Army awards $11.1M dredging contract to Magruder Construction for Missouri River project

Contract Overview

Contract Amount: $11,112,958 ($11.1M)

Contractor: Magruder Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2023-02-28

End Date: 2025-07-13

Contract Duration: 866 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UMRR HREP DREDGING

Place of Performance

Location: EOLIA, PIKE County, MISSOURI, 63344

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to MAGRUDER CONSTRUCTION CO INC for work described as: UMRR HREP DREDGING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm fixed-price delivery order, providing cost certainty for the government. 3. Project duration spans over two years, indicating a significant scope of work. 4. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 5. The contract is not set aside for small businesses, potentially limiting direct participation for smaller firms. 6. The award value is substantial, reflecting the complexity and scale of the dredging operation.

Value Assessment

Rating: good

The contract value of $11.1 million for dredging services appears reasonable given the project's duration and scope. Benchmarking against similar large-scale dredging projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government. Without specific cost breakdowns or comparisons to other bids, a definitive assessment of pricing efficiency is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is beneficial for price discovery and achieving competitive pricing. The exclusion of sources clause might suggest specific technical requirements or past performance considerations that narrowed the field slightly from a purely unrestricted competition.

Taxpayer Impact: A full and open competition generally leads to better pricing for taxpayers by encouraging multiple companies to bid, driving down costs. This approach maximizes the opportunity for the government to receive the best value.

Public Impact

The Missouri River ecosystem and navigation channels are expected to benefit from the dredging activities. Improved river navigation will support commercial and recreational activities along the Missouri River in Missouri. The project will likely involve skilled labor in heavy construction and marine operations. The Army Corps of Engineers is the primary beneficiary, ensuring operational readiness and infrastructure maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions significantly impact dredging operations, despite fixed-price contract.
Dependence on specialized equipment and skilled labor could lead to delays if resources are constrained.
Environmental impact mitigation during dredging requires careful monitoring and adherence to regulations.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's financial risk.
Award to an established contractor suggests a higher likelihood of successful project completion.
The project addresses critical infrastructure needs for the Missouri River waterway.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is crucial for maintaining navigable waterways, supporting transportation, and managing water resources. The market for large-scale dredging is often dominated by a few specialized firms due to the significant capital investment in equipment and expertise required. Comparable spending benchmarks for major river dredging projects can vary widely based on river conditions, volume of material, and environmental regulations.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no subcontracting goals were specified (sb: false). This means that while Magruder Construction Co. Inc. may choose to subcontract portions of the work to small businesses, there is no government mandate requiring them to do so. The absence of a set-aside or specific subcontracting plan suggests that the primary focus was on securing the most capable contractor for this specialized work, potentially limiting direct opportunities for small businesses in this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, the contracting agency. Accountability measures are embedded in the firm fixed-price delivery order structure, which incentivizes the contractor to complete the work within the agreed-upon cost. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Missouri River Navigation Project
Inland Waterways Trust Fund
River and Harbor Improvements

Risk Flags

Potential for environmental impact
Risk of unforeseen site conditions
Weather-related delays possible

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to MAGRUDER CONSTRUCTION CO INC. UMRR HREP DREDGING

Who is the contractor on this award?

The obligated recipient is MAGRUDER CONSTRUCTION CO 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 $11.1 million.

What is the period of performance?

Start: 2023-02-28. End: 2025-07-13.

What is the track record of Magruder Construction Co. Inc. with federal contracts, particularly in dredging?

Magruder Construction Co. Inc. has a history of federal contracting, primarily with the Department of the Army and other defense agencies. While specific details on their dredging performance are not fully elaborated in the provided data, their involvement in projects like this $11.1 million Missouri River dredging indicates a capacity for significant civil engineering work. A deeper dive into their contract history, including past performance reviews, on-time delivery rates, and any disputes or claims on similar projects, would offer a more comprehensive understanding of their reliability and expertise in specialized dredging operations. Examining their portfolio of completed federal projects can reveal patterns in project size, complexity, and successful outcomes.

How does the $11.1 million award compare to the typical cost of similar dredging projects on major U.S. rivers?

The $11.1 million award for the Missouri River dredging project represents a substantial investment. To benchmark its value, one would compare it to other large-scale dredging contracts awarded by agencies like the Army Corps of Engineers on comparable waterways such as the Mississippi, Ohio, or Columbia Rivers. Factors influencing cost include the volume of material to be removed, the type of material (e.g., silt, rock), the distance material must be transported, environmental mitigation requirements, and the duration of the project. Given this contract spans over two years, the annual cost is approximately $5.55 million. This figure needs to be contextualized against project-specific variables; however, it suggests a significant undertaking typical of major river maintenance and improvement efforts.

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

Key risks for this dredging contract include potential environmental impacts (e.g., sediment disruption, aquatic life disturbance), unforeseen subsurface conditions (e.g., buried debris, harder-than-expected material), and weather-related delays, particularly during certain seasons on the Missouri River. The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, Magruder Construction Co. Inc. Management of these risks is likely addressed through detailed contract specifications, environmental compliance plans, site investigation data provided to bidders, and potentially contingency planning within the contractor's schedule and budget. The Army Corps of Engineers will provide oversight to ensure compliance with environmental regulations and contract terms.

What is the expected effectiveness of this dredging project in achieving its stated goals for the Missouri River?

The effectiveness of this dredging project hinges on its ability to meet the specific goals set by the U.S. Army Corps of Engineers, likely related to maintaining or improving navigation channel depths and widths along the Missouri River. Successful dredging should ensure safe passage for commercial barges and other vessels, supporting regional commerce and reducing transportation costs. It may also contribute to flood control by maintaining channel capacity. The project's effectiveness will be measured by its success in removing the specified volume of material, achieving the target channel dimensions, and the duration for which these conditions are maintained before future maintenance is required. Long-term monitoring of the river's condition post-dredging will be crucial.

How has federal spending on heavy and civil engineering construction, particularly dredging, trended in recent years?

Federal spending on heavy and civil engineering construction, including dredging, has historically fluctuated based on infrastructure priorities, economic conditions, and specific agency needs, particularly those of the Army Corps of Engineers. In recent years, there has been a renewed focus on infrastructure investment, which could lead to increased spending in this sector. However, dredging projects are often project-specific and driven by the need to maintain critical waterways for commerce and national security. Trends can be influenced by major weather events requiring extensive repairs, or by long-term navigation improvement initiatives. Analyzing historical spending data for NAICS code 237990 and specific dredging contracts can reveal patterns related to federal budget allocations and infrastructure spending cycles.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912P923B0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 243 W OUTER RD, EOLIA, MO, 63344

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

Financial Breakdown

Contract Ceiling: $11,112,958

Exercised Options: $11,112,958

Current Obligation: $11,112,958

Actual Outlays: $2,571,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P923D0001

IDV Type: IDC

Timeline