Notice of Intent to Sole Source to Port of Portland - Columbia & Lower Willamette Rivers Pipeline Dredging

THIS IS A SPECIAL NOTICE PREPARED IN ACCORDANCE WITH REVOLUTIONARY FAR OVERHAUL (RFO) PART 5, “PUBLICIZING CONTRACT ACTIONS”

NAICS: 237990

Estimated Contract Start Date:  30 September 2027

Response Deadline:  12 August 2026

The U.S. Army Corps of Engineers (USACE), Portland District (NWP) intends to negotiate and award a sole-source, cost (no-fee) Indefinite Delivery/Indefinite Quantity (IDIQ) construction contract to the Port of Portland (UEI: HX4FCHE2H1M3, CAGE: 3DWW7). The anticipated contract consists of a five-year base period and one five-year option period (10-year total ordering period) with an estimated ceiling of $499M.

The scope of work encompasses pipeline dredging operations, material placement, placement site preparation, and related channel maintenance activities in support of the Columbia and Lower Willamette (C&LW) Navigation Project. The requirement entails the annual dredging of approximately 2.5 million to 4 million cubic yards of material between 1 June and 31 December from the deep draft navigation channel between river mile 20+00 and 105+25, maintaining authorized depths of 43 to 48 feet Columbia River Datum (CRD). Upland placement of material is also required. Additional information is available in the prior sources sought announcement. Additionally, availability for out-of-season emergency dredging response is required. Therefore, the full pipeline dredging operation will need to remain proximal to the C&LW Navigation project year-round. If it becomes necessary, recapitalization of the Dredge OREGON would be within the scope of this contract.

PRIOR SOURCES SOUGHT (DFARS PGI COMPLIANCE):
In accordance with DFARS PGI 206.302-1, a Sources Sought announcement was posted to SAM.gov on January 8, 2026, to conduct market research and gauge industry capability prior to executing a sole-source justification. While response from firms was received, a review of the capability statements confirmed that no comparable large-capacity pipeline dredge and support equipment is currently homeported in the Columbia River system; a major driver of the higher anticipated price from sources other than the Port of Portland. By majority, respondents also indicated that they would not intend to leave a plant and equipment idle during the off season. While this is not in line with the current contract requirement, we recognize the benefit to USACE and the Nation by allowing a plant to address other dredging requirements outside the regular C&LW dredging season. As result, USACE chose to analyze the cost of this annual mob/demob alternate strategy alongside the intended idle/available strategy currently required.

REASON FOR SOLE SOURCE ACQUISITION:
The statutory authority for this non-competitive acquisition is 10 U.S.C. § 3204(a)(1) as implemented by Revolutionary FAR Overhaul (RFO) 6.103-1(c)(2)(i), "Substantial duplication of cost to the Government that is not expected to be recovered through competition."

The Port of Portland is the only source that possesses a large-capacity pipeline dredge (Dredge OREGON) permanently homeported within the Columbia River system capable of meeting USACE’s annual production requirements. Furthermore, USACE possesses explicit Congressional authorization to contract with the Port of Portland for these services on a reimbursable, cost (no-profit) basis. The Port of Portland C&LW Pipeline Dredging FY25 cost (roughly $25M) was used as the baseline for accomplishing a standard/average season of work. USACE estimates that should Port of Portland recapitalize the Dredge Oregon, the amount allocable to USACE annually would be roughly $7.5M once the vessel is put into service.

In comparison, awarding to an alternate source is expected to increase the cost to accomplish the work in two primary categories, depending on the final contract requirements.

1. Dredging. It is expected the price to dredge and place 2.5 million to 4 million cubic yards of material would be between $41M and $52M, over the 7-month period. This price includes upland placement where required, and in-system remobilizations. The price for the plant and equipment to remain “idle” the remaining 5-months of the year is incorporated in the $41M to $52M estimate.  
2. Mobilization, demobilization and idle/standby time.
   1. Strategy A: Mobilizing once and maintaining the plant and equipment in proximity to the C&LW at all times. It is expected a single mobilization (~$7M) and demobilization (~$5.5M) for the 10-year contract would cost in excess of $10M for all plant and equipment.
   2. Strategy B: Annual mobilization/demobilization to accomplish other work. It is expected that by allowing a firm to demobilize after each dredging season, the cost of remobilization the following season would be roughly similar to the price USACE would otherwise pay for the plant and equipment to remain idle with the C&LW area. USACE would then not have a plant to quickly mobilize for urgent dredging requirements during the 5-month “off-season” though, which is not an allowable risk, or aligned with current project requirements.

Regardless of the strategy used, significant duplication of cost remains. Even when combining the Port of Portland’s standard season baseline ($25M) with the potential (not yet approved) annual recapitalization allocation ($7.5M), the total estimated annual cost to the Government remains approximately $32.5M.

In contrast, the lowest possible commercial alternative, combining the $41M dredging floor with an initial ~$7M for mobilization cost, is approximately $15M more than what USACE expects to pay to Port of Portland. Therefore, awarding to an alternate source would result in a minimum duplication of cost of $15M the first year, and approximately $8.5M per year afterward, plus ~$5.5M in demobilization costs following the final year of dredging. Over the anticipated 10-year lifecycle of this IDIQ, this represents at least $97M in duplicated costs that the Government does not expect to recover through competition.

The Government intends to begin negotiations with Port of Portland on or around 1 November 2026. At this time, a solicitation does not exist. All responsible sources may submit a capability statement, proposal, or quotation, which shall be considered by the agency.

NO PHONE INQUIRIES, PLEASE.

CAPABILITY STATEMENT SUBMISSION REQUIREMENTS
(PLEASE REVIEW ALL BELOW)

1. Point of Contact name, email address and phone number, CAGE code and UEI number (if available);
2. In the event that the organization is a small business, please state the category of small business, such as 8(a), HUBZone, SDVOSB/VOSB, Women-Owned Small Business;
3. The Government will evaluate the capabilities of an interested party based on their ability to perform the above-described dredging services without creating a substantial duplication of cost to the Government. Submissions must explicitly detail how the firm intends to be price competitive with the cost (no-fee) mechanism available through Congressional authorization to contract directly with Port of Portland.

Email responses with subject line, "PANNWD-26-P-0000-028896 – C&LW Pipeline Dredging Notice of Intent" to the contacts listed in this notice.