Army awards $75M contract for Manasquan Beach fill project to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $75,048,376 ($75.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-28

End Date: 2025-07-31

Contract Duration: 276 days

Daily Burn Rate: $271.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MANASQUAN BEACH FILL

Place of Performance

Location: MANASQUAN, MONMOUTH County, NEW JERSEY, 08736

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $75.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MANASQUAN BEACH FILL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, providing cost certainty. 3. Project duration is 276 days, indicating a focused and relatively short-term effort. 4. The contract value of $75M is substantial for a specific construction project. 5. The project is located in New Jersey, impacting local coastal infrastructure. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction.

Value Assessment

Rating: good

The contract value of $75,048,375.95 for beach fill operations appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar Army Corps of Engineers beach nourishment projects would provide a more precise assessment of value for money. The firm fixed-price nature of the contract helps manage cost risks for the government.

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 a bid. The presence of two bidders (implied by 'no': 2) suggests a degree of competition, though the exact number of proposals received and the evaluation process would offer further insight into the competitive landscape.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple firms to offer their best pricing and technical solutions.

Public Impact

The primary beneficiaries are residents and visitors of Manasquan, New Jersey, through enhanced coastal protection and recreational beach access. The project will deliver critical beach nourishment services, likely involving the placement of large volumes of sand. The geographic impact is localized to the Manasquan coastline in New Jersey. The project will likely involve a workforce skilled 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 or geological conditions arise, despite the fixed-price nature.
Dependence on favorable weather conditions for timely execution of dredging and placement activities.
Long-term effectiveness of beach fill is subject to natural erosion processes and storm events.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Awarded through full and open competition, suggesting a competitive market for these services.
Project addresses critical coastal resilience needs for the community.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal protection and infrastructure. The market for large-scale beach nourishment and dredging services is specialized, often dominated by a few key players with the necessary equipment and expertise. The Army Corps of Engineers is a significant procurer of such services for coastal defense and environmental restoration projects nationwide.

Small Business Impact

The contract details do not indicate a small business set-aside, and the prime contractor, Great Lakes Dredge & Dock Co., LLC, is a large entity. There is no explicit information on subcontracting plans for small businesses within this award, but large federal construction contracts often include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project management team within the Department of the Army. The firm fixed-price structure incentivizes the contractor to manage costs effectively. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Army Corps of Engineers Coastal Navigation Projects
Beach Erosion Control Projects
Coastal Infrastructure Development
Marine Construction Services

Risk Flags

Potential for environmental impacts during dredging and sand placement.
Dependence on weather conditions for project execution.
Long-term sustainability of beach fill against erosion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. MANASQUAN BEACH FILL

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 $75.0 million.

What is the period of performance?

Start: 2024-10-28. End: 2025-07-31.

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

Analyzing historical spending by the Department of the Army for beach nourishment projects in New Jersey would provide context for the $75 million Manasquan Beach Fill contract. This would involve reviewing past awards for similar services, noting contract values, durations, and the specific locations within the state. Understanding trends in project scope and cost over time can help determine if this current award is consistent with previous investments or represents a significant increase or decrease. For instance, if recent years have seen a surge in funding for coastal resilience due to climate change impacts or increased storm frequency, this contract might align with a broader strategic investment. Conversely, if historical spending has been significantly lower, further investigation into the specific needs and scale of the Manasquan project would be warranted to justify the expenditure.

How does the per-unit cost of this beach fill project compare to similar projects in other regions?

A per-unit cost comparison, such as cost per cubic yard of sand placed or cost per linear foot of shoreline nourished, is crucial for assessing value. Benchmarking the Manasquan Beach Fill contract against similar projects undertaken by the Army Corps of Engineers or other federal agencies in different coastal regions would reveal cost efficiencies or potential outliers. Factors influencing per-unit costs include sand quality and availability, borrow site distances, environmental mitigation requirements, and prevailing labor and equipment rates. If the Manasquan project's per-unit cost is significantly higher than comparable projects, it could indicate inefficiencies, unique site challenges, or a less competitive bidding environment. Conversely, a lower per-unit cost would suggest effective procurement and execution.

What are the specific risks associated with the contractor, Great Lakes Dredge & Dock Co., LLC, on this project?

Assessing the risks associated with Great Lakes Dredge & Dock Co., LLC involves reviewing their past performance on federal contracts, particularly those involving dredging and coastal construction. This includes examining their track record for on-time completion, adherence to budget, quality of work, and any history of disputes, claims, or contract terminations. Information from sources like the Federal Awardee Performance and Integrity Information System (FAPIIS) can provide insights into past performance issues. For this specific project, risks might include the contractor's capacity to mobilize the necessary specialized equipment and personnel, their experience with the specific geological conditions at Manasquan, and their ability to navigate environmental regulations. A strong performance history would mitigate these risks, while a history of issues would warrant closer monitoring.

What is the expected long-term effectiveness and maintenance requirement for the Manasquan beach fill?

The long-term effectiveness of the Manasquan beach fill is contingent upon several factors, including the volume of sand placed, the grain size characteristics of the fill material, and the natural erosion rates of the coastline. Beach nourishment projects are typically designed with a specific 'project life' in mind, after which periodic renourishment may be required. The Army Corps of Engineers likely has models and studies that predict the renourishment cycle based on historical data and anticipated storm impacts. Maintenance requirements could include monitoring sand levels, addressing localized erosion hotspots, and potentially undertaking smaller-scale interventions between major renourishment events. Understanding these projections is key to evaluating the total lifecycle cost and sustained benefit of the initial investment.

How does this contract align with broader federal strategies for coastal resilience and climate adaptation?

This contract aligns with broader federal strategies by addressing critical coastal infrastructure needs, which are increasingly prioritized due to rising sea levels and more frequent extreme weather events. Federal initiatives often focus on enhancing natural defenses, such as beaches and wetlands, to protect communities and ecosystems. Beach nourishment projects like this one contribute directly to coastal resilience by widening beaches, which act as natural buffers against storm surge and flooding. Furthermore, the investment reflects a commitment to protecting valuable coastal real estate and recreational areas. Evaluating this contract within the context of national climate adaptation plans and FEMA's hazard mitigation efforts would highlight its role in a larger, coordinated approach to managing climate-related risks along the nation's coastlines.

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: W912BU24B0010

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: $113,516,467

Exercised Options: $75,048,376

Current Obligation: $75,048,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline