DoD awards $23.7M for South Carolina beach renourishment, with 3 bidders competing

Contract Overview

Contract Amount: $23,656,524 ($23.7M)

Contractor: Waterfront Property Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-26

End Date: 2024-10-08

Contract Duration: 287 days

Daily Burn Rate: $82.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY24 FOLLY BEACH EMERGENCY RENOURISHMENT - PLACEMENT OF BEACH FILL :

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29403

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to WATERFRONT PROPERTY SERVICES, LLC for work described as: FY24 FOLLY BEACH EMERGENCY RENOURISHMENT - PLACEMENT OF BEACH FILL : Key points: 1. Contract value appears reasonable given the scope of emergency coastal restoration. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include weather delays and environmental compliance. 4. This contract addresses critical infrastructure needs for coastal defense. 5. The project falls within the broader category of civil engineering and construction. 6. The firm-fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $23.7 million for emergency beach renourishment seems aligned with typical costs for such large-scale coastal projects. While specific benchmarks for emergency renourishment in South Carolina are not readily available, the price appears competitive given the urgency and scope. The firm-fixed-price contract type suggests that the contractor has a strong incentive to manage costs effectively. Further analysis would require comparing this to similar non-emergency projects or historical data for this specific location.

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 offers. With three bidders participating, the competition level suggests a reasonably competitive environment for this type of specialized construction service. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: The presence of multiple bidders in a full and open competition is beneficial for taxpayers, as it encourages competitive pricing and potentially drives down the overall cost of the project compared to a sole-source or limited competition award.

Public Impact

Residents and businesses in Folly Beach, South Carolina, will benefit from enhanced coastal protection and storm surge mitigation. The project will deliver critical beach fill placement to restore eroded shorelines. The geographic impact is concentrated on Folly Beach, South Carolina. The project is expected to support temporary employment in the construction and engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays due to weather or unforeseen environmental conditions.
Ensuring compliance with all environmental regulations during placement operations.
The emergency nature of the contract may limit thorough vetting of all potential risks.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Project addresses a critical need for coastal infrastructure protection.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal resilience and infrastructure. The market for beach renourishment and coastal defense projects is specialized, often involving environmental engineering expertise and significant logistical capabilities. Spending in this area can fluctuate based on storm activity and federal infrastructure priorities. Comparable spending benchmarks would typically be found in Army Corps of Engineers projects or FEMA disaster recovery funding.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-asides. While Waterfront Property Services, LLC, may utilize small businesses as subcontractors, there is no explicit requirement or analysis provided regarding their subcontracting plan or its impact on the small business ecosystem in this data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
FEMA Hazard Mitigation Assistance Grants
Coastal Storm Risk Management Projects
Beach Erosion Control Projects

Risk Flags

Weather Dependency
Environmental Compliance
Scope Definition
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to WATERFRONT PROPERTY SERVICES, LLC. FY24 FOLLY BEACH EMERGENCY RENOURISHMENT - PLACEMENT OF BEACH FILL :

Who is the contractor on this award?

The obligated recipient is WATERFRONT PROPERTY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2023-12-26. End: 2024-10-08.

What is the track record of Waterfront Property Services, LLC in performing similar coastal construction projects for the federal government?

Waterfront Property Services, LLC has a history of performing various construction and engineering services. While specific details on their track record for large-scale emergency beach renourishment projects are not immediately available in this data snippet, their award by the Department of Defense suggests they possess the necessary qualifications and experience. Further investigation into their past performance on similar contracts, including client feedback and project completion success rates, would provide a more comprehensive understanding of their capabilities and reliability in executing this specific type of work.

How does the awarded amount of $23.7 million compare to similar beach renourishment projects, particularly emergency ones?

The $23.7 million award for the Folly Beach emergency renourishment is substantial, reflecting the scale and urgency of coastal restoration. Without specific data on comparable emergency projects in the region or for similar-sized beaches, a direct price-per-cubic-yard comparison is difficult. However, large-scale civil engineering projects, especially those with time-sensitive requirements like emergency response, often incur higher costs due to mobilization, specialized equipment, and potential overtime. This figure should be benchmarked against historical Army Corps of Engineers projects or other federally funded coastal resilience initiatives to ascertain its relative value.

What are the primary risks associated with this specific contract, beyond general construction risks?

Beyond standard construction risks, this contract faces specific challenges related to its coastal environment and emergency nature. Weather is a significant factor, as storms can halt operations, damage equipment, or even undo the progress made. Environmental compliance is another key risk; ensuring that sand placement meets ecological standards and minimizes disruption to marine life requires careful planning and execution. The emergency designation itself can introduce risks if it bypasses some standard pre-award due diligence or if the urgency leads to unforeseen site conditions not fully captured in the initial assessment.

How effective is the firm-fixed-price contract type in ensuring value for money for this beach renourishment project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and risks can be reasonably anticipated. For this beach renourishment project, an FFP contract incentivizes the contractor, Waterfront Property Services, LLC, to control costs and complete the work efficiently to maximize profit. This shifts the risk of cost overruns to the contractor. However, the effectiveness relies on the accuracy of the initial cost estimates and the contractor's ability to manage unforeseen conditions within the fixed price. If significant, unanticipatable issues arise, the government might not achieve the best value if the contractor is unable to complete the work as intended.

What is the historical spending pattern for beach renourishment or similar coastal defense projects by the Department of Defense or Army Corps of Engineers?

The Department of Defense, primarily through the Army Corps of Engineers (USACE), has a long history of investing in coastal protection and beach renourishment projects. Annual spending can vary significantly, influenced by factors such as hurricane seasons, congressional appropriations, and infrastructure priorities. USACE manages numerous projects nationwide aimed at mitigating storm damage, controlling erosion, and maintaining navigable waterways. Historical data often shows multi-million dollar commitments to these types of projects, with specific allocations often tied to specific geographic regions or recurring maintenance cycles. This $23.7 million award aligns with the typical scale of significant federal investments in coastal resilience.

What does the level of competition (3 bidders) imply about the market for specialized coastal engineering and construction services?

Having three bidders for this full and open competition suggests a moderately competitive market for specialized coastal engineering and construction services. While more bidders could potentially drive prices lower, three offers indicate that multiple firms possess the capability and interest to undertake such projects. This level of competition is generally sufficient to encourage competitive pricing and prevent monopolistic practices. It implies that the government has a reasonable selection of qualified contractors to choose from, balancing cost considerations with technical expertise and capacity.

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: W912HP24B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13630 50TH WAY N, CLEARWATER, FL, 33760

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,656,524

Exercised Options: $23,656,524

Current Obligation: $23,656,524

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline