DoD Awards $12.1M for Emerald Shiner Passage Completion, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $12,115,851 ($12.1M)
Contractor: Bidco Marine Group Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-20
End Date: 2026-10-24
Contract Duration: 764 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: EMERALD SHINER PASSAGE COMPLETION PROJECT
Place of Performance
Location: BUFFALO, ERIE County, NEW YORK, 14213
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to BIDCO MARINE GROUP INC. for work described as: EMERALD SHINER PASSAGE COMPLETION PROJECT Key points: 1. The project aims to complete the Emerald Shiner Passage, a critical infrastructure task. 2. Bidco Marine Group Inc. secured the contract through full and open competition. 3. A significant risk exists with a potential cost overrun of $1.58M (13.1%). 4. The construction sector faces ongoing material cost volatility, impacting project budgets.
Value Assessment
Rating: questionable
The awarded price of $12.1M is 13.1% higher than the government estimate of $10.5M. This significant difference raises concerns about the initial cost assessment and potential for future budget increases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. However, the substantial difference between the award and estimate indicates potential issues in the bidding or estimation phase.
Taxpayer Impact: The potential cost overrun of $1.58M represents a direct increase in taxpayer expenditure beyond the initial planned budget for this project.
Public Impact
Environmental impact: The project's success is crucial for the ecological health of the Emerald Shiner habitat. Infrastructure improvement: Completion will enhance navigation and potentially reduce flood risks in the affected waterway. Economic activity: The contract supports jobs within the construction and marine services sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overrun Risk
- Potential Schedule Delays
- Uncertainty in Final Project Scope
Positive Signals
- Competitive Bidding Process
- Clear Contract Awardee
- Defined Project Objective
Sector Analysis
This project falls under Other Heavy and Civil Engineering Construction. Benchmarks in this sector often show significant cost fluctuations due to material prices, labor availability, and complex environmental regulations.
Small Business Impact
While the prime contractor is Bidco Marine Group Inc., the contract details do not specify any subcontracting goals for small businesses. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army is responsible for oversight. Given the potential for cost overruns, robust monitoring and accountability mechanisms will be essential to ensure taxpayer funds are used efficiently.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Significant cost variance from estimate
- Potential for cost overruns
- Long project duration (764 days)
- Lack of specified small business participation
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to BIDCO MARINE GROUP INC.. EMERALD SHINER PASSAGE COMPLETION PROJECT
Who is the contractor on this award?
The obligated recipient is BIDCO MARINE GROUP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2024-09-20. End: 2026-10-24.
What specific factors contributed to the 13.1% difference between the government estimate and the final award price?
The significant variance could stem from underestimation of labor costs, unforeseen site conditions, fluctuations in material prices (e.g., steel, concrete), or a lack of detailed engineering data during the initial estimation phase. Further analysis of the bidding process and contractor proposals is required to pinpoint the exact causes.
What are the primary risks associated with the potential $1.58M cost overrun, and how will they be mitigated?
The primary risks include increased taxpayer burden, potential delays if additional funding is not secured promptly, and a possible reduction in project scope. Mitigation strategies should involve rigorous change order management, close monitoring of expenditures against the revised budget, and proactive communication with the contractor to identify cost-saving opportunities.
How effectively will the Department of the Army ensure the successful and cost-efficient completion of this project given the initial cost concerns?
The Army can ensure effectiveness through stringent oversight, including regular site inspections, detailed progress reviews, and strict adherence to contract terms. Implementing a robust risk management plan, maintaining open communication channels with the contractor, and utilizing independent cost estimators can help control expenditures and ensure the project meets its objectives within acceptable financial parameters.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912P424B0003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 220 KATHERINE ST, BUFFALO, NY, 14210
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,115,851
Exercised Options: $12,115,851
Current Obligation: $12,115,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-20
Current End Date: 2026-10-24
Potential End Date: 2026-10-24 00:00:00
Last Modified: 2025-10-30
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