Army awards $12.9M dredging contract to Southern Dredging Co. Inc. for Charleston harbor maintenance
Contract Overview
Contract Amount: $12,904,430 ($12.9M)
Contractor: Southern Dredging CO Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-22
End Date: 2026-09-28
Contract Duration: 371 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY25 CHARLESTON UPPER HARBOR AND JBC OM MAINTENANCE DREDGING
Place of Performance
Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29403
Plain-Language Summary
Department of Defense obligated $12.9 million to SOUTHERN DREDGING CO INC for work described as: FY25 CHARLESTON UPPER HARBOR AND JBC OM MAINTENANCE DREDGING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. The duration of 371 days indicates a substantial maintenance effort. 4. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction, a specialized sector. 5. The award is for maintenance dredging, crucial for maintaining navigable waterways. 6. The contract value is within a typical range for such specialized maritime infrastructure projects.
Value Assessment
Rating: good
The contract value of $12.9 million for harbor maintenance dredging appears reasonable given the scope and duration. Without specific benchmarks for this exact type of dredging in Charleston Harbor, a direct comparison is difficult. However, the firm-fixed-price structure suggests the government has secured a defined cost for the services. The contractor, Southern Dredging Co. Inc., has a history of performing similar work, which can imply efficiency and established operational costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates competition was sought, the 'exclusion of sources' phrasing suggests specific criteria may have been applied, potentially narrowing the field of eligible bidders. The presence of multiple bidders, if any, would be key to assessing the strength of the competition and its impact on pricing.
Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing to secure the work.
Public Impact
The primary beneficiaries are the U.S. Army Corps of Engineers and the broader maritime industry relying on the Port of Charleston. The service delivered is essential maintenance dredging to ensure the navigability of the Charleston Upper Harbor and JBC. The geographic impact is localized to Charleston, South Carolina, a critical hub for commerce and defense. This contract supports specialized labor within the heavy civil engineering and dredging sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen subsurface conditions are encountered, though mitigated by firm-fixed-price.
- Dependence on a single contractor for a critical infrastructure maintenance task.
- Environmental compliance risks associated with dredging operations.
Positive Signals
- Awarded through a competitive process, indicating potential for good value.
- Firm-fixed-price contract provides budget certainty.
- Contractor has experience in similar dredging projects.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure maintenance. The market for specialized dredging services is often concentrated among a few experienced firms. The value of this contract, approximately $12.9 million, is significant for a single project but aligns with the substantial costs associated with maintaining deep-water ports and harbors, which are critical national assets.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Southern Dredging Co. Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though the prime contractor's overall subcontracting practices would need further review.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army, likely managed by the U.S. Army Corps of Engineers. 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. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Port Infrastructure Development Program
- Maritime Security Operations
- Inland Waterways Trust Fund Expenditures
Risk Flags
- Potential for environmental impact
- Reliance on specialized equipment and expertise
- Importance of maintaining critical infrastructure
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, maintenance-dredging, south-carolina, port-infrastructure, maritime-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to SOUTHERN DREDGING CO INC. FY25 CHARLESTON UPPER HARBOR AND JBC OM MAINTENANCE DREDGING
Who is the contractor on this award?
The obligated recipient is SOUTHERN DREDGING CO 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 $12.9 million.
What is the period of performance?
Start: 2025-09-22. End: 2026-09-28.
What is Southern Dredging Co. Inc.'s track record with similar Army Corps of Engineers dredging contracts?
Southern Dredging Co. Inc. has a history of performing dredging and marine construction services. While specific details on past Army Corps of Engineers contracts are not provided in this summary, their presence in this sector suggests experience with government contracting requirements. A deeper dive into their contract history, including past performance evaluations and any disputes or claims, would provide a more comprehensive understanding of their reliability and capability for this Charleston harbor project. Reviewing their performance on similar-sized projects and in comparable environmental conditions would be crucial for assessing their suitability.
How does the $12.9 million contract value compare to similar harbor maintenance dredging projects?
Benchmarking this $12.9 million contract requires comparing it to similar maintenance dredging projects in ports of comparable size and complexity. Factors influencing cost include the volume of material to be dredged, the type of material (e.g., sand, silt, rock), the required depth and width of the channel, disposal methods for dredged material, and environmental mitigation measures. Without specific data on these parameters for this contract and comparable projects, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature suggests the government has negotiated a set cost, implying a degree of confidence in the estimated scope and associated expenses.
What are the primary risks associated with this dredging contract and how are they mitigated?
Key risks include unforeseen subsurface conditions (e.g., encountering hard rock or debris not identified in surveys), environmental compliance issues (e.g., impact on marine life or water quality), and potential delays due to weather or equipment failure. The firm-fixed-price contract helps mitigate financial risk for the government by capping the total cost. Mitigation for operational and environmental risks typically involves detailed pre-award surveys, strict adherence to environmental permits, robust project management by the Army Corps of Engineers, and performance bonds from the contractor. The contractor's experience also plays a role in anticipating and managing these risks.
What is the historical spending trend for Charleston harbor maintenance dredging?
Analyzing historical spending for Charleston harbor maintenance dredging would reveal trends in frequency, scope, and cost of these operations. This specific contract is for FY25, indicating ongoing investment in maintaining the harbor's navigability. Understanding past expenditures would help determine if the current $12.9 million award is consistent with historical patterns, represents an increase or decrease, and whether it aligns with the overall federal investment in port infrastructure. Such analysis could highlight potential budget fluctuations or shifts in maintenance priorities over time.
What is the significance of the 'exclusion of sources' clause in the competition type?
The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the contract was intended to be competed broadly, certain potential bidders were excluded based on specific criteria. This could be due to requirements for specialized equipment, past performance, security clearances, or geographic limitations. While it implies a competitive process was initiated, the exclusion might limit the number of actual bidders compared to a purely 'full and open' competition. The rationale for these exclusions would need to be examined to understand if they were justified and if they potentially impacted the competitiveness of the bidding environment and the final price.
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 NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912HP25RA016
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 925 WAPPOO RD, CHARLESTON, SC, 29407
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,448,605
Exercised Options: $12,904,430
Current Obligation: $12,904,430
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-22
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-10-23
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