Army awards $85.9M dredging contract to Pine Bluff Sand and Gravel for Mississippi River maintenance

Contract Overview

Contract Amount: $85,899,475 ($85.9M)

Contractor: Pine Bluff Sand and Gravel Company

Awarding Agency: Department of Defense

Start Date: 2020-02-06

End Date: 2024-11-05

Contract Duration: 1,734 days

Daily Burn Rate: $49.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MISSISSIPPI RIVER DUSTPAN DREDGE

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $85.9 million to PINE BLUFF SAND AND GRAVEL COMPANY for work described as: MISSISSIPPI RIVER DUSTPAN DREDGE Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies. 3. A single award suggests limited market engagement or specific contractor qualifications. 4. The duration of the contract (over 4 years) allows for sustained operational support. 5. The contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category. 6. The awardee, Pine Bluff Sand and Gravel, is a significant player in this sector.

Value Assessment

Rating: fair

The contract value of approximately $85.9 million over nearly five years for dredging services on the Mississippi River appears to be within a reasonable range for such large-scale infrastructure projects. However, without specific benchmarks for the volume of material to be dredged or the complexity of the work, a precise value-for-money assessment is challenging. The firm-fixed-price structure helps control costs, but the lack of competition means there's no direct market comparison to ensure the most competitive pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when the agency has specific justifications for not seeking competition. The lack of multiple bidders limits the opportunity for price discovery and potentially higher costs for the government compared to a competed contract.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that could arise from a bidding process, potentially leading to a higher overall expenditure for this service.

Public Impact

Ensures the navigability of a critical segment of the Mississippi River, vital for commercial shipping and transportation. Supports the economic activity reliant on the river's infrastructure, including agriculture and manufacturing. The services are geographically focused on Louisiana, impacting local waterways and potentially local employment. Maintains essential federal infrastructure, contributing to national supply chain resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about the availability of qualified alternative providers.
Long contract duration could present risks if project requirements change significantly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract addresses a critical infrastructure need for national commerce.
Awardee has experience in heavy civil engineering construction.

Sector Analysis

The dredging and heavy civil engineering sector is crucial for maintaining and improving national infrastructure, particularly waterways. This contract for the Mississippi River falls within a market segment focused on essential public works. The Army Corps of Engineers is a major procurer in this space, often awarding large, long-term contracts for river and harbor maintenance. Benchmarks for similar large-scale dredging operations are typically in the tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, Pine Bluff Sand and Gravel, is a private company, and its size relative to small business definitions is not provided. The lack of a small business set-aside means opportunities for smaller firms in this specific procurement are absent.

Oversight & Accountability

The Department of the Army, through its contracting and oversight mechanisms, is responsible for managing this contract. Oversight would typically involve contract officers, technical monitors, and potentially the Army Audit Agency or Inspector General's office to ensure performance and compliance. Transparency is generally maintained through contract databases, though the specifics of sole-source justifications may have limited public detail.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Mississippi River Navigation Maintenance
Civil Works Construction Contracts
Heavy Equipment Rental and Operation

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.9 million to PINE BLUFF SAND AND GRAVEL COMPANY. MISSISSIPPI RIVER DUSTPAN DREDGE

Who is the contractor on this award?

The obligated recipient is PINE BLUFF SAND AND GRAVEL COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $85.9 million.

What is the period of performance?

Start: 2020-02-06. End: 2024-11-05.

What is the historical spending pattern for Mississippi River dredging by the Department of the Army?

The Department of the Army, primarily through the Army Corps of Engineers, has a long history of awarding substantial contracts for dredging and maintaining the Mississippi River. Annual spending can fluctuate significantly based on project needs, environmental factors, and congressional appropriations. Historically, these contracts have often been large, multi-year awards to a limited number of experienced heavy civil engineering firms. While specific aggregate figures for Mississippi River dredging alone are not readily available in this dataset, the overall budget for civil works, including navigation, often runs into billions of dollars annually. This contract represents a significant portion of that ongoing investment in river infrastructure.

How does the pricing of this contract compare to similar dredging contracts?

Direct price comparison for this contract is difficult due to its sole-source nature and the lack of detailed performance metrics (e.g., cubic yards dredged per dollar). However, large-scale civil engineering projects, especially those involving specialized equipment and environmental considerations like river dredging, typically command high values. The firm-fixed-price structure suggests that the contractor assumed the risk for cost overruns. Without access to competitive bids or detailed cost breakdowns, it's challenging to definitively state if the price is optimal. Benchmarking against other Army Corps of Engineers dredging contracts of similar scope and duration would be the most appropriate method, but such data is not provided here.

What are the primary risks associated with this sole-source dredging contract?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competition, which could lead to suboptimal value for taxpayer dollars. There's also a risk that the agency may not have fully explored all available qualified sources, potentially overlooking more innovative or cost-effective solutions. Furthermore, a long-term sole-source award can reduce the incentive for the contractor to innovate or maintain peak efficiency, as competitive pressure is absent. Finally, if the contractor's performance or financial stability deteriorates, finding and transitioning to an alternative provider mid-contract could be complex and costly.

What is the track record of Pine Bluff Sand and Gravel Company with federal contracts?

Pine Bluff Sand and Gravel Company has a history of receiving federal contracts, particularly with agencies involved in infrastructure and public works, such as the Army Corps of Engineers. Their awards often relate to dredging, marine construction, and heavy civil engineering projects. While this specific contract is a significant award, the company's broader federal contracting history would need to be reviewed to fully assess their performance, reliability, and experience across various projects. Information on past performance, including any disputes or contract terminations, would be crucial for a comprehensive evaluation.

What are the potential performance challenges for this dredging contract?

Performance challenges for this dredging contract could stem from several factors. Environmental conditions on the Mississippi River, such as fluctuating water levels, strong currents, and debris, can impact dredging efficiency and equipment availability. Weather events, like severe storms or floods, can cause delays and necessitate emergency responses. Equipment breakdowns or maintenance issues with specialized dredging machinery can lead to downtime. Furthermore, meeting stringent environmental regulations regarding spoil disposal and water quality adds complexity. The long duration of the contract also increases the possibility of unforeseen geological or operational challenges arising over time.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912P819R0051

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1501 HEARTWOOD ST, WHITE HALL, AR, 71602

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,219,873

Exercised Options: $85,899,475

Current Obligation: $85,899,475

Actual Outlays: $20,058,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline