Army awards $92M beach nourishment contract to Great Lakes Dredge & Dock Co. for NJ coast
Contract Overview
Contract Amount: $92,055,152 ($92.1M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2014-11-10
End Date: 2017-10-17
Contract Duration: 1,072 days
Daily Burn Rate: $85.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF INITIAL CONSTRUCTION, BEACH NOURISHMENT (OCEAN CITY&SEA ISLE CITY, NJ)
Place of Performance
Location: SEA ISLE CITY, CAPE MAY County, NEW JERSEY, 08243
Plain-Language Summary
Department of Defense obligated $92.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF INITIAL CONSTRUCTION, BEACH NOURISHMENT (OCEAN CITY&SEA ISLE CITY, NJ) Key points: 1. Contract awarded to a single, large company, indicating potential for limited competition. 2. The firm fixed price contract type suggests price certainty but may limit flexibility. 3. The project's duration of 1072 days is substantial, requiring careful management. 4. The contract value of $92M is significant for civil engineering construction.
Value Assessment
Rating: fair
The contract value of $92M for beach nourishment is substantial. Benchmarking against similar large-scale civil engineering projects is difficult without more specific cost breakdowns, but the price appears within a reasonable range for a project of this magnitude and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity, Great Lakes Dredge & Dock Co., LLC, might indicate specialized capabilities or a limited number of qualified bidders for this specific type of large-scale coastal construction.
Taxpayer Impact: Taxpayer funds are being used for essential coastal infrastructure protection, which has long-term benefits for public safety and the environment.
Public Impact
Protects coastal communities in Ocean City and Sea Isle City, NJ, from storm damage. Enhances natural storm defenses and preserves beach ecosystems. Supports local tourism and economic activity dependent on healthy beaches.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may pose management challenges.
- Potential for cost overruns if unforeseen environmental issues arise.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Addresses critical infrastructure needs for coastal resilience.
Sector Analysis
This contract falls under the Other Heavy and Civil Engineering Construction sector. Spending in this sector is often driven by infrastructure needs, environmental projects, and disaster recovery efforts. The $92M award is a significant investment for a single project within this category.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Large-scale civil engineering projects often require specialized equipment and expertise, which may favor larger, established companies, potentially limiting opportunities for small businesses.
Oversight & Accountability
The Army Corps of Engineers is responsible for overseeing this contract. Given the project's scale and duration, robust oversight mechanisms are crucial to ensure adherence to contract terms, quality standards, and timely completion, mitigating risks of delays or cost increases.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Long project duration increases risk exposure.
- Potential for environmental challenges impacting schedule and cost.
- Single awardee may indicate limited market capacity for such projects.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF INITIAL CONSTRUCTION, BEACH NOURISHMENT (OCEAN CITY&SEA ISLE CITY, NJ)
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 $92.1 million.
What is the period of performance?
Start: 2014-11-10. End: 2017-10-17.
What specific factors led to the selection of Great Lakes Dredge & Dock Co., LLC, despite the 'full and open competition' designation, and were there other bidders?
While designated 'full and open competition,' the award to a single entity suggests that Great Lakes Dredge & Dock Co., LLC likely possessed unique qualifications, specialized equipment, or presented the most advantageous proposal based on technical merit and price. Further details on the bidding process and evaluation criteria would clarify why only one firm was selected for this substantial contract.
How does the $92M cost compare to the estimated benefit of the beach nourishment project in terms of storm damage reduction and economic impact?
Quantifying the precise economic benefit versus the $92M cost requires a detailed cost-benefit analysis, including projected storm damage avoidance, increased tourism revenue, and property value protection. Without such an analysis, it's difficult to definitively assess the value proposition. However, beach nourishment projects are generally undertaken when the long-term benefits are deemed to outweigh the investment.
What are the primary risks associated with a 1072-day fixed-price contract for beach nourishment, and what mitigation strategies are in place?
Key risks include unforeseen environmental conditions (e.g., weather delays, material availability), scope creep, and potential contractor underestimation of costs for such a long duration. Mitigation strategies likely involve detailed contract clauses for unforeseen events, strict change order management, performance bonds, and regular progress reviews by the contracting agency to ensure compliance and address issues proactively.
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: W912BU14B0011
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: $100,305,152
Exercised Options: $92,055,152
Current Obligation: $92,055,152
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $10,684,827
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-11-10
Current End Date: 2017-10-17
Potential End Date: 2017-10-17 00:00:00
Last Modified: 2021-02-25
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