Army awards $7.2M dredging contract for Texas City Ship Channel to Inland Dredging Company

Contract Overview

Contract Amount: $7,243,500 ($7.2M)

Contractor: Inland Dredging Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-03-16

Contract Duration: 166 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS AWARD IS BEING ISSUED FOR FY25 TEXAS CITY SHIP CHANNEL, TEXAS, MAIN CHANNEL AND TURNING BASIN PIPELINE DREDGING.

Place of Performance

Location: GALVESTON, GALVESTON County, TEXAS, 77550

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $7.2 million to INLAND DREDGING COMPANY, L.L.C. for work described as: THIS AWARD IS BEING ISSUED FOR FY25 TEXAS CITY SHIP CHANNEL, TEXAS, MAIN CHANNEL AND TURNING BASIN PIPELINE DREDGING. Key points: 1. The contract focuses on essential maintenance dredging for a critical Texas waterway. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. The duration of 166 days indicates a focused scope of work. 5. The contract is for Fiscal Year 2025, aligning with annual budget cycles. 6. The geographic focus is specific to the Texas City Ship Channel.

Value Assessment

Rating: good

The contract value of $7.24 million for approximately 166 days of dredging work appears reasonable for a project of this nature. Benchmarking against similar Army Corps of Engineers dredging contracts in the Gulf Coast region suggests that pricing is within expected ranges. The firm-fixed-price contract type is appropriate for well-defined scopes of work like channel maintenance, which helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit a bid. Six bids were received, demonstrating a healthy level of competition for this dredging project. The presence of multiple bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value offer.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received a fair market value for the dredging services.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the maritime industry relying on the Texas City Ship Channel. The service delivered is essential maintenance dredging to ensure navigability. The geographic impact is concentrated in Texas City, Texas, and surrounding port facilities. The contract supports the workforce employed by Inland Dredging Company, L.L.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting port operations if unforeseen conditions arise.
Dependence on a single contractor for a critical infrastructure maintenance task.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Awarded under full and open competition, indicating a competitive process.
The contractor has a track record in heavy civil engineering construction.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine infrastructure maintenance. The dredging market is specialized, often involving significant capital investment in equipment and expertise. The Army Corps of Engineers is a major client for such services, frequently awarding contracts for maintaining navigable waterways across the nation. Comparable spending benchmarks for similar channel maintenance projects vary widely based on volume, depth, and location, but this award appears aligned with typical project scales.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Inland Dredging Company, L.L.C., which is not identified as a small business in this context. There is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, likely through the Army Corps of Engineers district responsible for the Texas City Ship Channel. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specified standards. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Navigation Maintenance
Port Infrastructure Development
Maritime Transportation System

Risk Flags

Potential for environmental impact during dredging operations.
Risk of schedule delays due to weather or unforeseen site conditions.
Dependence on contractor's equipment availability and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.2 million to INLAND DREDGING COMPANY, L.L.C.. THIS AWARD IS BEING ISSUED FOR FY25 TEXAS CITY SHIP CHANNEL, TEXAS, MAIN CHANNEL AND TURNING BASIN PIPELINE DREDGING.

Who is the contractor on this award?

The obligated recipient is INLAND DREDGING COMPANY, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-03-16.

What is Inland Dredging Company, L.L.C.'s track record with the Department of Defense and Army Corps of Engineers?

Inland Dredging Company, L.L.C. has a history of performing dredging and marine construction services for various government agencies, including the Army Corps of Engineers. While specific details on past performance for this exact type of channel maintenance are not provided in the summary data, their classification under NAICS code 237990 (Other Heavy and Civil Engineering Construction) suggests relevant experience. A deeper dive into contract history databases would reveal the number and value of previous awards, performance ratings, and any past issues or disputes to fully assess their track record for this specific project.

How does the $7.24 million cost compare to similar dredging projects in the Gulf Coast region?

The $7.24 million award for approximately 166 days of dredging in the Texas City Ship Channel appears to be within a reasonable range for similar projects in the Gulf Coast region. Dredging costs are highly variable, influenced by factors such as the volume of material to be removed, the depth of the channel, the type of dredging equipment used, disposal methods, and environmental regulations. Projects involving maintenance of major shipping channels often require specialized equipment and extensive planning. Without specific details on the volume of material or the exact scope of work (e.g., depth, width), a precise comparison is difficult, but the award amount is not immediately indicative of overpricing when considering the critical nature and location of the Texas City Ship Channel.

What are the primary risks associated with this dredging contract?

The primary risks associated with this dredging contract include potential environmental challenges, such as encountering unexpected hazardous materials or exceeding permitted discharge limits, which could lead to work stoppages and increased costs. Schedule delays are another significant risk, stemming from adverse weather conditions (hurricanes, tropical storms common in the Gulf Coast), equipment malfunctions, or unforeseen subsurface obstructions. Furthermore, the firm-fixed-price nature of the contract means that if the contractor underestimates the complexity or volume of work, they bear the financial burden, which could incentivize cutting corners if not properly overseen. The reliance on a single contractor for a critical infrastructure task also presents a risk if performance issues arise.

How effective is full and open competition in ensuring value for taxpayer money in dredging contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in dredging contracts. By allowing all responsible sources to compete, the government maximizes the pool of potential bidders, which naturally drives prices down through market forces. A competitive environment encourages contractors to submit their most efficient and cost-effective proposals. The receipt of six bids for this Texas City Ship Channel project suggests that the competition was robust, increasing the likelihood that the selected offer represents a fair market price and offers the best overall value considering technical capabilities and price. This contrasts with sole-source or limited competition scenarios where price discovery is less robust.

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

Historical spending by the Department of the Army (primarily through the Army Corps of Engineers) on dredging services in Texas has been substantial, reflecting the state's extensive coastline and numerous vital ports and waterways. Annual expenditures fluctuate based on maintenance needs, capital improvement projects, and congressional appropriations. The Texas City Ship Channel, being a major hub for petrochemicals and trade, consistently requires significant investment in maintenance dredging. While the specific $7.24 million award for FY25 is a discrete amount, it fits within a broader pattern of ongoing federal investment in maintaining and improving Texas's maritime infrastructure. Reviewing historical data for the Galveston District of the Army Corps of Engineers would provide more granular insights into spending trends and the frequency of similar contract awards.

Are there any specific performance metrics or Key Performance Indicators (KPIs) tied to this contract?

The provided summary data does not explicitly detail the specific performance metrics or Key Performance Indicators (KPIs) for this dredging contract. However, standard practice for Army Corps of Engineers dredging contracts typically includes requirements related to the volume of material dredged per unit of time, adherence to specified channel dimensions (depth, width), environmental compliance (e.g., turbidity levels, disposal site management), and project completion within the contract period. The firm-fixed-price nature implies that meeting these technical and schedule requirements is paramount for the contractor to achieve profitability. The contracting officer and project managers would monitor these aspects closely throughout the contract duration.

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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912HY25BA016

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 517 LAKE RD STE B, DYERSBURG, TN, 38024

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

Financial Breakdown

Contract Ceiling: $7,243,500

Exercised Options: $7,243,500

Current Obligation: $7,243,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline