Army awards $25.9M contract for coastal storm risk management in North Carolina
Contract Overview
Contract Amount: $25,939,000 ($25.9M)
Contractor: Norfolk Dredging Company
Awarding Agency: Department of Defense
Start Date: 2025-11-16
End Date: 2026-04-30
Contract Duration: 165 days
Daily Burn Rate: $157.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COASTAL STORM RISK MANAGEMENT, CAROLINA AND KURE BEACHES, NORTH CAROLINA
Place of Performance
Location: CAROLINA BEACH, NEW HANOVER County, NORTH CAROLINA, 28428
Plain-Language Summary
Department of Defense obligated $25.9 million to NORFOLK DREDGING COMPANY for work described as: COASTAL STORM RISK MANAGEMENT, CAROLINA AND KURE BEACHES, NORTH CAROLINA Key points: 1. Contract awarded to Norfolk Dredging Company for coastal storm risk management. 2. Project focuses on enhancing storm resilience for Carolina and Kure Beaches. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Competition was full and open, suggesting a competitive bidding process. 5. Contract duration is 165 days, with an estimated completion in April 2026. 6. Project falls under Other Heavy and Civil Engineering Construction. 7. North Carolina is the designated state for this project.
Value Assessment
Rating: good
The contract value of $25.9 million for coastal storm risk management appears reasonable given the scope of civil engineering construction. Benchmarking against similar Army Corps of Engineers projects for beach nourishment and structural protection reveals that this award falls within the expected range for projects of this scale and complexity. The firm fixed-price structure provides cost certainty, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a healthy level of competition for this project. A competitive environment generally leads to more favorable pricing and better terms for the government, as contractors vie to win the award.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. Multiple bidders typically result in a more competitive price, maximizing the value received for the investment in coastal resilience.
Public Impact
Residents and businesses in Carolina and Kure Beaches, North Carolina, will benefit from enhanced protection against coastal storms. The project will involve significant civil engineering construction to improve storm surge and erosion defenses. The geographic impact is concentrated in the coastal communities of North Carolina. The project is expected to support jobs in the heavy and civil engineering construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if unforeseen environmental or geological conditions arise during dredging and construction.
- Reliance on a single contractor for a critical infrastructure project necessitates close monitoring of performance and quality.
- Weather-dependent nature of coastal construction could lead to schedule delays and potential cost overruns if not managed effectively.
Positive Signals
- Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
- Full and open competition with multiple bidders suggests a competitive price was likely secured.
- Experienced contractor in dredging and civil engineering is likely to ensure successful project execution.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal protection and infrastructure. This sector is critical for public safety and economic stability in coastal regions, involving significant investment in projects like beach nourishment, seawall construction, and dredging. The market for such services is often characterized by specialized firms with significant capital equipment and expertise, and government contracts, particularly from agencies like the Army Corps of Engineers, represent a substantial portion of the work.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract, as the 'ss' field is false. However, the prime contractor, Norfolk Dredging Company, may engage small businesses as subcontractors for specialized services or material supply. The impact on the small business ecosystem would depend on the subcontracting opportunities created, which are not detailed in the provided data.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for managing coastal storm risk reduction projects. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified outcomes within budget. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details are not provided.
Related Government Programs
- Coastal Storm Risk Management Projects
- Beach Nourishment Programs
- Army Corps of Engineers Civil Works Projects
- Infrastructure Improvement Contracts
Risk Flags
- Environmental sensitivities
- Weather-related delays
- Geological uncertainties
- Permitting compliance
Tags
construction, coastal-protection, department-of-defense, department-of-the-army, north-carolina, firm-fixed-price, definitive-contract, full-and-open-competition, heavy-and-civil-engineering, storm-risk-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.9 million to NORFOLK DREDGING COMPANY. COASTAL STORM RISK MANAGEMENT, CAROLINA AND KURE BEACHES, NORTH CAROLINA
Who is the contractor on this award?
The obligated recipient is NORFOLK DREDGING 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 $25.9 million.
What is the period of performance?
Start: 2025-11-16. End: 2026-04-30.
What is the track record of Norfolk Dredging Company on similar federal contracts?
Norfolk Dredging Company has a history of performing dredging and marine construction services for various federal agencies, including the U.S. Army Corps of Engineers. Their experience typically includes projects related to navigation channels, beach nourishment, and environmental restoration. Reviewing their past performance on similar coastal storm risk management or beach renourishment contracts would provide insight into their ability to meet schedule, cost, and quality requirements. Data on past performance, including any disputes or contract modifications, would be crucial for a comprehensive assessment of their reliability and expertise in executing this specific project.
How does the awarded amount compare to the estimated cost or budget for this project?
The awarded amount of $25.9 million represents the final negotiated price for the coastal storm risk management project. Without access to the government's initial cost estimates or the bids submitted by other competitors, it is challenging to definitively assess if this represents exceptional value. However, the fact that the contract was awarded under full and open competition with four bidders suggests that the price is likely competitive and reflects market conditions. Further analysis would involve comparing this award to similar projects undertaken by the Army Corps of Engineers in terms of cost per unit of work (e.g., cost per cubic yard of material placed for beach nourishment).
What are the primary risks associated with this type of coastal construction contract?
Primary risks for this coastal construction contract include environmental factors such as unexpected weather events (hurricanes, nor'easters) that can disrupt work, damage equipment, and delay schedules. Geological conditions, such as the composition of the seabed or subsurface soil, can also present challenges, potentially leading to increased costs or the need for modified construction methods. Furthermore, the logistical complexities of mobilizing large dredging equipment and managing material placement in sensitive coastal environments pose operational risks. Regulatory compliance, particularly concerning environmental permits and protected species, also requires careful management to avoid delays or penalties.
How effective are coastal storm risk management projects in mitigating damage from extreme weather events?
Coastal storm risk management projects, such as beach nourishment and dune restoration, are generally effective in reducing property damage and protecting infrastructure from storm surge and erosion. By widening beaches and increasing dune elevations, these projects act as natural buffers, absorbing wave energy and dissipating storm impacts. Studies by the Army Corps of Engineers and other research institutions have shown that well-maintained beach and dune systems can significantly reduce the extent of flooding and structural damage during storm events. However, the effectiveness is dependent on the scale of the storm relative to the engineered features, the frequency of nourishment, and the overall resilience of the coastal system.
What has been the historical spending trend for coastal storm risk management by the Department of the Army?
The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a long history of investing in coastal storm risk management. Spending in this area fluctuates based on congressional appropriations, the severity of recent storm seasons, and the prioritization of infrastructure projects. Historically, USACE's civil works program, which includes coastal protection, has seen significant funding, particularly following major hurricanes or during periods of increased focus on climate resilience. Analyzing historical spending data would reveal trends in investment levels, the types of projects funded, and the geographic distribution of these efforts, providing context for the current $25.9 million award.
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: W912PM25BA004
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 110 CENTERVILLE TPKE N, CHESAPEAKE, VA, 23320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,976,200
Exercised Options: $25,939,000
Current Obligation: $25,939,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-11-16
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-09
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