Army awards $32.5M contract for Mobile Harbor Deepening & Widening, highlighting significant civil engineering investment
Contract Overview
Contract Amount: $32,501,117 ($32.5M)
Contractor: Weeks Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-05-31
End Date: 2025-06-03
Contract Duration: 368 days
Daily Burn Rate: $88.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MOBILE HARBOR DEEPENING & WIDENING PH 2B
Place of Performance
Location: IRVINGTON, MOBILE County, ALABAMA, 36544
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $32.5 million to WEEKS MARINE, INC. for work described as: MOBILE HARBOR DEEPENING & WIDENING PH 2B Key points: 1. Contract value represents a substantial investment in critical port infrastructure. 2. Full and open competition suggests a potentially competitive bidding environment. 3. The project's duration and scope indicate moderate to high execution risk. 4. Fixed-price contract type shifts performance risk to the contractor. 5. This project aligns with broader national goals for port modernization and trade facilitation.
Value Assessment
Rating: good
The contract value of $32.5 million for Phase 2B of the Mobile Harbor Deepening & Widening project appears reasonable given the scope of major civil engineering work. Without specific benchmarks for similar harbor deepening projects in the region or nationally, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the government has secured a defined cost for the work, which is a positive indicator for cost control. Further analysis would require comparing the per-unit costs of dredging, material disposal, and other construction elements to industry standards.
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. With five bidders participating, the competition level appears healthy, suggesting that the government received multiple proposals and had a range of options to choose from. This level of competition is generally conducive to achieving fair market prices and encourages contractors to offer their best value propositions.
Taxpayer Impact: A competitive bidding process for this significant infrastructure project helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The project directly benefits the Port of Mobile and the state of Alabama by enhancing its capacity for larger vessels and increased cargo throughput. It will facilitate deeper navigation channels, enabling more efficient and cost-effective movement of goods. The project supports the maritime industry and related logistics sectors, potentially leading to job creation and economic growth in the region. Improved port infrastructure can attract more shipping lines and businesses, boosting regional and national trade.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen subsurface conditions are encountered, despite the fixed-price nature.
- Schedule delays could impact the overall project timeline and associated economic benefits.
- Environmental compliance and permitting challenges can add complexity and cost.
Positive Signals
- The firm fixed-price contract structure provides cost certainty for the government.
- Full and open competition with multiple bidders suggests a competitive pricing environment.
- The contractor, Weeks Marine, Inc., has a track record in large-scale marine construction projects.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on port and waterway infrastructure development. The market for such projects is characterized by large, specialized firms capable of undertaking complex, capital-intensive undertakings. Spending in this area is often driven by government investment in trade facilitation, national security, and economic development. Comparable benchmarks would include other major port dredging and expansion projects across the United States, which often run into tens or hundreds of millions of dollars.
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., a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the availability of qualified small business firms for specialized services required in this large-scale construction project.
Oversight & Accountability
Oversight for this project will likely be managed by the U.S. Army Corps of Engineers, which is responsible for managing federal civil works projects. Accountability measures are embedded in the contract through performance requirements, delivery schedules, and payment milestones. Transparency is generally maintained through public contract awards and reporting, though detailed project-specific oversight activities may not be fully public.
Related Government Programs
- Mobile Harbor Improvement Project
- U.S. Army Corps of Engineers Civil Works Program
- Port Infrastructure Development Program
- National Defense Authorization Act (related funding authorizations)
Risk Flags
- Potential for unforeseen subsurface conditions impacting cost and schedule.
- Environmental permitting and compliance risks.
- Dependence on contractor's specialized equipment and workforce availability.
- Schedule risks associated with weather and maritime operations.
Tags
construction, department-of-defense, department-of-the-army, mobile-alabama, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering-construction, port-infrastructure, infrastructure-development, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.5 million to WEEKS MARINE, INC.. MOBILE HARBOR DEEPENING & WIDENING PH 2B
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 $32.5 million.
What is the period of performance?
Start: 2024-05-31. End: 2025-06-03.
What is Weeks Marine, Inc.'s track record with similar large-scale dredging and harbor deepening projects?
Weeks Marine, Inc. has a significant history of undertaking large-scale marine construction projects, including dredging, breakwater construction, and offshore wind foundations. They have been involved in numerous port improvement and navigation channel projects across the United States. Their experience includes managing complex environmental regulations, working with diverse geological conditions, and operating large fleets of specialized equipment. Specific past projects that are comparable in scope and complexity to the Mobile Harbor Deepening & Widening Phase 2B would need to be cross-referenced against their project portfolio to fully assess their suitability and past performance metrics, such as on-time completion and budget adherence.
How does the awarded amount compare to the estimated cost or budget for this phase of the Mobile Harbor project?
The awarded contract amount of $32,501,117.34 represents the government's commitment for Phase 2B of the Mobile Harbor Deepening & Widening project. Without access to the government's initial cost estimates or the bids submitted by the other four competitors, it is difficult to definitively state how competitive the pricing is. However, the fact that the contract was awarded under full and open competition with five bidders suggests that the price achieved is likely within a reasonable range of market expectations. Further analysis would require comparing the awarded amount to the government's independent government cost estimate (IGCE) if it were publicly available, or to the range of bids received.
What are the primary risks associated with the execution of this specific contract, and how are they mitigated?
The primary risks associated with this contract include unforeseen subsurface geological conditions (e.g., harder rock than anticipated, unexpected obstructions), potential environmental compliance issues or delays in permitting, and schedule slippage due to weather or equipment availability. Mitigation strategies are embedded within the contract structure. The firm fixed-price nature shifts some financial risk to the contractor, incentivizing them to manage costs effectively. The contract likely includes provisions for differing site conditions and change orders to address unexpected geological issues. The U.S. Army Corps of Engineers' oversight and project management are crucial for monitoring progress, ensuring compliance, and proactively addressing potential risks. The contractor's experience and robust project planning are also key mitigation factors.
What is the expected impact of this project on the Port of Mobile's cargo capacity and vessel accessibility?
This project, Mobile Harbor Deepening & Widening Phase 2B, is a critical component of a larger effort to enhance the Port of Mobile's capabilities. By deepening and widening the navigation channels, the project aims to accommodate larger, Post-Panamax class vessels. This increased accessibility allows the port to handle more cargo per vessel, reducing shipping costs and improving efficiency. The ultimate goal is to increase the port's overall throughput capacity, making it more competitive in attracting global shipping lines and facilitating the movement of goods, particularly bulk commodities and containerized cargo, thereby boosting regional economic activity.
How does this contract's value and scope compare to historical federal spending on similar port infrastructure projects?
The $32.5 million contract value for Phase 2B of the Mobile Harbor project is a significant but not extraordinary amount for a major component of a large-scale port deepening and widening initiative. Federal spending on port infrastructure varies widely depending on the project's complexity, scale, and location. Major channel deepening projects can range from tens of millions to hundreds of millions, or even billions, of dollars over multiple phases. For instance, the Corpus Christi Ship Channel Improvement Project or the Port of New York and New Jersey channel deepening have involved substantial federal investment. This contract represents a specific, albeit substantial, investment within a multi-year, multi-phase federal program aimed at modernizing key U.S. ports.
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: W9127824B0002
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kiewit-Turner a Joint Venture
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: $32,501,117
Exercised Options: $32,501,117
Current Obligation: $32,501,117
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $5,734,895
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-31
Current End Date: 2025-06-03
Potential End Date: 2025-06-03 00:00:00
Last Modified: 2025-10-16
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