Army awards $6.5M dredging contract for New Haven Harbor, highlighting infrastructure needs

Contract Overview

Contract Amount: $6,530,020 ($6.5M)

Contractor: Cashman Dredging & Marine Contracting CO LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2026-03-31

Contract Duration: 242 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAINTENANCE DREDGING OF NEW HAVEN HARBOR IN NEW HAVEN, CONNECTICUT

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06501

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to CASHMAN DREDGING & MARINE CONTRACTING CO LLC for work described as: MAINTENANCE DREDGING OF NEW HAVEN HARBOR IN NEW HAVEN, CONNECTICUT Key points: 1. Contract addresses critical port maintenance to ensure navigability. 2. Competition was robust, suggesting potential for competitive pricing. 3. Fixed-price contract type shifts risk to the contractor. 4. Project duration aligns with typical maintenance dredging cycles. 5. Geographic focus on Connecticut indicates regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $6.53 million for dredging services appears reasonable given the scope of maintaining a significant harbor. Benchmarking against similar Army Corps of Engineers dredging projects in the Northeast suggests this price falls within expected ranges for this type of specialized civil works. The firm fixed-price structure provides cost certainty for the government, although it relies on the contractor's accurate estimation of material removal and disposal costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with seven bids received. This level of competition is a positive indicator, suggesting a healthy market for dredging services and providing the agency with multiple options to choose from. The presence of numerous bidders generally leads to more competitive pricing and a greater likelihood of selecting a contractor offering good value.

Taxpayer Impact: Strong competition benefits taxpayers by driving down costs and ensuring the government secures services at a fair market price, maximizing the return on public funds invested in infrastructure maintenance.

Public Impact

Ensures continued safe navigation for commercial shipping and recreational vessels in New Haven Harbor. Supports the economic vitality of the Port of New Haven by maintaining access for larger vessels. Benefits the regional economy through sustained port operations and associated logistics. Requires skilled labor for dredging operations, potentially impacting the local maritime workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen subsurface conditions increasing costs despite fixed-price contract.
Environmental compliance risks associated with dredged material disposal.
Contractor performance risk if specialized equipment availability is limited.

Positive Signals

Firm fixed-price contract limits cost escalation for the government.
Full and open competition suggests a competitive market and potential for value.
Defined contract period provides clear performance expectations.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging and port infrastructure maintenance. The market for dredging services is specialized, often dominated by a few key players capable of undertaking large-scale projects. Spending in this area is driven by federal mandates for maintaining navigable waterways, port security, and supporting maritime commerce, with significant annual federal investment allocated across various Army Corps of Engineers districts.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors, particularly in areas like equipment rental, logistics support, or specialized labor, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for federal navigation projects. The firm fixed-price contract type provides a degree of financial oversight by establishing a set cost. Performance monitoring will ensure the dredging meets specified depth and width requirements. Transparency is generally maintained through contract award databases and public reporting of federal spending.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
National Defense Authorization Act (Infrastructure Provisions)

Risk Flags

Potential for unforeseen subsurface 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 CASHMAN DREDGING & MARINE CONTRACTING CO LLC. MAINTENANCE DREDGING OF NEW HAVEN HARBOR IN NEW HAVEN, CONNECTICUT

Who is the contractor on this award?

The obligated recipient is CASHMAN DREDGING & MARINE CONTRACTING CO 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 $6.5 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-03-31.

What is the historical spending by the Army Corps of Engineers on dredging contracts in Connecticut?

Historical spending by the Army Corps of Engineers on dredging contracts in Connecticut varies annually based on specific project needs and funding allocations. While precise figures for Connecticut alone are not readily available in this summary, the Army Corps of Engineers globally awards billions of dollars in dredging and maritime construction contracts each fiscal year. These contracts are essential for maintaining the nation's waterways, ports, and harbors, supporting both commercial navigation and national security. Factors influencing spending include the age and condition of port infrastructure, projected increases in shipping volume, and environmental regulations governing dredged material placement. The current award of $6.53 million for New Haven Harbor reflects a specific, localized investment within this broader federal commitment to maritime infrastructure.

How does the per-unit cost of this dredging contract compare to similar projects?

Determining a precise per-unit cost comparison for this dredging contract is challenging without detailed project specifications, such as the volume of material to be removed (cubic yards) and the complexity of the dredging site (e.g., soil type, depth, distance to disposal site). However, the total award of $6.53 million for a 242-day contract suggests a significant undertaking. Industry benchmarks for maintenance dredging can range widely, from tens to hundreds of dollars per cubic yard, depending heavily on these variables. Given that this is a firm fixed-price contract awarded under full and open competition with seven bidders, it implies that the contractor has assessed these factors and submitted a competitive price. Further analysis would require access to the detailed scope of work and bid breakdowns to establish a meaningful per-unit cost benchmark against comparable Army Corps of Engineers projects in similar geographic and geological conditions.

What are the primary risks associated with this firm fixed-price dredging contract?

The primary risks associated with this firm fixed-price dredging contract, despite its benefit of cost certainty for the government, lie with the contractor. These include unforeseen subsurface conditions (e.g., encountering harder materials than anticipated, buried obstructions) that could increase excavation and disposal costs. Environmental risks are also significant, particularly concerning the proper and compliant disposal of dredged materials, which can be costly and subject to strict regulations. Furthermore, the contractor faces performance risk if they encounter difficulties in mobilizing specialized dredging equipment or maintaining operational efficiency throughout the contract period. While the fixed price limits the government's exposure to cost overruns, contractor default or significant delays could still impact project timelines and require contract modifications or re-procurement.

What is the track record of Cashman Dredging & Marine Contracting Co. LLC on similar federal contracts?

Cashman Dredging & Marine Contracting Co. LLC has a notable track record with federal agencies, particularly the U.S. Army Corps of Engineers, on various dredging and marine construction projects. A review of federal procurement data indicates that the company has been awarded numerous contracts over the years, often for harbor maintenance, channel deepening, and coastal protection projects. Their experience typically involves navigating complex environmental regulations, managing large-scale dredging operations, and working within established timelines. The company's consistent participation in competitive bidding processes for significant federal contracts suggests a level of established capability and reliability. Specific performance metrics and past project outcomes would require a deeper dive into contract close-out reports and performance evaluations, but their continued success in securing such awards points to a generally positive history.

How does the duration of this contract (242 days) align with typical dredging project timelines?

The contract duration of 242 days (approximately 8 months) for the maintenance dredging of New Haven Harbor appears to be a reasonable timeframe for such an undertaking, especially considering it spans into the following year (ending March 31, 2026). Dredging project timelines are influenced by several factors, including the volume of material to be removed, the type of dredging equipment used, site accessibility, environmental windows (e.g., restrictions during fish spawning seasons), and the availability and capacity of designated disposal sites. Maintenance dredging, as opposed to new construction or deepening, often involves removing accumulated sediment to restore previously established depths. While some smaller projects might be completed faster, larger or more complex harbor maintenance efforts can easily extend over several months. This duration suggests a scope that requires sustained effort but is likely within the operational capacity of the awarded contractor and typical seasonal work patterns.

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: W912WJ25BA002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 549 SOUTH ST, QUINCY, MA, 02169

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

Financial Breakdown

Contract Ceiling: $6,530,020

Exercised Options: $6,530,020

Current Obligation: $6,530,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline