Army Awards $29M Pipeline Dredging Contract to Port of Portland, Lacking Competition

Contract Overview

Contract Amount: $28,963,146 ($29.0M)

Contractor: Port of Portland

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $79.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Construction

Official Description: BASE YEAR - PIPELINE DREDGING

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to PORT OF PORTLAND for work described as: BASE YEAR - PIPELINE DREDGING Key points: 1. Significant contract value of $28.96 million for essential infrastructure maintenance. 2. Lack of competition raises concerns about potential overpricing and reduced value. 3. The contract is for pipeline dredging, a critical but specialized service. 4. Awarded by the Department of the Army, highlighting defense-related infrastructure needs.

Value Assessment

Rating: questionable

The contract's 'COST NO FEE' structure with no competition makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $28.96 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition could result in the government paying more than necessary for these dredging services, impacting taxpayer funds.

Public Impact

Ensures critical port infrastructure remains operational, supporting regional commerce. Potential for increased costs due to lack of competitive bidding. Highlights the importance of specialized heavy construction services for national infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type (implied by 'COST NO FEE')
No small business participation noted

Positive Signals

Essential service for port operations
Awarded to a port authority, potentially aligning with public interest goals

Sector Analysis

This contract falls under heavy and civil engineering construction, specifically related to port infrastructure maintenance. Benchmarks for dredging services can vary widely based on scope and location, but a lack of competition often inflates costs.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is the Port of Portland, a public entity. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to understand the justification for bypassing the competitive bidding process. Accountability for the pricing and value received is crucial.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to PORT OF PORTLAND. BASE 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 $29.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What was the justification for not competing this significant dredging contract?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards require specific justifications, such as urgency, unique capabilities, or lack of available sources. Without this information, it's difficult to assess the necessity of bypassing competition and its impact on value.

What is the estimated cost savings or increase due to the lack of competition?

Without a competitive bidding process, it is impossible to provide an exact figure for cost savings or increases. However, standard procurement principles suggest that competition typically drives down prices. The absence of bids means the government is accepting the contractor's proposed costs without a market-driven benchmark, likely resulting in a higher overall cost.

How does the 'COST NO FEE' contract structure impact the government's risk and the contractor's incentive?

A 'COST NO FEE' contract means the government pays the contractor's allowable costs but provides no fee or profit. This structure shifts most of the financial risk to the government, as they bear all costs incurred. The contractor has minimal incentive to control costs, as their expenses will be reimbursed, potentially leading to less efficient project execution.

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: $28,963,146

Exercised Options: $28,963,146

Current Obligation: $28,963,146

Actual Outlays: $8,392,361

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