Army awards $35.4M dredging contract to Weeks Marine, Inc. for Mississippi River improvements

Contract Overview

Contract Amount: $35,396,144 ($35.4M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-03

End Date: 2021-06-30

Contract Duration: 300 days

Daily Burn Rate: $118.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MISSISSIPPI RIVER, BATON ROUGE TO GULF OF MEXICO, HEAD OF PASSES, HOPPER DREDGE DISPOSAL AREA PROJECT (#19-1), PLAQUEMINES PARISH, LOUISIANA

Place of Performance

Location: VENICE, PLAQUEMINES County, LOUISIANA, 70091

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $35.4 million to WEEKS MARINE, INC. for work described as: MISSISSIPPI RIVER, BATON ROUGE TO GULF OF MEXICO, HEAD OF PASSES, HOPPER DREDGE DISPOSAL AREA PROJECT (#19-1), PLAQUEMINES PARISH, LOUISIANA Key points: 1. Contract value appears reasonable given the scope of major civil engineering work. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Project duration of 300 days indicates a focused, time-bound effort. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Dredging operations are critical for maintaining navigable waterways. 6. The contract falls within the 'Other Heavy and Civil Engineering Construction' NAICS code.

Value Assessment

Rating: good

The contract value of approximately $35.4 million for hopper dredge disposal area work is within a typical range for large-scale civil engineering projects of this nature. Benchmarking against similar Army Corps of Engineers dredging contracts in the Gulf Coast region suggests the pricing is competitive. The firm fixed-price structure provides cost certainty for the government, indicating good value if the contractor performs as expected.

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 specialized service. While more bidders could potentially drive prices lower, full and open competition generally promotes fair market pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best possible price and performance from qualified contractors.

Public Impact

The project directly benefits the U.S. Army Corps of Engineers by ensuring the continued navigability of a critical section of the Mississippi River. Improved navigability supports regional commerce and the efficient transport of goods through the Port of Baton Rouge and beyond. The project's geographic impact is concentrated in Plaquemines Parish, Louisiana, contributing to local infrastructure maintenance. While specific workforce details are not provided, such projects typically involve skilled labor in dredging operations, marine engineering, and environmental monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging operations requires careful monitoring.
Dependence on a single contractor for this critical infrastructure maintenance could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract aligns contractor incentives with project completion.
Full and open competition suggests a robust selection process.
The contractor, Weeks Marine, Inc., likely possesses specialized expertise in dredging.

Sector Analysis

This contract falls under the Heavy and Civil Engineering Construction sector, specifically related to port and waterway infrastructure. The Army Corps of Engineers is a major client in this sector, frequently awarding contracts for dredging, levee construction, and other waterway management projects. The market for specialized dredging services is relatively concentrated, with a few key players possessing the necessary equipment and expertise. The value of this contract is significant within the context of regional infrastructure projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is unclear without further data.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, likely through project managers and contracting officers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting, though specific operational oversight details are not publicly detailed.

Related Government Programs

Mississippi River Channel Maintenance
Inland Waterways Navigation Projects
Army Corps of Engineers Dredging Contracts
Gulf Coast Port Infrastructure

Risk Flags

Environmental Impact Monitoring
Weather Dependency
Logistical Challenges in Delta Region

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to WEEKS MARINE, INC.. MISSISSIPPI RIVER, BATON ROUGE TO GULF OF MEXICO, HEAD OF PASSES, HOPPER DREDGE DISPOSAL AREA PROJECT (#19-1), PLAQUEMINES PARISH, LOUISIANA

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 $35.4 million.

What is the period of performance?

Start: 2020-09-03. End: 2021-06-30.

What is the historical spending pattern for similar dredging projects by the Army Corps of Engineers in Louisiana?

Historical spending on similar dredging projects by the Army Corps of Engineers in Louisiana can vary significantly based on project scope, duration, and specific environmental requirements. For instance, major channel deepening or maintenance projects can range from tens of millions to hundreds of millions of dollars over several years. Contracts for hopper dredge disposal areas, like the one awarded to Weeks Marine, Inc., are typically focused on managing sediment removed from navigation channels. Analyzing past awards for similar disposal area projects in the Mississippi River delta region would reveal trends in contract values, competition levels, and the types of contractors typically engaged. This specific $35.4 million contract appears to be a substantial, but not unprecedented, investment for maintaining critical waterway infrastructure in the region.

How does the awarded price compare to the original estimated cost for this project?

The provided data does not include the original estimated cost for this project, making a direct comparison impossible. However, the contract was awarded at $35,396,143.76. In the absence of an estimate, we can infer that the bidding process under full and open competition likely resulted in a price that the Army Corps of Engineers deemed fair and reasonable based on market conditions and the contractor's proposed approach. Without the government's independent cost estimate or pre-solicitation market research data, it's difficult to definitively assess if the awarded price represents a significant deviation from expectations. Future analysis could involve obtaining the original estimate if publicly available through agency records.

What is Weeks Marine, Inc.'s track record with the Army Corps of Engineers for similar dredging contracts?

Weeks Marine, Inc. has a significant track record of performing dredging and marine construction services for the U.S. Army Corps of Engineers. They are a well-established contractor in this field, frequently awarded contracts for various waterway maintenance and construction projects across the United States, particularly along the Gulf Coast and Atlantic seaboard. Their experience likely includes managing hopper dredge disposal sites, channel maintenance, and other related civil works. A review of historical contract awards would reveal the volume and value of work they have performed for the Army Corps, as well as their performance ratings on past projects. This specific contract for the Mississippi River project aligns with their core competencies and past performance history.

What are the potential risks associated with the performance of this specific dredging contract?

Potential risks associated with this dredging contract include environmental challenges, such as unexpected subsurface conditions (e.g., hard rock, debris) that could increase costs or delay the schedule. Weather disruptions, particularly during hurricane season in Louisiana, could also impact operations. Furthermore, equipment breakdowns or logistical issues with the hopper dredge and support vessels could lead to performance delays. Given the firm fixed-price nature of the contract, Weeks Marine, Inc. bears the primary financial risk for cost overruns due to these factors. The Army Corps of Engineers' risk is primarily related to potential schedule delays impacting navigation and the need for potential contract modifications if unforeseen site conditions arise that are beyond the contractor's control.

How does the geographic location (Plaquemines Parish, Louisiana) influence the execution and cost of this dredging project?

The geographic location in Plaquemines Parish, Louisiana, significantly influences the execution and cost of this dredging project. This area is part of the Mississippi River delta, characterized by soft, alluvial soils, which are typical for dredging operations. However, the proximity to the Gulf of Mexico means the project is susceptible to coastal weather patterns, including hurricanes and tropical storms, which can cause significant delays and operational disruptions. Furthermore, the logistical challenges of operating in a delta region, including access for personnel and equipment, can add to costs. The specific site for the hopper dredge disposal area also requires careful environmental consideration due to the sensitive estuarine ecosystem. The need for specialized equipment and adherence to environmental regulations in this unique delta environment are key cost drivers.

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: W912P820B0014

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: $35,844,944

Exercised Options: $35,396,144

Current Obligation: $35,396,144

Subaward Activity

Number of Subawards: 277

Total Subaward Amount: $43,845,918

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline