DoD awards $85.8M contract for Hurricane Harvey debris removal in Texas
Contract Overview
Contract Amount: $85,802,938 ($85.8M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2018-07-06
End Date: 2020-07-15
Contract Duration: 740 days
Daily Burn Rate: $116.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF SWG::CT::SWG WEST FORK SAN JACITO, EMERGENCY DEBRIS REMOVAL, HARRIS COUNTY, TEXAS. WORK INCLUDES DREDGING OF SEDIMENT DEBRIS. RESULTING FROM HURRICANE HARVEY
Place of Performance
Location: SPRING, MONTGOMERY County, TEXAS, 77380
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $85.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF SWG::CT::SWG WEST FORK SAN JACITO, EMERGENCY DEBRIS REMOVAL, HARRIS COUNTY, TEXAS. WORK INCLUDES DREDGING OF SEDIMENT DEBRIS. RESULTING FROM HURRICANE HARVEY Key points: 1. Significant contract awarded for post-hurricane recovery efforts. 2. Competition method indicates potential for price discovery. 3. Risk of cost overruns due to emergency nature and duration. 4. Construction sector contract addresses critical infrastructure needs.
Value Assessment
Rating: fair
The contract value of $85.8M for debris removal is substantial. Benchmarking against similar large-scale disaster recovery contracts is difficult without more specific cost breakdowns, but the fixed-price nature suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method might have impacted price discovery, potentially leading to higher costs than a truly open competition.
Taxpayer Impact: Taxpayer funds are being used for essential disaster recovery. While competition was limited, the fixed-price contract aims to control costs for this critical public service.
Public Impact
Restores critical infrastructure in Harris County, Texas, following Hurricane Harvey. Supports economic recovery by clearing debris and enabling rebuilding. Demonstrates federal commitment to disaster relief and resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Emergency nature of work can lead to unforeseen expenses.
- Long contract duration increases risk of cost escalation.
Positive Signals
- Addresses critical post-disaster infrastructure needs.
- Firm fixed-price contract provides cost certainty.
- Contract awarded to a known entity in the dredging industry.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically addressing debris removal and dredging. Spending in this sector often spikes after natural disasters, with significant federal investment in recovery and rebuilding efforts.
Small Business Impact
The contract was awarded to GREAT LAKES DREDGE & DOCK CO, LLC, a large business. There is no indication of small business participation in this specific award, which is common for large-scale, specialized disaster recovery projects.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the DoD. Oversight would typically involve contract management by the Army Corps of Engineers, ensuring work completion and adherence to contract terms. The 'after exclusion of sources' clause warrants scrutiny.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Emergency contract execution increases risk of unforeseen costs.
- Long duration (740 days) extends exposure to risks.
- Potential for scope creep in debris removal projects.
- Environmental compliance risks associated with dredging.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF SWG::CT::SWG WEST FORK SAN JACITO, EMERGENCY DEBRIS REMOVAL, HARRIS COUNTY, TEXAS. WORK INCLUDES DREDGING OF SEDIMENT DEBRIS. RESULTING FROM HURRICANE HARVEY
Who is the contractor on this award?
The obligated recipient is GREAT LAKES DREDGE & DOCK CO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $85.8 million.
What is the period of performance?
Start: 2018-07-06. End: 2020-07-15.
What specific criteria led to the exclusion of other potential sources, and how did this impact the final price?
The exclusion of sources suggests a specific justification was made, possibly related to specialized equipment, immediate availability, or unique expertise required for emergency debris removal post-Hurricane Harvey. Understanding these criteria is crucial to assessing whether the limited competition was justified and if it resulted in a fair and reasonable price compared to what might have been achieved through a broader solicitation.
What are the key performance indicators and risk mitigation strategies employed to manage the $85.8M contract over its 740-day duration?
Effective management of such a large, long-duration contract requires clear performance metrics for debris removal volume, disposal, and environmental compliance. Risk mitigation strategies likely include contingency planning for weather delays, managing disposal site capacity, and robust quality assurance to prevent rework. Regular progress reviews and financial oversight are essential to track spending against milestones and address potential cost overruns proactively.
How does the cost of this emergency debris removal compare to similar post-disaster recovery efforts in other regions or for other events?
A direct cost comparison is challenging due to the unique variables of each disaster (scale, type of debris, geographic challenges, available resources). However, analyzing the cost per cubic yard of debris removed, the efficiency of the dredging operations, and the overall project timeline against benchmarks from other major hurricane recovery efforts would provide insight into the value for money achieved in this specific contract.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W9126G18B0019
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Great Lakes Dredge & Dock Corporation (UEI: 362899130)
Address: 2122 YORK RD STE 200, OAK BROOK, IL, 60523
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $85,802,938
Exercised Options: $85,802,938
Current Obligation: $85,802,938
Actual Outlays: $241,376
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $25,596,600
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-07-06
Current End Date: 2020-07-15
Potential End Date: 2020-07-15 00:00:00
Last Modified: 2020-07-20
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