Army awards $20.26M for Calcasieu River dredging, aiming to improve navigation by 2026

Contract Overview

Contract Amount: $20,262,254 ($20.3M)

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

Awarding Agency: Department of Defense

Start Date: 2024-10-10

End Date: 2026-01-31

Contract Duration: 478 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CALCASIEU RIVER AND PASS DREDGING, MILE 5.0 TO 17.0

Place of Performance

Location: LAKE CHARLES, CALCASIEU County, LOUISIANA, 70605

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to INLAND DREDGING COMPANY, L.L.C. for work described as: CALCASIEU RIVER AND PASS DREDGING, MILE 5.0 TO 17.0 Key points: 1. Contract value represents a significant investment in regional waterway infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this specialized service. 3. Performance timeline indicates a multi-year effort to achieve project completion. 4. The project's success is crucial for maintaining vital shipping and economic channels. 5. This contract falls within the broader category of civil engineering and infrastructure development.

Value Assessment

Rating: good

The contract value of $20.26 million for dredging services appears reasonable given the scope of work, which involves a 12-mile stretch of the Calcasieu River. Benchmarking against similar large-scale dredging projects indicates that costs can vary significantly based on location, environmental considerations, and the specific type of dredging required. Without more granular data on the volume of material to be moved and the complexity of the riverbed, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bidders participating, the level of competition appears healthy, which typically drives more competitive pricing and encourages contractors to offer their best value. This approach suggests the government sought to maximize taxpayer value by engaging a broad range of qualified firms.

Taxpayer Impact: A competitive bidding process for this dredging project helps ensure that taxpayer funds are used efficiently, leading to potentially lower costs and better service quality compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are industries relying on the Calcasieu River for shipping and logistics, including petrochemical plants and ports. The project will deliver improved navigation depths and widths along a critical segment of the waterway. Geographic impact is concentrated in Southwest Louisiana, specifically along the Calcasieu River and Pass. Workforce implications include employment opportunities for skilled labor in the dredging and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging operations requires careful monitoring.
Dependence on specialized dredging equipment and expertise could limit the pool of qualified contractors in the long term.
Weather and unforeseen subsurface conditions can impact project timelines and costs.

Positive Signals

The firm-fixed-price contract structure provides cost predictability.
Full and open competition suggests a robust market for these services.
The defined performance period allows for structured project management and oversight.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The dredging market is characterized by specialized equipment, significant capital investment, and stringent environmental regulations. Major players often have extensive experience with government contracts and large-scale projects. Comparable spending benchmarks for similar waterway maintenance and improvement projects can vary widely based on the scale and complexity of the waterway.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award, nor is there explicit information on subcontracting goals for small businesses. Given the specialized nature and scale of major dredging projects, prime contracting opportunities for small businesses may be limited. However, there could be opportunities for small businesses to participate as subcontractors for support services or specialized tasks if Inland Dredging Company, L.L.C. engages in subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for maintaining navigable waterways. Accountability measures are embedded in the contract's firm-fixed-price structure and defined performance period, with progress likely monitored through regular reporting and site inspections. Transparency is generally maintained through public contract awards, though detailed operational oversight specifics are typically internal.

Related Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterways Trust Fund
Port Infrastructure Development Program
National Defense Authorization Act (NDAA) appropriations for infrastructure

Risk Flags

Environmental impact during dredging
Potential for unforeseen subsurface conditions
Weather-related delays
Contractor's capacity for large-scale projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to INLAND DREDGING COMPANY, L.L.C.. CALCASIEU RIVER AND PASS DREDGING, MILE 5.0 TO 17.0

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 $20.3 million.

What is the period of performance?

Start: 2024-10-10. End: 2026-01-31.

What is the historical spending pattern for Calcasieu River dredging projects by the Army Corps of Engineers?

Historical spending on Calcasieu River dredging by the Army Corps of Engineers would typically involve periodic maintenance dredging to ensure channel depths and widths meet navigational requirements. These projects are often funded through the Civil Works program. Specific historical data would require a deep dive into Army Corps of Engineers budget allocations and contract awards for this specific waterway over several fiscal years. Factors influencing spending include the frequency of maintenance, the volume of sediment accumulation, and any capital improvement projects aimed at widening or deepening the channel. Without access to specific historical contract databases for this location, it's difficult to provide precise figures, but such projects are a recurring necessity for maintaining port access and regional commerce.

How does the per-unit cost of this dredging contract compare to similar projects in other regions?

A direct per-unit cost comparison is challenging without knowing the specific metrics used (e.g., cost per cubic yard of material dredged, cost per linear foot of channel improved). However, the total contract value of $20.26 million for a 12-mile stretch suggests a significant undertaking. Dredging costs are highly variable, influenced by factors such as the type of material (sand, silt, rock), the depth of dredging, the distance material must be transported for disposal, and environmental mitigation requirements. Projects in areas with complex geological formations or sensitive ecosystems often incur higher costs. Inland waterways, especially those with significant commercial traffic, often receive priority for maintenance, which can influence funding levels and competitive bidding dynamics.

What are the primary risks associated with this dredging contract, and how are they being mitigated?

Key risks include environmental impacts (e.g., turbidity, habitat disruption), unforeseen subsurface conditions (e.g., encountering unexpected rock formations or debris), and weather-related delays, particularly during hurricane season in Louisiana. Mitigation strategies typically involve detailed environmental impact assessments and monitoring plans, thorough geotechnical surveys prior to contract award, and contract clauses that allow for adjustments due to force majeure events like severe weather. The firm-fixed-price nature also incentivizes the contractor to manage risks effectively to maintain profitability. The Army Corps of Engineers' oversight is crucial for ensuring compliance with environmental regulations and monitoring progress against the schedule.

What is the track record of Inland Dredging Company, L.L.C. with similar federal contracts?

Inland Dredging Company, L.L.C. has a history of performing dredging and marine construction services. Information on their specific track record with federal contracts, particularly with the Army Corps of Engineers, would typically be available through federal procurement databases like SAM.gov or FPDS. This would allow for an assessment of their past performance, including project types, contract values, timeliness of delivery, and any history of disputes or contract terminations. A review of their past performance would be a critical component of the government's source selection process to ensure they have the capacity and experience to successfully execute this significant dredging project.

How does the duration of this contract (478 days) align with typical dredging project timelines for similar scopes of work?

A duration of approximately 478 days (around 16 months) for dredging a 12-mile stretch of a major river like the Calcasieu seems reasonable, though it can vary. Factors influencing this timeline include the required dredging depth and width, the volume of material to be removed, the type of dredging equipment used (e.g., hopper dredge, cutterhead dredge), disposal site availability and capacity, and potential environmental windows that might restrict work. Larger, more complex projects can take several years, while routine maintenance might be completed faster. The Army Corps of Engineers likely established this duration based on their experience with similar projects and the contractor's proposed work plan.

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: W912P824B0051

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 103 N KING AVE, 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: $20,642,271

Exercised Options: $20,262,254

Current Obligation: $20,262,254

Actual Outlays: $7,824,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline