DoD awards $59.6M for Mississippi barrier island restoration, with 3 bids received

Contract Overview

Contract Amount: $59,578,263 ($59.6M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-20

End Date: 2020-12-04

Contract Duration: 441 days

Daily Burn Rate: $135.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MSCIP COMPREHENSIVE BARRIER ISLAND RESTORATION PROJECT, SHIP ISLAND PHASES 3&4, HARRISON COUNTY, MISSISSIPPI

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $59.6 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MSCIP COMPREHENSIVE BARRIER ISLAND RESTORATION PROJECT, SHIP ISLAND PHASES 3&4, HARRISON COUNTY, MISSISSIPPI Key points: 1. Contract awarded at a competitive price point, indicating good value for the restoration effort. 2. Full and open competition suggests a robust market for this type of civil engineering work. 3. The firm-fixed-price structure transfers risk to the contractor, potentially benefiting the government. 4. Project duration of 441 days is within a reasonable timeframe for complex civil engineering. 5. This contract supports critical environmental infrastructure in the Gulf Coast region.

Value Assessment

Rating: good

The contract value of $59.6 million for comprehensive barrier island restoration appears reasonable given the scope of work. Benchmarking against similar large-scale civil engineering projects, particularly those involving coastal resilience and environmental remediation, suggests that the pricing is competitive. The firm-fixed-price contract type further supports value by establishing a clear cost ceiling, transferring potential cost overruns to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bids received. This level of competition is generally positive, indicating that multiple qualified contractors were interested and able to bid on the project. The presence of three bidders suggests a healthy market for this specialized type of heavy civil engineering construction, which likely contributed to achieving a competitive price.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

Benefits coastal communities in Harrison County, Mississippi, by enhancing storm surge protection. Delivers critical infrastructure improvements for environmental resilience and ecological restoration. Geographic impact is focused on Ship Island and surrounding areas within Mississippi's coastal zone. Supports a specialized segment of the construction workforce involved in heavy civil engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen environmental conditions impacting project timeline or cost, despite fixed-price.
Dependence on contractor's specialized equipment and personnel for timely execution.

Positive Signals

Firm-fixed-price contract structure limits government's exposure to cost overruns.
Award to an established contractor with experience in dredging and marine construction.
Project addresses critical infrastructure needs for coastal protection.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal resilience and environmental restoration. The market for such projects is driven by federal and state initiatives aimed at protecting coastlines from erosion and storm damage. Comparable spending benchmarks for large-scale dredging, land reclamation, and barrier island construction projects can range from tens to hundreds of millions of dollars, depending on scale and complexity.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Given the specialized nature and scale of this project, it is likely that larger firms with extensive resources and experience were the primary bidders. Further analysis would be needed to determine if small businesses could participate effectively as subcontractors.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, implying standard federal procurement oversight. Oversight would typically involve contract officers, technical monitors, and potentially an Inspector General's office to ensure compliance with terms, quality standards, and budget adherence. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Coastal Barrier Resource System
Shoreline Protection Projects
Environmental Infrastructure Projects
Army Corps of Engineers Civil Works Programs

Risk Flags

Environmental Risk
Weather Dependency
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.6 million to GREAT LAKES DREDGE & DOCK CO, LLC. MSCIP COMPREHENSIVE BARRIER ISLAND RESTORATION PROJECT, SHIP ISLAND PHASES 3&4, HARRISON COUNTY, MISSISSIPPI

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 $59.6 million.

What is the period of performance?

Start: 2019-09-20. End: 2020-12-04.

What is the track record of Great Lakes Dredge & Dock Co, LLC on similar federal contracts?

Great Lakes Dredge & Dock Co, LLC (GLDD) has a significant history of performing large-scale marine construction and dredging projects for federal agencies, including the U.S. Army Corps of Engineers. Their portfolio includes numerous contracts for coastal restoration, navigation channel maintenance, and harbor deepening. Publicly available contract data indicates GLDD has been awarded hundreds of millions of dollars in federal contracts over the past decade. Their experience often involves complex environmental considerations and challenging marine environments, similar to the MSCIP project. While specific performance metrics for individual contracts are not detailed here, their consistent award of substantial federal work suggests a generally positive track record and capability to execute projects of this magnitude.

How does the awarded amount compare to the estimated value or initial budget for the MSCIP project?

The provided data indicates an awarded amount of $59,578,262.65. Without access to the initial budget, estimated cost, or the bid amounts from the other two competitors, a direct comparison is limited. However, the fact that the contract was awarded under full and open competition with three bidders suggests that the awarded price was likely within an acceptable range of the government's estimate and competitive among the bidders. If the awarded amount is significantly below the initial estimate, it could indicate strong competition or favorable market conditions. Conversely, if it's close to or exceeds the estimate, further scrutiny of the pricing might be warranted, though not necessarily indicative of poor value given the complexities of such projects.

What are the primary risks associated with this barrier island restoration project?

The primary risks associated with this barrier island restoration project include environmental factors, contractor performance, and potential scope creep. Environmental risks involve unforeseen geological conditions, extreme weather events (hurricanes, storms) that could damage ongoing work or completed sections, and potential impacts on marine ecosystems during dredging and construction. Contractor performance risks relate to the timely execution of the project, quality of work, and adherence to specifications, although the firm-fixed-price contract mitigates financial risk for the government. Scope creep is a risk if the project requirements expand beyond the initial definition, potentially leading to cost increases and schedule delays, though the definitive contract structure aims to limit this.

How effective is the firm-fixed-price contract type in managing costs for this type of project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in projects where the scope of work is well-defined and risks can be reasonably anticipated, such as this barrier island restoration. Under an FFP contract, the contractor agrees to a total price for a well-defined product or service. This shifts the risk of cost overruns from the government to the contractor. If the contractor incurs higher costs than anticipated due to inefficiencies or unforeseen challenges (excluding government-caused delays or changes), their profit margin is reduced. This incentivizes the contractor to manage their costs efficiently and complete the work within the agreed-upon price, providing cost certainty for the government. However, FFP contracts may sometimes lead to higher initial bid prices to account for the contractor's risk.

What is the historical spending trend for barrier island restoration projects by the Department of the Army?

Historical spending trends for barrier island restoration projects by the Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), show significant and often increasing investment over the past two decades. This trend is driven by factors such as increased coastal erosion due to climate change, rising sea levels, and the growing recognition of the importance of natural infrastructure for storm damage reduction and ecosystem resilience. USACE executes numerous projects annually across the nation, with funding levels fluctuating based on congressional appropriations, disaster recovery needs, and specific program priorities. While specific aggregate figures for 'barrier island restoration' can be difficult to isolate from broader coastal protection or civil works categories, the overall commitment to coastal resilience indicates a sustained and substantial allocation of resources to such initiatives.

What are the implications of the 'Other Heavy and Civil Engineering Construction' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' signifies that this contract is for construction projects not classified under other heavy and civil engineering categories. This typically includes projects like marine construction, dredging, flood control, dams, bridges, tunnels, and land reclamation. For this specific contract, it correctly categorizes the work involved in restoring barrier islands, which often requires extensive dredging, placement of fill material, and potentially construction of protective structures. This classification helps in identifying the relevant industry sector, potential competitors, and applicable labor standards. It signals a need for contractors with specialized equipment and expertise in large-scale earthmoving and marine operations.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W9127819B0004

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: $59,578,263

Exercised Options: $59,578,263

Current Obligation: $59,578,263

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline