Army awards $21.7M dredging contract to Inland Dredging Company for Calcasieu River maintenance

Contract Overview

Contract Amount: $21,705,003 ($21.7M)

Contractor: Inland Dredging Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2015-08-31

End Date: 2016-12-27

Contract Duration: 484 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CALCASIEU RIVER AND PASS, MAINTENANCE DREDGING, MILE 15.0 TO MILE 36.0 NON-CONTINUOUS; IGF::OT::IGF

Place of Performance

Location: LAKE CHARLES, CALCASIEU County, LOUISIANA, 70605

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to INLAND DREDGING COMPANY, L.L.C. for work described as: CALCASIEU RIVER AND PASS, MAINTENANCE DREDGING, MILE 15.0 TO MILE 36.0 NON-CONTINUOUS; IGF::OT::IGF Key points: 1. The contract value represents a significant investment in maintaining critical waterway infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar dredging projects. 5. The contract falls within the heavy and civil engineering construction sector, focusing on waterway maintenance. 6. The award amount is analyzed against industry benchmarks for dredging services.

Value Assessment

Rating: good

The contract value of $21.7 million for dredging services appears reasonable given the scope of work, which involves maintenance dredging over a significant stretch of the Calcasieu River. Benchmarking against similar Army Corps of Engineers dredging contracts suggests that pricing for this type of specialized heavy construction is generally within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 5 bids suggests a healthy level of competition for this project. A competitive bidding process typically leads to more favorable pricing for the government as contractors vie for the award.

Taxpayer Impact: The full and open competition for this dredging contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the maritime industry relying on the Calcasieu River for navigation. The services delivered include essential maintenance dredging to ensure safe passage for commercial and military vessels. The geographic impact is concentrated in Louisiana, specifically along the Calcasieu River and Pass. Workforce implications include employment opportunities for skilled dredge operators, engineers, and support staff within the dredging industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays if unforeseen subsurface conditions are encountered.
Reliance on specialized dredging equipment which may have limited availability.
Environmental compliance requirements could add complexity and cost.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust market offering competitive solutions.
Contract awarded to a company with experience in heavy civil engineering construction.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on waterway maintenance and improvement. The dredging market is characterized by specialized equipment and expertise, with significant government contracts awarded by agencies like the Army Corps of Engineers for maintaining navigable waterways. Comparable spending benchmarks for large-scale dredging projects can vary widely based on volume, depth, and material type, but this award is consistent with substantial infrastructure investments.

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 such a significant infrastructure project. The impact on the small business ecosystem would depend on whether Inland Dredging Company utilizes small business subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for ensuring compliance with contract terms, specifications, and environmental regulations. Accountability measures are embedded in the contract's performance requirements and payment schedules. Transparency is generally maintained through public contract award databases, though specific operational details may be less accessible.

Related Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterway Navigation Projects
Coastal and Harbor Maintenance Dredging
Louisiana Port Infrastructure Development

Risk Flags

Contract duration aligns with typical dredging project timelines.
Firm fixed-price structure shifts cost overrun risk to the contractor.
Full and open competition indicates a competitive bidding environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to INLAND DREDGING COMPANY, L.L.C.. CALCASIEU RIVER AND PASS, MAINTENANCE DREDGING, MILE 15.0 TO MILE 36.0 NON-CONTINUOUS; IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is INLAND DREDGING COMPANY, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2015-08-31. End: 2016-12-27.

What is the historical spending pattern for Calcasieu River maintenance dredging by the Army Corps of Engineers?

Analyzing historical spending for Calcasieu River maintenance dredging by the Army Corps of Engineers requires access to detailed historical contract data. However, it is common for such maintenance dredging contracts to be awarded periodically, with values fluctuating based on the extent of required work, sediment accumulation rates, and available funding. The $21.7 million awarded in 2015 for this specific segment (Mile 15.0 to Mile 36.0) suggests a significant, multi-year effort. Recurring contracts of similar magnitude would indicate a consistent need for waterway upkeep in this region, reflecting ongoing navigational demands and natural sedimentation processes. Without specific historical data, it's presumed that prior contracts addressed different segments or were awarded at different intervals, reflecting the cyclical nature of infrastructure maintenance.

How does the number of bidders (5) compare to similar large-scale dredging contracts awarded by the Army Corps of Engineers?

A competition level with 5 bidders for a large-scale dredging contract, such as the $21.7 million award for the Calcasieu River, is generally considered healthy. The U.S. Army Corps of Engineers often receives multiple bids for its major civil works projects. The exact number of bidders can fluctuate based on project complexity, geographic location, contractor capacity, and the overall health of the dredging industry at the time of solicitation. While more bidders could theoretically drive prices lower, 5 bids typically indicate sufficient market interest and competition to achieve fair market value. Fewer than 3 bidders might raise concerns about market concentration or barriers to entry.

What are the primary risks associated with a firm fixed-price contract for dredging operations?

The primary risk associated with a firm fixed-price (FFP) contract for dredging operations lies with the contractor. Inland Dredging Company, as the awardee, assumes the risk of cost overruns. This can occur due to unforeseen subsurface conditions (e.g., harder-than-expected material, buried debris), equipment failures, extended downtime due to weather, or increased fuel and labor costs. While FFP contracts offer budget certainty for the government, they can lead to higher initial bid prices as contractors factor in potential risks. Conversely, if the contractor is highly efficient and encounters favorable conditions, they can achieve a higher profit margin. The government's risk is primarily that the contractor may cut corners on quality or scope if facing significant cost pressures, though contract oversight aims to mitigate this.

What is the typical performance period for a contract of this size and scope in the dredging sector?

The performance period for a contract of this size and scope, like the $21.7 million dredging project for the Calcasieu River, typically spans 1 to 3 years. This particular contract had a duration of 484 days (approximately 16 months) from award to estimated completion, which falls within this typical range. Dredging projects often require significant mobilization and demobilization of specialized equipment, and the actual dredging work can be influenced by seasonal weather patterns, environmental windows, and the volume of material to be removed. Longer durations might be allocated for very extensive projects or those involving multiple phases or locations, while shorter periods might be feasible for less complex or smaller-volume tasks.

How does the 'Other Heavy and Civil Engineering Construction' NAICS code (237990) relate to the specific services provided under this contract?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' accurately categorizes the services provided under this contract. This code encompasses establishments primarily engaged in constructing heavy civil engineering projects not elsewhere classified. Dredging, which involves the excavation and removal of material from waterways to maintain or improve navigation, is a core activity within heavy civil engineering. This includes projects like canals, harbors, dams, and other large-scale infrastructure related to water management and transportation. Therefore, the selection of NAICS 237990 aligns precisely with the nature of the work performed by Inland Dredging Company for the Calcasieu River maintenance.

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: W912P815B0040

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 103 N. KING AVE, DYERSBURG, TN, 38024

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,705,003

Exercised Options: $21,705,003

Current Obligation: $21,705,003

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline