Army Awards $62.7M for Mobile Harbor Deepening Phase 3 to Great Lakes Dredge & Dock Co
Contract Overview
Contract Amount: $62,719,348 ($62.7M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-21
End Date: 2023-06-12
Contract Duration: 782 days
Daily Burn Rate: $80.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MOBILE HARBOR, DEEPENING AND WIDENING - PHASE 3
Place of Performance
Location: IRVINGTON, MOBILE County, ALABAMA, 36544
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $62.7 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MOBILE HARBOR, DEEPENING AND WIDENING - PHASE 3 Key points: 1. The contract value of $62.7 million is significant for heavy civil engineering construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration of 782 days indicates a substantial, long-term undertaking. 4. The firm-fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $62.7 million for heavy civil engineering construction appears reasonable given the scope of a major harbor deepening project. Benchmarking against similar large-scale dredging and civil works contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with the price reflecting market conditions for such specialized construction services.
Public Impact
Enhances port infrastructure, potentially boosting regional economic activity and trade. Supports national defense by improving naval access and operational capabilities. Contributes to the long-term viability and competitiveness of the Port of Mobile.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the long duration and complexity of dredging projects.
- Environmental impact concerns associated with large-scale dredging operations.
- Dependence on a single contractor for a critical infrastructure project.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm-fixed-price contract type provides cost certainty for the government.
- Project addresses critical infrastructure needs for a major port.
Sector Analysis
This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, specifically focusing on maritime infrastructure. Spending in this sector is often driven by government investment in ports, waterways, and transportation networks to support commerce and national security.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. Larger, specialized firms are typically involved in major civil engineering projects of this scale.
Oversight & Accountability
The award was made by the Department of the Army, part of the Department of Defense. Oversight would likely involve project management teams ensuring adherence to contract terms, timelines, and quality standards throughout the project lifecycle.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration increases exposure to market fluctuations and potential delays.
- Complexity of dredging operations can lead to unforeseen technical challenges.
- Potential environmental impacts require rigorous monitoring and mitigation.
- Lack of small business participation in this specific award.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.7 million to GREAT LAKES DREDGE & DOCK CO, LLC. MOBILE HARBOR, DEEPENING AND WIDENING - PHASE 3
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 $62.7 million.
What is the period of performance?
Start: 2021-04-21. End: 2023-06-12.
What is the projected economic impact of the Mobile Harbor deepening on regional trade and employment?
The deepening of Mobile Harbor is expected to significantly enhance its capacity to accommodate larger vessels, thereby increasing cargo throughput and potentially attracting more shipping lines. This could lead to job creation in logistics, warehousing, and related industries, as well as stimulate broader economic growth within Alabama and the surrounding region through increased trade volume and associated economic activity.
What are the primary environmental mitigation strategies employed during this dredging phase to minimize ecological disruption?
Environmental mitigation strategies typically involve careful management of dredged material, including containment and beneficial reuse where possible, to prevent the release of contaminants into the water column. Monitoring of water quality, marine life, and sediment transport is crucial. Measures may also include timing dredging activities to avoid sensitive ecological periods, such as fish spawning seasons, and implementing best management practices to reduce turbidity and noise pollution.
How does the firm-fixed-price contract structure mitigate risks associated with potential cost escalations in long-term construction projects?
A firm-fixed-price (FFP) contract shifts the risk of cost overruns to the contractor. The contractor agrees to a set price for the work, and any costs exceeding that price are absorbed by them, not the government. This structure incentivizes the contractor to manage their costs efficiently and accurately estimate project expenses from the outset, providing budget certainty for the procuring agency.
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: W9127821B0001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Great Lakes Dredge & Dock Corporation
Address: 9811 KATY FWY STE 1200, HOUSTON, TX, 77024
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: $62,719,348
Exercised Options: $62,719,348
Current Obligation: $62,719,348
Actual Outlays: $21,373,129
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-21
Current End Date: 2023-06-12
Potential End Date: 2023-06-12 00:00:00
Last Modified: 2023-03-21
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