Army awards $17.7M contract for 5.5M cubic yards of dredging, with Bean Stuyvesant LLC as the contractor

Contract Overview

Contract Amount: $17,742,038 ($17.7M)

Contractor: Bean Stuyvesant LLC

Awarding Agency: Department of Defense

Start Date: 2006-05-02

End Date: 2008-05-24

Contract Duration: 753 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: DREDGING, FIRST 5,500,000 CY

Place of Performance

Location: BELLE CHASSE, PLAQUEMINES County, LOUISIANA, 70037

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to BEAN STUYVESANT LLC for work described as: DREDGING, FIRST 5,500,000 CY Key points: 1. The contract value of $17.7 million for 5.5 million cubic yards of dredging suggests a unit cost of approximately $3.23 per cubic yard. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The contractor, Bean Stuyvesant LLC, has a history of performance in heavy civil engineering construction. 4. The contract duration of 753 days (approximately 2 years) suggests a significant project timeline. 5. The fixed-price contract type implies that the contractor bears the risk of cost overruns. 6. The contract was awarded in Louisiana, a state with extensive coastal and waterway infrastructure.

Value Assessment

Rating: good

The unit cost of approximately $3.23 per cubic yard for dredging appears reasonable when benchmarked against similar projects, though specific project complexities can influence pricing. The fixed-price nature of the contract provides cost certainty for the government. Without more granular data on the scope of work (e.g., material type, depth, disposal requirements), a precise value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: $3.23 per cubic yard (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. The presence of four bids indicates a healthy level of competition for this dredging project. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging contractors to offer their best pricing.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other federal or state agencies relying on navigable waterways. The service delivered is essential dredging to maintain or improve the depth and capacity of waterways. The geographic impact is focused on Louisiana, a state with significant port and inland waterway infrastructure. The workforce implications include employment opportunities for skilled labor in the dredging and heavy construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the exact volume or conditions of the dredging are not precisely defined.
Environmental compliance and disposal of dredged material can introduce complexities and potential delays.
Contractor performance risk, although mitigated by competition and fixed-price terms.

Positive Signals

Full and open competition suggests a robust bidding process and likely competitive pricing.
Fixed-price contract type shifts cost overrun risk to the contractor.
Award to an established contractor with experience in heavy civil engineering.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to marine construction and maintenance. The dredging market is crucial for maintaining navigable waterways, supporting commerce, and facilitating military logistics. Comparable spending benchmarks would involve analyzing other Army Corps of Engineers dredging contracts or similar projects by other maritime agencies, considering factors like location, material type, and volume.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale civil engineering project, it is unlikely that small businesses would be primary awardees unless through subcontracting. The prime contractor, Bean Stuyvesant LLC, is likely a large business. Further analysis would be needed to determine if small business subcontracting goals were established and met.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. The fixed-price nature provides some financial oversight by limiting cost increases. Transparency is generally maintained through contract award databases like FPDS. 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
Port Infrastructure Development Program
Coastal Navigation Projects

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance and material disposal complexities.
Contractor performance and financial stability over the project duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to BEAN STUYVESANT LLC. DREDGING, FIRST 5,500,000 CY

Who is the contractor on this award?

The obligated recipient is BEAN STUYVESANT 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 $17.7 million.

What is the period of performance?

Start: 2006-05-02. End: 2008-05-24.

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

Analyzing historical spending for dredging by the Department of the Army in Louisiana requires access to comprehensive contract databases over several fiscal years. Typically, the Army Corps of Engineers (USACE) is the primary entity responsible for such projects, managing numerous contracts for maintenance and new construction of waterways, harbors, and ports. Spending can fluctuate significantly year-to-year based on infrastructure needs, congressional appropriations, and the lifecycle of major projects. Factors like storm recovery efforts (e.g., after hurricanes) can also lead to spikes in dredging expenditures. Benchmarking this $17.7 million award against the average annual or project-specific spending for similar dredging volumes and complexities in the region would provide context on whether this represents a typical, high, or low investment for the period.

How does Bean Stuyvesant LLC's performance on this contract compare to their other federal contracts?

Assessing Bean Stuyvesant LLC's performance on this specific dredging contract requires detailed review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and any contract modifications, claims, or disputes associated with this award. Generally, Bean Stuyvesant LLC is a well-established marine construction company with a significant history of federal contracts, particularly with the Army Corps of Engineers. Their track record often includes large-scale dredging, breakwater construction, and other heavy civil marine projects. A comparative analysis would involve examining metrics such as on-time delivery, adherence to budget (especially relevant for fixed-price contracts), quality of work, and any instances of litigation or contract termination across their portfolio. Positive past performance is often a key factor in competitive source selection for similar large-scale federal projects.

What are the specific risks associated with a fixed-price definitive contract for a large dredging project?

While fixed-price contracts are generally favored for their cost certainty, they carry specific risks for large, complex projects like dredging. The primary risk is that the contractor may underestimate the costs associated with unforeseen conditions, such as harder-than-expected materials, unexpected subsurface obstructions, or more challenging disposal requirements. If these issues arise, the contractor bears the financial burden, which could lead to financial distress or pressure to cut corners on quality or safety. For the government, the risk lies in the potential for contractor default if the fixed price proves insufficient, leading to project delays and the need for re-competition. Definitive contracts, while providing a framework, require careful definition of scope, specifications, and performance standards to mitigate these risks effectively.

What is the typical profit margin for dredging contractors on federal projects of this size?

Determining the exact profit margin for dredging contractors on federal projects is challenging as it's proprietary information embedded within the contract's fixed price. However, industry standards and analyses of government contracts suggest that profit margins for large civil engineering and construction projects typically range from 5% to 15%. This margin accounts for the contractor's overhead, risk, and profit. Factors influencing the margin include the level of competition, the complexity and risk inherent in the project (e.g., environmental challenges, subsurface conditions), the contractor's efficiency, and market conditions. A $17.7 million contract awarded under full and open competition likely includes a competitive profit margin, aiming to balance risk and reward for the contractor while ensuring value for the government.

How are environmental regulations and disposal of dredged materials factored into the cost and execution of such contracts?

Environmental regulations and the disposal of dredged materials are critical components that significantly impact the cost and execution of dredging contracts. The contract must clearly define the methods and locations for material disposal, which can range from open-water placement to upland confined disposal facilities or beneficial reuse (e.g., beach nourishment, habitat creation). Each disposal option has associated costs related to permitting, monitoring, transportation, and facility management. Environmental impact assessments, regulatory compliance (e.g., Clean Water Act, NEPA), and potential mitigation measures add complexity and cost. Contractors must factor these requirements into their bids, and the government must ensure that the chosen disposal methods are environmentally sound and compliant, often requiring extensive monitoring and reporting throughout the project lifecycle.

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: W912P806B0052

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1055 SAINT CHARLES AVE STE 500, NEW ORLEANS, LA, 70130

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,742,038

Exercised Options: $17,742,038

Current Obligation: $17,742,038

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline