Fair and Reasonable: A Conceptual Insight into USACE Dredge Estimating
Publication: Journal of Waterway, Port, Coastal, and Ocean Engineering
Volume 150, Issue 5
Abstract
The USACE boasts a navigation portfolio of over 19,312 km (12,000 mi) of shallow draft [from 2.74 m (9 ft) to 4.27 m (14 ft)] inland and intracoastal waterways, 20,921 km (13,000 mi) of deep draft [4.27 m (14 ft) and greater] channels, and 400 ports, harbors, and turning basins. To ensure that these channels remain navigable and at congressionally authorized dimensions, channel maintenance practices are performed annually by dredging. Most of these dredging operations are performed by private companies under contract to the USACE districts. With an abundance of navigation channel maintenance needs and a limited dredging fleet, accurate scheduling and the timely arrival of the dredging fleet is required. Project delays due to production issues, weather delays, contracting issues, or both will generally impact future scheduled projects, navigation, and commerce. Nonawardable bids happen when the contractor(s) proposal(s) are too high compared with the Independent Government Estimate (IGE). These nonawardable bids lead to significant time delays, because the USACE district must then engage in bid verification calls, negotiations, the potential cancellation of the contract solicitation, or both and the subsequent resolicitation for work. Therefore, it is extremely important that USACE cost estimates adequately reflect the level of effort the project requires when capturing all project-associated costs. This paper aims to summarize the USACE conceptual approach to dredge cost estimating by highlighting the complex variables that are associated with this type of estimate.
Introduction
From 2013 to 2023, the USACE issued over 7,600 dredging and dredge material placement-related contracts at a cost of $12.41 billion. This breaks down to an average of 760 dredging-related contract actions per year (Virtual Contracting Enterprise-Business Intelligence, USACE 2023a). Although internal USACE records could not be found to fully validate this, it is theorized by the dredging and cost communities of practice that over 90% of dredging projects receive bids within the awardable range at bid opening. The Dredge Information System (DIS) captures dredge contracting and bid information, which includes nonawarded projects; however, if a nonawardable bid is resolved by resolicitation, negotiation, or modification to the IGE, the DIS is updated to reflect this. Therefore, fully verifying the percentage of nonawardable bids that are received compared with solicitations is difficult. If this statistic is true, it shows that USACE Cost Estimators are in tune with the available equipment, costs, and associated production rates in their respective regions. With so many projects being solicited annually and an industry dredging fleet that is fully scheduled, the need to award contracts without delay is significant (USACE 2017). Projects do not usually have the opportunity for additional funding; therefore, a true understanding of the costs that are associated with a project is essential for planning. With the breadth of information that a cost engineer must consider, achieving an accurate cost estimate could become a complicated task. If bids for a dredging project surpass the unawardable threshold, there will be scrutiny over the estimate. However, very few people know the totality of the information that is needed to create these estimates. This paper aims to provide a conceptual overview of the process and items that are considered when USACE Cost Engineers create their IGEs for dredging projects.
Dredging estimates must be prepared with a USACE internal program, the Cost Engineering Dredge Estimating Program (CEDEP) (USACE 2016). This program stores much of the dredging data that will be discussed in the following sections and determines the productivity and costs that are described in this paper. Due to proprietary concerns for industry and the USACE, this paper will not discuss the specific inner workings or detailed data that are contained within the CEDEP.
USACE Dredge Bidding and Contracting Process
The USACE is composed of nine divisions, which are geographically defined by watersheds (Fig. 1). Within each division, there are individual districts that conduct business within their congressionally mandated area of responsibility. Many of these districts oversee navigable channels and harbors and must ensure that the projects are maintained to a certain depth and width, which requires maintenance dredging. The USACE might only perform dredging operations in federally authorized waters, which uses funding that has been congressionally allocated to each project.
Fig. 1. (Color) USACE districts and divisions within Continental US.
(Reprinted from USACE 2023b, courtesy of the USACE)
Annually, districts assess their navigation projects and identify the dredging that is required to maintain the authorized channel dimensions for the year. Districts create and submit ranked navigation budget line items (work packages) through their respective division offices to the USACE Headquarters, where the US navigation work packages are ranked against each other and potentially funded through appropriation legislation. Once a project has been funded, the district might perform additional survey operations of their navigation channels to identify where and what quantity of sediment needs to be removed from the channel. The district engineering and operations divisions work together to create plans and specifications for the project. Multiple acquisition strategies could be used for the government to contract services [e.g., invitation for bid (IFB), lowest price technically awardable, request for proposal, or small business set-aside]; the most common for maintenance dredging projects are full and open competitions with low-bid, which uses IFB. This means any business (large or small) could provide a bid to perform the work, with the contract being awarded to the lowest responsive and responsible bidder. The USACE creates a solicitation for the dredging project, which includes plans and specifications, on the contract opportunities website, formerly FedBizOps. The duration from solicitation to award is usually approximately 45–60 days. Contractors have a solicitation period to review the project needs and provide an offer to the USACE contracting office in a sealed envelope. The USACE District Cost Engineer will have reviewed the plans and specs and provided, in a sealed envelope, an IGE. At bid opening, bids from each company are opened, followed by the IGE. To be awarded the contract, the apparent low bidder or company who provided the lowest offer must not exceed the IGE by >25% for civil works projects (USACE 2019). If no bids are received within this threshold, the bids are unawardable, which could lead to significant delays in contract award. In rare cases, the nonawardable bids could lead to a total cancellation of the solicitation, with the district having to resolicit for bids. With such a large federal navigation portfolio coupled with private dredging needs, the schedules of the dredging industry fleet are full. Often, dredges have multiple jobs lined up behind their current work. Delays from weeks to months will have a cascading effect on that project and all the projects behind it. With environmental and seasonal work window limitations, staying on schedule becomes crucial. This makes the role of a USACE Cost Engineer and their ability to produce a quality estimate much more important.
USACE versus Industry Estimating
Before delving into the USACE estimating process, it is important to understand some of the key differences between industry estimates and bids and USACE IGEs. The largest difference between the two, and a driver of why certain estimating practices differ, is that the industry must be the low bidder to be successful. A dredging contractor must produce an estimate that is lower than their competitors while ensuring that the company could perform the work and make a profit. The USACE estimates are intended to reflect a fair and reasonable cost to perform the work in their region.
It is common for industry to consider what competing companies might bid for a project; however, the estimate will reflect what their companies' dredges could perform the work for when maintaining profitability. Each dredge has a specific daily rate and maximum and minimum productivity rates in different soils and climates. This allows companies to accurately predict dredge performance and project costs based on the equipment selected. However, the USACE relies on generic-sized dredges to reflect the industry fleet and the anticipated crew size and costs that are associated with these dredges. Therefore, USACE Cost Engineers could produce a cost estimate that is considered fair and reasonable by industry and government. According to ER 1110-2-1302 (USACE 2016), Civil Works Cost Engineering, “By Public Law 95-269, all construction cost estimates shall be prepared as though the government were a prudent and well-equipped contractor. Therefore, all costs, which a prudent and experienced contractor would expect to incur, shall be included in the cost estimate.”
Dredge Selection
When creating a dredging estimate, the estimator must first select a dredge for the project. This seems simple enough; however, many factors must be considered. The first is the dredge type. In many cases, the project specifications will denote what type of dredge should be used for a project. However, some projects allow the contractor to offer different dredge types if the project can be completed in the allotted time. Understanding the physical constraints of a project will allow the cost engineer to narrow the selection options. Items such as soil properties, vessel draft, distance to placement site, type of placement site, water velocities, and vessel traffic must be considered when identifying the best type of dredge for a project. The USACE Engineering Manual (EM) 1110-5-5025 defines the three main types of dredges.
1.
Hopper: a seagoing vessel that excavates material hydraulically and transports it to a placement site in a hopper that is built into the hull of the vessel (Fig. 2).
2.
Pipeline: normally non-self-propelled dredges that might employ a mechanical cutter to break up the material, which is then excavated hydraulically and transported to the placement site through a pipeline (Fig. 3).
3.
Mechanical: characterized by the use of some form of bucket to excavate and raise the bottom material. Normally, the mechanical dredge deposits material into a barge or scow that transports it to the placement site (Fig. 4).
Fig. 2. (Color) Hopper dredge.
(Reprinted from USACE 2015, courtesy of USACE)
Fig. 3. (Color) Cutterhead pipeline dredge.
(Reprinted from USACE 2015, courtesy of USACE.)
Fig. 4. (Color) Mechanical dredge.
(Reprinted from USACE 2015, courtesy of USACE.)
The USACE Cost Engineers must have a full understanding of the dredge fleet and fleet availability for their region. The industry hopper dredge fleet currently contains 14 dredges (volume) from approximately 2,676 m³ (3,500 yards3) to 11,468 m³ (15,000 yards3), with an additional three hoppers expected by 2025 (DCA 2023). These dredges work across the country and work unless in drydock for repairs. Except for the larger pipeline and mechanical dredges, most pipelines and mechanical-type dredges are regionalized and only travel within a select range. The quantity and size of the available dredges will differ depending on location. From historical dredge production records, cutterhead dredges that worked on USACE projects were from 15.24 cm (6 in.) to 81.28 cm (32 in.), with mechanical dredge buckets from 0.76 m³
(1 yard3) to 38 m³ (50 yards3) (Emery et al. 2022). As previously mentioned, the USACE estimate needs to reflect industry conditions, which is why understanding this information is so important. For example, the plans and specifications of a project might call for a hydraulic pipeline dredge from 61 cm (24 in.) to 69 cm (27 in.). Because it is larger, a 69 cm (27 in.) dredge will out-produce a smaller one, which could be why a cost engineer selects it. However, if no contractors in the region own a 69 cm (27 in.) dredge, but there are four 61 cm (24 in.) dredges locally, it makes sense to estimate with a 61 cm (24 in.) dredge.
Choosing a dredge that will probably perform the work is essential, because this will change the cost and duration of a project. Each dredge requires different personnel, attendant vessels, and equipment, which vastly changes the daily rates of the dredge. In addition, the productivity of each dredge type and size could be very different. In general, the cost of a dredging operation can be summarized by the following equation:
(1)
Dredge Production Estimation
The controlling factor in the cost of dredging is the amount of time the dredge spends on-site to accomplish the work. To estimate the time that a dredge will spend on-site, the cost engineer needs to know the total volume of material to be removed from the site and the assumed production rate that the dredge could achieve for the soil to be dredged. As discussed previously, multiple types of dredges remove material in different ways. Therefore, estimating production is different for each.
Hopper Dredge Production
Hopper dredges are designed to remove material from the project area by housing the material within the dredge hull and hopper. The dredge loads the hopper, then turns and sails to the dredge material placement location, dumps, pumps, or both the material from the vessel, turns and sails back to the dredging location and repeats the cycle. This is referred to as the hopper dredging cycle. The USACE Cost Engineers estimate the total time for each dredge cycle by breaking down the time needed to complete each of the previously described items. To achieve this, the engineer must understand how long it takes to fill the dredge with material (which varies by material type and dredge volume), how far and at what speeds the dredge could travel to the placement site and back, and how long it takes to place the material
(2)
To estimate the hopper production rate, the cost engineer will take the assumed loaded volume of the hopper and divide it by the time required to complete a cycle. The volume that is loaded into the hopper will change depending on the material type. Loading could be affected by sailing distance, unfavorable weather, or rough seas. These are factors that the cost engineer has to consider when choosing the loading volume for the dredge selected. Dredging operations never achieve a 100% effective working time (EWT). Delays are common in dredging and are caused by various internal and external factors. Maritime traffic, weather, repairs, and any dredging restrictions that are due to social, environmental, or both restrictions could affect productivity. To help understand and estimate the EWT percentages, cost engineers will review historic dredging production data to look for trends in delays. The derived EWT percentage will be multiplied by the production rate to produce the final working production rate, expressed aswhere Vol = volume of sediment removed (typically expressed as CY in the US); and EWT = effective working time. The volume referenced previously generally reflects the paid dredged volume, with each contract potentially determining this volume differently. Some projects define the volume removed by an in-bin (hopper) measurement, and others are determined by the total volume placed, removed (in situ), or both, which are determined by before and after dredge surveys.
(3)
Therefore, the cost engineer could derive the total time that is required to perform the dredging operation and remove all the desired material.
Cutterhead and Pipeline
Differing from the operation of the hopper dredge, the cutterhead pipeline dredge or cutterhead suction dredge (CSD) is designed for continuous sediment removal. The rotating suction cutterhead works to loosen the bottom material, which is pumped through a pipeline to its placement destination. A cycle time for this operation could be calculated by determining items, such as step ahead and swing times; the USACE estimates do not include cycle times with the operation of the CSD. Instead, material removal rates for CSD are estimated with pump slurry curves, which offer insight into pump output capabilities based on horsepower (hp) and head differential (depth) in varying sediments (Randall 2022). The USACE dredge estimating program contains an array of averaged production rates that are based on pump slurry curves that were created for different-sized dredge pumps.
Following the dredge selection and associated production rates, the cost engineer must modify the production based on several factors. Issues such as pipeline distance, material type, bank height (depth of material to be removed), and clean-up dredging all significantly impact the achievable production rates of the CSD. For example, booster pumps are needed for longer pipeline distances. The cost engineer will consider these items and adjust the productivity as needed.
Similar to the hopper production estimating process, the cost engineer will apply an assumed EWT percentage to the productivity rate. Cutterhead dredges are non-self-propelled and require assistant vessels to move locations. Moving out of the way of marine transportation could cause a significant delay in the dredge operation, because the dredge and discharge pipeline will need to be moved to allow traffic to pass and then moved back into place. The use of a submerged pipeline could reduce potential delays due to navigation passage; however, this could reduce the available depths within the channel. As previously mentioned, historical records offer tremendous insight into lost time due to issues such as traffic, weather, and repairs.
Mechanical
Mechanical dredging refers to either an excavator or a crane that is mounted on a barge with an attached open-faced or clamshell-type bucket. These dredges remove material from a location one scoop (or swing) at a time. In some operations, dredges could deposit material directly adjacent to the dredging location. However, more often, dredges load material into barges or scows, which are ferried to the placement location by an attendant vessel. Because some placement locations could be miles away, it is common to see multiple scows on a job to reduce the waiting time between loading and placing the material. Therefore, the dredging operation could be broken into two separate tasks: (1) dredging and removal of material; and (2) material transport.
The first step when estimating the mechanical dredge production rates is to determine the volume of material in each swing. This does not just equate to the size of the bucket. For each type of sediment, there are differing size voids between the sediment particles, which will alter the amount of sediment in each grab. In addition, bank height (vertical depth to be dredged) plays a role in the productivity of the dredge. If the dredge cuts to a depth that does not allow for a full bucket in each grab, the production will be slow. Once the bucket volume is determined, the cost engineer must estimate how long it will take for the dredge to acquire the material from the channel bottom and place it in the scow; this is known as the bucket cycle time. Based on this time, the cost engineer will determine how many cycles could be made within an hour and what the resultant removal volume would be over this hour. This will be the excavation production rate.
Similarly, the cost engineer will be responsible for estimating the size of and number of scows that are used on the project, the estimated capacity the scows will be filled to, the percent of solids within the dredge slurry, and the number or size of towing vessels to be used on the project. The average haul cycle time will be similar to that of a hopper dredge and could be defined as
(4)
The project duration will be controlled by the activity (excavation or hauling) that takes the longest time to complete. For example, if a dredge could excavate with a productivity of 2,294 m³/day (3,000 CY/day), but hauling capabilities allow for 1,529 m³/day (2,000 CY/day), the hauling production will be the controlling rate. From an operational and efficiency stance, it might make the most sense to add hauling capabilities until they could achieve the expected production rate. If the hauling capabilities are added to the estimate, the daily operational cost will increase. Then, the cost engineer will need to determine whether the increased daily productivity (shortened time on-site) is worth the increased daily cost. If the project volumetric cost is not reduced, it is not worth adding the additional hauling equipment.
Fundamental Costs of Dredging
As shown in Eq. (1), the costs of dredging could be broken into three main categories: (1) ownership; (2) operating; and (3) labor. Although generally bid for separately, the mobilization and demobilization costs are functions of these three items. Because each type of dredge requires different equipment and attendant vessels, they require different crew makeups. Understanding and accounting for the full fleet that is required to perform the dredging operation is essential. The following sections will provide insight into the various cost components that make up these categories.
Ownership Cost Elements
The ownership costs for dredging equipment (and all construction equipment) are developed with the processes and tables described in the Engineering Pamphlet (EP) 1110-1-8, Construction Equipment Ownership and Operating Expense Schedule (USACE 2021). Here, broken into 12 geographic regions (Fig. 5), the cost engineer can access defined hourly equipment ownership and operating expenses, equipment age adjustment factors for ownership and standby times, and local area adjustment factors. The information that is contained within this EP is essential for estimating the costs of ownership for the dredges, the attendant vessels, pipeline and joints, survey vessels, or any other item that is required for the operation. This requires an understanding of more than the original cost of the equipment. Using the assumed acquisition, improvement, salvage, and economic life values, the cost engineer will derive the following costs for each piece of equipment on-site.
1. Depreciation
2. Marine insurance
3. Taxes
4. Layup costs
5. Yard costs
Fig. 5. (Color) EP 1110-1-8 regions.
(Reprinted from USACE 2021, courtesy of USACE.)
Finally, the USACE must consider the facilities capital cost of money (FCCM). The FCCM is an allowable expense that pays contractors for investments in fixed assets (e.g., facilities or equipment) used in contract performance (National Archives n.d.). These costs will be summed into one monthly ownership cost. This will eventually be multiplied by the estimated job duration to define the total ownership cost for the project.
Operating Cost Elements
Similar to the dredge ownership costs, the approach to estimating dredge operating costs is defined in EP 1110-1-8 and uses the quantitative information contained within EP 1110-1-8 Table 4.1 (Fig. 6). The major operating items considered are fuel, water, lubrication, and supplies (WLS), and repair costs. As with ownership costs, operating costs are developed for each piece of equipment, calculated into hourly rates, and then multiplied by the anticipated duration of the job.
Fig. 6. Table 4.1 (partial), EP 1110-1-8.
(Reprinted from USACE 2021, courtesy of USACE.)
For each piece of equipment contained within the dredging fleet, the cost engineer assumes a prime engine hp. Many pieces of equipment will have a secondary (or multiple) engine(s) for which the hp must be defined. Using EP 1110-1-8 Table 4.1, the engineer will determine the associated engine fuel factors for gas and diesel engines and estimate the total fuel that is required for each piece of equipment
(5)
Similarly, EP 1110-1-8, Table 4.1 includes the WLS multiplication factors to use for each piece of equipment. This factor is applied to the derived assumed hourly fuel costs to produce an estimated WLS cost
(6)
The last of the major operating cost elements is the estimated cost of repair for contractor equipment during the project. This will be defined for each piece of equipment, which includes pipeline and couplings (if applicable). EP 1110-1-8 Table 4.1 is used to select the repair factor (RPR), which “is an allowance for all major and minor repairs.” This does not include additional costs for items such as dry-docking fees. To calculate the estimated repair costs, the USACE uses
(7)
Labor Costs
As with the operating and ownership costs, the crew makeup for each dredging project will be highly variable and depends on the size and type of dredge, the required attendant fleet, and shoreline operations. To accurately estimate the costs that are associated with labor, the cost engineer must accurately identify the required dredge fleet and the crew that is needed to operate it. The general positions that are associated with each type of dredging are indicated in Table 1.
| Hopper | Pipeline | Mechanical |
|---|---|---|
| Captain | Leverman | Operators |
| Chief Engineer | Watch Engineer | Engineers |
| Engineer | Dredge Mate | Mates |
| Mate | Tug Master | Launchmen |
| Drag tender | Launchman | Deckhands |
| Watch AB | Maintenance Engineer | Oiler |
| Cook | Welder | Welder |
| Steward | Oiler | Tug Captain |
| Seaman AB | Deckhand | Engineer (tow tug) |
| Ord. Seaman | Electrician | Deckhands (tow tug) |
| Oiler | Dump Foreman | Scowmen |
| Launch man | Equipment Operator | Cook and Messman could be included in the dredge crew, although many mechanical dredges do not have quarters or kitchens |
| Electrician or Welder | Shoreman and cook | Site Safety and Health Officer (SSHO) |
| Dump Foreman—Shore | Mess Cook | — |
| Equipment Operator—Shore | Messman | — |
| Shoreman—Shore | Booster Engineer | — |
| Superintendent—Shore | SSHO | — |
| SSHO | — | — |
Note: AB = able (seaman); and Ord. = ordinary (seaman).
The job positions in Table 1 reflect most personnel requirements that are associated with each type of dredging, although each dredge is unique and might include additional or fewer positions. Similarly, there might be more than one employee in each position, especially with 24-h dredge operations. In that case, a dredge might have two or three separate crews who work shifts throughout the day. With pipeline dredging operations, it is common for industry to employ an additional crew, known as a bull-gang, whose sole job is the construction and dismantling of pipelines needed throughout the project, especially in projects with multiple placement sites.
Once a crew has been defined, the cost engineer will update the associated wage rates with rates that will reflect the industry wages in their respective regions. To do so, the USACE Cost Engineer must consider and apply the following information and markups to the base salary for each position.
1.
Number of shifts
2.
Hours per shift
3.
Days worked per week
4.
Social Security Tax
5.
Employee Liability Tax
6.
Workers compensation
7.
Unemployment tax
8.
Fringe benefits
9.
Overtime
10.
Vacation and holidays
The cost engineer will have to define further how much time each position spends on the project. For most positions, the cost engineer could assume that the employee is being paid for 100% of the project duration, although there are positions, crews, or both that might only be needed for portions of the job. Once all the pay rates and durations have been assessed, the cost engineer could produce an assumed project labor cost.
Final Project Costs
At this point, the USACE Cost Engineer has defined the dredging plant, associated crew, monthly costs, and estimated project duration. To complete the estimate, the estimator needs to include mobilization and demobilization charges and apply the associated project markups.
Mobilization and Demobilization
Mobilization and demobilization costs are intended to cover all costs that are associated with travel and operations that are performed by the contractor before and following the work, such as dredge preparation, breakdown, and transport costs that are associated with the upcoming project. This should include items such as pipeline and project area setup, which are often performed by additional crews and vessels from days to weeks before the dredge’s arrival. The USACE engineers estimate the time to prepare the dredge for mobilization, labor, and travel costs to relocate crews to the job site and the time to prepare the dredge for work once they arrive at the job site. With a known mobilization distance and an estimated sailing speed, the total travel days could be estimated. Similarly, the time to disassemble the pipeline, prepare the dredge to demobilize, sail, and prepare the dredge for layup needs to be estimated.
Markups
Standard construction project markups must be applied to the final estimate before it is considered finished. These markups include the contractor’s overheads (job and home offices), profit, and bond.
Improvements and Training
The US dredge industry is ever-changing and striving to improve productivity by lowering downtime and costly repairs. Therefore, older equipment is being retired, and newer equipment is being added annually. Similarly, the USACE goals for its dredging program are ever-evolving, with a large emphasis on the beneficial use of dredged material, which was highlighted by Spellmon's Command Philosophy Notice to use 70% of dredged material beneficially by 2030 (USACE 2015). To achieve this goal, the USACE and industry will have to be creative with project planning and operational approaches. To keep up with ever-changing project conditions, approaches, and available dredging equipment, the USACE ensures that its dredging cost estimators complete continuous learning requirements.
Multiple annual training opportunities are offered for cost engineers and operations managers to learn how to appropriately use the CEDEP program. In-depth CEDEP training offers insight into effective program applications. It discusses the range of dredging equipment, placement activities, and costs and duration that are associated with dredging activities that inform the CEDEP model. Similarly, USACE personnel could take dredging fundamentals and cost estimating courses on the USACE Prospect Training Program. Many coastal and navigation-related industry organizations provide foundational dredging breakout sessions as part of their annual meetings.
Regional dredging teams were created in 2020 with dredging operations personnel and cost engineers to discuss dredging projects regionally. This allows direct engagement with the operations and construction personnel for cost engineers who plan and oversee the dredging projects these engineers are bidding on and the constraints seen in the field with each.
In 2020, as part of the annual USACE National Dredge Meeting, the USACE and Dredge Contractors of America (DCA) held a USACE–Industry dredge cost workshop. Dredging estimators and USACE engineers met in breakout sessions to discuss estimating practices, assumptions, and potential misunderstandings of dredge productivity. Feedback from industry and the USACE on this event signaled an overwhelmingly positive response.
Jointly funded by Headquarters USACE and the Dredging Innovations Group (DIG), the Engineering Research and Development Center in partnership with the USACE Cost Engineering Center of Expertise (Cost McX), Walla Walla District, WA (NWW), has performed a CEDEP validation effort to ensure that the CEDEP is performing as intended and that the equations and background data that are contained in the program are accurate.
The USACE strives to understand industry costs and production fully. One major limitation that USACE estimators have is a full understanding of the industry's ownership costs. Without industry-supplied data, the USACE will only be able to estimate these costs based on the assumed value of the dredge and associated equipment.
Conclusion
Ensuring safe navigation and authorized dimensions on federal waterways is one of the USACE’s missions. Awarding projects and commencing dredge operations in a timely manner is a key piece to achieving this responsibility. Successful navigation mission delivery cannot be achieved without producing an accurate, fair, and reasonable cost estimate for the dredging project. Therefore, USACE Cost Engineers must consider the multiple variables within the ownership, operating, and labor elements. To increase the knowledge base of its cost engineers, the USACE strives to provide them with annual training, updates to the CEDEP program, field opportunities, and expanded access to historical records. With hundreds of projects awarded annually, it is safe to say that our engineers are meeting this expectation. Continued collaborative efforts within the USACE Cost Community of Practice, USACE Dredging Operations, and our industry partners will continue to advance the USACE Cost Engineers’ understanding of dredging operations and costs.
Data Availability Statement
Some or all data used during the study are proprietary or confidential and may only be provided with restrictions (e.g., anonymized data)
Acknowledgments
The author would like to thank Mr. Adam Mamrak and Mr. Phil Ohnstad from the USACE Cost Engineering Mandatory Center of Expertise, and Mr. Tony Ledford, Jacksonville District, for their support and technical assistance in this effort. This work was funded and completed under the USACE DIG with additional funding and direction from USACEHQ Cost Engineering.
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Information & Authors
Information
Published In
Journal of Waterway, Port, Coastal, and Ocean Engineering
Volume 150 • Issue 5 • September 2024
Copyright
This work is made available under the terms of the Creative Commons Attribution 4.0 International license, https://creativecommons.org/licenses/by/4.0/.
History
Received: Dec 27, 2023
Accepted: Apr 15, 2024
Published online: May 29, 2024
Published in print: Sep 1, 2024
Discussion open until: Oct 29, 2024
ASCE Technical Topics:
- Bids
- Business management
- Channels (waterway)
- Construction engineering
- Construction management
- Contracts and subcontracts
- Dredging
- Hydraulic engineering
- Hydraulic structures
- Infrastructure
- Navigation (waterway)
- Practice and Profession
- Project delay
- Project management
- River engineering
- Sediment
- Transportation engineering
- Water and water resources
- Water transportation
- Waterways
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