Army Awards $18.3M Dredging Contract to Norfolk Dredging Company for Wilmington Harbor Maintenance

Contract Overview

Contract Amount: $18,356,705 ($18.4M)

Contractor: Norfolk Dredging Company

Awarding Agency: Department of Defense

Start Date: 2025-07-28

End Date: 2026-03-31

Contract Duration: 246 days

Daily Burn Rate: $74.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY25-26 WILMINGTON HARBOR ANCHORAGE BASIN AND MID RIVER MAINTENANCE DREDGING

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28403

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to NORFOLK DREDGING COMPANY for work described as: FY25-26 WILMINGTON HARBOR ANCHORAGE BASIN AND MID RIVER MAINTENANCE DREDGING Key points: 1. The contract focuses on essential maintenance dredging for Wilmington Harbor, a critical maritime artery. 2. Norfolk Dredging Company, a significant player in the industry, secured the award. 3. The project involves significant civil engineering construction, highlighting the complexity of port infrastructure. 4. The firm fixed price contract structure aims to control costs for this large-scale project.

Value Assessment

Rating: good

The awarded amount of $18.36 million for 246 days of work appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale dredging projects 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, suggesting a robust price discovery process. The use of a definitive contract indicates a clear scope and established terms.

Taxpayer Impact: The competitive bidding process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure on essential port infrastructure maintenance.

Public Impact

Ensures continued navigability of Wilmington Harbor, vital for regional commerce and supply chains. Supports economic activity by facilitating the movement of goods through this key port. Maintains critical maritime infrastructure, preventing potential disruptions to shipping and trade. The project's success relies on efficient execution by Norfolk Dredging Company.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

  • Potential for environmental impacts during dredging operations.
  • Dependence on a single contractor for a critical infrastructure project.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract provides cost certainty.
  • Project addresses essential infrastructure maintenance.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to port and waterway infrastructure. Spending in this area is crucial for national trade and economic stability, often involving significant capital investments.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, nor is there an indication of subcontracting opportunities. Further analysis would be needed to determine if small businesses were involved in the competitive bidding process or as subcontractors.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for this contract. Standard oversight mechanisms for federal construction projects would apply, including monitoring progress, quality, and adherence to contract terms.

Related Government Programs

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

Risk Flags

  • Potential for environmental impact.
  • Dependence on a single contractor.
  • Scope change management complexity.
  • Geopolitical factors affecting supply chains (indirect).

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, nc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to NORFOLK DREDGING COMPANY. FY25-26 WILMINGTON HARBOR ANCHORAGE BASIN AND MID RIVER MAINTENANCE DREDGING

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 $18.4 million.

What is the period of performance?

Start: 2025-07-28. End: 2026-03-31.

What is the historical cost performance of Norfolk Dredging Company on similar federal contracts?

Historical cost performance data for Norfolk Dredging Company on similar federal contracts is crucial for a comprehensive value assessment. Analyzing past projects for cost overruns, efficiency, and adherence to budget would provide insight into their reliability and pricing accuracy. This information helps determine if the current $18.36 million award is competitive and reflects a history of fiscal responsibility.

What are the potential environmental risks associated with this dredging project and the mitigation strategies in place?

Dredging operations can pose environmental risks, including sediment disruption, water quality degradation, and potential harm to marine ecosystems. It is essential to understand the specific mitigation strategies outlined in the contract, such as containment measures, monitoring protocols, and disposal plans for dredged material. Assessing the effectiveness of these strategies is key to managing environmental impact and ensuring regulatory compliance.

How does the firm fixed price structure impact the government's ability to manage scope changes and potential cost escalations?

A firm fixed price contract generally shifts the risk of cost overruns to the contractor, providing cost certainty for the government. However, it can make managing scope changes more challenging, as modifications may require renegotiation or separate contract actions. The government must have robust change order management processes to control potential escalations if the project scope evolves beyond the initial agreement.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PM25BA006

Offers Received: 5

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: $18,019,043

Exercised Options: $18,019,043

Current Obligation: $18,356,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-07-28

Current End Date: 2026-03-31

Potential End Date: 2026-03-31 00:00:00

Last Modified: 2026-01-15

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