DCA: U.S. dredging industry remains highly competitive
Written by Marine Log Staff
The U.S. dredging industry is highly competitive and saves the American taxpayer hundreds of millions of dollars every year, says trade association Dredging Contractors of America (DCA). An internal report, “An analysis of the FY22 U.S. Federal Dredging Market,” compiled in September 2023 by DCA member company Mike Hooks Inc., finds the following:
- Fifty-two (52) Jones Act dredging companies were awarded federal dredging contracts in FY2022.
- On average there were three (3) bidders per project On twenty (20) projects there were five (5) or more bidders.
- Seventy-two percent (72%) of the time the private sector industry winning bid was lower than the Independent Government Estimate (IGE);
- Ninety-five percent (95%) of the time the private sector industry winning bid was lower than the Government Estimated Awardable Range (GEAR), which is IGE + 25%.
- Fifty-nine (59) projects lower by more than 10%, 27 projects lower by more than 25%, and 15 projects lower by more than 40%.
The DCA says this means that the U.S. private sector dredging industry is fiercely competitive and is delivering services that save the federal government, and therefore the taxpayer, hundreds of millions – $670 million in FY22 alone.
JONES ACT DREDGE ORDERING CONTINUES
New construction of Jones Act dredges – U.S. owned, built and crewed vessels — have been rolling off the blocks for the past five years and will continue into the foreseeable future – over $2.5 billion in recapitalization.
The table below shows shipyard order books based on the publicly available announcements:
