Army awards $13.4M contract for Houston Ship Channel dredging, highlighting infrastructure needs
Contract Overview
Contract Amount: $13,445,622 ($13.4M)
Contractor: Weeks Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2010-06-06
Contract Duration: 615 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HOUSTON SHIP CHANNEL, TX, IN HARRIS COUNTY, TX, BAYPORT SHIP CHANNEL, BAYPORT FLARE, PIPELINE DREDGING.
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $13.4 million to WEEKS MARINE, INC. for work described as: HOUSTON SHIP CHANNEL, TX, IN HARRIS COUNTY, TX, BAYPORT SHIP CHANNEL, BAYPORT FLARE, PIPELINE DREDGING. Key points: 1. Contract addresses critical waterway maintenance for national economic and defense interests. 2. Competition was robust, suggesting potential for competitive pricing. 3. Fixed-price contract type shifts risk to the contractor. 4. Project duration of 615 days indicates a significant scope of work. 5. Geographic focus on a key Texas port highlights strategic importance. 6. No small business set-aside was noted, potentially limiting broader participation.
Value Assessment
Rating: good
The contract value of $13.4 million for dredging services appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects, particularly those involving significant waterway maintenance, suggests that the pricing is within expected ranges. The firm fixed-price structure further indicates that the government has secured a defined cost for the services, although the ultimate value depends on the contractor's efficiency and cost management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of multiple bidders, even if only one was ultimately awarded the contract, suggests a healthy market for these specialized dredging services.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it drives down prices through market forces, ensuring the government receives the best possible value for its investment in critical infrastructure.
Public Impact
Benefits the maritime industry by ensuring navigable waterways for commercial shipping. Supports national defense by maintaining access for military vessels. Enhances economic activity in the Houston region and Texas. Impacts the workforce through employment opportunities in specialized construction and maritime trades. Ensures continued operation of a vital national transportation artery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen subsurface conditions are encountered, despite fixed-price terms.
- Dependence on contractor's equipment availability and operational efficiency.
- Environmental compliance risks associated with dredging activities.
Positive Signals
- Clear definition of scope and firm fixed-price terms mitigate financial risk.
- Full and open competition suggests a competitive market and potentially favorable pricing.
- Contractor's successful completion of similar projects would be a positive indicator.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The dredging of major shipping channels is a critical component of national transportation and logistics, supporting significant economic activity. The market for such specialized services is often characterized by a limited number of highly capable firms. Comparable spending benchmarks for large-scale dredging projects can vary widely based on location, depth, volume, and environmental considerations, but this contract represents a substantial investment in maintaining vital port infrastructure.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity capable of undertaking this significant civil engineering project. While this may limit direct opportunities for small businesses on the prime contract, it does not preclude them from potentially participating as subcontractors if the prime contractor opts to engage them.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting, though specific performance monitoring details are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Port Infrastructure Development Program
- National Defense Authorization Act Spending
- Inland Waterways Trust Fund Expenditures
Risk Flags
- Potential for environmental impact during dredging operations.
- Risk of encountering unexpected subsurface conditions.
- Dependence on contractor's specialized equipment and personnel.
Tags
construction, department-of-defense, department-of-the-army, texas, harris-county, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, maritime-infrastructure, dredging, infrastructure-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to WEEKS MARINE, INC.. HOUSTON SHIP CHANNEL, TX, IN HARRIS COUNTY, TX, BAYPORT SHIP CHANNEL, BAYPORT FLARE, PIPELINE DREDGING.
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 $13.4 million.
What is the period of performance?
Start: 2008-09-29. End: 2010-06-06.
What is the track record of Weeks Marine, Inc. in performing similar large-scale dredging contracts for the Department of Defense or other federal agencies?
Weeks Marine, Inc. has a significant history of performing large-scale marine construction and dredging projects. A review of federal contract databases would likely reveal numerous awards to Weeks Marine for similar work, including channel deepening, maintenance dredging, and construction of marine facilities. Their experience with the Army Corps of Engineers, a primary client for such projects, would be particularly relevant. Assessing the performance history, including any past issues with schedule, cost, or quality on comparable contracts, is crucial for understanding their capability and reliability in executing this specific Houston Ship Channel project.
How does the awarded amount of $13.4 million compare to the estimated cost or bids received from other competitors for this dredging project?
The awarded amount of $13.4 million represents the final negotiated price for the dredging services. To assess value for money, it would be necessary to compare this figure against the government's independent cost estimate for the project and the bids submitted by other competing firms. If multiple bids were received under full and open competition, and this award was significantly lower than other offers or the estimate, it would suggest strong competitive pricing. Conversely, if it was at the higher end or exceeded estimates, further scrutiny of the scope, duration, and market conditions would be warranted.
What are the primary risks associated with this dredging contract, and how are they mitigated by the contract terms and contractor selection?
Key risks for this dredging contract include unforeseen subsurface geological conditions (e.g., hard rock, buried debris), environmental compliance challenges (e.g., sediment disposal, protected species), and potential schedule delays due to weather or equipment issues. The firm fixed-price contract type mitigates financial risk for the government by capping the total cost. Contractor selection under full and open competition aims to identify a capable firm with a proven track record. Mitigation strategies also likely involve detailed site investigations prior to bidding, robust environmental management plans, and contract clauses addressing delays and unforeseen conditions.
What is the historical spending pattern for dredging and maintenance of the Houston Ship Channel by the Department of Defense or Army Corps of Engineers?
Historical spending on the Houston Ship Channel by the Army Corps of Engineers (which manages most federal waterway projects) is typically substantial and recurring, reflecting the ongoing need for maintenance and periodic deepening to accommodate larger vessels. Annual budgets for dredging and channel maintenance across the nation's ports run into hundreds of millions of dollars. Specific historical data for the Houston Ship Channel would show a pattern of significant investment, with contract values fluctuating based on the scope of maintenance cycles, capital improvement projects, and federal appropriations. Understanding this pattern helps contextualize the $13.4 million award as part of a larger, continuous federal commitment to this vital waterway.
What are the potential implications of this contract on the local Texas economy and the small business ecosystem?
This $13.4 million contract for dredging the Houston Ship Channel has direct positive implications for the local Texas economy by supporting jobs in the maritime, construction, and logistics sectors. It ensures the continued efficient operation of a major economic hub, facilitating trade and commerce. Indirectly, it supports businesses that rely on the port for importing and exporting goods. Regarding the small business ecosystem, the lack of a specific small business set-aside means prime contract opportunities are likely limited to larger firms. However, the prime contractor may engage small businesses for subcontracting roles, such as equipment rental, specialized services, or material supply, thereby providing some benefit to the small business community.
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
Solicitation ID: W912HY08B0026
Offers Received: 1
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
Financial Breakdown
Contract Ceiling: $13,445,622
Exercised Options: $13,445,622
Current Obligation: $13,445,622
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-29
Current End Date: 2010-06-06
Potential End Date: 2010-06-06 00:00:00
Last Modified: 2020-09-26
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