Army awards $43.4M dredging contract to Marinex Construction Inc. for Upper Harbor improvements

Contract Overview

Contract Amount: $43,359,004 ($43.4M)

Contractor: Marinex Construction Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-17

End Date: 2022-12-22

Contract Duration: 826 days

Daily Burn Rate: $52.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: POST 45 CONTRACT 5 UPPER HARBOR DREDGING

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $43.4 million to MARINEX CONSTRUCTION INC for work described as: POST 45 CONTRACT 5 UPPER HARBOR DREDGING Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Contract duration of 826 days indicates a significant, long-term project. 5. Project location in South Carolina suggests regional economic impact. 6. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction.

Value Assessment

Rating: good

The contract value of $43.4 million for dredging services falls within a typical range for 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 is generally favorable for controlling costs, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 4 bids received, the competition level suggests a healthy market for these specialized services. This level of competition is generally expected to drive competitive pricing and ensure fair market value.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a competitive environment that typically leads to more cost-effective pricing for government projects.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and potentially commercial shipping interests through improved waterway access. The contract delivers essential dredging services to maintain and improve the navigability of the Upper Harbor. The geographic impact is concentrated in the specific harbor area within South Carolina. Workforce implications include employment opportunities for skilled labor in dredging operations and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, long-duration civil works projects.
Environmental impact of dredging activities requires careful monitoring and mitigation.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust market and potentially competitive pricing.
Contractor has a history of performing similar large-scale construction projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is critical for maintaining national infrastructure, including ports and waterways. The market size for such specialized services is significant, driven by ongoing needs for infrastructure maintenance and development by government agencies like the Army Corps of Engineers.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While Marinex Construction Inc. may engage small businesses as subcontractors, there is no explicit mandate within this award notice. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Army Corps of Engineers, responsible for contract administration and performance monitoring. The firm fixed-price nature provides a degree of accountability for the contractor to deliver within the agreed budget. Transparency is generally maintained through contract award databases, though detailed performance reports may not be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Waterway Infrastructure Projects
Coastal and Harbor Maintenance Dredging

Risk Flags

Potential for environmental impact
Risk of unforeseen subsurface conditions
Contract duration necessitates long-term performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.4 million to MARINEX CONSTRUCTION INC. POST 45 CONTRACT 5 UPPER HARBOR 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 $43.4 million.

What is the period of performance?

Start: 2020-09-17. End: 2022-12-22.

What is Marinex Construction Inc.'s track record with similar federal contracts, particularly dredging projects?

Marinex Construction Inc. has a history of performing significant civil engineering and construction projects for federal agencies. While specific details on past dredging contracts require deeper database searches, their involvement in projects like the POST 45 CONTRACT 5 UPPER HARBOR DREDGING suggests experience with large-scale waterway infrastructure. Reviewing past performance evaluations and contract completion records would provide a clearer picture of their reliability, quality of work, and adherence to schedules and budgets on similar federal endeavors. Their ability to secure this $43.4 million contract indicates a level of trust and demonstrated capability by the awarding agency.

How does the awarded price of $43.4 million compare to similar dredging contracts awarded by the Army Corps of Engineers?

The awarded price of $43.4 million for the Upper Harbor dredging project needs to be benchmarked against comparable contracts to assess value for money. Factors such as project scope (volume of material dredged, depth, distance of spoil disposal), geographic location (labor and material costs), and contract duration (826 days) significantly influence pricing. A comparative analysis with other Army Corps of Engineers dredging contracts of similar scale and complexity, potentially within the same region or fiscal year, would reveal whether this price is competitive. Without such direct comparisons, it's difficult to definitively state if it represents excellent or merely fair value.

What are the primary risks associated with this type of large-scale dredging contract, and how are they mitigated?

Key risks in large-scale dredging contracts include unforeseen subsurface conditions (e.g., hard rock, debris) that can increase costs and extend schedules, environmental impacts (e.g., sediment plumes, disruption to marine life) requiring strict compliance with regulations, and potential equipment failures or logistical challenges. Mitigation strategies often involve thorough site investigations prior to bidding, robust environmental monitoring plans, contingency clauses in the contract, and the use of experienced contractors with proven operational capabilities. The firm fixed-price nature of this contract also incentivizes the contractor to manage these risks effectively to avoid cost overruns.

How effective is the 'full and open competition' strategy in ensuring competitive pricing for specialized construction services like dredging?

Full and open competition is generally considered the most effective strategy for ensuring competitive pricing for specialized construction services. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. In this case, with 4 bids received for the dredging contract, it suggests a reasonably competitive market. This process fosters price discovery and encourages contractors to submit their best offers to secure the work. While it doesn't guarantee the lowest possible price, it creates a strong incentive for efficiency and cost-effectiveness.

What is the historical spending pattern for dredging services by the Department of the Army, and how does this contract fit within it?

The Department of the Army, primarily through the Army Corps of Engineers, consistently spends significant amounts on dredging services to maintain and improve navigation channels, harbors, and waterways across the nation. Historical spending patterns reveal a steady demand driven by the need for infrastructure upkeep and economic development. This $43.4 million contract for Upper Harbor dredging aligns with this historical pattern, representing a typical investment in maintaining critical maritime infrastructure. Analyzing annual dredging expenditures would show if this contract's value is consistent with, or deviates from, average spending levels for similar projects.

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: W912HP20B0004

Offers Received: 4

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: $43,518,894

Exercised Options: $43,359,004

Current Obligation: $43,359,004

Actual Outlays: $2,046,717

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline