DoD's $40M beachfill contract awarded to Great Lakes Dredge & Dock Co. for New Jersey shore protection

Contract Overview

Contract Amount: $39,974,380 ($40.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-25

End Date: 2020-07-26

Contract Duration: 305 days

Daily Burn Rate: $131.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BEACHFILL

Place of Performance

Location: CAPE MAY, CAPE MAY County, NEW JERSEY, 08204

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: BEACHFILL Key points: 1. Contract value appears reasonable given the scope of coastal defense work. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 305 days indicates a focused, project-specific effort. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic focus on New Jersey highlights regional infrastructure investment. 6. No small business set-aside indicates a focus on large-scale capabilities.

Value Assessment

Rating: good

The contract value of approximately $40 million for beachfill services is within the expected range for large-scale coastal resilience projects. While specific benchmarks for this exact type of work are difficult to ascertain without detailed project specifications, the price appears to reflect the significant logistical and environmental considerations involved in such an undertaking. The firm fixed-price structure suggests that the contractor is incentivized to manage costs effectively.

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 specialized service. A higher number of bidders might have potentially driven the price lower, but two bids for a complex engineering project of this nature is not unusual.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best value from qualified providers, rather than through a sole-source or limited competition.

Public Impact

Residents and businesses in coastal New Jersey benefit from enhanced protection against storm surge and erosion. The project delivers critical infrastructure improvements aimed at long-term coastal resilience. Geographic impact is concentrated along the New Jersey coastline, specifically in areas designated for beach nourishment. The project likely supports a specialized workforce in marine construction and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise, though mitigated by fixed-price contract.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm fixed-price contract aligns contractor incentives with cost control.
Project addresses critical coastal protection needs, indicating strong public benefit.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal defense and infrastructure. The market for large-scale beach nourishment and coastal protection projects is specialized, often dominated by a few experienced firms capable of handling the complex logistics, environmental regulations, and heavy equipment required. Spending in this area is often driven by federal and state initiatives aimed at mitigating the impacts of climate change and severe weather events.

Small Business Impact

The absence of small business set-aside flags (ss: false, sb: false) indicates that this contract was not specifically targeted towards small businesses. Given the scale and specialized nature of large-scale beachfill operations, it is common for such contracts to be awarded to larger firms with the necessary equipment and expertise. Subcontracting opportunities for small businesses may exist, but are not explicitly mandated by the contract type.

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 placing cost risk on the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific project performance details may be less accessible.

Related Government Programs

US Army Corps of Engineers Civil Works Programs
Coastal Storm Risk Management Projects
Beach Nourishment and Erosion Control Initiatives

Risk Flags

Potential for environmental impact during dredging and placement operations.
Dependence on weather conditions for project execution.
Long-term effectiveness relies on periodic re-nourishment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. BEACHFILL

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 $40.0 million.

What is the period of performance?

Start: 2019-09-25. End: 2020-07-26.

What is the historical spending pattern for beachfill contracts by the Department of Defense?

Historical spending on beachfill contracts by the Department of Defense, particularly through the Army Corps of Engineers, fluctuates based on the frequency and severity of coastal threats, as well as congressionally appropriated funding for civil works projects. While specific aggregate data for 'beachfill' alone is not readily available in public databases, related categories like 'dredging' and 'coastal engineering' show significant, multi-million dollar annual expenditures. These expenditures are often concentrated in regions prone to hurricanes and coastal erosion, such as the Atlantic and Gulf coasts. The trend generally reflects an increasing emphasis on coastal resilience and storm damage reduction measures, driven by climate change projections and past storm impacts. The $40 million awarded in this instance is a substantial but not unprecedented amount for a single, large-scale project.

How does the awarded price compare to similar beachfill projects?

Benchmarking the $40 million price for this specific beachfill contract against similar projects requires detailed comparison of scope, volume of material, distance of haul, environmental mitigation requirements, and project duration. However, large-scale beach nourishment projects, especially those managed by the Army Corps of Engineers, often range from tens to hundreds of millions of dollars. For instance, projects involving millions of cubic yards of sand placement can easily reach these figures. The firm fixed-price nature of this contract suggests that the contractor, Great Lakes Dredge & Dock Co., LLC, has factored in all anticipated costs and risks. Without access to detailed project specifications and cost breakdowns, a precise value-for-money assessment is challenging, but the price appears aligned with the typical scale of federal coastal protection initiatives.

What are the primary risks associated with this type of contract?

The primary risks associated with this firm fixed-price beachfill contract include: 1. **Environmental Conditions:** Unforeseen weather events (storms, hurricanes) or marine conditions could delay the project, increase costs for the contractor, or necessitate changes to the work, potentially leading to claims or disputes. 2. **Material Availability:** Sourcing the required volume and quality of sand from approved borrow sites could face challenges, impacting schedules and costs. 3. **Contractor Performance:** While the fixed-price structure incentivizes efficiency, inadequate performance, equipment failure, or financial instability of the contractor could lead to delays or substandard work. 4. **Scope Creep:** Although less common with fixed-price contracts, changes in requirements or unforeseen site conditions could necessitate contract modifications, potentially increasing the overall cost and duration if not managed carefully. The government's primary risk is ensuring the contractor meets the specified requirements within the agreed-upon price and timeline.

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

Great Lakes Dredge & Dock Co., LLC has a substantial track record with federal contracts, primarily through the U.S. Army Corps of Engineers and other maritime-focused agencies. They are a major player in the dredging and marine construction industry, frequently awarded contracts for port deepening, waterway maintenance, and coastal protection projects. Their contract history typically involves large-dollar, complex projects requiring specialized equipment and extensive environmental compliance. Analysis of their past performance often reveals a pattern of successfully executing large-scale dredging and beachfill operations. While specific performance metrics (e.g., on-time completion, cost adherence) would require a deeper dive into individual contract close-out data, their continued success in winning competitive bids for significant federal projects suggests a generally positive performance history.

How effective are beachfill projects in providing long-term coastal protection?

Beachfill projects, also known as beach nourishment, are a widely used and generally effective method for providing temporary coastal protection and enhancing recreational beaches. Their effectiveness lies in widening the beach buffer, which absorbs wave energy during storms, thereby reducing erosion and protecting inland infrastructure. The longevity of the protection depends on factors like storm frequency and intensity, native sediment characteristics, and the volume of sand placed. Typically, nourishment projects require periodic re-nourishment, often every 5-10 years, to maintain their protective capacity. While not a permanent solution, they are considered a cost-effective approach compared to hard structures like seawalls, especially when considering environmental benefits and recreational value. The success of this specific $40 million project will be measured by its performance during storm events and its required maintenance cycle.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912BU19B0008

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

Financial Breakdown

Contract Ceiling: $40,043,772

Exercised Options: $39,974,380

Current Obligation: $39,974,380

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline