Army awards $38.4M contract for mobilization/demobilization, with 2 bidders competing

Contract Overview

Contract Amount: $38,410,702 ($38.4M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2025-04-26

Contract Duration: 208 days

Daily Burn Rate: $184.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOBILIZATION AND DEMOBILIZATION

Place of Performance

Location: ABSECON, ATLANTIC County, NEW JERSEY, 08201

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MOBILIZATION AND DEMOBILIZATION Key points: 1. Contract value appears reasonable given the scope of mobilization and demobilization services. 2. Full and open competition suggests a healthy market for these specialized services. 3. The definitive contract type indicates a clear scope of work and fixed pricing. 4. Performance period spans approximately 7 months, suggesting a focused operational window. 5. This contract falls within the heavy and civil engineering construction sector.

Value Assessment

Rating: good

The contract value of $38.4 million for mobilization and demobilization services seems aligned with industry standards for large-scale civil engineering projects. While specific benchmarks for this exact service are not readily available, the presence of two bidders in a full and open competition suggests that the pricing is likely competitive. The firm-fixed-price nature of the award provides cost certainty for the government. Further analysis would require comparing the scope of work and deliverables to similar contracts awarded by the Army or other agencies.

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 offers. Two bids were received, which suggests a moderate level of competition for this specialized service. While more than two bidders would typically indicate stronger price discovery, two bidders still provide a basis for comparison and negotiation.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best value. The presence of two bidders indicates a competitive environment that likely prevented excessive pricing.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring operational readiness and efficient deployment of resources. Services include the physical movement and setup/breakdown of equipment and personnel for military operations. The contract is geographically focused on New Jersey, where the contractor is based. This contract supports specialized labor within the heavy and civil engineering construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise during mobilization/demobilization.
Dependence on a single contractor for critical logistical support could pose a risk if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition suggests a robust market and potential for competitive pricing.
The contractor, Great Lakes Dredge & Dock Co, LLC, is a known entity in heavy civil construction, implying experience.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector (NAICS 237990), which encompasses a wide range of infrastructure projects. The market for mobilization and demobilization services is specialized, often requiring significant logistical capabilities and heavy equipment. Comparable spending in this sector by the Department of Defense is substantial, supporting various construction and engineering needs for military installations and operations worldwide.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

The contract is a definitive contract, which typically involves detailed terms and conditions. Oversight would be managed by the contracting officer and relevant Army personnel responsible for the project. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Logistics and Transportation Services
Heavy Equipment Operations
Civil Engineering Projects

Risk Flags

Potential for logistical challenges impacting schedule.
Risk of cost escalation if scope is not tightly managed (though FFP mitigates this).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to GREAT LAKES DREDGE & DOCK CO, LLC. MOBILIZATION AND DEMOBILIZATION

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 $38.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-04-26.

What is the typical cost range for mobilization and demobilization services for projects of this scale within the Department of Defense?

The cost range for mobilization and demobilization services can vary significantly based on the scope, duration, geographic location, and complexity of the project. For large-scale civil engineering or construction projects within the Department of Defense, mobilization and demobilization costs can represent a substantial portion of the total contract value, sometimes ranging from 10% to 30% or more. Factors such as the type of equipment, personnel required, transportation logistics, and site preparation all influence these costs. Without specific details on the nature of the operations this contract supports, a precise benchmark is difficult. However, the $38.4 million award for Great Lakes Dredge & Dock Co, LLC, suggests a significant undertaking, likely involving extensive equipment, personnel, and logistical planning over a defined period.

How does the contractor's past performance on similar contracts influence this award?

Information regarding the contractor's specific past performance on similar mobilization and demobilization contracts is not detailed in the provided data. However, Great Lakes Dredge & Dock Co, LLC is a well-established company in the heavy civil engineering and construction industry, known for large-scale marine and infrastructure projects. Agencies typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) during the source selection process. A positive track record with successful completion of similar complex logistical operations would have been a significant factor in their favor during the full and open competition. Conversely, any documented performance issues could have negatively impacted their bid or disqualified them.

What are the primary risks associated with mobilization and demobilization contracts?

Primary risks associated with mobilization and demobilization contracts include logistical complexities, potential for schedule delays, cost overruns, and safety incidents. Mobilization involves transporting personnel, equipment, and materials to a worksite, which can be subject to transportation disruptions, unforeseen site conditions, or regulatory hurdles. Demobilization carries risks related to the efficient and safe removal of assets, site restoration, and final accounting. For the government, risks also include ensuring the contractor has adequate resources and expertise to perform, and managing the contract to prevent scope creep or unjustified cost increases. The firm-fixed-price nature of this contract helps mitigate cost overrun risks for the government, provided the scope is well-defined.

What is the significance of the 'definitive contract' type for this award?

A definitive contract, in this context, is a fixed-price contract that clearly defines the scope of work, terms, and conditions, and the total price. Unlike an 'undefinitized' contract (often an letter contract or letter of intent), a definitive contract means all aspects of the agreement have been finalized and agreed upon by both parties before performance begins. This provides greater certainty for both the government and the contractor regarding obligations, deliverables, and payment. For mobilization and demobilization services, a definitive contract ensures that the government has a clear understanding of the costs and services involved, reducing ambiguity and potential disputes during execution.

How does the geographic location of the contractor (New Jersey) impact the contract's execution?

The contractor's base in New Jersey (st: NJ, sn: NEW JERSEY) is relevant as it likely influences the logistical planning and potential costs associated with mobilizing equipment and personnel to the required operational sites. If the project is located near New Jersey, this could offer a logistical advantage, potentially reducing transportation costs and lead times. Conversely, if the operations are geographically distant from New Jersey, the contractor's location might necessitate more complex and costly transportation arrangements. The specific impact depends entirely on where the mobilization and demobilization activities are to take place, which is not detailed in the provided data. However, the contractor's established presence in the region suggests familiarity with local regulations and resources.

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: W912BU24B0008

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: $66,022,314

Exercised Options: $38,410,702

Current Obligation: $38,410,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline