Army Awards $13.9M Dredging Contract to R.E. Staite Engineering for Newport Bay Maintenance

Contract Overview

Contract Amount: $13,945,200 ($13.9M)

Contractor: R.E. Staite Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-24

End Date: 2026-09-21

Contract Duration: 424 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEWPORT BAY MAINTENANCE DREDGING, ORANGE COUNTY, CA

Place of Performance

Location: NEWPORT BEACH, ORANGE County, CALIFORNIA, 92663

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to R.E. STAITE ENGINEERING, INC. for work described as: NEWPORT BAY MAINTENANCE DREDGING, ORANGE COUNTY, CA Key points: 1. The contract value of $13.9 million is for heavy civil engineering construction. 2. R.E. Staite Engineering, Inc. secured the award. 3. The contract was awarded under full and open competition. 4. The project duration is 424 days, ending September 2026.

Value Assessment

Rating: good

The contract value of $13.9 million appears reasonable for a dredging project of this scope and duration. Benchmarking against similar Army Corps of Engineers projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The number of bids received (4) indicates moderate competition.

Taxpayer Impact: The firm fixed price contract structure provides cost certainty for taxpayers, with competition likely ensuring value for money.

Public Impact

Ensures continued navigability of Newport Bay, supporting local commerce and recreational activities. Supports critical infrastructure maintenance for the Department of Defense. Provides economic activity and employment opportunities in Orange County, California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen subsurface conditions are encountered.
  • Dependence on a single contractor for a critical infrastructure project.

Positive Signals

  • Firm fixed price contract limits cost uncertainty.
  • Full and open competition promotes competitive pricing.
  • Project supports essential environmental and economic functions of the bay.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. Spending in this sector is often driven by infrastructure needs, environmental regulations, and national security requirements.

Small Business Impact

The contract was awarded under full and open competition, and there is no specific indication of small business set-aside or participation in this award. Further analysis would be needed to determine if small businesses were subcontractors.

Oversight & Accountability

The Department of the Army, through the Army Corps of Engineers, is responsible for overseeing this contract. Standard oversight mechanisms for federal construction projects should be in place to ensure compliance and quality.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for unforeseen subsurface conditions impacting cost and schedule.
  • Environmental compliance and permitting challenges.
  • Dependence on contractor's specialized equipment and expertise.
  • Weather-related delays impacting project timeline.

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 $13.9 million to R.E. STAITE ENGINEERING, INC.. NEWPORT BAY MAINTENANCE DREDGING, ORANGE COUNTY, CA

Who is the contractor on this award?

The obligated recipient is R.E. STAITE ENGINEERING, 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 $13.9 million.

What is the period of performance?

Start: 2025-07-24. End: 2026-09-21.

What is the historical cost performance of R.E. Staite Engineering on similar dredging contracts?

Analyzing R.E. Staite Engineering's past performance on comparable dredging projects would provide insight into their cost control capabilities and reliability. This includes examining contract modifications, change orders, and final costs versus initial estimates to assess their track record in delivering projects within budget and identifying potential risks associated with this specific award.

What are the specific environmental risks associated with this dredging project and how are they mitigated?

Dredging projects can pose environmental risks such as sediment disruption, water quality degradation, and impact on marine habitats. Mitigation strategies typically include careful planning of dredging windows, containment of disturbed sediments, monitoring of water quality, and adherence to environmental permits and regulations. The contract should detail these specific measures and the agency's oversight plan.

How does the awarded price compare to independent cost estimates for this type of dredging work?

Comparing the awarded price of $13.9 million to independent cost estimates, industry benchmarks, and historical data for similar dredging operations in the region is crucial. This assessment helps determine if the government secured a competitive price and achieved good value for taxpayer money. Significant deviations from benchmarks could indicate potential issues with the bidding process or the estimate itself.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PL25B0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2145 E BELT ST, SAN DIEGO, CA, 92113

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

Financial Breakdown

Contract Ceiling: $13,945,200

Exercised Options: $13,945,200

Current Obligation: $13,945,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-07-24

Current End Date: 2026-09-21

Potential End Date: 2026-09-21 00:00:00

Last Modified: 2025-09-02

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