Army awards $20.8M for Neches River dredging, with 6 bidders competing for the fixed-price contract

Contract Overview

Contract Amount: $20,837,388 ($20.8M)

Contractor: Pine Bluff Sand and Gravel Company

Awarding Agency: Department of Defense

Start Date: 2009-09-14

End Date: 2011-12-06

Contract Duration: 813 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SNWW, TX, LOWER AND MIDDLE NECHES RIVER, PIPELINE DREDGING

Place of Performance

Location: PORT ARTHUR, JEFFERSON County, TEXAS, 77640

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to PINE BLUFF SAND AND GRAVEL COMPANY for work described as: SNWW, TX, LOWER AND MIDDLE NECHES RIVER, PIPELINE DREDGING Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to provide cost certainty for the government. 3. The duration of 813 days indicates a significant, multi-year project. 4. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction. 5. The award value of $20.8 million falls within a moderate spending range for such infrastructure projects. 6. The contract was awarded to a single vendor, PINE BLUFF SAND AND GRAVEL COMPANY.

Value Assessment

Rating: good

The contract value of $20.8 million for pipeline dredging appears reasonable given the project's scope and duration. Benchmarking against similar Army Corps of Engineers dredging projects in Texas would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for managing costs in construction and dredging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders participating. This level of competition is generally positive, as it allows for a wider range of potential contractors to submit proposals, potentially leading to more competitive pricing and innovative solutions. The presence of multiple bidders suggests a healthy market for these services.

Taxpayer Impact: The robust competition for this dredging contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers and potentially commercial entities relying on navigable waterways. The services delivered include pipeline dredging, crucial for maintaining water depth and flow in the Neches River. The geographic impact is concentrated in Southeast Texas, specifically along the Lower and Middle Neches River. Workforce implications include employment opportunities for skilled laborers, equipment operators, and project managers in the construction and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered during dredging.
Dependence on a single contractor for the full duration of the project.
Environmental impact concerns related to dredging activities and spoil disposal.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive bidding process.
Award to an established entity with experience in heavy civil engineering.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging services. The market for dredging is often specialized, involving significant capital investment in equipment and expertise. The Army Corps of Engineers is a major client for such services, undertaking numerous projects to maintain and improve waterways for navigation and flood control. Comparable spending benchmarks would involve analyzing other dredging contracts awarded by federal agencies for similar waterway projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. The award to a single, likely larger, entity may limit direct opportunities for small businesses unless they are part of the prime contractor's supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers contracting office and project managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases, though specific project oversight details are often internal.

Related Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterways Navigation Projects
Coastal and Harbor Dredging Contracts
Environmental Dredging Projects

Risk Flags

Potential for cost overruns due to unforeseen subsurface conditions.
Environmental impact risks associated with dredging operations.
Long project duration increases exposure to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to PINE BLUFF SAND AND GRAVEL COMPANY. SNWW, TX, LOWER AND MIDDLE NECHES RIVER, PIPELINE DREDGING

Who is the contractor on this award?

The obligated recipient is PINE BLUFF SAND AND GRAVEL 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 $20.8 million.

What is the period of performance?

Start: 2009-09-14. End: 2011-12-06.

What is the track record of PINE BLUFF SAND AND GRAVEL COMPANY with the Department of Defense?

PINE BLUFF SAND AND GRAVEL COMPANY has a history of contracts with the Department of Defense, primarily in heavy civil engineering and construction. While this specific contract for Neches River dredging is a significant award, their past performance would need to be reviewed in detail to assess their overall reliability and experience with similar projects. A review of their contract history would reveal the types of projects undertaken, their value, and any reported performance issues or successes. This context is crucial for understanding their capability to execute the current dredging contract effectively and on schedule.

How does the $20.8 million award compare to similar dredging projects by the Army Corps of Engineers?

The $20.8 million award for the Neches River dredging project is a substantial sum, indicative of a significant undertaking. To benchmark its value, one would compare it to other Army Corps of Engineers dredging contracts of similar scope, duration, and geographic location. Factors such as the volume of material to be dredged, the type of material (e.g., sand, silt, rock), the required depth, and the complexity of the waterway are critical. Without specific comparative data on recent similar projects, it's challenging to definitively state if this award represents excellent, good, or fair value. However, the presence of six bidders suggests a competitive environment that likely drove the price towards a reasonable market rate.

What are the primary risks associated with this pipeline dredging contract?

The primary risks associated with this pipeline dredging contract include potential environmental impacts from the disturbance of riverbed sediments, which could contain pollutants. Unforeseen geological conditions, such as encountering harder-than-expected materials or submerged obstructions, could lead to schedule delays and cost overruns, despite the firm-fixed-price structure. Operational risks involve the potential for equipment failure or accidents in a challenging marine environment. Furthermore, the long duration of the contract (813 days) increases the exposure to fluctuating fuel prices and potential changes in regulatory requirements over the project lifecycle.

How effective is the firm-fixed-price contract type in managing costs for dredging projects?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for dredging projects by shifting the risk of cost overruns to the contractor. This structure provides the government with a high degree of cost certainty, as the price is set upfront and does not typically increase unless there are changes to the contract scope. For dredging, where unforeseen subsurface conditions can arise, FFP contracts incentivize the contractor to accurately estimate costs and manage their operations efficiently to maintain profitability. However, if the initial price is set too high due to contractor optimism or insufficient government cost estimation, the government may end up paying a premium. Conversely, if the contractor underestimates risks, they may face financial hardship, potentially impacting project completion.

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

The Department of the Army, primarily through the Army Corps of Engineers, has a consistent and significant historical spending pattern on dredging services. These expenditures are driven by the mandate to maintain and improve the nation's waterways for navigation, flood control, and environmental restoration. Annual spending can fluctuate based on infrastructure needs, budget allocations, and the initiation of large-scale projects. Historically, the Army has awarded numerous contracts for various types of dredging, including maintenance dredging, new channel construction, and environmental dredging. Analyzing historical data reveals consistent demand for these services, with spending often concentrated in regions with major ports and inland waterways.

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: W912HY09B0024

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1501 PORT RD, PINE BLUFF, AR, 71601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,837,388

Exercised Options: $20,837,388

Current Obligation: $20,837,388

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline