DOD Awards $26.5M for Oregon Pipeline Dredging, Lacking Competition

Contract Overview

Contract Amount: $26,491,001 ($26.5M)

Contractor: Port of Portland

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $72.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Construction

Official Description: OPTION YEAR - PIPELINE DREDGING

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to PORT OF PORTLAND for work described as: OPTION YEAR - PIPELINE DREDGING Key points: 1. Significant contract value for heavy civil engineering construction. 2. Sole-source award raises concerns about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on critical infrastructure maintenance for the Port of Portland.

Value Assessment

Rating: questionable

The award of $26.5 million for dredging services lacks a clear benchmark due to the absence of competitive bidding. Without comparable contracts or a competitive process, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to suboptimal pricing for the government, as there was no market pressure to drive down costs.

Taxpayer Impact: Taxpayers may bear a higher cost for this essential dredging service due to the lack of competitive pressure to ensure the best possible price.

Public Impact

Ensures continued operation and safety of the Port of Portland's waterways. Supports critical maritime infrastructure and associated economic activity. Potential for taxpayer funds to be used less efficiently without competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpayment

Positive Signals

Essential infrastructure maintenance
Supports regional economy

Sector Analysis

This contract falls under heavy and civil engineering construction, specifically dredging. Spending in this sector can vary significantly based on infrastructure needs and project scope. The $26.5 million award is substantial for a single project.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the price paid was fair and reasonable, and that future similar requirements are competed whenever possible.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to PORT OF PORTLAND. OPTION YEAR - PIPELINE DREDGING

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 $26.5 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Typically, such justifications involve unique capabilities, urgent needs, or lack of available sources. Without this information, it's difficult to assess if the government acted appropriately or missed an opportunity for better value.

What is the estimated cost savings if this contract had been competed?

Estimating cost savings from a non-competed contract is challenging. However, competitive bidding in construction and heavy civil engineering often yields savings of 10-30% compared to sole-source awards. For this $26.5 million contract, potential savings could range from $2.65 million to $7.95 million.

Are there plans to compete future dredging requirements for the Port of Portland?

The agency's strategy for future dredging needs is important for long-term cost efficiency. If similar requirements are consistently awarded sole-source, it suggests a systemic issue. Proactive planning and market research to foster competition for future contracts would be beneficial.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9127N16R0060

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: $28,814,021

Exercised Options: $28,814,021

Current Obligation: $26,491,001

Actual Outlays: $6,540,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127N17D0002

IDV Type: IDC

Timeline