Army awards $63.3M for dredging and beachfill, with Weeks Marine Inc. securing the contract

Contract Overview

Contract Amount: $63,322,388 ($63.3M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-06-06

End Date: 2016-04-15

Contract Duration: 679 days

Daily Burn Rate: $93.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY2014-7900-REACH E DREDGING&BROADKILL BEACHFILL

Place of Performance

Location: COVINGTON, SAINT TAMMANY County, LOUISIANA, 70433

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $63.3 million to WEEKS MARINE, INC. for work described as: FY2014-7900-REACH E DREDGING&BROADKILL BEACHFILL Key points: 1. Contract awarded at a competitive price point, indicating potential value for money. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of 679 days indicates a significant, multi-year project. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project's location in Louisiana suggests a focus on coastal resilience or infrastructure. 6. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy civil engineering construction.

Value Assessment

Rating: good

The contract value of $63.3 million for dredging and beachfill appears reasonable given the scope and duration. While specific benchmarks for similar large-scale coastal restoration projects are not provided, the fixed-price nature of the contract suggests that the contractor assumed the primary risk for cost overruns. The award to a single entity, Weeks Marine, Inc., implies they offered the most advantageous proposal based on price and other factors. Further analysis would require comparing this contract's per-unit costs (e.g., cost per cubic yard of material moved or per linear foot of beach renourished) to industry standards or other government contracts for similar work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 4 bidders, as indicated by the 'no' field, suggests a reasonably competitive environment for this type of specialized construction service. The competition level is generally positive for price discovery, as multiple firms vied for the work, likely driving down the price to a more competitive level. The government received multiple proposals, allowing for a thorough evaluation.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government benefited from multiple bids. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiaries are likely coastal communities in Louisiana, which will benefit from improved beach conditions and potentially enhanced storm protection. The services delivered include significant dredging and beachfill operations, crucial for coastal erosion control and habitat restoration. The geographic impact is concentrated in Louisiana, specifically within the area covered by the contract (likely coastal regions). The project will likely involve a substantial workforce in the construction and maritime sectors, providing employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging operations that require careful monitoring and mitigation.
Dependence on a single contractor for a large-scale, multi-year project introduces execution risk if the contractor faces financial or operational difficulties.

Positive Signals

The use of a firm fixed-price contract shifts cost risk to the contractor, providing budget certainty.
Awarding under full and open competition suggests a robust selection process and potentially competitive pricing.
The contract's focus on beachfill and dredging addresses critical environmental and infrastructure needs.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal infrastructure projects. The market for dredging and beach nourishment is specialized, often dominated by a few large firms with the necessary equipment and expertise. The total federal spending on construction services is substantial, and this contract represents a portion of that investment, likely aimed at environmental protection, disaster recovery, or infrastructure resilience. Comparable projects might include other Army Corps of Engineers initiatives or similar state-level coastal restoration efforts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Weeks Marine, Inc. is likely a large business. There is no explicit information on subcontracting plans, but for a project of this magnitude, it is common for large prime contractors to engage small businesses for specialized services or material supply, which could provide some indirect benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers. Accountability measures are inherent in the fixed-price contract structure, requiring delivery of specified services. Transparency is generally facilitated through federal contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal Zone Management Programs
Beach Erosion Control Projects
Dredging Services Contracts
Environmental Restoration Projects

Risk Flags

Potential for environmental impact during dredging
Risk of project delays due to weather or unforeseen site conditions
Contractor performance risk over a long duration project

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.3 million to WEEKS MARINE, INC.. FY2014-7900-REACH E DREDGING&BROADKILL BEACHFILL

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 $63.3 million.

What is the period of performance?

Start: 2014-06-06. End: 2016-04-15.

What is the historical spending trend for dredging and beachfill contracts by the Department of the Army?

Analyzing historical spending trends for dredging and beachfill contracts by the Department of the Army reveals a consistent investment in coastal infrastructure and environmental management. While specific figures fluctuate annually based on project needs, disaster recovery efforts, and budget allocations, the Army Corps of Engineers (USACE) is a primary driver of this spending. Historically, major hurricanes and increasing concerns about climate change impacts on coastlines have often led to surges in funding for such projects. The period between FY2014 and FY2016, encompassing this contract, likely saw significant activity due to ongoing coastal resilience initiatives. Examining data from FPDS-NG for NAICS code 237990 (Other Heavy and Civil Engineering Construction) awarded by the Department of the Army would provide a clearer picture of the average contract values, number of awards, and dominant contractors over time, helping to contextualize the $63.3 million award to Weeks Marine, Inc.

How does the price of this contract compare to similar beachfill projects awarded by other federal agencies?

Benchmarking the price of this $63.3 million contract against similar beachfill projects requires access to detailed cost data for comparable contracts, including quantity of material placed, distance of placement, and specific project complexities. Without granular data on cubic yards of sand moved, linear feet of shoreline renourished, or specific environmental mitigation costs, a direct per-unit cost comparison is challenging. However, the fact that this contract was awarded under full and open competition with four bidders suggests that the pricing was likely competitive within the market for such services. Agencies like the National Oceanic and Atmospheric Administration (NOAA) or the Department of the Interior also fund coastal restoration projects. Comparing the total value and scope of this Army contract to recent awards by these agencies, while accounting for regional cost differences and project-specific requirements, would be necessary to assess its relative value.

What are the key performance indicators (KPIs) typically used to evaluate the success of dredging and beachfill contracts?

The success of dredging and beachfill contracts is typically evaluated based on several key performance indicators (KPIs) that ensure the project meets its intended objectives. Primary among these is the volume of material successfully placed and its adherence to specified density and composition requirements. The physical extent of the beachfill, measured in linear feet or acres, and its compliance with design contours are also critical. Longevity and performance of the fill, such as erosion rates post-placement compared to design expectations or historical erosion, are vital for assessing long-term value. Environmental compliance, including adherence to permits, minimization of turbidity, and protection of marine life, is another crucial KPI. Finally, project completion within the scheduled timeframe and budget, especially given the firm fixed-price nature of this contract, serves as a measure of efficient execution.

What is the track record of Weeks Marine, Inc. in performing large-scale civil engineering and dredging projects for the federal government?

Weeks Marine, Inc. has a significant track record of performing large-scale civil engineering and dredging projects for the federal government, particularly with the U.S. Army Corps of Engineers (USACE). As a prominent player in the marine construction industry, the company has been involved in numerous contracts related to port infrastructure, coastal protection, dredging, and marine salvage. Their portfolio often includes complex projects requiring specialized equipment and extensive environmental compliance. Reviewing contract databases like FPDS-NG would show the volume and value of contracts awarded to Weeks Marine over the years, the types of projects undertaken, and their performance history, including any past issues or commendations. This specific $63.3 million contract for dredging and beachfill in Louisiana aligns with their core competencies and historical project types.

What are the potential risks associated with the long duration (679 days) of this contract?

The long duration of 679 days for this dredging and beachfill contract introduces several potential risks. Firstly, there is an increased exposure to fluctuating market conditions, such as changes in fuel prices, material availability, and labor costs, which could impact the contractor's profitability if not adequately managed within the fixed-price structure. Secondly, environmental conditions, including weather patterns and potential regulatory changes, can cause significant delays, extending the project timeline further and potentially increasing indirect costs. Thirdly, the extended period increases the likelihood of unforeseen subsurface conditions or archaeological discoveries that could necessitate scope adjustments or work stoppages. Lastly, maintaining consistent project oversight and quality control over such an extended period requires sustained effort from the contracting agency to ensure adherence to specifications and prevent degradation of performance.

How does the firm fixed-price contract type influence the risk allocation and potential for cost savings in this project?

The firm fixed-price (FFP) contract type significantly shifts the primary risk of cost overruns to the contractor, Weeks Marine, Inc., in this $63.3 million dredging and beachfill project. Under an FFP agreement, the contractor is obligated to complete the specified work for a predetermined price, regardless of their actual costs incurred. This provides the government with substantial budget certainty and protects against unexpected increases in labor, materials, or other direct costs. For potential cost savings, the FFP structure incentivizes the contractor to become highly efficient and innovative in their execution to maximize their profit margin. Conversely, it places a greater burden on the contractor to accurately estimate all potential costs upfront and to manage risks effectively. If the contractor underestimates costs or encounters unforeseen difficulties, their profit margin will be reduced, or they could incur a loss.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BU14B0007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weeks Marine Inc (UEI: 044665230)

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: $63,322,388

Exercised Options: $63,322,388

Current Obligation: $63,322,388

Subaward Activity

Number of Subawards: 176

Total Subaward Amount: $27,839,955

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline