DoD awards $30.7M contract for heavy civil engineering construction to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $30,731,847 ($30.7M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-13

End Date: 2013-08-15

Contract Duration: 336 days

Daily Burn Rate: $91.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BCHFL - BRIGANTINE (COMBO)

Place of Performance

Location: OCEAN CITY, CAPE MAY County, NEW JERSEY, 08226

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: BCHFL - BRIGANTINE (COMBO) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The duration of 336 days indicates a medium-term project. 4. The award amount of $30.7 million falls within a moderate spending range for heavy construction projects. 5. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction services. 6. The contractor, Great Lakes Dredge & Dock Co., LLC, is a significant player in its field.

Value Assessment

Rating: good

The contract value of $30.7 million for heavy civil engineering construction appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government secured a predictable cost, though it relies on the contractor's accurate estimation.

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 two bidders suggests a moderate level of competition for this specific contract. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value available.

Public Impact

The primary beneficiary is the Department of Defense, which will receive the heavy civil engineering construction services. The services delivered are related to infrastructure development or maintenance critical for military operations. The geographic impact is localized to New Jersey, as indicated by the state and county codes. The contract likely supports a workforce skilled in heavy construction, including engineers, operators, and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen site conditions or material price fluctuations.
Dependence on a single contractor for a critical infrastructure project could pose a risk if performance issues arise.

Positive Signals

The firm-fixed-price contract type transfers significant cost risk to the contractor.
Awarding through full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor's established presence in the dredging and heavy construction industry implies experience and capability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which includes a wide range of infrastructure projects such as bridges, tunnels, dams, and marine facilities. The NAICS code 237990 specifically covers dredging and surface mining construction. The market for such services is often characterized by large, specialized firms capable of undertaking complex, capital-intensive projects. Comparable spending benchmarks would depend on the specific nature of the construction, but large federal infrastructure contracts can range from tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Great Lakes Dredge & Dock Co., LLC, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided data. The impact on the small business ecosystem would depend on the specific subcontracting plan, if any, implemented by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are inherent in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed price. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Transportation Infrastructure Grants
General Services Administration (GSA) Public Buildings Service Projects

Risk Flags

Moderate competition level (2 bidders) may indicate limited market availability or specialized requirements.
Firm-fixed-price contracts can pose risks if contractor cost estimations are inaccurate or unforeseen issues arise.
Contract duration of 336 days requires sustained oversight to ensure timely and quality completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to GREAT LAKES DREDGE & DOCK CO, LLC. BCHFL - BRIGANTINE (COMBO)

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 $30.7 million.

What is the period of performance?

Start: 2012-09-13. End: 2013-08-15.

What is the track record of Great Lakes Dredge & Dock Co., LLC with federal contracts, particularly with the Department of Defense?

Great Lakes Dredge & Dock Co., LLC has a significant history of federal contracting, primarily with agencies involved in maritime infrastructure and environmental remediation. Their work often involves dredging, breakwaters, and other coastal protection projects. While specific performance metrics for this particular $30.7 million contract are not detailed here, the company's extensive experience suggests a capacity to handle large-scale civil engineering projects. A deeper dive into their contract history, including past performance evaluations and any disputes or claims, would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor. Their specialization in dredging aligns well with potential needs for port maintenance or development within the Department of Defense's operational areas.

How does the $30.7 million award compare to other heavy civil engineering construction contracts awarded by the Department of Defense in recent years?

The $30.7 million award for heavy civil engineering construction is a moderate-sized contract within the Department of Defense's portfolio. The DoD frequently awards contracts for infrastructure, ranging from smaller facility upgrades to massive construction projects for bases and operational support. Contracts for major construction, such as new barracks, airfields, or large-scale port facilities, can easily exceed hundreds of millions of dollars. Conversely, smaller repair or specialized construction tasks might fall below $10 million. Therefore, this $30.7 million contract represents a significant but not exceptionally large investment, likely for a specific, well-defined project within New Jersey, such as port improvements or specialized civil works.

What are the primary risks associated with a firm-fixed-price contract for heavy civil engineering construction?

The primary risk with a firm-fixed-price (FFP) contract for heavy civil engineering construction lies in the potential for the contractor to incur losses if their cost estimates are inaccurate or if unforeseen circumstances significantly increase project expenses. While the FFP shifts cost risk to the contractor, it can also incentivize them to cut corners on quality or safety to maintain profitability, although this is mitigated by contract oversight and performance standards. For the government, the risk is that the contractor may not have sufficient incentive to control costs beyond the agreed-upon price, potentially leading to disputes over scope changes or contract modifications. Additionally, if the initial price was set too high due to a lack of robust competition or flawed market research, the government might overpay.

What does the competition level (2 bidders) imply about the effectiveness of the 'full and open competition' process for this specific contract?

A competition with two bidders under 'full and open competition' suggests that while the process was open to all responsible sources, the market for this specific type of heavy civil engineering construction in the New Jersey region may be limited, or the project's requirements were highly specialized, attracting only a few capable firms. While two bidders indicate some level of market engagement, it is less competitive than scenarios with numerous bidders, which typically drive prices down more aggressively. This level of competition might still yield a fair price, but it raises questions about whether a broader outreach or different solicitation strategy could have attracted more participants and potentially secured even better value for the government.

How has federal spending in the heavy and civil engineering construction sector (NAICS 237990) trended over the past decade?

Federal spending in the heavy and civil engineering construction sector, particularly under NAICS code 237990 (which includes dredging and surface mining construction), has generally seen fluctuations influenced by infrastructure initiatives, defense spending priorities, and environmental projects. Historically, agencies like the Army Corps of Engineers are major spenders in this area for navigation, flood control, and environmental restoration. Periods of increased federal investment in infrastructure, such as those following economic stimulus packages or specific legislative acts, tend to drive up spending. Conversely, budget constraints or shifts in priorities can lead to declines. Analyzing specific trends for NAICS 237990 would require examining detailed historical spending data, but overall, federal investment in civil works remains a significant component of the construction sector.

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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912BU12B0012

Offers Received: 2

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,731,847

Exercised Options: $30,731,847

Current Obligation: $30,731,847

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $48,769

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline