Army awards $62M contract for Mobile Harbor deepening, a key infrastructure project
Contract Overview
Contract Amount: $62,055,622 ($62.1M)
Contractor: Weeks Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-01-31
End Date: 2025-02-14
Contract Duration: 380 days
Daily Burn Rate: $163.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MOBILE HARBOR DEEPENING & WIDENING PHASE 5
Place of Performance
Location: IRVINGTON, MOBILE County, ALABAMA, 36544
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $62.1 million to WEEKS MARINE, INC. for work described as: MOBILE HARBOR DEEPENING & WIDENING PHASE 5 Key points: 1. This contract represents a significant investment in critical port infrastructure, aiming to enhance navigation and economic activity. 2. The project's fixed-price nature suggests a defined scope and budget, potentially mitigating cost overrun risks. 3. The award to Weeks Marine, Inc. follows a full and open competition, indicating a competitive bidding process. 4. The duration of the contract (380 days) aligns with the complexity of large-scale civil engineering projects. 5. The project's location in Alabama highlights its regional economic importance and potential impact on local employment.
Value Assessment
Rating: good
The contract value of $62.1 million for harbor deepening and widening appears reasonable for a project of this scale. While direct comparisons are difficult without specific project details, large-scale civil engineering projects of this nature often involve substantial costs for dredging, material disposal, and environmental mitigation. The firm fixed-price contract type suggests that the contractor has assumed the risk for cost overruns, which is generally favorable for the government. Benchmarking against similar Army Corps of Engineers projects would provide a more precise assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this significant civil engineering project. A competitive process like this typically drives down prices and encourages contractors to offer their best value propositions, benefiting the government.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven price. This approach maximizes the chances of securing the best possible outcome for the investment.
Public Impact
The primary beneficiaries are likely port operators, shipping companies, and businesses relying on maritime trade through the Port of Mobile. The project will deliver enhanced navigation capabilities, allowing larger vessels to access the port and increasing cargo capacity. The geographic impact is concentrated in Alabama, specifically around the Port of Mobile, boosting regional economic development. Workforce implications may include job creation for skilled labor in construction, engineering, and related support services during the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for unforeseen subsurface conditions impacting dredging costs and schedule.
- Environmental compliance challenges and permitting delays could affect project timelines.
- Coordination with multiple stakeholders and regulatory agencies requires careful management.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive pricing environment.
- Experienced contractor (Weeks Marine, Inc.) likely brings specialized expertise to the project.
- Project addresses critical infrastructure needs, supporting long-term economic growth.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The market for such projects is characterized by a limited number of highly specialized firms capable of undertaking large-scale dredging and port development. Spending in this sector is often driven by government investment in national infrastructure, trade facilitation, and economic development initiatives. Comparable projects include other Army Corps of Engineers dredging and channel improvement efforts across the nation.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Weeks Marine, Inc., there is no explicit information regarding subcontracting plans for small businesses within the provided data. The scale of this project might necessitate specialized subcontractors, and opportunities for small businesses could arise if they possess the required expertise in areas like environmental services, equipment rental, or specialized labor.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for executing civil works projects. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure, which incentivizes the contractor to adhere to the budget. Transparency is typically maintained through contract award announcements and potential public reporting on project progress, though specific oversight mechanisms and Inspector General jurisdiction would depend on the detailed contract clauses.
Related Government Programs
- Army Corps of Engineers Civil Works Program
- Port Infrastructure Development Program
- National Defense Authorization Act (NDAA) funding for infrastructure
- Maritime Transportation System Investment
Risk Flags
- Potential for unforeseen subsurface conditions
- Environmental compliance and permitting risks
- Coordination complexity with multiple stakeholders
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, infrastructure, alabama, port-development, heavy-civil-engineering, weeks-marine-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.1 million to WEEKS MARINE, INC.. MOBILE HARBOR DEEPENING & WIDENING PHASE 5
Who is the contractor on this award?
The obligated recipient is WEEKS MARINE, 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 $62.1 million.
What is the period of performance?
Start: 2024-01-31. End: 2025-02-14.
What is the historical spending pattern for Mobile Harbor deepening and widening projects?
Historical spending on Mobile Harbor deepening and widening projects by the Army Corps of Engineers would reveal a pattern of significant, multi-year investments necessary for maintaining and improving port capacity. These projects are often phased due to their scale and funding cycles. For instance, previous phases of the Mobile Harbor deepening project have likely involved substantial federal outlays over several fiscal years. Analyzing past contract awards for similar dredging and construction activities in the region can provide context for the current $62.1 million award, indicating whether this represents a typical investment level or a significant increase/decrease. Understanding these historical patterns is crucial for assessing the long-term commitment to the port's development and the efficiency of federal resource allocation.
How does the per-unit cost of dredging in this contract compare to similar projects?
Determining the precise per-unit cost of dredging for this contract requires detailed breakdowns of the total contract value allocated to dredging volume (e.g., cubic yards or meters) and the specific types of material removed. Without this granular data, a direct per-unit cost comparison is challenging. However, benchmarks from other Army Corps of Engineers dredging projects can offer insights. Factors such as soil type, required depth, distance to disposal sites, and environmental mitigation measures significantly influence per-unit costs. If data were available, comparing the cost per cubic yard dredged against national averages for similar projects would reveal whether this contract is priced competitively. A higher-than-average cost might indicate unique project challenges or less competitive bidding, while a lower cost could suggest efficiency or favorable conditions.
What is the track record of Weeks Marine, Inc. on similar federal contracts?
Weeks Marine, Inc. has a substantial track record with federal agencies, particularly the U.S. Army Corps of Engineers, in executing large-scale marine construction and dredging projects. Their portfolio likely includes numerous contracts for channel deepening, harbor maintenance, and coastal protection. A review of their past performance, including contract completion timeliness, adherence to budget (especially on fixed-price contracts), safety records, and any history of disputes or contract modifications, would be essential. Positive performance indicators would include successful completion of similar complex projects on schedule and within budget. Conversely, any significant past issues, such as major delays, cost overruns on cost-reimbursable contracts, or quality control problems, would represent a potential risk factor for this current award.
What are the potential risks associated with the environmental impact of this project?
Environmental risks are a significant consideration in any large-scale dredging project. These can include the disturbance of marine habitats, potential release of contaminated sediments, impacts on water quality (turbidity), and effects on endangered species. The Mobile Harbor deepening project likely involves extensive environmental assessments, permitting processes (e.g., Clean Water Act Section 404 permits), and mitigation measures outlined in the contract. Risks may arise from encountering unexpected environmental conditions, non-compliance with environmental regulations leading to fines or work stoppages, or challenges in implementing required mitigation strategies. The effectiveness of the contractor's environmental management plan and the rigor of agency oversight are critical in minimizing these risks and ensuring the project's environmental sustainability.
How does the current contract value compare to the total estimated cost of the Mobile Harbor deepening project?
The $62.1 million awarded to Weeks Marine, Inc. represents a specific phase or component of the larger Mobile Harbor deepening and widening initiative. Federal infrastructure projects of this magnitude are often executed over multiple years and awarded through several distinct contracts, each addressing different segments or aspects of the overall plan. To understand how this contract fits into the total project cost, one would need to consult the Army Corps of Engineers' overall project budget and funding allocations for the Mobile Harbor deepening. This current award might cover a significant portion of the dredging or construction, or it could be one of several contracts contributing to the final goal. Without visibility into the total program cost and the funding strategy for subsequent phases, it's difficult to assess the completeness of the federal investment represented by this single award.
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: W9127823B0004
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peter Kiewit Sons Inc
Address: 304 GAILLE DR, COVINGTON, LA, 70433
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,055,622
Exercised Options: $62,055,622
Current Obligation: $62,055,622
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $20,800,819
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-01-31
Current End Date: 2025-02-14
Potential End Date: 2025-02-14 00:00:00
Last Modified: 2024-09-20
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