Corpus Christi Ship Channel Dredging Awarded to Callan Marine for $127.7M Under Full and Open Competition

Contract Overview

Contract Amount: $127,671,099 ($127.7M)

Contractor: Callan Marine Limited

Awarding Agency: Department of Defense

Start Date: 2020-04-08

End Date: 2025-05-13

Contract Duration: 1,861 days

Daily Burn Rate: $68.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEEP DRAFT DREDGING OF THE CORPUS CHRISTI SHIP CHANNEL, TEXAS CHANNEL IMPROVEMENT PROJECT LOWER BAY REACH FROM STA. 7+000 (FORMALLY STA. 70+00), JUST BAY SIDE OF THE PORT ARANSAS FERRY LANDING EXTENDING TO STA. 70+000 (FORMALLY STA. 700+00).

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78408

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $127.7 million to CALLAN MARINE LIMITED for work described as: DEEP DRAFT DREDGING OF THE CORPUS CHRISTI SHIP CHANNEL, TEXAS CHANNEL IMPROVEMENT PROJECT LOWER BAY REACH FROM STA. 7+000 (FORMALLY STA. 70+00), JUST BAY SIDE OF THE PORT ARANSAS FERRY LANDING EXTENDING TO STA. 70+000 (FORMALLY STA. 700+00). Key points: 1. The contract is for deep draft dredging of a significant portion of the Corpus Christi Ship Channel. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The project is a firm-fixed-price contract, providing cost certainty for the government. 4. The duration of the contract is substantial, spanning over 1800 days, suggesting a large-scale undertaking.

Value Assessment

Rating: good

The contract value of $127.7 million for heavy civil engineering construction appears reasonable given the scope of deep draft dredging for a major ship channel. Benchmarking against similar large-scale maritime infrastructure projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders likely participated. This method is expected to drive competitive pricing and ensure the government receives fair market value.

Taxpayer Impact: The firm-fixed-price nature of the contract helps control costs for taxpayers, as the price is set regardless of contractor expenses.

Public Impact

Enhances maritime trade and economic activity by improving navigation in a key Texas port. Supports national security by ensuring the readiness of military logistics through critical port infrastructure. Creates jobs in the construction and maritime sectors during the project's execution. Contributes to the long-term infrastructure development of the United States.

Waste & Efficiency Indicators

Waste Risk Score: 68 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered.
Risk of project delays due to weather or environmental factors impacting dredging operations.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Full and open competition likely resulted in a competitive price.
Long-term contract duration allows for phased execution and potential learning curve efficiencies.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. Spending in this sector is often driven by government investment in ports, waterways, and transportation networks to support commerce and defense.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger, specialized dredging firms are typically involved in projects of this magnitude, potentially limiting direct opportunities for small businesses unless they act as subcontractors.

Oversight & Accountability

The Department of the Army, part of the Department of Defense, is overseeing this project. Standard government oversight mechanisms for large construction contracts, including progress monitoring and quality assurance, are expected to be in place.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays from weather or environmental factors.
Contractor's past performance on similar large-scale projects.
Dependency on specialized equipment and skilled labor.
Environmental compliance and permitting risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $127.7 million to CALLAN MARINE LIMITED. DEEP DRAFT DREDGING OF THE CORPUS CHRISTI SHIP CHANNEL, TEXAS CHANNEL IMPROVEMENT PROJECT LOWER BAY REACH FROM STA. 7+000 (FORMALLY STA. 70+00), JUST BAY SIDE OF THE PORT ARANSAS FERRY LANDING EXTENDING TO STA. 70+000 (FORMALLY STA. 700+00).

Who is the contractor on this award?

The obligated recipient is CALLAN MARINE LIMITED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $127.7 million.

What is the period of performance?

Start: 2020-04-08. End: 2025-05-13.

What is the historical cost performance of Callan Marine Limited on similar large-scale dredging projects?

Assessing Callan Marine's past performance on comparable projects is crucial for understanding their capability and cost control. Reviewing their track record for adherence to budget, schedule, and quality standards on previous deep draft dredging or major channel improvement contracts would provide valuable insight into their reliability and potential risks associated with this current award.

How does the per-unit cost of this dredging project compare to industry benchmarks for similar channels?

Benchmarking the per-unit cost (e.g., cost per cubic yard of material dredged) against similar projects nationwide is essential for validating the fairness of the price. Variations could indicate unique project complexities, differing geological conditions, or potential inefficiencies. A thorough analysis would involve comparing material types, dredging depths, and disposal methods.

What are the specific environmental mitigation measures included in the contract and their associated costs?

Large-scale dredging projects often have significant environmental implications. Understanding the specific mitigation strategies (e.g., sediment control, habitat protection, monitoring) and their allocated costs within the contract is vital. This ensures compliance with environmental regulations and assesses potential risks of environmental impact or associated remediation expenses.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HY20R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6630 BRDWY BLVD, GALVESTON, TX, 77554

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $131,668,599

Exercised Options: $127,671,099

Current Obligation: $127,671,099

Actual Outlays: $30,360,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline