Army Awards $11.45M Dredging Contract for Atlantic Intracoastal Waterway in North Carolina
Contract Overview
Contract Amount: $11,451,170 ($11.5M)
Contractor: Southwind Construction Corp
Awarding Agency: Department of Defense
Start Date: 2025-11-16
End Date: 2026-04-30
Contract Duration: 165 days
Daily Burn Rate: $69.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ATLANTIC INTRACOASTAL WATERWAY MAINTENANCE DREDGING, FY26 CONTRACT, NORTH CAROLINA
Place of Performance
Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28403
Plain-Language Summary
Department of Defense obligated $11.5 million to SOUTHWIND CONSTRUCTION CORP for work described as: ATLANTIC INTRACOASTAL WATERWAY MAINTENANCE DREDGING, FY26 CONTRACT, NORTH CAROLINA Key points: 1. The contract is for maintenance dredging of the Atlantic Intracoastal Waterway. 2. Southwind Construction Corp. is the awarded contractor. 3. The contract value is $11,451,169.72. 4. The contract is set to be performed between November 2025 and April 2026. 5. This falls under 'Other Heavy and Civil Engineering Construction'.
Value Assessment
Rating: good
The contract value of $11.45M appears reasonable for a large-scale civil engineering project of this nature. Benchmarking against similar waterway maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance, ensuring navigability and supporting commerce.
Public Impact
Ensures continued navigability of a vital waterway for commercial and recreational use. Supports regional economic activity by facilitating maritime transportation. Maintains critical federal infrastructure, preventing potential degradation and costly future repairs. Provides employment opportunities within the construction and maritime sectors.
Waste & Efficiency Indicators
Waste Risk Score: 69 / 10
Warning Flags
- Limited competition may lead to higher prices.
- Contract duration is relatively short for a large project.
Positive Signals
- Essential infrastructure maintenance.
- Clear performance period.
- Fixed-price contract limits cost overrun risk.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on waterway maintenance. Spending benchmarks for similar dredging projects vary significantly based on location, scope, and environmental considerations.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Department of Defense, through the Department of the Army, is responsible for this contract. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and compliance checks.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in suboptimal pricing.
- Potential for cost increases if unforeseen dredging challenges arise.
- Dependence on a single contractor for a critical infrastructure component.
- Short contract duration might not allow for economies of scale.
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 $11.5 million to SOUTHWIND CONSTRUCTION CORP. ATLANTIC INTRACOASTAL WATERWAY MAINTENANCE DREDGING, FY26 CONTRACT, NORTH CAROLINA
Who is the contractor on this award?
The obligated recipient is SOUTHWIND CONSTRUCTION CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2025-11-16. End: 2026-04-30.
What is the historical cost performance for similar maintenance dredging contracts on the Atlantic Intracoastal Waterway?
Historical cost data for similar maintenance dredging contracts on the Atlantic Intracoastal Waterway is crucial for a comprehensive value assessment. Without this benchmark, it's difficult to definitively state if $11.45M represents optimal value. Factors like sediment type, disposal methods, and equipment used heavily influence costs, making direct comparisons challenging but necessary for robust analysis.
What were the specific reasons for excluding other sources in the competition process?
The exclusion of other sources in the competition process, as indicated by 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' typically arises from specific technical requirements, urgent needs, or unique capabilities possessed by the awarded contractor. Understanding these justifications is vital for assessing whether the limited competition was warranted and if it potentially inflated the contract price due to reduced market pressure.
How does the awarded price compare to the independent government cost estimate for this project?
Comparing the awarded price of $11.45M to the government's independent cost estimate is essential for evaluating fiscal responsibility. If the awarded price significantly exceeds the estimate, it could signal issues with the bidding process, contractor proposals, or the accuracy of the estimate itself, raising concerns about taxpayer value and effective price negotiation.
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 BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912PM25BA009
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14649 HIGHWAY 41 N STE 100, EVANSVILLE, IN, 47725
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,451,170
Exercised Options: $11,451,170
Current Obligation: $11,451,170
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: 2025-12-12
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