Army awards $55.1M beach renourishment contract to Weeks Marine, Inc. for Monmouth County, NJ

Contract Overview

Contract Amount: $55,107,500 ($55.1M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-20

End Date: 2021-03-01

Contract Duration: 528 days

Daily Burn Rate: $104.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEA BRIGHT TO MANASQUAN RENOURISHMENT (BEACH FILL); NJ, PROJECT - MONMOUTH COUNTY NEW JERSEY

Place of Performance

Location: LONG BRANCH, MONMOUTH County, NEW JERSEY, 07740

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $55.1 million to WEEKS MARINE, INC. for work described as: SEA BRIGHT TO MANASQUAN RENOURISHMENT (BEACH FILL); NJ, PROJECT - MONMOUTH COUNTY NEW JERSEY Key points: 1. Contract value appears reasonable for a large-scale civil engineering project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of 528 days indicates a significant undertaking with potential for schedule risks. 4. Fixed-price contract type shifts risk to the contractor, but scope creep could increase costs. 5. The project's focus on coastal resilience positions it within a critical infrastructure sector. 6. Geographic concentration in New Jersey highlights regional investment in environmental protection.

Value Assessment

Rating: good

The contract value of $55.1 million for beach renourishment is substantial, reflecting the scale of the project in Monmouth County, New Jersey. Benchmarking against similar large-scale coastal restoration projects, this figure appears to be within a reasonable range, considering material, labor, and equipment costs. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, though potential for change orders exists. Without specific cost breakdowns or detailed comparisons to identical projects, a precise value-for-money assessment is challenging, but the competitive bidding process likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders, as suggested by the 'no' field, implies a degree of competition. While two bidders are better than one, a higher number of competitive bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that the government received a range of offers, increasing the likelihood of securing a cost-effective solution.

Public Impact

Residents and businesses in Monmouth County, New Jersey, benefit from enhanced coastal protection and improved beach access. The project delivers critical beach renourishment services, crucial for mitigating storm surge and erosion. Geographic impact is concentrated in the coastal areas of Monmouth County, New Jersey. The project supports jobs in the construction and engineering sectors, particularly for heavy and civil engineering firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions or scope changes arise, despite the fixed-price nature.
Schedule delays could impact the project's effectiveness in providing coastal protection during critical seasons.
Environmental impacts during construction, such as sediment disruption or habitat disturbance, require careful monitoring.
Long-term effectiveness of the renourishment may be subject to natural erosion processes and future storm events.

Positive Signals

The project addresses a critical need for coastal resilience, directly benefiting a populated area.
Firm fixed-price contract provides cost certainty for the government, assuming scope is well-defined.
Award to an experienced contractor like Weeks Marine, Inc. suggests a higher likelihood of successful execution.
Full and open competition indicates a structured procurement process aimed at achieving best value.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal infrastructure and environmental remediation. The market for beach renourishment and coastal defense projects is driven by factors such as climate change, rising sea levels, and increased storm intensity. Spending in this area is often project-specific and can fluctuate based on federal and state funding priorities for infrastructure and disaster recovery. Comparable projects involve significant earthmoving, material sourcing, and specialized marine equipment, making it a capital-intensive segment.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Weeks Marine, Inc. is a large company, suggesting that subcontracting opportunities may exist for smaller firms within specialized areas of construction or material supply. However, the primary award does not directly benefit small businesses through a set-aside provision. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which falls under the Department of the Army. Mechanisms likely include regular progress reports, site inspections, and quality assurance reviews to ensure compliance with contract terms and specifications. Accountability is maintained through contractual obligations and performance metrics. Transparency is generally facilitated through contract award announcements and public availability of certain project details, though detailed oversight reports may not always be publicly accessible.

Related Government Programs

Coastal Zone Management Program
Beach Erosion Control Projects
Army Corps of Engineers Civil Works Projects
Hurricane and Storm Damage Reduction Projects
Infrastructure Investment and Jobs Act (if applicable funding source)

Risk Flags

Potential for schedule delays due to weather or environmental restrictions.
Risk of scope creep or unforeseen site conditions impacting cost.
Limited competition (2 bidders) may reduce price negotiation leverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.1 million to WEEKS MARINE, INC.. SEA BRIGHT TO MANASQUAN RENOURISHMENT (BEACH FILL); NJ, PROJECT - MONMOUTH COUNTY NEW JERSEY

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 $55.1 million.

What is the period of performance?

Start: 2019-09-20. End: 2021-03-01.

What is the historical spending pattern for beach renourishment projects by the Department of the Army in New Jersey?

Analyzing historical spending for beach renourishment in New Jersey by the Department of the Army requires examining contract data over several fiscal years. Projects of this nature are often cyclical and dependent on federal appropriations for coastal resilience and infrastructure. The Army Corps of Engineers is the primary entity responsible for such projects. Past awards would likely show a concentration of spending in areas prone to erosion and storm damage. Factors influencing spending include the severity of recent storm seasons, the availability of funding through specific programs (e.g., hurricane recovery, general beach erosion control), and the prioritization of different coastal areas. Without access to a comprehensive database of past contracts specifically for New Jersey beach renourishment by the Army, a precise historical spending trend cannot be detailed here, but it is expected to be significant given the state's coastline.

How does the cost per cubic yard of sand for this project compare to industry benchmarks?

To compare the cost per cubic yard of sand for this $55.1 million project, we would need to know the total volume of sand to be placed. Assuming a typical beach renourishment project involves placing hundreds of thousands or even millions of cubic yards of sand, the cost per cubic yard can vary significantly based on factors like sand quality, borrow site location, transportation distance, and placement methods. Industry benchmarks for beach renourishment sand can range from $20 to $60 per cubic yard, sometimes higher for specialized sand or difficult access. If this contract involves, for example, 1.5 million cubic yards, the implied cost per yard would be approximately $36.73. This figure appears to be within the mid-range of typical benchmarks, suggesting a potentially fair price, but a precise comparison requires the exact volume of material specified in the contract.

What are the specific risks associated with the 528-day duration of this contract?

A 528-day duration (approximately 1.5 years) for a beach renourishment project introduces several risks. Firstly, weather dependency is a major concern; extended project timelines increase the probability of encountering unfavorable weather conditions (e.g., storms, high tides, seasonal closures) that can cause significant delays. Secondly, environmental windows, such as restrictions on work during sea turtle nesting seasons or migratory bird periods, can further constrain the construction schedule. Thirdly, the longer duration increases the potential for unforeseen site conditions, such as discovering buried debris or encountering different soil strata than anticipated, which could necessitate change orders and cost increases. Finally, contractor resource allocation and equipment availability over such an extended period can also pose logistical challenges and potential risks to timely completion.

What is the track record of Weeks Marine, Inc. on similar Army Corps of Engineers projects?

Weeks Marine, Inc. has a well-established track record working with the U.S. Army Corps of Engineers on various coastal and marine construction projects, including dredging, beachfill, and breakwater construction. They are a significant player in the marine construction industry and have been awarded numerous contracts by the Corps across different districts. Their experience typically includes managing large-scale projects, handling complex logistical challenges, and adhering to environmental regulations. Reviewing their past performance ratings and project history within the Army's procurement databases (like SAM.gov or FPDS) would provide specific details on their success rates, timeliness, and quality of work on comparable projects. Generally, their repeated awards by the Corps suggest a satisfactory performance history.

How does the 'full and open competition' with only two bidders impact price discovery and taxpayer value?

While 'full and open competition' is the preferred method, having only two bidders can limit the extent of price discovery and potentially reduce the competitive pressure on pricing compared to a scenario with numerous bidders. With only two offers, the government might not achieve the lowest possible price that could emerge from a more crowded field. However, the quality of the bids received and the specific nature of the project are crucial. If the two bidders were highly qualified and their bids were competitive with each other and aligned with reasonable cost estimates, taxpayer value could still be good. Conversely, if the market for such specialized services is inherently limited, two bidders might represent the maximum achievable competition, and the value would depend on the aggressiveness of those two firms.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS19B0015

Offers Received: 2

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,147,500

Exercised Options: $55,107,500

Current Obligation: $55,107,500

Actual Outlays: $15,718,345

Subaward Activity

Number of Subawards: 422

Total Subaward Amount: $64,240,236

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline