Army awards $11M contract for Ohio River dredging, impacting navigation and infrastructure

Contract Overview

Contract Amount: $11,037,796 ($11.0M)

Contractor: Luhr Crosby, LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-07

End Date: 2025-12-31

Contract Duration: 268 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGE ATTENDANT PLANT AND ON-SHORE DISPOSAL EQUIPMENT FOR CHANNEL MAINTENANCE, OHIO RIVER (RM 439-981) AND OHIO RIVER POOL AREAS OF TRIBUTARIES, AND UPPER MISSISSIPPI RIVER (RM 0.0-185.0)

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40202

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to LUHR CROSBY, LLC for work described as: DREDGE ATTENDANT PLANT AND ON-SHORE DISPOSAL EQUIPMENT FOR CHANNEL MAINTENANCE, OHIO RIVER (RM 439-981) AND OHIO RIVER POOL AREAS OF TRIBUTARIES, AND UPPER MISSISSIPPI RIVER (RM 0.0-185.0) Key points: 1. The contract focuses on essential channel maintenance for critical waterways. 2. Luhr Crosby, LLC secured the award through full and open competition. 3. The project addresses infrastructure needs in Kentucky and surrounding regions. 4. Fixed-price contract type aims to control costs for this civil engineering project.

Value Assessment

Rating: good

The award amount of $11,037,796.38 appears reasonable for a large-scale dredging and disposal operation. Benchmarking against similar Army Corps of Engineers contracts for river maintenance would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: By ensuring competitive pricing through open bidding, taxpayer funds are likely being used efficiently for essential waterway maintenance.

Public Impact

Ensures continued navigability of the Ohio River and Upper Mississippi River, vital for commerce and transportation. Supports infrastructure maintenance critical for regional economic activity and supply chains. The project contributes to the upkeep of federal waterways, benefiting multiple states.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

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

Sector Analysis

This contract falls under heavy and civil engineering construction, specifically focusing on waterway maintenance. Spending in this sector is often driven by infrastructure needs, environmental regulations, and national security priorities.

Small Business Impact

The contract was awarded to Luhr Crosby, LLC, a large business. There is no indication of specific provisions or set-asides for small businesses in this award, which is common for large-scale civil engineering projects.

Oversight & Accountability

The Army Corps of Engineers is responsible for overseeing this contract. Oversight will be crucial to ensure adherence to environmental standards, project timelines, and quality of work performed.

Related Government Programs

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

Risk Flags

  • Environmental impact of dredging.
  • Potential for unforeseen geological challenges.
  • Contractor's capacity for large-scale operations.
  • Long-term maintenance needs of the waterways.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, ky, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to LUHR CROSBY, LLC. DREDGE ATTENDANT PLANT AND ON-SHORE DISPOSAL EQUIPMENT FOR CHANNEL MAINTENANCE, OHIO RIVER (RM 439-981) AND OHIO RIVER POOL AREAS OF TRIBUTARIES, AND UPPER MISSISSIPPI RIVER (RM 0.0-185.0)

Who is the contractor on this award?

The obligated recipient is LUHR CROSBY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2025-04-07. End: 2025-12-31.

What are the specific environmental mitigation measures included in this contract to minimize the impact of dredging on aquatic ecosystems?

The contract details should specify environmental mitigation measures. These typically include protocols for managing dredged material, monitoring water quality, and protecting sensitive habitats. A thorough review of the contract's environmental clauses and any associated environmental impact statements is necessary to understand the full scope of these measures and their effectiveness.

How does the firm fixed price structure mitigate potential cost overruns given the unpredictable nature of riverbed conditions?

A firm fixed price contract places the risk of cost overruns primarily on the contractor. While it offers cost certainty to the government, the contractor must account for potential risks like unforeseen geological conditions within their bid. The success of this structure relies on the contractor's accurate assessment of risks and efficient project management.

What is the historical performance record of Luhr Crosby, LLC on similar federal dredging contracts?

Assessing Luhr Crosby, LLC's past performance on comparable federal contracts is vital. Reviewing contract close-out reports, past performance evaluations, and any documented disputes or successes can provide insight into their reliability, quality of work, and ability to manage complex projects within budget and schedule.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 250 W SAND BANK RD, COLUMBIA, IL, 62236

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

Financial Breakdown

Contract Ceiling: $11,433,325

Exercised Options: $11,433,325

Current Obligation: $11,037,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR24D0013

IDV Type: IDC

Timeline

Start Date: 2025-04-07

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2025-10-10

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