DoD awards $56M contract for beachfill services to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $56,050,616 ($56.1M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-13

End Date: 2025-06-10

Contract Duration: 301 days

Daily Burn Rate: $186.2K/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: BEACH HAVEN, OCEAN County, NEW JERSEY, 08008

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $56.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: BEACHFILL Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration of 301 days allows for focused execution of services. 4. Awarded by the Department of the Army, aligning with infrastructure and environmental missions. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The contract value is substantial, reflecting the scale of the beachfill project. 7. The contractor, Great Lakes Dredge & Dock Co., LLC, has a significant presence in this sector.

Value Assessment

Rating: good

The contract value of approximately $56 million for beachfill services appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale coastal restoration or protection projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, but the ultimate value depends on the successful completion and long-term effectiveness of the beachfill.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves soliciting bids from all responsible prospective contractors. This method is designed to foster a competitive environment, potentially leading to better pricing and terms for the government. The presence of two bids (no: 2) suggests that while competition was sought, the number of actual bidders was limited.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government explores a wide range of potential solutions.

Public Impact

Coastal communities in New Jersey will benefit from enhanced beach protection and potential erosion control. The services delivered will involve significant dredging and placement of sand to restore or maintain beach profiles. The geographic impact is concentrated in New Jersey (st: NJ, sn: NEW JERSEY), addressing specific local environmental needs. The project may indirectly support local economies through tourism and recreational activities reliant on healthy beaches. The contract supports the heavy civil engineering construction workforce involved in dredging and marine operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) could indicate potential barriers to entry or a specialized market, possibly impacting price competitiveness.
The firm-fixed-price contract, while good for cost control, places the risk of cost overruns on the contractor, which could influence future bidding strategies or contractor selection.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The contractor, Great Lakes Dredge & Dock Co., LLC, is a known entity in the dredging and marine construction industry, suggesting experience.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

The beachfill contract falls within the heavy and civil engineering construction sector, specifically related to coastal management and environmental remediation. This sector is crucial for infrastructure resilience, particularly in areas prone to erosion and storm damage. The market for such services is often specialized, involving significant capital investment in dredging equipment and expertise. Comparable spending benchmarks would involve looking at other large-scale coastal protection projects funded by federal agencies like the Army Corps of Engineers.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (sb: false). While the primary contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors, depending on the project's specific needs and the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific project execution details may be less accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal and Shoreline Protection Projects
Environmental Dredging and Restoration

Risk Flags

Limited number of bidders
Potential for weather-related delays
Environmental compliance risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.1 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 $56.1 million.

What is the period of performance?

Start: 2024-08-13. End: 2025-06-10.

What is the historical spending pattern for beachfill services by the Department of the Army?

Analyzing historical spending for beachfill services by the Department of the Army requires access to comprehensive federal procurement data. Typically, such contracts are awarded by the Army Corps of Engineers for coastal storm damage reduction and ecosystem restoration projects. Spending can fluctuate significantly year-to-year based on the severity of storm events, congressional appropriations for infrastructure, and the prioritization of specific coastal regions. Examining data over a 5-10 year period would reveal trends in contract values, types of services procured (e.g., dredging, sand placement, monitoring), and the geographic distribution of these projects. It's also important to note that beachfill projects are often part of larger, multi-year programs, meaning annual spending might represent only a portion of a larger initiative's total cost.

How does the awarded value compare to similar beachfill contracts in the past five years?

To compare this $56 million contract to similar beachfill projects, one would need to query federal procurement databases for contracts with comparable NAICS codes (e.g., 237990) and service descriptions (beachfill, coastal restoration, dredging for nourishment) awarded by agencies like the Army Corps of Engineers. Key comparison points would include contract value, duration, geographic location, and the specific scope of work. For instance, if similar projects in the Northeast region over the last five years have ranged from $30 million to $70 million, this award would fall within that expected range. Factors like the volume of material to be placed, the distance of borrow sites, and environmental mitigation requirements significantly influence cost, making direct comparisons challenging without detailed project specifications.

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

Great Lakes Dredge & Dock Co., LLC is a well-established entity in the marine construction and dredging industry, with a significant history of performing work for federal agencies, including the U.S. Army Corps of Engineers. Their track record with beachfill and related coastal projects would likely show numerous awards over several decades. A review of their past performance would involve examining contract databases for previous awards, their values, completion status, and any reported performance issues or successes. Their extensive experience suggests a strong understanding of the technical requirements, regulatory compliance, and logistical challenges associated with large-scale beach nourishment and coastal protection efforts.

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

Primary risks for this beachfill contract include environmental factors such as weather delays (storms, hurricanes) impacting dredging operations and sand placement, and potential issues with borrow site material quality or availability. Geotechnical risks related to substrate conditions at the placement site could also arise. Contractually, risks include potential scope creep if project requirements evolve, and the contractor's ability to manage costs effectively under the firm-fixed-price structure, although this structure shifts cost overrun risk primarily to the contractor. Furthermore, regulatory compliance and permitting challenges can introduce delays and additional costs. The limited number of bidders (2) might also suggest a specialized market where contractor capacity or specialized equipment availability could be a constraint.

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

The effectiveness of beachfill projects in providing long-term coastal protection is variable and depends heavily on project design, local geomorphology, wave energy, and maintenance strategies. Beachfill, or beach nourishment, is a temporary solution that aims to widen beaches and provide a buffer against erosion and storm surge. While effective in the short to medium term, beaches naturally erode, requiring periodic renourishment. The 'long-term' effectiveness is often measured in years rather than decades, with typical renourishment cycles ranging from 3 to 10 years, depending on the specific site conditions and project goals. Factors like sea-level rise and increased storm intensity due to climate change can further challenge the longevity of beachfill projects, necessitating adaptive management and potentially more robust engineering solutions.

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: W912BU24B0009

Offers Received: 2

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: $117,981,288

Exercised Options: $56,077,591

Current Obligation: $56,050,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline