Army awards $15M contract for GIWW dredging to T.W. LaQuay Dredging LLC

Contract Overview

Contract Amount: $15,041,905 ($15.0M)

Contractor: T.W. Laquay Dredging LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2011-02-01

Contract Duration: 490 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING GIWW SECTIONS

Place of Performance

Location: PORT LAVACA, CALHOUN County, TEXAS, 77979

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to T.W. LAQUAY DREDGING LLC for work described as: DREDGING GIWW SECTIONS Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The definitive contract type indicates a flexible agreement for ongoing services. 4. Firm fixed price structure provides cost certainty for the government. 5. Contract duration of 490 days allows for phased execution of dredging activities. 6. Geographic focus on Texas (TX) aligns with the Gulf Intracoastal Waterway's importance.

Value Assessment

Rating: good

The contract value of approximately $15 million for dredging services on the Gulf Intracoastal Waterway (GIWW) seems aligned with the scale of such infrastructure projects. Benchmarking against similar heavy civil engineering construction contracts would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract offers predictability in costs for the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were excluded for specific reasons. This procurement method is less common than standard full and open competition and warrants further investigation into the justification for excluding specific bidders. The number of bidders (4) is moderate, suggesting some level of competition, but the exclusion of sources could potentially limit price discovery.

Taxpayer Impact: The exclusion of sources, even with four bidders, may have reduced the competitive pressure, potentially leading to a higher price for taxpayers than if all capable sources had been allowed to bid.

Public Impact

Benefits the maritime industry by ensuring navigability of the GIWW. Services delivered include essential maintenance dredging to maintain waterway depth and capacity. Geographic impact is concentrated in Texas, a key state for coastal commerce. Workforce implications include employment for skilled labor in dredging operations and related support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause requires scrutiny to ensure it was justified and did not unduly restrict competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the dredging work.
The definitive contract type, while flexible, could lead to scope creep if not managed carefully.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract was awarded to a single entity, T.W. LaQuay Dredging LLC, suggesting a clear point of accountability.
The contract duration of 490 days allows for a structured approach to completing the dredging work.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to waterway maintenance. The Gulf Intracoastal Waterway is a critical piece of national infrastructure, supporting significant commercial and industrial activity. Spending on dredging and waterway maintenance is a recurring necessity for ensuring efficient transportation of goods. Comparable spending benchmarks would involve analyzing other Army Corps of Engineers or Department of Transportation contracts for similar waterway projects.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract, as it was not set aside for small businesses and there's no explicit mention of subcontracting goals. This suggests that the primary contractor, T.W. LaQuay Dredging LLC, likely has the capacity to perform the work independently or through larger supply chains. The impact on the small business ecosystem would be minimal unless T.W. LaQuay Dredging LLC engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, likely managed by the Army Corps of Engineers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specific services at an agreed-upon price. Transparency would be enhanced through public contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Department of Transportation Maritime Administration Programs
Gulf Intracoastal Waterway Navigation Projects

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed performance metrics in provided data.
Definitive contract type may require careful scope management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to T.W. LAQUAY DREDGING LLC. DREDGING GIWW SECTIONS

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 $15.0 million.

What is the period of performance?

Start: 2009-09-29. End: 2011-02-01.

What is the historical spending pattern for T.W. LaQuay Dredging LLC with the Department of Defense?

Analyzing the historical spending patterns of T.W. LaQuay Dredging LLC with the Department of Defense (DoD) is crucial for understanding the contractor's track record and relationship with the agency. A review of federal procurement data would reveal the total value and number of contracts awarded to this company by the DoD over time. This analysis should identify trends in contract types (e.g., fixed-price, cost-plus), the agencies within the DoD that have awarded contracts, and the specific services or goods provided. Significant past performance, particularly on similar large-scale civil engineering projects, would indicate reliability and capability. Conversely, a history of contract disputes, performance issues, or frequent sole-source awards might raise concerns about the contractor's suitability and the value received by the government. Understanding this history provides context for the current $15 million award and helps assess potential risks associated with contractor performance.

How does the $15 million contract value compare to other GIWW dredging projects?

To assess the value for money of the $15 million contract for GIWW dredging, it's essential to benchmark it against similar projects. This involves researching historical contract awards for dredging activities along the Gulf Intracoastal Waterway or comparable inland waterways managed by the Army Corps of Engineers. Key comparison points include the total contract value, the scope of work (e.g., cubic yards dredged, length of channel maintained), the duration of the contract, and the specific dredging methods employed. If data indicates that similar projects of comparable scale and complexity have been awarded for significantly lower amounts, it could suggest that this contract may not represent optimal value. Conversely, if the $15 million falls within the expected range for such work, considering inflation and specific project challenges, it would support the assessment of good value. The firm fixed-price nature also contributes to value by providing cost certainty.

What are the specific risks associated with 'Full and Open Competition After Exclusion of Sources' for this contract?

The procurement method 'Full and Open Competition After Exclusion of Sources' presents specific risks that warrant careful consideration. The primary risk is that excluding certain potential bidders, even if justified, may have inadvertently limited the pool of highly qualified contractors, potentially leading to a less competitive bidding environment. This reduced competition could result in higher prices for the government than might have been achieved through unrestricted full and open competition. Another risk is the potential for protests or legal challenges from excluded sources if the justification for their exclusion is deemed insufficient or improperly documented. Furthermore, the administrative burden of justifying and managing such exclusions can be significant. Ensuring that the exclusion criteria were objective, transparent, and directly related to the government's needs is paramount to mitigating these risks and assuring taxpayers that the contract was awarded fairly and at the best possible price.

What is the expected impact of this dredging contract on the navigability and economic activity along the GIWW in Texas?

This $15 million dredging contract is expected to have a significant positive impact on the navigability and economic activity along the Gulf Intracoastal Waterway (GIWW) in Texas. By maintaining or improving the depth and width of the waterway, the contract ensures that commercial vessels can operate safely and efficiently. This is critical for the transportation of goods, including oil, gas, chemicals, and agricultural products, which are vital to the Texas economy and national supply chains. Improved navigability reduces transit times and shipping costs, making businesses that rely on the GIWW more competitive. Furthermore, the dredging operations themselves will likely create temporary employment opportunities for skilled labor in the region, contributing to local economic activity. The long-term economic benefits stem from the continued viability of the GIWW as a major artery for commerce.

Are there any performance concerns or past issues with T.W. LaQuay Dredging LLC on similar Army contracts?

Investigating potential performance concerns or past issues with T.W. LaQuay Dredging LLC on similar Army contracts is a critical step in risk assessment. This would involve reviewing contract performance reports, past performance evaluations, and any documented disputes or claims filed by or against the contractor on previous Army projects, particularly those involving dredging or heavy civil engineering. A history of significant delays, cost overruns, quality deficiencies, or failure to meet contract requirements could indicate a higher risk for this current $15 million award. Conversely, a consistent record of successful project completion, positive performance reviews, and timely delivery would suggest a lower risk profile. Without access to detailed performance data, it is difficult to definitively assess the contractor's reliability, but such a review is standard practice in federal contract analysis.

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: W912HY09B0026

Offers Received: 4

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: $15,041,905

Exercised Options: $15,041,905

Current Obligation: $15,041,905

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline