DoD Awards $24.6M for Texas Coastal Barrier Reconstruction, Boosting Infrastructure Resilience
Contract Overview
Contract Amount: $24,599,286 ($24.6M)
Contractor: Callan Marine Limited
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2025-06-27
Contract Duration: 637 days
Daily Burn Rate: $38.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY23 GULF INTRACOASTAL WATERWAY, TEXAS, WEST GALVESTON BAY BARRIER ISLAND RECONSTRUCTION PROJECT, PIPELINE DREDGING IN GALVESTON, TEXAS
Place of Performance
Location: GALVESTON, GALVESTON County, TEXAS, 77551
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.6 million to CALLAN MARINE LIMITED for work described as: FY23 GULF INTRACOASTAL WATERWAY, TEXAS, WEST GALVESTON BAY BARRIER ISLAND RECONSTRUCTION PROJECT, PIPELINE DREDGING IN GALVESTON, TEXAS Key points: 1. Significant investment in critical coastal infrastructure protection. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Project duration is substantial, indicating complex execution and potential for cost overruns. 4. Focus on heavy civil engineering construction highlights a key sector for federal spending.
Value Assessment
Rating: good
The contract value of $24.6 million for a multi-year reconstruction project appears reasonable given the scope. Benchmarking against similar large-scale civil engineering projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically fosters competitive bidding and can lead to more favorable pricing for the government. The definitive contract award suggests a clear scope and established terms.
Taxpayer Impact: This project directly impacts taxpayers by funding essential infrastructure that protects communities and economic assets from natural disasters, representing a necessary investment in public safety and resilience.
Public Impact
Enhances coastal storm protection for West Galveston Bay. Supports local economy through construction jobs and material sourcing. Mitigates potential damage costs from future hurricane events. Contributes to the long-term environmental health of the Texas coast.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays impacting project completion.
- Unforeseen environmental conditions could increase costs.
- Long project duration increases exposure to economic fluctuations.
Positive Signals
- Addresses critical infrastructure needs.
- Utilizes a competitive procurement process.
- Firm fixed price contract limits cost uncertainty.
Sector Analysis
This project falls under heavy and civil engineering construction, a sector vital for national infrastructure. Federal spending in this area often focuses on resilience, transportation, and environmental protection, with project costs varying widely based on scale and complexity.
Small Business Impact
While the primary contractor is Callan Marine Limited, the contract does not explicitly indicate specific set-asides for small businesses. Subcontracting opportunities may exist, but direct analysis of small business participation is limited without further data.
Oversight & Accountability
The Department of the Army, within the DoD, is responsible for this contract. Standard oversight mechanisms for large construction projects, 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
- Long project duration increases risk exposure.
- Potential for unforeseen environmental challenges.
- Dependency on stable material and labor markets.
- Geographic location susceptible to extreme weather events.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to CALLAN MARINE LIMITED. FY23 GULF INTRACOASTAL WATERWAY, TEXAS, WEST GALVESTON BAY BARRIER ISLAND RECONSTRUCTION PROJECT, PIPELINE DREDGING IN GALVESTON, TEXAS
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 $24.6 million.
What is the period of performance?
Start: 2023-09-29. End: 2025-06-27.
What is the projected economic benefit of the West Galveston Bay Barrier Island reconstruction in terms of avoided damages and economic activity?
The projected economic benefit is substantial, primarily through avoided damages from storm surges and flooding, which can run into billions of dollars for coastal communities and infrastructure. Additionally, the project stimulates local economies through job creation, material procurement, and support services during its multi-year execution phase.
What are the primary risks associated with the long duration (637 days) of this construction project, and how are they being mitigated?
The primary risks include potential weather delays, unforeseen subsurface conditions, material price volatility, and labor availability issues. Mitigation strategies likely involve detailed scheduling, contingency planning for environmental factors, robust contract clauses for unforeseen conditions, and proactive supply chain management.
How does the firm fixed price contract structure ensure cost-effectiveness for this large-scale civil engineering project?
A firm fixed price contract shifts most of the risk to the contractor, incentivizing them to manage costs efficiently and complete the project within the agreed budget. This structure provides the government with cost certainty, although it may require a higher initial bid to account for contractor risk premiums.
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 BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912HY23R0012
Offers Received: 2
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: $33,003,689
Exercised Options: $24,599,286
Current Obligation: $24,599,286
Actual Outlays: $7,543,030
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-29
Current End Date: 2025-06-27
Potential End Date: 2025-06-27 00:00:00
Last Modified: 2025-09-09
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