Army awards $13.9M dredging contract to T.W. Laquay Dredging LLC for Texas waterway maintenance

Contract Overview

Contract Amount: $13,955,542 ($14.0M)

Contractor: T.W. Laquay Dredging LLC

Awarding Agency: Department of Defense

Start Date: 2009-05-15

End Date: 2020-05-17

Contract Duration: 4,020 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GIWW, SAN BERNARD TO LIVE OAK BAYOU IN BRAZORIA COUNTY, TEXAS, PIPELINE DREDGING.

Place of Performance

Location: BAY CITY, MATAGORDA County, TEXAS, 77404

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to T.W. LAQUAY DREDGING LLC for work described as: GIWW, SAN BERNARD TO LIVE OAK BAYOU IN BRAZORIA COUNTY, TEXAS, PIPELINE DREDGING. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 4020 days (over 11 years) indicates a long-term need for waterway maintenance. 3. The definitive contract type suggests a commitment to a specific scope of work over an extended period. 4. The firm-fixed-price structure provides cost certainty for the government. 5. The contract was awarded to a single vendor, T.W. Laquay Dredging LLC. 6. The project focuses on pipeline dredging in Brazoria County, Texas, crucial for navigation and infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this dredging contract is challenging without specific per-unit cost data or comparable project details. The total award amount of $13.9 million over an 11-year period suggests an average annual expenditure of approximately $1.26 million. This figure needs to be assessed against the scope and complexity of the dredging work, the specific waterway's maintenance requirements, and prevailing market rates for similar services in the region. Without more granular cost breakdowns or comparisons to other Army Corps of Engineers dredging projects of similar scale and technical requirements, a definitive value-for-money assessment is difficult.

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 bids. The presence of three bidders (as suggested by 'no': 3) implies a degree of competition, which is generally favorable for price discovery and achieving competitive pricing. However, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. The fact that it resulted in a definitive contract awarded to a single entity suggests that T.W. Laquay Dredging LLC was selected as the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best value. A competitive process helps prevent inflated pricing and promotes efficiency among contractors.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the Department of Defense, ensuring the navigability of critical waterways. The services delivered include pipeline dredging to maintain depth and capacity of the GIWW, SAN BERNARD TO LIVE OAK BAYOU IN BRAZORIA COUNTY, TEXAS. The geographic impact is localized to Brazoria County, Texas, affecting local commerce and transportation reliant on these waterways. The contract supports the maritime industry and potentially local jobs involved in dredging operations and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 11 years) could lead to potential cost overruns if market conditions change significantly or scope creep occurs.
Lack of detailed performance metrics or specific deliverables in the provided data makes it difficult to assess the contractor's performance trajectory.
The definitive contract type, while providing certainty, might limit flexibility if project requirements evolve substantially over the long term.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair bidding process.
Firm-fixed-price contract provides cost certainty for the government, mitigating risks associated with price fluctuations.
The contract addresses a critical infrastructure need for waterway maintenance, ensuring operational readiness and economic activity.

Sector Analysis

The dredging and civil engineering construction sector is vital for maintaining and developing national infrastructure, particularly waterways crucial for commerce and defense. This contract falls under heavy and civil engineering construction, a segment characterized by large-scale projects requiring specialized equipment and expertise. The market size for dredging services can be substantial, driven by government contracts for maintaining ports, rivers, and canals. Comparable spending benchmarks would typically involve analyzing other Army Corps of Engineers contracts for similar waterway maintenance projects, considering factors like cubic yards dredged, project complexity, and geographic location.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The award to T.W. Laquay Dredging LLC, without specific information on its size, means the primary contract is not structured to directly benefit small businesses through set-aside provisions. Any involvement of small businesses would likely be through T.W. Laquay Dredging LLC's own subcontracting decisions, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers district responsible for the waterway. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS, which provide basic information on the contract. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Navigation
Coastal and Harbor Dredging
Infrastructure Maintenance Contracts
Department of Defense Construction Projects

Risk Flags

Long contract duration may increase exposure to market volatility and changing regulatory landscapes.
Lack of detailed performance metrics in summary data hinders comprehensive assessment.
Potential for scope creep over the 11-year contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to T.W. LAQUAY DREDGING LLC. GIWW, SAN BERNARD TO LIVE OAK BAYOU IN BRAZORIA COUNTY, TEXAS, PIPELINE DREDGING.

Who is the contractor on this award?

The obligated recipient is T.W. LAQUAY DREDGING 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 $14.0 million.

What is the period of performance?

Start: 2009-05-15. End: 2020-05-17.

What is the historical spending pattern for dredging services by the Department of the Army in Texas?

Analyzing historical spending patterns for dredging services by the Department of the Army in Texas requires access to comprehensive contract databases over several fiscal years. While this specific contract award is for $13.9 million over approximately 11 years, understanding the broader trend involves looking at the total obligated amounts for similar services across different Army districts within Texas. Factors such as the frequency of dredging needs, the specific waterways prioritized, and the competitive landscape influence annual spending. Without a detailed historical analysis, it's difficult to ascertain if this $13.9 million represents a typical investment or an outlier. However, waterway maintenance is a recurring necessity, suggesting consistent, albeit variable, budgetary allocations for such services.

How does the price per unit (e.g., per cubic yard dredged) for this contract compare to similar Army Corps of Engineers projects?

Determining the price per unit for this contract is not possible with the provided data, as it lacks specifics on the volume of material to be dredged. The total award of $13.9 million is for pipeline dredging over a long duration. To compare it to similar projects, one would need to know the total cubic yards of sediment removed. Once that volume is known, it could be divided into the total contract value to derive a per-cubic-yard cost. This cost would then be benchmarked against other Army Corps of Engineers dredging contracts in the Gulf Coast region or similar inland waterways, considering factors like material type (sand, silt, clay), dredging method, and disposal requirements. Without this volume data, a per-unit cost comparison remains speculative.

What is T.W. Laquay Dredging LLC's track record with federal contracts, particularly with the Department of the Army?

T.W. Laquay Dredging LLC has a history of federal contracting, as evidenced by this award. To assess their track record thoroughly, one would need to examine their complete contract history, including past performance evaluations, any disputes or claims filed, and the types and values of previous contracts. Information from sources like the Federal Procurement Data System (FPDS) can reveal the number of contracts awarded, the agencies involved, and the dollar amounts. A positive track record would include successful completion of similar dredging projects, adherence to schedules and budgets, and favorable past performance reviews. Conversely, any history of contract failures, significant delays, or quality issues would raise concerns about their reliability for this long-term project.

What are the key performance indicators (KPIs) used to measure the success of this dredging contract?

The key performance indicators (KPIs) for this dredging contract are not explicitly detailed in the provided summary data. However, typical KPIs for such projects managed by the Army Corps of Engineers would likely include achieving and maintaining specified channel depths and widths, adherence to environmental regulations during dredging and material disposal, timely completion of dredging cycles, and minimizing disruption to navigation. Performance might also be assessed based on the efficiency of the dredging operations (e.g., cubic yards dredged per hour) and the overall cost-effectiveness of the work performed. The contract's definitive nature and firm-fixed-price structure imply that meeting these operational and environmental standards within the agreed budget is paramount.

What is the risk assessment associated with a 4020-day (over 11 years) definitive contract for dredging?

A definitive contract spanning over 11 years for dredging carries several inherent risks. Firstly, the long duration increases the potential for unforeseen environmental changes or shifts in regulatory requirements that could impact dredging operations or disposal methods, potentially leading to cost increases or delays. Secondly, market conditions for dredging equipment, fuel, and labor can fluctuate significantly over such a long period, potentially affecting the contractor's profitability if not adequately managed within the fixed-price structure. Thirdly, there's a risk of scope creep or evolving maintenance needs that might not be fully captured in the initial contract scope, requiring careful contract management and potential modifications. Finally, maintaining consistent oversight and ensuring contractor performance remains high over such an extended period requires sustained effort from the contracting agency.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912HY09B0014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Orion Marine Group, Inc. (UEI: 807676908)

Address: 619 BAYVIEW DR, PORT LAVACA, TX, 77979

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,005,542

Exercised Options: $14,005,542

Current Obligation: $13,955,542

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline