693,586
Exercised Options: $130,693,586
Current Obligation: $130,693,586
Actual Outlays: $1,784,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-08-20
Current End Date: 2022-10-10
Potential End Date: 2022-10-10 00:00:00
Last Modified: 2023-06-02
More Contracts from Norfolk Dredging Company
- Savannah Inner Harbor Dredging Reaches A&B Stations 70+000 to 103+000, and Kings Island Turning Basin Savannah, GA — $120.8M (Department of Defense)
- Norfolk Harbor 55FT Deepening — $87.4M (Department of Defense)
- Pinellas County Short Protection Project — $52.4M (Department of Defense)
- 200511!500967!96ce!w912ep!usa Engineer Dist Jacksonville !w912ep05c0029 !A!N! !N! ! !20050726!20060410!050989532!050989532!050989532!n!norfolk Dredging Company !110 Centerville Tpke N !chesapeake !va!23320!99103!103!12!pinellas !pinellas !florida !+000029844000!n!n!000029844000!y300!restoration Activities !C2 !construction !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !A! !a!n!j!2!002!a! !D!N!C! ! !N!C!N! ! ! !c!c!a!a!000!a!c!y! !N! ! ! !W912EP!0001! ! — $49.1M (Department of Defense)
- MX Dredging: Delaware River, Philadelphia to SEA and Wilimington Harbor — $45.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)