Army Corps of Engineers Awards $69M Dredging Contract to Port of Portland for Columbia River

Contract Overview

Contract Amount: $69,084,379 ($69.1M)

Contractor: Port of Portland

Awarding Agency: Department of Defense

Start Date: 2005-06-30

End Date: 2011-09-30

Contract Duration: 2,283 days

Daily Burn Rate: $30.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Construction

Official Description: 200511!500896!96CE!W9127N!USA ENGINEER DISTRICT PORTLAND !W9127N05C0018 !A!N! !N! ! !20050630!20100630!009419300!009419300!009419300!N!PORT OF PORTLAND !121 NW EVERETT ST !PORTLAND !OR!97209!99009!009!41!COLUMBIA !COLUMBIA !OREGON !+000002400000!N!N!000036000000!Y216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !N!Z!B!U!S!1!001!N!5A!D!N!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97201

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $69.1 million to PORT OF PORTLAND for work described as: 200511!500896!96CE!W9127N!USA ENGINEER DISTRICT PORTLAND !W9127N05C0018 !A!N! !N! ! !20050630!20100630!009419300!009419300!009419300!N!PORT OF PORTLAND !121 NW EVERETT ST !PORTLAND !OR!97209!99009!009!41!COLUMBIA !COLU… Key points: 1. The contract, valued at $69.1 million, is for dredging services. 2. Awarded to Port of Portland, a single entity, raising questions about competition. 3. The contract duration is over 5 years, indicating a significant, long-term project. 4. The sector is Construction, specifically heavy and civil engineering.

Value Assessment

Rating: questionable

The contract value of $69.1 million for dredging is substantial. Without comparable contract data or a clear justification for limited competition, assessing its pricing against similar services is difficult. The 'NOT AVAILABLE FOR COMPETITION' status warrants further scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'NOT AVAILABLE FOR COMPETITION' to the Port of Portland. This limited competition likely impacted price discovery, potentially leading to a higher cost for taxpayers than if full and open competition had been pursued.

Taxpayer Impact: The lack of robust competition for a nearly $70 million contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Port of Portland receives a significant, long-term contract for essential infrastructure work. The Army Corps of Engineers ensures continued navigation and commerce on the Columbia River. The dredging services are critical for maintaining the operational capacity of the Port of Portland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of justification for sole-source award
Long contract duration without re-evaluation

Positive Signals

Essential infrastructure maintenance
Award to a port authority supporting regional commerce

Sector Analysis

This contract falls within the Construction sector, specifically heavy and civil engineering construction. Dredging is a specialized service crucial for maintaining waterways and port infrastructure, often involving significant capital investment and specific expertise.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The nature of large-scale dredging projects often favors established, larger entities with specialized equipment and experience.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' designation suggests a potential lapse in oversight or a lack of proactive efforts to foster competition. Further review is needed to understand the justification for this approach and ensure accountability.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for overpayment due to lack of competition
Lack of transparency in the procurement process
Long contract duration may not reflect current market conditions
No clear benefit or justification for limited competition provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.1 million to PORT OF PORTLAND. 200511!500896!96CE!W9127N!USA ENGINEER DISTRICT PORTLAND !W9127N05C0018 !A!N! !N! ! !20050630!20100630!009419300!009419300!009419300!N!PORT OF PORTLAND !121 NW EVERETT ST !PORTLAND !OR!97209!99009!009!41!COLUMBIA !COLUMBIA !OREGON !+000002400000!N!N!000036000000!Y216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is PORT OF PORTLAND.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $69.1 million.

What is the period of performance?

Start: 2005-06-30. End: 2011-09-30.

What was the specific justification for awarding this dredging contract on a limited or sole-source basis, and were alternative competitive strategies considered?

The provided data states 'NOT AVAILABLE FOR COMPETITION,' which is a strong indicator of limited or sole-source procurement. A thorough review would require accessing the contract file to understand the specific circumstances, such as unique capabilities, urgent needs, or existing partnerships that precluded a full and open competition. Without this documentation, it's impossible to definitively state the justification or if alternatives were explored.

How does the unit cost of this dredging contract compare to industry benchmarks for similar services, considering the specific scope and location?

Benchmarking the unit cost is challenging without more granular data on the scope of work (e.g., cubic yards dredged, depth, material type) and specific market rates at the time of award. The total contract value of $69.1 million over approximately 5 years suggests a significant ongoing operation. A detailed cost analysis comparing it to publicly available dredging cost indices or similar Army Corps of Engineers contracts would be necessary for a robust assessment.

What are the long-term implications of this contract structure on the government's ability to secure competitive pricing for future dredging needs in this region?

Awarding a large, long-term contract with limited competition may set a precedent and potentially reduce the perceived opportunity for other qualified contractors to compete on future projects. This could lead to less innovation and potentially higher costs over time if market competition is stifled. Agencies should periodically reassess the need for competition, even on existing contracts, to ensure best value.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 121 NW EVERETT ST, PORTLAND, OR, 97209

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline