Army awards $161.8M for Long Beach Island, NJ beachfill project to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $161,840,116 ($161.8M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2014-12-05

End Date: 2019-08-30

Contract Duration: 1,729 days

Daily Burn Rate: $93.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF -BEACHFILL - LONG BEACH ISLAND, NJ SHIP BOTTOM, HARVEY CEDARS AND SURF CITY, NJ

Place of Performance

Location: HARVEY CEDARS, OCEAN County, NEW JERSEY, 08008

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $161.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF -BEACHFILL - LONG BEACH ISLAND, NJ SHIP BOTTOM, HARVEY CEDARS AND SURF CITY, NJ Key points: 1. Project aimed to restore and protect shorelines, indicating a significant investment in coastal resilience. 2. The contract was awarded using full and open competition, suggesting a robust bidding process. 3. A firm fixed-price contract structure was utilized, which typically transfers risk to the contractor. 4. The duration of the contract (over 4 years) suggests a complex and extensive scope of work. 5. The project's geographic focus on multiple New Jersey municipalities highlights a concentrated regional impact.

Value Assessment

Rating: good

The contract value of $161.8 million for a multi-year beachfill project appears reasonable given the scale and complexity of coastal restoration efforts. While direct comparisons are difficult without specific project details, large-scale civil engineering projects of this nature often involve substantial costs for materials, labor, and specialized equipment. The firm fixed-price nature of the contract suggests that the initial bid was considered competitive and that cost overruns would primarily be borne by the contractor, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders (no=3) suggests a moderate level of competition for this specialized type of heavy civil engineering work. While not an exceptionally high number of bidders, it demonstrates that multiple firms were interested and capable of undertaking the project, which generally supports price discovery and competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Residents and businesses in Ship Bottom, Harvey Cedars, and Surf City, New Jersey, benefit from enhanced coastal protection and storm damage reduction. The project delivers critical infrastructure services by restoring and maintaining vital beach and dune systems. The geographic impact is concentrated along the specific municipalities of Long Beach Island, NJ. The project likely supported a workforce of skilled laborers, engineers, and maritime professionals involved in dredging and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging operations that require careful monitoring and mitigation.
Long-term effectiveness of beachfill projects can be influenced by storm frequency and intensity, requiring ongoing maintenance.
Dependence on specialized dredging equipment and expertise could limit the pool of future contractors.

Positive Signals

Addresses critical infrastructure needs for coastal resilience and storm damage prevention.
Utilizes a firm fixed-price contract, transferring cost risk to the contractor.
Awarded through full and open competition, promoting a competitive bidding environment.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal protection and restoration. This sector is characterized by large-scale projects requiring specialized equipment and expertise, often involving significant government investment due to public infrastructure needs. Market size for such projects can fluctuate based on federal and state funding for infrastructure, environmental concerns, and disaster recovery efforts. Comparable spending benchmarks would typically involve other major coastal defense or dredging projects undertaken by agencies like the Army Corps of Engineers.

Small Business Impact

The contract was not set aside for small businesses (sb=false), and there is no explicit indication of subcontracting requirements for small businesses within the provided data. This suggests that the primary contractor, Great Lakes Dredge & Dock Co., LLC, likely possesses the specialized capabilities and resources required for this large-scale project. The absence of set-asides means that opportunities for small businesses would primarily be through direct subcontracting if the prime contractor chooses to engage them, rather than through a mandated program.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability by capping costs for the government. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's performance.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Coastal Storm Risk Management Projects
Beach Nourishment and Dune Restoration Programs
Federal Infrastructure Investment Programs

Risk Flags

Potential environmental impacts during dredging
Weather-related delays impacting project schedule
Long-term effectiveness dependent on erosion rates and storm activity
Logistical challenges of large-scale material movement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $161.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF -BEACHFILL - LONG BEACH ISLAND, NJ SHIP BOTTOM, HARVEY CEDARS AND SURF 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 $161.8 million.

What is the period of performance?

Start: 2014-12-05. End: 2019-08-30.

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

Great Lakes Dredge & Dock Co., LLC has a substantial history of performing federal contracts, particularly with the U.S. Army Corps of Engineers (USACE). Their expertise lies in dredging, marine construction, and coastal restoration. A review of federal procurement data would likely reveal numerous awards to this contractor for similar projects across various USACE districts. Their long-standing presence in the industry and consistent awards suggest a proven capability to execute complex, large-scale maritime and civil engineering projects. However, a detailed analysis would involve examining past performance reviews, any past disputes or contract terminations, and their overall performance trends across their federal contract portfolio to fully assess their track record.

How does the awarded amount of $161.8 million compare to similar beachfill and coastal restoration projects?

The $161.8 million award for the Long Beach Island beachfill project appears to be within the expected range for large-scale coastal restoration efforts. Projects of this magnitude, involving significant quantities of sand placement, dune construction, and long-term engineering considerations, often run into the tens or hundreds of millions of dollars. For instance, other major beach nourishment projects undertaken by the Army Corps of Engineers in different coastal regions have seen similar or even higher price tags, depending on the length of shoreline impacted, the volume of material required, and the specific engineering challenges. The firm fixed-price nature of this contract also suggests that the initial bid was competitive for the scope of work defined.

What are the primary risks associated with this type of heavy civil engineering construction contract?

The primary risks associated with this heavy civil engineering construction contract include environmental challenges, such as unexpected subsurface conditions (e.g., debris, unstable soils) or impacts on marine ecosystems during dredging. Weather-related delays are also a significant risk, as storms can halt operations and damage completed work. Material availability and cost fluctuations for essential resources like fuel and aggregate can impact project profitability, although the firm fixed-price contract shifts much of this risk to the contractor. Furthermore, logistical challenges related to mobilizing large dredging equipment and managing the disposal or placement of vast quantities of material over extended periods are inherent risks. Finally, ensuring compliance with stringent environmental regulations and permit requirements adds another layer of complexity and potential risk.

What is the expected effectiveness and long-term sustainability of this beachfill project?

The expected effectiveness of this beachfill project is to provide enhanced coastal storm damage reduction and shoreline protection for the communities of Ship Bottom, Harvey Cedars, and Surf City. Beachfill projects aim to widen beaches and build or reinforce dunes, acting as a natural buffer against storm surge and wave action. The long-term sustainability, however, is contingent on several factors. Natural erosion processes will gradually diminish the effectiveness of the fill over time, necessitating periodic renourishment. The frequency and intensity of future storm events will significantly impact how long the restored beach and dunes remain effective. Successful projects often include monitoring programs to assess erosion rates and inform future renourishment strategies, aiming for a balance between initial investment and sustained protection.

How has federal spending on coastal resilience and infrastructure projects evolved over the years, and where does this contract fit?

Federal spending on coastal resilience and infrastructure projects has seen fluctuations but generally increased focus, particularly following major storm events and growing awareness of climate change impacts. Agencies like the Army Corps of Engineers are primary stewards of these investments, funding projects for navigation, flood control, and storm damage reduction. This $161.8 million contract for Long Beach Island fits within this broader federal commitment to protecting coastal communities and infrastructure. It represents a significant, albeit localized, investment in a critical area. The trend in federal spending often reflects a response to perceived needs, disaster recovery requirements, and long-term strategic goals for national infrastructure and environmental protection, with funding levels often debated and influenced by budget appropriations and national priorities.

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: W912BU14B0003

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

Financial Breakdown

Contract Ceiling: $177,145,116

Exercised Options: $161,840,116

Current Obligation: $161,840,116

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,006,861

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline