Army awards $31.7M dredging contract to Weeks Marine, Inc. under full and open competition

Contract Overview

Contract Amount: $31,732,893 ($31.7M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-30

End Date: 2018-04-11

Contract Duration: 589 days

Daily Burn Rate: $53.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF BASE LINE ITEMS AWARD DREDGING

Place of Performance

Location: PLAQUEMINE, IBERVILLE County, LOUISIANA, 70764

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $31.7 million to WEEKS MARINE, INC. for work described as: IGF::OT::IGF BASE LINE ITEMS AWARD DREDGING Key points: 1. Contract awarded for dredging services, indicating a need for waterway maintenance or infrastructure development. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the contract is substantial, spanning over 500 days. 5. The award was made by the Department of the Army, a major federal agency. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction.

Value Assessment

Rating: fair

The contract value of $31.7 million for dredging services over approximately 589 days appears within a reasonable range for large-scale civil engineering projects. Benchmarking against similar dredging contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an attempt to manage cost overruns, but the final cost will depend on the scope and efficiency of the work performed. Without detailed performance metrics or comparison to industry standards for specific dredging tasks (e.g., cubic yards per day), a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific contract. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and potentially leading to better quality services. The presence of two bidders suggests some level of price pressure, but more competition could have yielded greater savings.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other entities relying on navigable waterways in Louisiana, which may include commercial shipping, recreational users, and coastal communities. The services delivered involve dredging, which is crucial for maintaining or improving the depth and capacity of waterways, ports, and harbors. The geographic impact is specified as Louisiana (ST: LA, SN: LOUISIANA), indicating that the dredging activities will take place within this state. The workforce implications include employment opportunities for skilled labor in the construction and maritime industries within Louisiana and potentially surrounding areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen conditions arise during dredging, despite the fixed-price contract.
Dependence on a single contractor for a critical infrastructure service over an extended period.
Environmental impact concerns related to dredging activities and spoil disposal.
Potential for schedule delays due to weather or operational challenges in maritime environments.

Positive Signals

Awarded through full and open competition, promoting fairness and broad market access.
Firm fixed-price contract type provides cost certainty for the government.
Contract awarded to a specific company with stated experience in dredging.
Clear geographic focus on Louisiana, allowing for targeted infrastructure improvement.

Sector Analysis

The dredging industry is a significant component of the heavy and civil engineering construction sector, essential for maintaining and developing maritime infrastructure. This contract falls under NAICS code 237990, which covers establishments primarily engaged in constructing heavy civil engineering projects such as waterways, dams, bridges, and tunnels. The market for dredging services is often characterized by specialized equipment and expertise, with a limited number of large, experienced firms capable of undertaking major projects. Federal spending in this area is typically driven by needs for navigation, flood control, and coastal protection.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Weeks Marine, Inc., the awardee, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, although the prime contractor may engage small businesses as subcontractors if it aligns with their project needs and procurement policies.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is facilitated by contract award databases like FPDS, which provide public access to contract details. Accountability measures would be embedded in the contract's performance clauses, delivery schedules, and payment terms, with potential for penalties for non-compliance.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Coastal Zone Management Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting critical waterway access.
Environmental compliance and disposal of dredged material.
Contractor performance and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to WEEKS MARINE, INC.. IGF::OT::IGF BASE LINE ITEMS AWARD 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 $31.7 million.

What is the period of performance?

Start: 2016-08-30. End: 2018-04-11.

What is the historical spending pattern for dredging services by the Department of the Army in Louisiana?

Analyzing historical spending patterns for dredging by the Department of the Army in Louisiana requires access to comprehensive federal procurement data over several fiscal years. While this specific contract award is for $31.7 million, understanding the broader trend involves looking at the total obligated amounts for NAICS code 237990 and related dredging codes within the Army's portfolio specifically for Louisiana. Factors influencing these patterns include federal infrastructure priorities, congressional appropriations, the condition of waterways, and the frequency of maintenance dredging required. A detailed analysis would involve querying databases like FPDS or USAspending to aggregate spending by agency, geography, and service type over time, identifying any significant increases or decreases that might indicate shifts in policy or need.

How does the per-unit cost of this dredging contract compare to similar projects awarded by the Army Corps of Engineers?

To compare the per-unit cost, we would need to establish a relevant unit of measure, such as cost per cubic yard of material dredged or cost per linear foot of channel maintained. This contract's total value is $31.7 million over approximately 589 days. Without knowing the total volume of material to be dredged or the length of the channel affected, a direct per-unit cost comparison is not feasible from the provided data alone. However, if such metrics were available, they could be benchmarked against publicly reported costs for similar Army Corps of Engineers projects in comparable geographic regions and geological conditions. Variations in cost could be attributed to differences in material type (sand, silt, rock), disposal methods, environmental mitigation requirements, and project complexity.

What is the track record of Weeks Marine, Inc. in performing large-scale dredging contracts for federal agencies?

Weeks Marine, Inc. has a significant history of performing dredging and marine construction projects. A review of federal procurement databases would reveal numerous past awards to Weeks Marine, including contracts with the Army Corps of Engineers and other maritime-focused agencies. Their portfolio likely includes projects involving channel deepening, maintenance dredging, beach nourishment, and construction of marine infrastructure. Assessing their track record would involve examining the value and duration of past contracts, their performance ratings (if publicly available), any history of contract disputes or terminations, and their demonstrated capacity to manage complex projects on schedule and within budget. Their continued success in winning competitive bids suggests a generally positive performance history.

What are the potential risks associated with the firm fixed-price contract type for this dredging project?

While a firm fixed-price (FFP) contract is designed to provide cost certainty for the government, it can introduce risks for the contractor. For this dredging project, potential risks include unforeseen subsurface conditions (e.g., encountering unexpected rock formations or hazardous materials) that could significantly increase the contractor's costs beyond initial estimates. Adverse weather conditions or extended equipment downtime could also impact the contractor's profitability. If the contractor underestimates the complexity or volume of work, they may incur losses. Conversely, the government bears the risk of the contractor potentially cutting corners on quality or scope to protect their profit margin if unforeseen challenges arise, although contract oversight aims to mitigate this.

How does the competition level (2 bidders) for this contract potentially impact the government's ability to secure favorable pricing?

A competition level with only two bidders suggests a moderate rather than robust competitive environment. While two bidders are preferable to a sole-source award, it may not generate the same level of price pressure as a scenario with four or more competing firms. The government might not achieve the lowest possible price because the bidders may have less incentive to offer deeply competitive rates if they perceive limited alternatives for the government. The final price achieved would depend heavily on the specific capabilities and cost structures of the two competing firms, as well as the government's negotiation and evaluation process. A more competitive landscape typically leads to better price discovery and potentially greater cost savings for the taxpayer.

What is the typical duration and value range for federal dredging contracts of this nature?

The duration of 589 days (approximately 1.6 years) and the value of $31.7 million for this dredging contract are substantial, suggesting a significant scope of work. Federal dredging contracts can vary widely in duration and value depending on the specific requirements, such as the size of the waterway, the volume of material to be removed, the type of material, and the frequency of maintenance needed. Large-scale channel deepening or major capital construction projects can extend for several years and cost hundreds of millions of dollars. Routine maintenance dredging contracts might be shorter and less expensive. This particular award appears to be in the mid-to-upper range for significant dredging undertakings.

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: W912P814B0053

Offers Received: 2

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,905,791

Exercised Options: $44,899,791

Current Obligation: $31,732,893

Subaward Activity

Number of Subawards: 125

Total Subaward Amount: $14,140,197

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline