Army awards $6.5M contract for Cape Cod Canal bulkhead replacement, highlighting infrastructure needs

Contract Overview

Contract Amount: $6,483,320 ($6.5M)

Contractor: AGM Marine Contractors Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-01-08

Contract Duration: 465 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BULKHEAD REPLACEMENT AT CAPE COD CANAL IN SANDWICH, MA

Place of Performance

Location: SANDWICH, BARNSTABLE County, MASSACHUSETTS, 02563

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to AGM MARINE CONTRACTORS INC for work described as: BULKHEAD REPLACEMENT AT CAPE COD CANAL IN SANDWICH, MA Key points: 1. Contract addresses critical infrastructure maintenance in a vital waterway. 2. Competition was robust, suggesting potential for competitive pricing. 3. Fixed-price contract type shifts risk to the contractor. 4. Project duration of 465 days indicates a significant undertaking. 5. Geographic focus on Massachusetts aligns with regional infrastructure priorities.

Value Assessment

Rating: good

The contract value of $6.5 million for bulkhead replacement appears reasonable given the scope of civil engineering work. Benchmarking against similar Army Corps of Engineers projects for waterway infrastructure suggests this price falls within expected ranges. The firm fixed-price structure provides cost certainty for the government, assuming the contractor accurately estimated all costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. With 7 bidders, the level of competition suggests a healthy market for this type of specialized construction. This broad competition is generally favorable for achieving competitive pricing and ensuring a qualified contractor is selected.

Taxpayer Impact: A competitive bidding process for this infrastructure project helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits the U.S. Army Corps of Engineers by ensuring the structural integrity of the Cape Cod Canal. Delivers essential heavy civil engineering construction services. Geographic impact is localized to Sandwich, Massachusetts, but supports regional navigation and economic activity. Workforce implications include employment for skilled construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Ensuring contractor compliance with environmental regulations during construction in a sensitive waterway.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Experienced contractor likely selected through competitive evaluation.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to marine and waterway infrastructure. The Army Corps of Engineers is a major client for such projects, often involving significant investments in maintaining and upgrading national waterways. Comparable spending benchmarks for similar bulkhead and canal maintenance projects can vary widely based on location, complexity, and material requirements.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While this contract was awarded to a prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the prime's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which has established project management and quality assurance protocols. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
National Infrastructure Investment Projects
Waterway and Port Maintenance Contracts

Risk Flags

Potential for unforeseen site conditions
Environmental compliance risks
Contractor performance and schedule adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to AGM MARINE CONTRACTORS INC. BULKHEAD REPLACEMENT AT CAPE COD CANAL IN SANDWICH, MA

Who is the contractor on this award?

The obligated recipient is AGM MARINE CONTRACTORS 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 $6.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-01-08.

What is the historical spending pattern for bulkhead replacement projects by the Army Corps of Engineers in Massachusetts?

Analyzing historical spending for bulkhead replacement by the Army Corps of Engineers in Massachusetts requires access to detailed contract databases and project histories. Generally, such projects are project-specific and can vary significantly in cost due to factors like canal size, depth, material requirements, environmental considerations, and site accessibility. The current $6.5 million contract for Cape Cod Canal is a substantial investment, reflecting the scale of infrastructure maintenance required. Past projects might show a range from smaller repairs costing hundreds of thousands to major overhauls costing tens of millions. Trends would likely indicate a consistent need for such maintenance, with costs influenced by inflation, material prices, and regulatory changes over time. Specific data points would necessitate a deep dive into historical procurement records for the region.

How does the number of bidders (7) compare to similar Army Corps of Engineers civil engineering contracts?

A full and open competition yielding 7 bidders for a civil engineering construction contract, such as bulkhead replacement, generally indicates a healthy level of market interest and competition. For large-scale infrastructure projects managed by the Army Corps of Engineers, the number of bidders can fluctuate based on project complexity, geographic location, and the availability of specialized contractors. While 7 bidders is a solid number, some complex or highly specialized projects might attract fewer, while more common or broadly scoped projects could see more. This level of competition is typically viewed positively as it increases the likelihood of receiving competitive pricing and ensures a wider pool of qualified firms are considered, ultimately benefiting the government and taxpayers.

What are the primary risks associated with this firm fixed-price contract for bulkhead replacement?

The primary risk with a firm fixed-price (FFP) contract, while beneficial for cost control, lies in the potential for unforeseen issues to impact the contractor's profitability, potentially leading to disputes or quality compromises if not managed carefully. For bulkhead replacement, specific risks include encountering unexpected subsurface conditions (e.g., unstable soil, submerged debris, hazardous materials) that were not fully anticipated during the bidding phase. Contractor performance risk is also present, focusing on their ability to meet schedule and quality standards. If the contractor underestimated costs or encountered significant unforeseen challenges, they might seek change orders or face financial strain, potentially impacting project completion. The government's risk is primarily related to ensuring the contractor delivers the required quality and scope within the fixed price, and managing any necessary contract modifications.

What is the typical performance context for Army Corps of Engineers civil works projects of this magnitude?

Army Corps of Engineers civil works projects, particularly those involving significant infrastructure like canal bulkheads, typically operate within a rigorous performance context. This involves strict adherence to engineering specifications, environmental regulations, and safety standards. Projects are often managed under detailed project management plans, with regular progress reporting, site inspections, and quality assurance checks. The performance context emphasizes long-term durability and functionality of the infrastructure. Given the public nature and critical function of waterways, timely completion and minimal disruption to navigation are also key performance indicators. Contractor performance is evaluated based on meeting these criteria, often with penalties for delays or deficiencies and incentives for exceptional performance.

How does the geographic location (Cape Cod Canal, MA) influence the cost and complexity of this contract?

The geographic location of the Cape Cod Canal in Sandwich, Massachusetts, significantly influences the cost and complexity of this bulkhead replacement contract. Working within a marine environment presents unique challenges, including tidal fluctuations, potential for strong currents, and the need for specialized marine construction equipment and techniques. Environmental considerations are also heightened due to the sensitive ecosystem of the canal and surrounding areas, potentially requiring specific mitigation measures and permits. Furthermore, logistical challenges related to material delivery, site access, and workforce mobilization in a coastal region can add to costs. The presence of existing infrastructure and the need to maintain navigation during construction also add layers of complexity. These factors collectively contribute to the overall project cost and require specialized expertise from the contractor.

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: W912WJ24B0013

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7 FISH IS, NEW BEDFORD, MA, 02740

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

Financial Breakdown

Contract Ceiling: $6,483,320

Exercised Options: $6,483,320

Current Obligation: $6,483,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline