Army Awards $111.8M Contract for Corpus Christi Ship Channel Dredging to Callan Marine
Contract Overview
Contract Amount: $111,757,142 ($111.8M)
Contractor: Callan Marine Limited
Awarding Agency: Department of Defense
Start Date: 2023-12-01
End Date: 2025-08-19
Contract Duration: 627 days
Daily Burn Rate: $178.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PIPELINE DREDGING OF CORPUS CHRISTI SHIP CHANNEL, TEXAS, UPPER HARBOR REACH, CHANNEL IMPROVEMENT PROJECT IN NUECES AND SAN PATRICIO COUNTIES, TEXAS, DREDGING.
Place of Performance
Location: CORPUS CHRISTI, NUECES County, TEXAS, 78401
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $111.8 million to CALLAN MARINE LIMITED for work described as: PIPELINE DREDGING OF CORPUS CHRISTI SHIP CHANNEL, TEXAS, UPPER HARBOR REACH, CHANNEL IMPROVEMENT PROJECT IN NUECES AND SAN PATRICIO COUNTIES, TEXAS, DREDGING. Key points: 1. Significant investment in critical infrastructure for Texas port expansion. 2. Full and open competition suggests potential for competitive pricing. 3. Project duration of 627 days indicates a substantial undertaking. 4. Focus on heavy civil engineering construction highlights specialized industry.
Value Assessment
Rating: good
The contract value of $111.8 million for dredging services appears reasonable given the scope of improving a major ship channel. Benchmarking against similar large-scale civil engineering projects would provide further context on its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to more favorable pricing for the government. The use of a firm-fixed-price contract provides cost certainty.
Taxpayer Impact: This project represents a significant taxpayer investment in enhancing maritime trade infrastructure, aiming for long-term economic benefits through improved port capacity and efficiency.
Public Impact
Enhances national and international trade by improving access to a key Texas port. Supports economic development in Nueces and San Patricio Counties through infrastructure investment. Potential for job creation during the construction and dredging phases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological conditions are encountered.
- Environmental impact concerns related to dredging activities.
- Delays due to weather or logistical challenges in a large-scale project.
Positive Signals
- Strategic investment in critical infrastructure.
- Competitive bidding process likely secured a fair price.
- Clear contract type (firm fixed price) for cost control.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. Spending in this area is often driven by government initiatives to modernize ports and waterways for economic and defense purposes.
Small Business Impact
While the prime contractor is Callan Marine Limited, the contract does not explicitly state provisions for small business subcontracting. Further investigation may be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, through the Department of Defense, is responsible for overseeing this project. Standard oversight mechanisms for large construction contracts, including progress reporting 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 unforeseen geological challenges impacting cost and schedule.
- Environmental impact and regulatory compliance risks.
- Dependency on weather conditions and potential for delays.
- Logistical complexities of large-scale dredging operations.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.8 million to CALLAN MARINE LIMITED. PIPELINE DREDGING OF CORPUS CHRISTI SHIP CHANNEL, TEXAS, UPPER HARBOR REACH, CHANNEL IMPROVEMENT PROJECT IN NUECES AND SAN PATRICIO COUNTIES, TEXAS, DREDGING.
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 $111.8 million.
What is the period of performance?
Start: 2023-12-01. End: 2025-08-19.
What is the projected economic impact of the Corpus Christi Ship Channel improvement on regional trade and employment?
The improvement is expected to significantly boost regional trade by increasing the capacity and efficiency of the port, attracting more cargo and larger vessels. This, in turn, should stimulate job growth in logistics, warehousing, and related industries, contributing to the economic vitality of Nueces and San Patricio Counties.
What are the primary environmental mitigation strategies employed during the dredging process to minimize ecological disruption?
Mitigation strategies likely include careful management of dredged material placement to prevent habitat destruction, monitoring of water quality to control turbidity, and adherence to environmental regulations designed to protect marine life and ecosystems within the channel and surrounding waters.
How does the firm-fixed-price contract structure protect taxpayer interests against potential cost escalations?
The firm-fixed-price structure shifts the risk of cost overruns to the contractor, Callan Marine Limited. The government agrees to pay a set price, and any costs incurred by the contractor above that amount are their responsibility, thereby protecting taxpayers from unexpected increases.
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: W912HY23B0026
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6800 HARBORSIDE DR, 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: $111,757,142
Exercised Options: $111,757,142
Current Obligation: $111,757,142
Actual Outlays: $2,766,740
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-01
Current End Date: 2025-08-19
Potential End Date: 2025-08-19 00:00:00
Last Modified: 2025-08-19
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