DoD awards $39.2M contract for Great Egg Harbor Inlet beach nourishment, highlighting significant coastal resilience investment

Contract Overview

Contract Amount: $39,177,363 ($39.2M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-25

End Date: 2024-06-20

Contract Duration: 239 days

Daily Burn Rate: $163.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BEACH NOURISHMENT GREAT EGG HARBOR INLET, NJ

Place of Performance

Location: SOMERS POINT, ATLANTIC County, NEW JERSEY, 08244

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $39.2 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: BEACH NOURISHMENT GREAT EGG HARBOR INLET, NJ Key points: 1. Contract value represents a substantial investment in critical coastal infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of specialized construction. 3. Contract duration of 239 days indicates a focused, project-specific scope of work. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. Project location in New Jersey points to a focus on Atlantic coastal protection. 6. The awarding agency, Department of the Army, oversees significant civil works and infrastructure projects.

Value Assessment

Rating: good

The $39.2 million contract for beach nourishment is a significant investment. Benchmarking against similar large-scale coastal restoration projects is challenging without more specific cost-per-cubic-yard or per-linear-foot data. However, the scale of the award suggests a substantial undertaking. The firm-fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator for value, assuming the scope was well-defined.

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. While the number of bidders is not explicitly stated, this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The presence of multiple bidders would further strengthen the argument for competitive pricing.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential contractors and drives down prices through market forces.

Public Impact

Residents and businesses in the vicinity of Great Egg Harbor Inlet, New Jersey, will benefit from enhanced coastal protection against storm surges and erosion. The project delivers essential beach nourishment services, crucial for maintaining recreational areas and protecting vital infrastructure. The geographic impact is concentrated in southern New Jersey, specifically around the Great Egg Harbor Inlet. The project will likely involve a skilled workforce in heavy civil engineering and marine construction, potentially creating temporary employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise during dredging or placement.
Dependence on specific weather windows for optimal construction, potentially leading to schedule delays.
Long-term effectiveness of nourishment may be impacted by future storm events and natural erosion rates.

Positive Signals

Clear definition of scope through a definitive contract type.
Firm-fixed-price structure mitigates budget uncertainty for the government.
Award to a known entity in the dredging and marine construction sector suggests technical capability.
Full and open competition promotes a fair marketplace and potentially competitive pricing.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal resilience and environmental restoration. The market for beach nourishment and dredging services is specialized, often dominated by a few key players with the necessary equipment and expertise. The $39.2 million award is substantial for a single project within this niche, reflecting the significant costs associated with large-scale coastal defense measures.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award (ss: false, sb: false). While the prime contractor, Great Lakes Dredge & Dock Co, LLC, is a large entity, there may be opportunities for small businesses to participate as subcontractors, particularly in areas like material supply, equipment rental, or specialized support services. Further investigation into subcontracting plans would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified outcomes within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction for investigating any potential fraud, waste, or abuse.

Related Government Programs

Coastal Zone Management Programs
Shore Protection Projects
Army Corps of Engineers Civil Works Programs
Beach Erosion Control Projects

Risk Flags

Potential for environmental impact during dredging and sand placement.
Schedule vulnerability to weather conditions.
Long-term effectiveness dependent on natural erosion and storm events.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to GREAT LAKES DREDGE & DOCK CO, LLC. BEACH NOURISHMENT GREAT EGG HARBOR INLET, 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 $39.2 million.

What is the period of performance?

Start: 2023-10-25. End: 2024-06-20.

What is the historical spending trend for beach nourishment projects by the Department of the Army in New Jersey?

Analyzing historical spending for beach nourishment by the Department of the Army in New Jersey requires access to detailed contract databases and budget allocations over several fiscal years. Generally, federal investment in coastal resilience projects, including beach nourishment, has seen fluctuations influenced by major storm events, congressional appropriations, and evolving environmental policies. Projects like the Great Egg Harbor Inlet nourishment are often part of larger, multi-year strategies to combat coastal erosion and mitigate storm damage. Without specific historical data for this region, it's difficult to pinpoint a precise trend, but it's reasonable to assume that funding for such critical infrastructure is subject to both urgent needs following disasters and long-term planning for climate adaptation. The Army Corps of Engineers is typically the lead agency for these types of civil works projects, and their budget requests and contract awards would provide the most direct insight into historical spending patterns in the area.

How does the awarded amount compare to the estimated cost for similar beach nourishment projects nationwide?

Comparing the $39.2 million award for the Great Egg Harbor Inlet project to similar beach nourishment projects nationwide requires a robust dataset of contract values, project scopes (e.g., volume of sand placed, linear feet of shoreline renourished), and geographic locations. Beach nourishment costs can vary significantly based on factors such as sand availability, borrow site accessibility, pumping distances, environmental mitigation requirements, and prevailing market conditions for dredging services. A $39.2 million contract is substantial and likely represents a large-scale or complex undertaking. To benchmark effectively, one would need to normalize costs by metrics like cost per cubic yard of sand or cost per linear foot of beach restored. Without such normalized data, a direct comparison is difficult, but the figure suggests a significant investment in coastal protection, potentially placing it among larger projects within the federal portfolio.

What are the key performance indicators (KPIs) used to evaluate the success of this beach nourishment contract?

The success of a beach nourishment contract like the one for Great Egg Harbor Inlet is typically evaluated through a combination of performance indicators. Key among these would be the successful placement of the specified volume of sand within the contractually defined project area and timeframe. Post-construction surveys measuring the achieved beach width and volume are critical to assess whether the nourishment met design specifications. Long-term performance indicators often include monitoring the renourished beach's response to wave action and storm events, assessing its 'save rate' (how much material remains over time), and evaluating its effectiveness in reducing overtopping and inundation during storm surges. Compliance with environmental permits and mitigation measures, as well as adherence to safety protocols during construction, are also crucial aspects of performance evaluation.

What is the track record of Great Lakes Dredge & Dock Co, LLC in performing similar federal contracts?

Great Lakes Dredge & Dock Co, LLC (GLDD) is a major player in the dredging and marine construction industry with a long history of performing significant federal contracts, particularly with the U.S. Army Corps of Engineers. They have a well-established track record in executing large-scale beach nourishment, channel deepening, and port infrastructure projects across the United States. Their portfolio includes numerous contracts for coastal protection and navigation improvements, often involving complex environmental considerations and challenging logistical requirements. GLDD's experience typically encompasses the operation of specialized dredging fleets and adherence to stringent federal contracting standards. Information on their past performance, including project completion records, safety statistics, and client satisfaction, can often be found in federal contract databases and through agency performance evaluations.

Are there any specific environmental risks or mitigation strategies associated with this beach nourishment project?

Beach nourishment projects, including this one at Great Egg Harbor Inlet, inherently involve environmental considerations. Potential risks include impacts on marine life (e.g., benthic organisms, sea turtles, shorebirds) from dredging activities and sand placement, temporary increases in turbidity affecting water quality, and potential alteration of nearshore habitats. Mitigation strategies are typically mandated by environmental permits and may include timing construction to avoid sensitive species' breeding or nesting seasons, implementing turbidity curtains, establishing monitoring programs for marine life, and carefully selecting borrow sites to minimize ecological disruption. The specific environmental risks and required mitigation measures for this project would be detailed in the contract's environmental compliance sections and associated permit documentation, often overseen by agencies like the EPA and state environmental departments.

What is the expected lifespan of the beach nourishment provided under this contract?

The expected lifespan of beach nourishment is a critical factor in assessing its long-term value, but it is highly variable and depends on numerous environmental factors. Typically, federal projects aim for a design life of several years, often between 5 to 10 years, before significant renourishment is needed. However, this is an average and can be significantly shorter or longer depending on the specific site's wave energy, storm frequency and intensity, sediment characteristics, and the volume of sand placed. For Great Egg Harbor Inlet, the project's success in extending the beach profile and providing storm protection will be monitored. The actual 'lifespan' is a dynamic measure, influenced by natural processes and the resilience of the placed material against erosion and storm impacts. The contract likely specifies monitoring requirements to track the renourished beach's condition over time.

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: W912BU23B0012

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: $49,920,255

Exercised Options: $39,177,363

Current Obligation: $39,177,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline