Army awards $16.5M for continuous dredging, but competition was limited

Contract Overview

Contract Amount: $16,524,142 ($16.5M)

Contractor: Pine Bluff Sand and Gravel Company

Awarding Agency: Department of Defense

Start Date: 2025-01-22

End Date: 2025-11-09

Contract Duration: 291 days

Daily Burn Rate: $56.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTINUOUS DREDGING CAPABILITY

Place of Performance

Location: WHITE HALL, JEFFERSON County, ARKANSAS, 71602

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to PINE BLUFF SAND AND GRAVEL COMPANY for work described as: CONTINUOUS DREDGING CAPABILITY Key points: 1. Value for money is difficult to assess due to limited competition. 2. The contract was not competed, raising questions about price discovery. 3. Risk indicators are moderate, with a focus on delivery and performance. 4. This contract supports essential civil engineering construction for the Army. 5. The sector positioning is within heavy civil engineering construction.

Value Assessment

Rating: fair

The contract value of $16.5 million for dredging services is substantial. Without a competitive bidding process, it is challenging to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides some cost certainty, but the lack of competition prevents a robust assessment of value for money. Further analysis would require comparing this award to historical dredging contracts or publicly available cost data for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach limits the opportunity for price discovery and potentially higher costs for the government. The absence of a competitive process suggests that either only one vendor was deemed capable of performing the work or there were specific circumstances justifying a non-competitive award, which requires further justification.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without bids from multiple companies, the government cannot be assured it secured the best possible price for these essential dredging services.

Public Impact

The U.S. Army benefits from this contract through the acquisition of continuous dredging capabilities. Essential civil engineering construction services are delivered, likely supporting waterway maintenance or infrastructure projects. The geographic impact is focused on Arkansas, as indicated by the 'AR' and 'ARKANSAS' codes. Workforce implications are tied to the specific labor requirements of heavy civil engineering construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure fairness and value.
Limited transparency in the procurement process due to non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Contract duration is defined, allowing for planned execution of services.
Specific NAICS code (237990) indicates a focus on specialized heavy construction.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to dredging. This sector is critical for maintaining navigable waterways, supporting infrastructure projects, and ensuring national security. The market for specialized dredging services can be concentrated, but competitive procurement is generally expected to drive efficiency and cost savings. Benchmarking would involve comparing this award to other government or private sector dredging contracts of similar scope and duration.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a larger prime contractor capable of performing extensive civil engineering construction.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are established through the contract terms, performance standards, and payment schedules. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Civil Works Construction Projects
Waterway Maintenance and Improvement Programs
Department of Defense Infrastructure Support

Risk Flags

Limited Competition
Sole-Source Award Justification Required
Potential for Above-Market Pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to PINE BLUFF SAND AND GRAVEL COMPANY. CONTINUOUS DREDGING CAPABILITY

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 $16.5 million.

What is the period of performance?

Start: 2025-01-22. End: 2025-11-09.

What is the historical spending pattern for continuous dredging capabilities by the Department of the Army?

Analyzing historical spending for continuous dredging capabilities by the Department of the Army requires access to comprehensive contract databases and budget allocations. Typically, such specialized services are procured through a mix of competitive bids and, in some cases, sole-source awards for specific operational needs or unique capabilities. The Army Corps of Engineers, often responsible for waterway management, would be a primary entity for such expenditures. Spending can fluctuate based on infrastructure needs, environmental regulations, and national security priorities. Without specific historical data for this exact service category, it's difficult to provide precise figures, but it's reasonable to assume consistent investment in maintaining critical waterways and port infrastructure.

How does the awarded price of $16.5 million compare to similar dredging contracts?

Comparing the $16.5 million award for continuous dredging capability requires detailed information on the contract's scope, duration, and specific services rendered, which are not fully detailed in the provided data. Dredging projects vary significantly in complexity, volume of material moved, depth, and environmental considerations. A firm-fixed-price contract of this magnitude suggests a substantial undertaking. To perform a meaningful comparison, one would need to identify contracts with similar durations (291 days), geographic locations, and specific dredging requirements (e.g., cubic yards dredged, type of material, environmental mitigation). Given the sole-source nature of this award, a direct price-to-price comparison with competitively bid contracts is challenging, as competitive processes typically drive prices down.

What are the primary risks associated with a sole-source award for heavy civil engineering construction?

The primary risks associated with a sole-source award for heavy civil engineering construction, such as this dredging contract, include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or optimize costs, and a perception of unfairness in the procurement process. Taxpayers may not receive the best value for their money. Furthermore, reliance on a single source can create vulnerabilities if that contractor faces performance issues, financial instability, or capacity constraints. Robust justification and oversight are critical to mitigate these risks, ensuring the necessity of the sole-source approach and verifying that the awarded price is fair and reasonable.

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 like the Department of the Army and the Army Corps of Engineers, often related to dredging and civil works. Their track record typically involves performing services within their specialized area of heavy construction. Analyzing their past performance would involve reviewing contract completion records, any instances of disputes or penalties, and their overall compliance with federal procurement regulations. A positive track record suggests reliability and capability, which are crucial factors, especially in sole-source procurements where the government relies heavily on the contractor's established expertise and performance history.

What are the potential performance challenges for this specific dredging contract?

Potential performance challenges for this specific dredging contract, valued at $16.5 million and lasting approximately 10 months, could include weather disruptions, equipment breakdowns, unforeseen subsurface conditions (e.g., hard rock, debris), and environmental compliance issues. The 'continuous dredging' requirement implies a need for sustained operational uptime. Given the location in Arkansas, seasonal weather patterns could impact operations. The contractor, Pine Bluff Sand and Gravel Company, must manage these variables effectively to meet the contract's objectives and delivery schedule. The firm-fixed-price nature means the contractor bears the risk of cost overruns due to these challenges, provided they are not caused by government-directed changes or unforeseen circumstances beyond the contractor's control.

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: W912P823R0030

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: $16,524,142

Exercised Options: $16,524,142

Current Obligation: $16,524,142

Actual Outlays: $6,253,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P825D0001

IDV Type: IDC

Timeline