Dredge Oregon Rental Cost $76.8M Over 5 Years, DoD Contract Lacked Competition
Contract Overview
Contract Amount: $76,751,119 ($76.8M)
Contractor: Port of Portland
Awarding Agency: Department of Defense
Start Date: 2011-10-01
End Date: 2016-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $42.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Construction
Official Description: OPERATION AND RENTAL OF THE DREDGE OREGON 2011-2016
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97218
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $76.8 million to PORT OF PORTLAND for work described as: OPERATION AND RENTAL OF THE DREDGE OREGON 2011-2016 Key points: 1. High cost for dredge operation and rental over a 5-year period. 2. Lack of competition suggests potential for inflated pricing. 3. Contract awarded by the Department of the Army (DoD) to Port of Portland. 4. Sector is Other Heavy and Civil Engineering Construction.
Value Assessment
Rating: questionable
The total award amount of $76.8 million for 5 years of operation and rental is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the services provided by the Dredge Oregon.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source procurement. This lack of competition hinders price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher cost to taxpayers than a fully competed contract would have.
Public Impact
Taxpayers funded significant operational and rental costs for a specific dredge. The contract duration of 5 years locked in costs without market adjustments. The specific geographic location (Oregon) may indicate regional infrastructure needs. Lack of transparency in pricing due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- High Contract Value
- Limited Transparency
Positive Signals
- Specific asset utilized for a defined period
- Contract awarded to a port authority
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to dredging operations. Benchmarking costs for similar dredge rentals and operations is challenging without competitive data, but the overall value suggests a significant infrastructure investment.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to the Port of Portland and lacked competition.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would typically involve monitoring performance and payments, but the lack of competition limits the effectiveness of price oversight.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- High total contract value
- Potential for cost overruns without oversight
- Limited transparency in pricing
- Contract duration
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.8 million to PORT OF PORTLAND. OPERATION AND RENTAL OF THE DREDGE OREGON 2011-2016
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 $76.8 million.
What is the period of performance?
Start: 2011-10-01. End: 2016-09-30.
What was the justification for awarding this contract on a limited/non-competitive basis?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be required by federal acquisition regulations, outlining why full and open competition was not feasible. This could involve unique capabilities of the specific dredge, urgent needs, or sole source availability, but without further documentation, the exact reason remains unclear.
How does the per-day or per-year cost compare to industry benchmarks for similar dredging services?
Without competitive bidding data or specific service details, a direct benchmark is difficult. However, $76.8 million over five years averages to over $15 million per year. This figure needs to be compared against the operational costs, maintenance, and rental rates of comparable dredging vessels and services in the market to assess value.
What was the specific operational need fulfilled by the Dredge Oregon during this period?
The contract specifies 'OPERATION AND RENTAL OF THE DREDGE OREGON'. This suggests the Department of the Army required the services of this particular vessel for tasks such as maintaining waterways, deepening channels, or other civil engineering projects. The exact nature of these operations would determine the necessity and value of the contract.
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
Solicitation ID: W9127N10R0034
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Port of Portland (INC)
Address: 7200 NE AIRPORT WAY, PORTLAND, OR, 97218
Business Categories: U.S. Government Authorities, Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $76,751,119
Exercised Options: $76,751,119
Current Obligation: $76,751,119
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-10-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2024-09-26
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