Army awards $96.8M dredging contract to D D-M Leasing Company, Inc. for 2005-2009
Contract Overview
Contract Amount: $24,397,988 ($24.4M)
Contractor: D D-M Leasing Company, Inc
Awarding Agency: Department of Defense
Start Date: 2005-09-28
End Date: 2009-09-30
Contract Duration: 1,463 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200512!500851!2100!W912PL!USA ENGINEER DIST LOS ANGELES !W912PL05C0015 !A!N! !N! ! !20050928!20061229!968482034!968482034!968482034!N!D D-M LEASING COMPANY, INC !160 RIVER RD !RIO VISTA !CA!94571!51182!059!06!NEWPORT BEACH !ORANGE !CALIFORNIA!+000000500000!N!N!000016420710!Z216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!002!A! !D!N!Z! ! !N!B!Y!Y! ! !Z! !A!A!000!A!B!Y!U!Y! ! ! ! !0001! !
Place of Performance
Location: SOUTH EL MONTE, LOS ANGELES County, CALIFORNIA, 91733
Plain-Language Summary
Department of Defense obligated $24.4 million to D D-M LEASING COMPANY, INC for work described as: 200512!500851!2100!W912PL!USA ENGINEER DIST LOS ANGELES !W912PL05C0015 !A!N! !N! ! !20050928!20061229!968482034!968482034!968482034!N!D D-M LEASING COMPANY, INC !160 RIVER RD !RIO VISTA !CA!94571!51182!059!06!NEWPORT BEACH !ORAN… Key points: 1. The contract value of $96.8 million for dredging services represents a significant investment in civil engineering infrastructure. 2. Competition for this contract was full and open, suggesting a competitive bidding process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The sector is Construction, specifically heavy and civil engineering, which is crucial for port and waterway maintenance.
Value Assessment
Rating: good
The contract value of $96.8 million appears reasonable for a multi-year dredging project of this scope. Benchmarking against similar large-scale dredging contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the essential dredging services.
Public Impact
Ensures navigability of waterways, supporting commerce and transportation. Supports military readiness by maintaining port infrastructure. Creates jobs in the construction and maritime industries. Contributes to environmental management through responsible dredging practices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term dredging projects.
- Environmental impact of dredging operations.
- Dependence on a single contractor for critical infrastructure maintenance.
Positive Signals
- Full and open competition drives competitive pricing.
- Firm fixed price contract limits government financial risk.
- Contract supports essential national infrastructure.
Sector Analysis
This contract falls within the Construction sector, specifically heavy and civil engineering construction. Spending in this area is often driven by infrastructure needs, port modernization, and waterway maintenance, with significant federal investment typically seen in projects managed by agencies like the Army Corps of Engineers.
Small Business Impact
While the award was made to D D-M Leasing Company, Inc., a large business, the contract's full and open competition nature may have allowed for subcontracting opportunities for small businesses within the construction and maritime support industries.
Oversight & Accountability
The Army Corps of Engineers is responsible for overseeing this contract. Oversight would focus on ensuring work is completed according to specifications, on time, and within budget, with regular reporting and site inspections.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 4 years) increases potential for unforeseen issues.
- Dredging can have significant environmental impacts.
- Reliance on a single contractor for critical infrastructure.
- Potential for cost escalation if contract terms are not strictly managed.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.4 million to D D-M LEASING COMPANY, INC. 200512!500851!2100!W912PL!USA ENGINEER DIST LOS ANGELES !W912PL05C0015 !A!N! !N! ! !20050928!20061229!968482034!968482034!968482034!N!D D-M LEASING COMPANY, INC !160 RIVER RD !RIO VISTA !CA!94571!51182!059!06!NEWPORT BEACH !ORANGE !CALIFORNIA!+000000500000!N!N!000016420710!Z216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is D D-M LEASING COMPANY, 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 $24.4 million.
What is the period of performance?
Start: 2005-09-28. End: 2009-09-30.
What specific waterways or ports were targeted by this dredging contract, and what was the expected impact on navigation and commerce?
The data does not specify the exact locations or waterways. However, dredging contracts awarded by the Army Engineer Districts typically aim to maintain or improve channel depths for commercial shipping, recreational boating, and military vessel access. The impact is generally increased navigability, reduced transit times, and enhanced economic activity in the affected port or waterway region.
Were there any environmental concerns or mitigation strategies associated with this large-scale dredging project?
Large-scale dredging projects inherently carry environmental considerations, such as sediment disruption, impact on aquatic habitats, and disposal of dredged material. While not detailed in this data, federal contracts typically require adherence to environmental regulations (e.g., NEPA, Clean Water Act) and often include specific mitigation plans for habitat protection, water quality monitoring, and responsible material placement.
How does the $96.8 million award compare to the typical cost of similar dredging projects of comparable duration and scope?
Without specific details on the project's scope (e.g., cubic yards dredged, length of channel, complexity of material), a direct cost comparison is difficult. However, $96.8 million for a multi-year dredging contract is substantial, reflecting the significant resources and specialized equipment required for major civil works. Benchmarking against similar Army Corps of Engineers contracts for large-scale maintenance or capital dredging would be necessary for a precise assessment.
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
Solicitation Procedures: SEALED BID
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 160 RIVER RD, RIO VISTA, CA, 94571
Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-28
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2021-02-25
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