Army awards $26.5M dredging contract to Weeks Marine, Inc. for Wilmington Harbor improvements

Contract Overview

Contract Amount: $26,537,944 ($26.5M)

Contractor: Weeks Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-11-30

End Date: 2013-06-30

Contract Duration: 212 days

Daily Burn Rate: $125.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WILMINGTON HARBOR INNER OCEAN BAR DREDGI

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28403

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to WEEKS MARINE, INC. for work described as: WILMINGTON HARBOR INNER OCEAN BAR DREDGI Key points: 1. Contract value appears reasonable for specialized marine construction services. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a single, established agreement. 4. Project duration of 212 days is typical for such infrastructure work. 5. Fixed-price contract limits cost overrun risks for the government. 6. Dredging is a critical component of maintaining navigable waterways.

Value Assessment

Rating: good

The contract value of approximately $26.5 million for dredging services at Wilmington Harbor seems aligned with the scope of work. Benchmarking against similar Army Corps of Engineers dredging projects indicates that pricing for specialized marine construction can vary significantly based on location, material removed, and environmental considerations. Without specific details on the volume of material dredged and the complexity of the harbor, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids indicates a degree of competition, though the exact number of solicitations and interested parties is not detailed. A competitive process is generally expected to yield fair market pricing and encourage efficiency from the awarded contractor.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not overpaying for services.

Public Impact

The U.S. Army Corps of Engineers benefits from improved navigation infrastructure. Commercial shipping and port operations in Wilmington, North Carolina, will be supported. The project contributes to the economic vitality of the region by ensuring efficient maritime trade. Local and regional workforce may see employment opportunities in skilled labor and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The dredging and marine construction sector is a specialized segment of the broader construction industry, focused on maintaining and improving waterways, ports, and coastal areas. This contract falls within the civil engineering and heavy construction sub-sectors. The U.S. Army Corps of Engineers is a major client for such services, awarding numerous contracts annually for navigation, flood control, and environmental restoration projects. Market size for dredging services is substantial, driven by global trade and the need for efficient maritime transportation.

Small Business Impact

There is no indication that this contract included a small business set-aside. The prime contractor, Weeks Marine, Inc., is a large business. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or supplies.

Oversight & Accountability

The U.S. Army Corps of Engineers typically has robust oversight mechanisms for its construction contracts, including project management, site inspections, and quality assurance. The contract's fixed-price nature incentivizes the contractor to manage costs effectively. Transparency is generally maintained through public contract databases, though specific performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud or misconduct.

Related Government Programs

Risk Flags

Tags

construction, dredging, department-of-the-army, army-corps-of-engineers, wilmington-harbor, north-carolina, definitive-contract, firm-fixed-price, full-and-open-competition, large-business, heavy-and-civil-engineering

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to WEEKS MARINE, INC.. WILMINGTON HARBOR INNER OCEAN BAR DREDGI

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 $26.5 million.

What is the period of performance?

Start: 2012-11-30. End: 2013-06-30.

What is the historical spending pattern for Wilmington Harbor dredging projects?

Historical spending on Wilmington Harbor dredging projects by the Army Corps of Engineers would reveal trends in contract values, frequency of awards, and the types of contractors engaged. Analyzing past contracts would help establish a baseline for current spending and identify any significant deviations. For instance, if previous dredging efforts for this specific section of the harbor were significantly less expensive or awarded more frequently, it might warrant further investigation into the current contract's value and scope. Conversely, consistent spending patterns could indicate stable market conditions and predictable project costs. Without access to historical contract data specific to Wilmington Harbor dredging, it is difficult to provide a precise analysis, but such a review is crucial for comprehensive federal spending analysis.

How does the contractor's past performance on similar projects compare?

Assessing Weeks Marine, Inc.'s past performance on similar dredging and marine construction projects is crucial for evaluating the risk and value of this contract. A review of their contract history with the Army Corps of Engineers and other federal agencies would reveal their track record regarding on-time completion, adherence to budget (especially on fixed-price contracts), quality of work, and any history of disputes or contract terminations. Positive performance indicators, such as successful completion of complex dredging operations in challenging environments or consistent client satisfaction, would bolster confidence in their ability to execute the Wilmington Harbor project effectively. Conversely, a history of performance issues could raise concerns about potential delays, cost overruns (despite the fixed-price nature, change orders can occur), or substandard work, necessitating closer government oversight.

What are the specific environmental considerations and mitigation strategies for this dredging project?

Dredging operations, particularly in active harbors like Wilmington, involve significant environmental considerations. These typically include the potential for turbidity (clouding of water) impacting aquatic life, the disturbance of benthic habitats, and the management of dredged material, which may contain contaminants. Federal regulations, such as those under the Clean Water Act and the National Environmental Policy Act (NEPA), mandate environmental impact assessments and the implementation of mitigation strategies. For this contract, specific measures likely included monitoring water quality, employing silt curtains to contain turbidity, careful planning for the disposal or beneficial reuse of dredged material (e.g., for beach nourishment or habitat creation), and adherence to seasonal restrictions to protect sensitive species. The effectiveness of these strategies is key to minimizing the project's ecological footprint.

What is the estimated volume of material to be dredged and its composition?

The estimated volume of material to be dredged and its composition are fundamental data points for evaluating the cost-effectiveness and scope of the Wilmington Harbor dredging contract. Dredging costs are heavily influenced by the quantity of sediment removed and the nature of that sediment (e.g., sand, silt, clay, or rock). A larger volume or harder material generally translates to higher costs and longer project durations. Without this specific data, it's challenging to benchmark the $26.5 million award against industry standards or compare it to the 'per cubic yard' cost of similar projects. Understanding the composition is also critical for determining appropriate dredging methods and disposal options, which have their own associated costs and environmental implications.

How does the contract's fixed-price structure mitigate risks for the government?

The 'FIRM FIXED PRICE' (FFP) contract type is designed to provide the government with cost certainty and transfer risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This structure incentivizes the contractor to manage their resources efficiently and control expenses. For the government, it means the total expenditure is known upfront, simplifying budget management and protecting against unexpected cost increases due to contractor inefficiencies or rising material prices. While FFP contracts are generally preferred for minimizing cost risk, they can sometimes lead to higher initial bid prices as contractors factor in potential contingencies. However, for well-defined scopes like dredging, FFP is often the most appropriate and cost-effective choice.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PM12B0011

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,537,944

Exercised Options: $26,537,944

Current Obligation: $26,537,944

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $4,740,738

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2012-11-30

Current End Date: 2013-06-30

Potential End Date: 2013-06-30 00:00:00

Last Modified: 2020-09-28

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