Army awards $189.6M dredging contract to Weeks Marine Inc. for Texas coastal defense
Contract Overview
Contract Amount: $22,639,847 ($22.6M)
Contractor: Weeks Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-30
End Date: 2008-12-31
Contract Duration: 915 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200608!600497!96CE!W912HY!USA ENGINEER DISTRICT GALVESTON !W912HY06C0036 !A!N! !N! ! !20060630!20070228!189601636!189601636!044665230!N!WEEKS MARINE INC !304 GAILLE DR !COVINGTON !LA!70433!99071!071!48!CHAMBERS !CHAMBERS !TEXAS !+000011410860!N!N!000016923410!Z216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!A! !D!N!Z! ! !N!C!N! ! ! !A!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77077
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to WEEKS MARINE, INC. for work described as: 200608!600497!96CE!W912HY!USA ENGINEER DISTRICT GALVESTON !W912HY06C0036 !A!N! !N! ! !20060630!20070228!189601636!189601636!044665230!N!WEEKS MARINE INC !304 GAILLE DR !COVINGTON !LA!70433!99071!071!48!CHAMBERS !CHAM… Key points: 1. Contract value of $189.6 million represents a significant investment in coastal infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 915 days indicates a substantial, long-term project. 4. The primary service is dredging, excluding specific types of vessels, highlighting specialized needs. 5. The contractor, Weeks Marine Inc., has a track record in heavy civil engineering construction. 6. The project is located in Texas, impacting the state's coastal resilience and economy.
Value Assessment
Rating: good
The contract value of $189.6 million for dredging services appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale civil engineering projects would provide further context on value for money. The fixed-price nature of the contract suggests that the government has a clear understanding of the scope and cost, transferring some risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive environment is generally favorable for price discovery and ensuring that the government receives competitive pricing. The presence of two bids suggests a moderate level of competition for this specialized service.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple companies to bid and offer their best terms.
Public Impact
The primary beneficiaries are the residents and businesses in coastal Texas, who will benefit from improved flood protection and navigation. The services delivered include essential dredging to maintain and enhance critical waterways and coastal defenses. The geographic impact is concentrated in Texas, specifically along the coast managed by the US Army Engineer District Galveston. The contract supports jobs in the heavy civil engineering and maritime construction sectors, including skilled labor for dredging operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological conditions are encountered during dredging.
- Dependence on a single contractor for a critical infrastructure project raises concerns about long-term maintenance and future needs.
- Environmental impact of large-scale dredging operations requires careful monitoring and mitigation.
Positive Signals
- The use of full and open competition suggests a robust process for selecting the most capable and cost-effective provider.
- The fixed-price contract structure provides cost certainty for the government.
- The contractor, Weeks Marine Inc., is a known entity in the heavy civil construction sector, implying experience with such projects.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The market for large-scale dredging and coastal defense projects is specialized, often dominated by a few experienced firms. The value of this contract is substantial, reflecting the significant investment required for maintaining and improving coastal resilience against erosion and storm surge.
Small Business Impact
The contract data indicates that this was not a small business set-aside. There is no explicit information on subcontracting plans for small businesses. The large scale of the contract may limit direct participation by small businesses, but opportunities could exist through subcontracting if required or pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the US Army Engineer District Galveston, part of the Army Corps of Engineers. Accountability measures are inherent in the fixed-price contract terms, with performance milestones likely tied to payment. Transparency is facilitated by the public nature of federal contract awards, though detailed project execution specifics may not be publicly disclosed.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Coastal Navigation Improvement Projects
- Hurricane and Storm Damage Reduction Projects
- Inland Waterways Dredging
Risk Flags
- Long contract duration may increase risk of cost escalation.
- Specific exclusion of certain dredging equipment types requires further clarification.
- Environmental impact assessment and mitigation plans are critical.
Tags
construction, department-of-defense, department-of-the-army, usace, texas, definitive-contract, fixed-price, full-and-open-competition, dredging, coastal-defense, heavy-civil-engineering, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to WEEKS MARINE, INC.. 200608!600497!96CE!W912HY!USA ENGINEER DISTRICT GALVESTON !W912HY06C0036 !A!N! !N! ! !20060630!20070228!189601636!189601636!044665230!N!WEEKS MARINE INC !304 GAILLE DR !COVINGTON !LA!70433!99071!071!48!CHAMBERS !CHAMBERS !TEXAS !+000011410860!N!N!000016923410!Z216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !999
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 $22.6 million.
What is the period of performance?
Start: 2006-06-30. End: 2008-12-31.
What is the historical spending pattern for dredging services by the US Army Engineer District Galveston?
Analyzing historical spending for the US Army Engineer District Galveston on dredging services would reveal trends in contract values, frequency of awards, and the types of dredging performed. For instance, examining data from the past 5-10 years could show if there has been an increase in demand for such services, potentially linked to climate change impacts or increased shipping traffic. It would also highlight the typical contract durations and whether similar large-value contracts have been awarded. Understanding this historical context is crucial for assessing whether the $189.6 million award to Weeks Marine Inc. is an outlier or part of a consistent investment strategy in coastal infrastructure maintenance and improvement within the district's operational area.
How does the awarded price compare to other similar dredging contracts in the Gulf Coast region?
To assess the value for money, the awarded price of $189.6 million needs to be benchmarked against comparable dredging contracts in the Gulf Coast region. This comparison should consider factors such as the volume of material to be dredged, the type of dredging (e.g., maintenance vs. new construction, hopper vs. cutterhead dredge), the complexity of the work (e.g., soil conditions, environmental restrictions), and the contract duration. If data from similar contracts awarded by entities like the Port of Houston, other Army Corps districts, or state transportation departments are available, they can provide a valuable reference point. A higher price per cubic yard or per linear foot compared to similar projects might indicate a less favorable deal, while a comparable or lower price would suggest good value.
What is Weeks Marine Inc.'s track record with large federal dredging contracts?
Weeks Marine Inc. has a significant track record with large federal dredging contracts, particularly with the U.S. Army Corps of Engineers. They have been awarded numerous contracts for various dredging projects, including maintenance, beach nourishment, and new channel construction. Their experience often involves complex projects in challenging environments, such as the Gulf Coast. Reviewing their past performance on similar-sized contracts, including any reported issues with cost overruns, schedule delays, or quality of work, is essential. A history of successful project completion on time and within budget would bolster confidence in their ability to execute this $189.6 million contract effectively.
What are the potential risks associated with the 'DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS' service description?
The exclusion of 'dustpan and sea-going hoppers' from the dredging services suggests a specific operational requirement or limitation. This could imply that the project necessitates particular types of dredging equipment, such as cutterhead dredges, which are often used for channel deepening or maintenance in confined areas. Potential risks associated with this specific service description might include limitations on the contractor's equipment flexibility, potentially leading to higher costs if specialized, less common equipment is required. It could also indicate specific environmental constraints or project site characteristics that preclude the use of hopper dredges. Understanding the rationale behind this exclusion is key to assessing potential risks related to efficiency, cost, and project feasibility.
How does the contract duration of 915 days impact the overall cost and risk assessment?
A contract duration of 915 days (approximately 2.5 years) for a $189.6 million dredging project is substantial. This extended timeline allows for significant work to be completed but also introduces risks such as potential price escalation for materials and labor over the period, especially if the contract is not structured with appropriate escalation clauses. It also increases the exposure to environmental changes, regulatory shifts, and potential unforeseen site conditions that may arise over a longer duration. For the government, a longer duration might offer more flexibility in funding and scheduling, but it also means a longer commitment. For the contractor, it provides a stable revenue stream but requires sustained resource allocation and risk management over an extended period.
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 NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Offers Received: 2
Pricing Type: 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, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-06-30
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2020-09-26
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