DHS Coast Guard awards $997,810 for port dredging in Michigan, emphasizing cost efficiency

Contract Overview

Contract Amount: $997,810 ($997.8K)

Contractor: SAF Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-31

End Date: 2026-05-31

Contract Duration: 426 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD DREDGING PORT HERON, MI IN ACCORDANCE WITH PARAGRAPH 2(D) IMPLEMENTING THE PRESIDENT'S "DEPARTMENT OF GOVERNMENT EFFICIENCY" COST EFFICIENCY INITIATIVE 2/26/2025.

Place of Performance

Location: PORT HURON, SAINT CLAIR County, MICHIGAN, 48060

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $997,810 to SAF INC for work described as: AWARD DREDGING PORT HERON, MI IN ACCORDANCE WITH PARAGRAPH 2(D) IMPLEMENTING THE PRESIDENT'S "DEPARTMENT OF GOVERNMENT EFFICIENCY" COST EFFICIENCY INITIATIVE 2/26/2025. Key points: 1. Contract aims to improve port infrastructure and operational efficiency. 2. Awarded under a cost efficiency initiative, suggesting a focus on value. 3. Limited competition dynamics may warrant further investigation into price reasonableness. 4. Performance period spans over a year, indicating a significant scope of work. 5. Geographic focus on Michigan highlights regional infrastructure investment. 6. The contract type (firm fixed price) shifts risk to the contractor.

Value Assessment

Rating: fair

The award amount of $997,810 for port dredging appears to be a specific investment for the Heron, MI port. Benchmarking against similar dredging contracts would be necessary to fully assess value for money. The firm fixed-price structure suggests a defined cost, but without detailed scope and market comparisons, a definitive value assessment is challenging. The contract's alignment with a "cost efficiency initiative" implies an expectation of good value, but the actual achieved value is yet to be determined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under "FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES," indicating that while competition was sought, certain sources were excluded. The presence of 3 bidders suggests some level of competition, but the exclusion of other potential sources raises questions about the breadth of the competitive landscape. This limited competition might have influenced the final pricing, potentially leading to a less competitive outcome than full and open competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. Further analysis is needed to understand the rationale for excluding sources and its impact on cost.

Public Impact

Benefits the U.S. Coast Guard by ensuring navigable waterways for operational readiness. Enhances port infrastructure in Heron, Michigan, supporting regional maritime activities. Facilitates commercial and potentially recreational vessel traffic through improved port conditions. May indirectly support local economies through improved access for shipping and related industries. The project involves construction services, potentially creating short-term employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The rationale for excluding certain sources needs to be clearly documented and justified.
Performance monitoring will be crucial to ensure the dredging meets specified standards and timelines.

Positive Signals

Awarded under a "cost efficiency initiative," indicating a focus on fiscal responsibility.
Firm fixed-price contract provides cost certainty for the government.
Multiple bidders (3) participated, suggesting some level of market interest.

Sector Analysis

Port dredging falls under the broader construction and infrastructure sector, specifically related to maritime facilities. This contract represents a targeted investment in maintaining and improving critical U.S. waterways. The market for specialized dredging services can be competitive, but often involves a limited number of highly qualified firms. Spending in this area is influenced by factors such as aging infrastructure, environmental regulations, and national security priorities.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of dredging, it is possible that larger firms with specific equipment and expertise were the primary bidders. Further investigation into subcontracting opportunities for small businesses would be beneficial to understand the broader economic impact.

Oversight & Accountability

Oversight will likely be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Transparency regarding the bidding process and source selection, especially given the 'exclusion of sources' clause, will be important for public trust. Inspector General involvement would typically occur if specific concerns or allegations of impropriety arise.

Related Government Programs

U.S. Army Corps of Engineers Civil Works Programs
Department of Transportation Maritime Administration (MARAD) Port Infrastructure Development Program
Coast Guard Aids to Navigation Program
Infrastructure Investment and Jobs Act (IIJA) related projects

Risk Flags

Limited competition
Potential for cost inefficiencies due to source exclusion
Environmental compliance risks
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $997,810 to SAF INC. AWARD DREDGING PORT HERON, MI IN ACCORDANCE WITH PARAGRAPH 2(D) IMPLEMENTING THE PRESIDENT'S "DEPARTMENT OF GOVERNMENT EFFICIENCY" COST EFFICIENCY INITIATIVE 2/26/2025.

Who is the contractor on this award?

The obligated recipient is SAF INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $997,810.

What is the period of performance?

Start: 2025-03-31. End: 2026-05-31.

What is the specific scope of work for the port dredging in Heron, MI, and how does it compare to industry standards for similar projects?

The provided data does not detail the specific scope of work for the port dredging in Heron, MI. Typically, port dredging involves removing sediment and debris from the bottom of a harbor, channel, or berth to maintain or increase its depth. This is crucial for safe navigation of vessels. Industry standards for such projects vary widely based on the volume of material to be removed, the type of material (e.g., sand, silt, rock), the required depth, and the environmental considerations for disposal of the dredged material. Without the contract's statement of work, a direct comparison to industry standards or benchmarks is not possible. The duration of 426 days (approximately 14 months) suggests a substantial project.

What were the specific reasons for excluding certain sources in the competition process for this contract?

The contract states "FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES," but the specific reasons for excluding certain sources are not detailed in the provided data. Regulatory frameworks often allow for source exclusion under specific circumstances, such as national security concerns, proprietary information protection, or when only a limited number of responsible sources are capable of meeting the government's needs. A thorough review of the contract's justification for exclusion would be necessary to understand the rationale. This information is typically found in the solicitation documents or award justification memos. Understanding these reasons is critical for assessing whether the exclusion unduly limited competition and potentially impacted the final price.

How does the awarded amount of $997,810 compare to historical spending on similar port dredging projects by the U.S. Coast Guard or other federal agencies?

Benchmarking the $997,810 award against historical spending requires access to a broader dataset of similar federal dredging contracts. Factors influencing cost include project location, volume of material dredged, required depth, environmental mitigation measures, and the specific equipment and labor involved. Without comparative data on the scope and complexity of other projects, it's difficult to definitively state whether this award is high or low. However, port infrastructure projects can range from hundreds of thousands to millions of dollars, depending on scale. The fact that this is a delivery order under a larger contract vehicle (implied by 'AWARD DELIVERY ORDER') suggests it might be part of a pre-competed framework, which can sometimes offer efficiencies but also requires scrutiny for price reasonableness within that framework.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this dredging contract include environmental compliance issues (e.g., disposal of dredged material, impact on marine life), unforeseen subsurface conditions (e.g., encountering unexpected debris or hard material), contractor performance delays, and cost overruns if the fixed-price nature doesn't fully account for all variables. Mitigation strategies typically involve robust contract language, clear performance standards, regular site inspections, environmental monitoring, and contingency planning. The firm fixed-price structure itself is a risk mitigation tool for the government, transferring most cost overrun risk to the contractor, provided the scope is well-defined.

What is the track record of the contractor, SAF INC, in performing similar federal contracts, particularly in dredging or maritime construction?

The provided data identifies SAF INC as the contractor but does not offer details on their track record. To assess their suitability and past performance, one would need to consult federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems would provide information on SAF INC's history with federal contracts, including their performance ratings on previous projects, any past disputes or terminations, and their experience in the specific domain of dredging or maritime construction. A positive performance history would increase confidence in the successful execution of this contract.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 130 E VORIS ST, AKRON, OH, 44311

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $997,810

Exercised Options: $997,810

Current Obligation: $997,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 70Z08324DCLEV0008

IDV Type: IDC

Timeline