DoD awards $65.9M contract for Mobile Harbor Deepening, Phase 2A, to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $65,875,022 ($65.9M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-20

End Date: 2025-05-18

Contract Duration: 271 days

Daily Burn Rate: $243.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOBILE HARBOR DEEPENING & WIDENING PHASE 2A

Place of Performance

Location: IRVINGTON, MOBILE County, ALABAMA, 36544

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $65.9 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MOBILE HARBOR DEEPENING & WIDENING PHASE 2A Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a Firm Fixed Price, which shifts cost risk to the contractor. 3. Project duration is 271 days, indicating a focused, short-term construction effort. 4. The award value of $65.9M falls within a typical range for major civil engineering projects of this scale. 5. Geographic focus on Alabama suggests regional economic and infrastructure benefits. 6. The project falls under 'Other Heavy and Civil Engineering Construction,' a broad but critical infrastructure sector.

Value Assessment

Rating: good

The contract value of $65.9M for deepening and widening a harbor appears reasonable for a project of this scope. Without specific benchmarks for Mobile Harbor, comparisons to similar Army Corps of Engineers dredging projects would be necessary for a precise value-for-money assessment. The firm fixed-price structure provides cost certainty for the government, assuming the contractor's bid accurately reflects project costs and risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders (as indicated by 'no': 3) suggests a healthy level of competition for this significant civil engineering project. This competitive environment generally leads to more favorable pricing for the government.

Taxpayer Impact: Full and open competition with multiple bidders typically results in taxpayer savings by driving down prices through market forces. This ensures that the government is not overpaying for essential infrastructure services.

Public Impact

The primary beneficiaries are likely the port authorities and maritime industries operating in and around Mobile, Alabama, through improved navigation capabilities. The project will deliver essential dredging services to deepen and widen the Mobile Harbor, facilitating larger vessel traffic. The geographic impact is concentrated in Alabama, specifically the Mobile Bay area, enhancing its role as a key shipping hub. Workforce implications may include employment opportunities for skilled labor in the construction and maritime sectors during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure project introduces execution risk.
Environmental impact during dredging operations requires careful monitoring and mitigation.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract shifts cost risk to the contractor.
Project addresses critical infrastructure needs for maritime commerce.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. The dredging and harbor improvement market is specialized, often dominated by a few large firms with the necessary equipment and expertise. The Army Corps of Engineers is a major client in this space, undertaking numerous projects nationwide to maintain and improve navigable waterways. Benchmarks for similar dredging projects can vary significantly based on location, depth, soil conditions, and environmental regulations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and scale of major dredging projects, it is common for such contracts to be awarded to larger, established firms. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The primary impact on the small business ecosystem would be through potential subcontracting roles rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, the contracting agency. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally maintained through public contract awards and reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
National Defense Authorization Act (Infrastructure Funding)
Water Resources Development Act Projects

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance and mitigation requirements.
Dependence on specialized equipment and skilled labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.9 million to GREAT LAKES DREDGE & DOCK CO, LLC. MOBILE HARBOR DEEPENING & WIDENING PHASE 2A

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 $65.9 million.

What is the period of performance?

Start: 2024-08-20. End: 2025-05-18.

What is the historical spending pattern for Mobile Harbor deepening and widening projects?

Historical spending data for Mobile Harbor deepening and widening projects would reveal trends in investment and project frequency. Analyzing past contracts awarded by the Army Corps of Engineers for this specific location would show the typical contract values, durations, and awarded contractors. This context is crucial for understanding if the current $65.9M award represents a significant increase or decrease in investment, and whether it aligns with previous project scopes and costs. Understanding historical spending also helps in identifying any recurring issues or efficiencies in past projects, providing a baseline for evaluating the current Phase 2A's value and execution.

How does the awarded price compare to similar dredging projects in other major U.S. ports?

Benchmarking the $65.9M award against similar dredging projects in other major U.S. ports is essential for assessing value for money. Factors such as project scope (depth, width, length), soil conditions, environmental mitigation requirements, and prevailing labor/material costs vary significantly by region. A comparison would involve identifying comparable projects undertaken by the Army Corps of Engineers or other port authorities, analyzing their contract values, and normalizing for these differing factors. If the Mobile Harbor project's cost per cubic yard dredged or per linear foot of channel improved is significantly higher or lower than comparable projects, it would indicate potential issues with pricing or exceptional efficiency.

What are the specific risks associated with Great Lakes Dredge & Dock Co.'s track record on similar federal contracts?

Assessing Great Lakes Dredge & Dock Co.'s track record on similar federal contracts involves reviewing their past performance, including any history of contract disputes, cost overruns, schedule delays, or quality issues. Databases like the Federal Procurement Data System (FPDS) and contract performance assessment reports (CPARS) can provide insights. For a project of this scale and type, specific risks might include their experience with the geological conditions in Mobile Bay, their fleet's capacity and readiness, and their environmental compliance history. A review of past performance would highlight any red flags or confirm their suitability and capability to successfully execute this critical infrastructure project within budget and schedule.

What is the projected economic impact of the Mobile Harbor deepening on regional trade and employment?

The projected economic impact of the Mobile Harbor deepening on regional trade and employment is a key outcome of this investment. Deeper channels allow larger, more efficient vessels to call at the port, potentially increasing cargo throughput and reducing shipping costs. This can attract new businesses and industries to the region, boosting economic activity. Employment impacts can be both direct, through job creation during the construction phase, and indirect, through increased port operations, logistics, and related service industries. Quantifying these impacts often involves economic modeling by port authorities or regional development agencies, considering factors like increased container capacity, vessel size, and associated supply chain growth.

How does the 'Other Heavy and Civil Engineering Construction' NAICS code influence the competitive landscape for this contract?

The 'Other Heavy and Civil Engineering Construction' (NAICS 237990) code signifies a broad category encompassing specialized construction activities like dredging, marine construction, and infrastructure projects. This classification suggests that the bidding pool likely consists of firms with specific expertise in these areas, rather than general construction contractors. While 'full and open competition' was utilized, the specialized nature of the NAICS code means the number of truly capable bidders might be limited to a select group of large, experienced companies. This influences price discovery, as competition occurs among specialists rather than a wider range of general contractors, potentially leading to higher bids if the market is concentrated.

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: W9127824B0007

Offers Received: 3

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: $65,875,022

Exercised Options: $65,875,022

Current Obligation: $65,875,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline