Army Corps of Engineers awards $33.3M dredging contract for Corpus Christi Ship Channel improvement

Contract Overview

Contract Amount: $33,263,867 ($33.3M)

Contractor: King Fisher Marine Service, L.P.

Awarding Agency: Department of Defense

Start Date: 2011-09-22

End Date: 2013-09-14

Contract Duration: 723 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CORPUS CHRISTI SHIP CHANNEL, TEXAS IN NUECES COUNTY, TEXAS, CHANNEL IMPROVEMENT PROJECT, LA QUINTA CHANNEL EXTENSION, PIPELINE DREDGING.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78408

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to KING FISHER MARINE SERVICE, L.P. for work described as: CORPUS CHRISTI SHIP CHANNEL, TEXAS IN NUECES COUNTY, TEXAS, CHANNEL IMPROVEMENT PROJECT, LA QUINTA CHANNEL EXTENSION, PIPELINE DREDGING. Key points: 1. Contract awarded to King Fisher Marine Service, L.P. for channel extension and pipeline dredging. 2. Project aims to improve navigation and capacity within the Corpus Christi Ship Channel. 3. The contract was awarded under full and open competition. 4. This project falls under heavy and civil engineering construction. 5. The duration of the contract was 723 days. 6. The award amount represents a significant investment in regional infrastructure.

Value Assessment

Rating: good

The contract value of $33.3 million for dredging services appears reasonable given the scope of work involving channel extension and pipeline dredging. Benchmarking against similar large-scale civil engineering projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bids suggests a competitive environment, which generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, fostering a more competitive environment that can drive down prices and ensure the best value is obtained for public funds.

Public Impact

The primary beneficiaries are the Department of the Army Corps of Engineers and the maritime industry operating in the Corpus Christi region. The project delivers improved navigation channels, facilitating larger vessels and increased cargo throughput. Geographic impact is concentrated in Nueces County, Texas, specifically along the Corpus Christi Ship Channel. Workforce implications include employment opportunities for skilled labor in dredging and marine construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts from dredging activities requiring strict mitigation measures.
Dependence on contractor's equipment and personnel availability for timely project completion.
Risk of unforeseen subsurface conditions impacting dredging efficiency and cost.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract shifts cost overrun risk to the contractor.
Project addresses critical infrastructure needs for regional economic growth.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on maritime infrastructure development. The dredging and channel improvement market is characterized by specialized equipment and expertise. Comparable spending benchmarks would involve other large-scale port and waterway improvement projects undertaken by federal agencies like the Army Corps of Engineers. The market size for such projects is substantial, driven by the need to maintain and expand national trade routes.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor utilizes small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for ensuring contract compliance and project completion according to specifications. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through public contract databases, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterways Trust Fund
Port Infrastructure Development Program

Risk Flags

Environmental impact of dredging
Potential for cost overruns if unforeseen conditions arise
Dependence on contractor's operational capacity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to KING FISHER MARINE SERVICE, L.P.. CORPUS CHRISTI SHIP CHANNEL, TEXAS IN NUECES COUNTY, TEXAS, CHANNEL IMPROVEMENT PROJECT, LA QUINTA CHANNEL EXTENSION, PIPELINE DREDGING.

Who is the contractor on this award?

The obligated recipient is KING FISHER MARINE SERVICE, L.P..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2011-09-22. End: 2013-09-14.

What is the historical spending pattern for dredging and channel improvement projects by the Army Corps of Engineers in the Corpus Christi area?

Historical spending data for dredging and channel improvement projects by the Army Corps of Engineers in the Corpus Christi area reveals a consistent investment in maintaining and expanding maritime infrastructure. Prior to this $33.3 million contract awarded in 2011, the Corps has undertaken numerous projects, often in phases, to deepen and widen the Corpus Christi Ship Channel to accommodate larger vessels and increased trade volumes. These projects are typically funded through appropriations for civil works and are subject to rigorous planning, environmental review, and competitive bidding processes. Analyzing past contracts, such as those for the La Quinta Channel or other segments of the port, would show a pattern of significant, multi-year investments, with individual contract values varying based on the scope of work, dredging volume, and specific engineering challenges. The frequency and scale of these awards are often influenced by economic conditions, trade forecasts, and congressional appropriations.

How does the awarded amount of $33.3 million compare to the estimated cost or budget for this specific channel improvement project?

The awarded amount of $33.3 million represents the final contract value for the La Quinta Channel Extension and pipeline dredging project. Without access to the initial cost estimates or approved budgets for this specific project, a direct comparison is difficult. However, the fact that the contract was awarded under full and open competition with 5 bids suggests that the pricing was competitive. If the awarded amount was significantly below the government's estimate or if multiple bids were substantially higher, it could indicate different market conditions or estimation accuracy. Typically, the Army Corps of Engineers develops detailed cost estimates based on engineering studies, historical data, and market analysis. The final award price is a result of the competitive bidding process, and it is often the case that the awarded price reflects the market's assessment of the work's value, aiming to be both competitive for contractors and cost-effective for the government.

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

Key performance indicators (KPIs) for a dredging and channel improvement contract like this typically focus on several critical areas. Firstly, adherence to schedule is paramount; the contract duration was 723 days, and timely completion is crucial for realizing the economic benefits of an improved channel. Secondly, quality of work is assessed through factors such as the achieved depth and width of the channel, the accuracy of pipeline placement, and the proper disposal of dredged material, all meeting the specified engineering standards. Thirdly, cost control is monitored, especially given the firm fixed-price nature, ensuring the contractor manages expenses effectively. Finally, environmental compliance is a significant KPI, ensuring that dredging activities adhere to all environmental regulations and mitigation plans to minimize ecological impact. Performance evaluations would likely involve regular site inspections, progress reports, and post-project assessments by the Army Corps of Engineers.

What is the track record of King Fisher Marine Service, L.P. in performing similar large-scale dredging and civil engineering projects?

King Fisher Marine Service, L.P. has a history of performing marine construction and dredging services. While specific details on their track record for projects of this exact scale and complexity require deeper investigation into their contract history, their ability to win a $33.3 million contract under full and open competition suggests they possess the necessary capacity, experience, and financial stability. Companies in this sector often specialize in various aspects of marine construction, including dredging, pipeline installation, and channel maintenance. A thorough review of their past performance, including client feedback, project completion records, and any past disputes or challenges, would provide a comprehensive understanding of their capabilities and reliability for executing large federal contracts.

What are the potential long-term economic impacts of this channel improvement project on the Corpus Christi region?

The long-term economic impacts of this channel improvement project are expected to be substantial and multifaceted. By extending the La Quinta Channel and improving pipeline dredging, the project enhances the navigability and capacity of the Corpus Christi Ship Channel. This allows for the accommodation of larger, more efficient vessels, which can significantly reduce per-unit shipping costs and increase the volume of cargo handled. Consequently, this boosts the competitiveness of the Port of Corpus Christi, attracting more businesses and investment in industries reliant on maritime trade, such as petrochemicals, manufacturing, and logistics. The increased trade activity can lead to job creation, both directly in port operations and indirectly through supporting industries. Furthermore, improved infrastructure can lower transportation costs for businesses operating in the region, enhancing their profitability and contributing to overall economic growth and development.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912HY11B0014

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 159 HWY 316, PORT LAVACA, TX, 77979

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,263,867

Exercised Options: $33,263,867

Current Obligation: $33,263,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline