Weeks Marine Inc. awarded $25.5M contract for dredging services in Louisiana
Contract Overview
Contract Amount: $25,507,950 ($25.5M)
Contractor: Weeks Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-03-08
End Date: 2017-07-12
Contract Duration: 126 days
Daily Burn Rate: $202.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF DREDGING
Place of Performance
Location: PLAQUEMINE, IBERVILLE County, LOUISIANA, 70764
Plain-Language Summary
Department of Defense obligated $25.5 million to WEEKS MARINE, INC. for work described as: IGF::OT::IGF DREDGING Key points: 1. Contract value represents a significant investment in critical waterway maintenance. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Short contract duration may indicate a focused scope of work. 5. Geographic focus on Louisiana highlights regional infrastructure needs. 6. Contract awarded to a single entity, Weeks Marine, Inc.
Value Assessment
Rating: fair
The contract value of $25.5 million for dredging services appears substantial. Benchmarking against similar heavy civil engineering construction contracts is difficult without more specific details on the scope and duration of the work. The firm-fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price is competitive. However, without comparative data on per-unit costs or historical performance, a definitive assessment of value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the level of competition was limited. While open competition is generally favorable for price discovery, a low number of bidders can sometimes lead to less aggressive pricing than a more robustly contested procurement. The specific details of the bidding process and the nature of the services would further inform the impact of this competition level.
Taxpayer Impact: The use of full and open competition is a positive signal for taxpayers, as it aims to ensure that the government receives the best possible price. However, with only two bids, there is a risk that the price may not be as low as it could have been with more interested parties.
Public Impact
Benefits the U.S. Army Corps of Engineers in maintaining navigable waterways. Ensures continued operation of critical shipping channels in Louisiana. Supports economic activity reliant on maritime transportation in the Gulf Coast region. Potentially impacts the local workforce through employment opportunities for dredging operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition with only two bids received could impact price competitiveness.
- Lack of detailed performance metrics makes assessing efficiency difficult.
- Firm-fixed-price contracts can sometimes incentivize cutting corners if not closely monitored.
Positive Signals
- Awarded under full and open competition, maximizing potential bidder pool.
- Firm-fixed-price contract shifts cost risk to the contractor.
- Contract is for a defined period, suggesting a clear scope of work.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is crucial for maintaining and improving national infrastructure, particularly waterways, ports, and harbors. The market for dredging services can be specialized, with a limited number of large, experienced firms capable of undertaking such projects. The value of this contract, at $25.5 million, is significant within this niche, reflecting the scale and complexity often associated with federal dredging requirements.
Small Business Impact
There is no indication that this contract was set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of large-scale dredging projects often requires specialized equipment and expertise typically held by larger, established firms. Therefore, the direct impact on the small business ecosystem for this specific contract is likely minimal, unless subcontracting plans were not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, the contracting agency. As a definitive contract, it implies a defined scope and terms. Accountability measures would be embedded in the contract's performance clauses and payment schedules. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Specific Inspector General jurisdiction would depend on the agency's internal policies and any identified issues.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Inland Waterways Trust Fund
- Port Infrastructure Development Program
- Maritime Transportation System
Risk Flags
- Limited competition (2 bidders)
- Potential for environmental impact
- Reliance on specialized equipment and expertise
Tags
construction, dredging, department-of-defense, department-of-the-army, louisiana, firm-fixed-price, definitive-contract, full-and-open-competition, heavy-and-civil-engineering, infrastructure, maritime
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to WEEKS MARINE, INC.. IGF::OT::IGF 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 $25.5 million.
What is the period of performance?
Start: 2017-03-08. End: 2017-07-12.
What is the typical cost per cubic yard for dredging services of this nature in the Gulf Coast region?
Determining a precise per-cubic-yard cost benchmark for this specific contract is challenging without detailed project specifications, such as the type of material being dredged (e.g., sand, silt, clay), the required depth, and the distance for spoil disposal. However, industry reports and historical data for similar Army Corps of Engineers projects in the Gulf Coast region can range significantly. Factors like equipment used (e.g., hopper dredges, cutterhead dredges), environmental mitigation requirements, and site accessibility heavily influence these costs. Generally, costs can range from $20 to over $100 per cubic yard, depending on these variables. The $25.5 million award for Weeks Marine, Inc. would need to be analyzed against the estimated volume of material to be dredged to assess its competitiveness on a per-unit basis.
What is Weeks Marine, Inc.'s track record with the Department of Defense and Army Corps of Engineers for dredging contracts?
Weeks Marine, Inc. has a substantial history of performing dredging and marine construction services for the U.S. Army Corps of Engineers and other federal agencies. A review of federal procurement data indicates numerous awards to Weeks Marine for similar projects, including maintenance dredging, beach nourishment, and new channel construction. Their experience often involves complex projects in challenging environments, particularly along the Atlantic and Gulf coasts. The company possesses a fleet of specialized dredging equipment, which positions them as a key contractor in this sector. Past performance evaluations, if available through agency channels, would provide further insight into their reliability, quality of work, and adherence to schedules and budgets on previous contracts.
How does the $25.5 million contract value compare to historical Army Corps of Engineers dredging expenditures in Louisiana?
The $25.5 million contract value for Weeks Marine, Inc. represents a significant, but not unprecedented, investment in Louisiana's waterways. The Army Corps of Engineers consistently allocates substantial funds annually for dredging and maintenance of the state's extensive network of ports, channels, and navigation systems, which are critical for commerce. Historical spending data reveals that individual dredging contracts can range from a few million dollars to tens of millions, depending on the project's scope, complexity, and duration. This particular award appears to be within the typical range for major maintenance or capital dredging projects undertaken by the Corps in a region with high maritime traffic and sediment challenges like Louisiana.
What are the primary risks associated with this dredging contract, and how are they mitigated?
Primary risks for this dredging contract include potential environmental impacts (e.g., sediment dispersion, impact on marine life), unforeseen subsurface conditions (e.g., encountering hard rock or debris), weather delays, and potential cost overruns, although the firm-fixed-price structure mitigates the latter for the government. Environmental risks are typically managed through strict adherence to environmental permits and monitoring protocols. Unforeseen conditions are often addressed via contract clauses allowing for equitable adjustments in time or cost if significant discoveries are made, though the fixed-price nature limits cost adjustments. Weather delays are managed through schedule contingencies and the contract's duration. The contractor's experience and equipment are key mitigants for operational risks.
What is the expected impact of this contract on the local Louisiana economy and workforce?
This $25.5 million dredging contract is expected to have a positive impact on the local Louisiana economy and workforce. Dredging operations require a skilled labor force, including dredge operators, engineers, deckhands, and support personnel. Weeks Marine, Inc. will likely hire locally or bring in specialized crews, contributing to employment. Furthermore, the maintenance and improvement of navigation channels are vital for the state's ports and maritime industries, which are significant economic drivers. Enhanced navigability supports increased cargo throughput, benefiting businesses involved in shipping, logistics, and related services, thereby indirectly supporting jobs across various sectors.
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: W912P817B0003
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: $25,575,450
Exercised Options: $25,507,950
Current Obligation: $25,507,950
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $2,068,289
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-08
Current End Date: 2017-07-12
Potential End Date: 2017-07-12 00:00:00
Last Modified: 2021-02-25
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