Army awards $27.6M dredging contract for Southwest Pass, Louisiana, to Weeks Marine, Inc

Contract Overview

Contract Amount: $27,647,900 ($27.6M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-06

End Date: 2019-05-28

Contract Duration: 173 days

Daily Burn Rate: $159.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING - SOUTHWEST PASS CUTTERHEAD

Place of Performance

Location: BURAS, PLAQUEMINES County, LOUISIANA, 70041

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to WEEKS MARINE, INC. for work described as: DREDGING - SOUTHWEST PASS CUTTERHEAD Key points: 1. Contract value represents a significant investment in critical waterway maintenance. 2. The firm-fixed-price structure aims to control costs for the government. 3. A single award suggests a focused approach to a specialized service. 4. The short duration of the contract implies a specific, time-bound project. 5. This contract falls under heavy and civil engineering construction, a vital sector for infrastructure.

Value Assessment

Rating: good

The contract value of $27.6 million for dredging services appears reasonable given the scope of maintaining a critical waterway like the Southwest Pass. While direct comparisons are difficult without more specific project details, dredging projects of this nature often involve substantial costs due to specialized equipment and environmental considerations. The firm-fixed-price contract type suggests a commitment to predictable spending, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that a single award was made suggests that Weeks Marine, Inc. presented the most advantageous offer among the bidders.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

The primary beneficiaries are likely the maritime industry and businesses relying on the Southwest Pass for shipping and commerce. The service delivered is essential for maintaining navigable depths in a major U.S. waterway. The geographic impact is concentrated in Louisiana, specifically around the Southwest Pass. While not directly creating new jobs, the contract supports existing jobs in the dredging and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions arise, though mitigated by fixed-price contract.
Dependence on a single contractor for a critical infrastructure task.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Contractor has experience in heavy civil engineering construction.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to dredging. This sector is crucial for maintaining and improving national infrastructure, including ports, waterways, and flood control systems. The market for large-scale dredging is specialized, often dominated by a few key players with the necessary equipment and expertise. The value of this contract is significant within its niche, reflecting the importance of maintaining navigable waterways for commerce and defense.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Weeks Marine, Inc. may engage small businesses as subcontractors, the primary award was not directed towards small businesses. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a definitive contract awarded under full and open competition, it likely underwent review by the contracting officer and relevant agency officials. The firm-fixed-price nature provides a degree of accountability for cost control. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Potential for environmental impact during dredging operations.
Risk of unforeseen subsurface geological conditions.
Dependence on weather conditions for timely completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to WEEKS MARINE, INC.. DREDGING - SOUTHWEST PASS CUTTERHEAD

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 $27.6 million.

What is the period of performance?

Start: 2018-12-06. End: 2019-05-28.

What is the historical spending pattern for dredging services at the Southwest Pass?

Analyzing historical spending for dredging at the Southwest Pass is crucial for contextualizing the current $27.6 million award. While specific historical data for this exact location and contract type is not provided in the abbreviated data, the U.S. Army Corps of Engineers (USACE) is consistently responsible for maintaining navigable waterways. USACE budgets often include significant allocations for dredging operations across the nation. Factors influencing historical spending include the frequency of dredging required, the volume of material to be removed, environmental regulations, and the specific equipment and methods employed. Larger, more complex projects, or those in areas with high sedimentation rates, would naturally command higher expenditures. Comparing the current contract's value to previous awards for similar scope and duration at the Southwest Pass would reveal trends in cost escalation or efficiency gains over time.

How does Weeks Marine, Inc.'s track record compare for similar dredging projects?

Weeks Marine, Inc. is a well-established marine construction company with a significant track record in dredging and related heavy civil engineering projects. To assess their performance on this specific contract, one would ideally examine their past performance evaluations on similar government contracts, particularly those involving large-scale channel maintenance or construction. Key indicators include on-time delivery, adherence to budget (especially relevant for fixed-price contracts), quality of work, and any history of disputes or contract modifications. A review of publicly available contract data and performance reports (if accessible) would reveal if Weeks Marine has a history of successfully completing complex dredging operations within scope and budget. Their experience with the specific environmental conditions and regulatory requirements of the Gulf Coast region would also be a critical factor in evaluating their suitability and the value proposition of their bid.

What are the primary risks associated with this dredging contract?

The primary risks associated with this dredging contract include environmental challenges, potential for unforeseen subsurface conditions, and operational disruptions. Environmental risks involve managing dredged material disposal in compliance with regulations, potential impacts on marine ecosystems, and adherence to permits. Unforeseen subsurface conditions, such as hard rock, buried debris, or unusually dense sediment, could increase dredging time and costs, although the firm-fixed-price contract aims to mitigate direct cost overruns for the government by placing this risk on the contractor. Operational risks include equipment breakdowns, weather delays (especially in the Gulf Coast), and potential impacts on ongoing maritime traffic in the Southwest Pass. The short duration of the contract (173 days) also implies a need for efficient execution to meet the project timeline.

How does the firm-fixed-price contract type influence value for money?

The firm-fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and the risks are manageable. For this dredging contract, an FFP structure means that Weeks Marine, Inc. is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently and control expenses. From a value-for-money perspective, this provides cost certainty for the government, making budgeting more predictable. It encourages the contractor to be innovative in finding cost-saving measures without compromising quality. However, if the contractor underestimated the complexity or cost of the work, they might cut corners, potentially impacting quality, or face financial losses, which could affect their future bidding.

What is the significance of the Southwest Pass for U.S. commerce and defense?

The Southwest Pass is a critical navigation channel for the Mississippi River, serving as a vital artery for domestic and international commerce. It provides access to the Port of New Orleans and other facilities along the river, facilitating the movement of bulk commodities such as grain, coal, and petroleum, as well as manufactured goods. Its strategic importance extends to national defense, ensuring the Navy and other military branches can access inland ports if necessary and supporting the projection of power. Maintaining adequate depths through regular dredging is essential to prevent disruptions to shipping, which could have significant economic consequences, including increased transportation costs and reduced competitiveness of U.S. exports. The efficiency and reliability of the Southwest Pass directly impact regional economies and the broader U.S. supply chain.

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: W912P819B0011

Offers Received: 1

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: $27,655,100

Exercised Options: $27,647,900

Current Obligation: $27,647,900

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $5,016,587

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline