Army awards $18.37M contract for dredging services, highlighting construction sector needs

Contract Overview

Contract Amount: $18,366,666 ($18.4M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-28

End Date: 2006-11-07

Contract Duration: 405 days

Daily Burn Rate: $45.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200512!500640!96CE!W912DS!USA ENGINEER DISTRICT NEW YORK !W912DS05C0018 !A!N! !N! ! !20050928!20071110!006930358!006930358!362899130!N!GREAT LAKES DREDGE & DOCK COMP!2122 YORK RD FL 2 !OAK BROOK !IL!60523!99085!085!36!RICHMOND !RICHMOND !NEW YORK !+000001500000!N!N!000017478481!Y216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!004!A! !D!N!C! ! !N!C!N! ! ! !C!C!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: BAYONNE, HUDSON County, NEW JERSEY, 07002

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: 200512!500640!96CE!W912DS!USA ENGINEER DISTRICT NEW YORK !W912DS05C0018 !A!N! !N! ! !20050928!20071110!006930358!006930358!362899130!N!GREAT LAKES DREDGE & DOCK COMP!2122 YORK RD FL 2 !OAK BROOK !IL!60523!99085!085!36!RICHMOND !RICH… Key points: 1. Contract awarded for dredging services, indicating a need for specialized heavy civil engineering construction. 2. The contract was secured through full and open competition, suggesting a competitive market for these services. 3. The firm-fixed-price contract type implies that the contractor bears the risk of cost overruns. 4. The duration of the contract (405 days) suggests a significant scope of work. 5. The awardee, Great Lakes Dredge & Dock Co, LLC, is a significant player in the marine construction industry. 6. The contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code, placing it within a specific industrial sector.

Value Assessment

Rating: good

The contract value of $18.37 million for dredging services appears reasonable given the scope and duration. Benchmarking against similar large-scale dredging projects would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. Without specific per-unit cost data, a detailed pricing assessment is limited, but the overall award amount is within the expected range for substantial civil engineering projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of a competitive process generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly suggests that the market has sufficient capacity and interest to bid on such projects.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a market-driven price, as multiple companies vie to offer the best value, potentially driving down costs compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers, ensuring the maintenance and navigability of waterways. The service delivered is dredging, specifically excluding dustpan and sea-going hopper types, likely for channel maintenance or port development. The geographic impact is centered in New Jersey, as indicated by the state code 'NJ', suggesting work in ports or waterways within that region. The contract supports the heavy and civil engineering construction workforce, particularly those skilled in marine operations and dredging.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions are encountered, though mitigated by firm-fixed-price.
Dependence on a single contractor for a critical infrastructure service.
Environmental impact of dredging activities requires careful monitoring and mitigation.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Firm-fixed-price contract shifts cost risk to the contractor.
Contractor has a significant presence in the dredging industry.

Sector Analysis

This contract falls within the Construction sector, specifically under NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sub-sector includes establishments primarily engaged in constructing heavy infrastructure projects such as waterways, dams, and marine facilities. The dredging market is specialized, often dominated by a few large firms with the necessary equipment and expertise. The total federal spending on heavy civil engineering construction can fluctuate based on infrastructure priorities and funding cycles.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale infrastructure project, it is typical for such contracts to be awarded to larger firms with the specialized equipment and financial capacity required. There is no explicit information on subcontracting plans for small businesses, but it is common for prime contractors on large projects to engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the U.S. Army Engineer District New York. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. 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

Army Corps of Engineers Civil Works Programs
Port and Waterway Infrastructure Projects
Marine Construction Contracts
Federal Dredging Contracts

Risk Flags

Environmental compliance risks
Unforeseen subsurface conditions
Weather-related delays
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to GREAT LAKES DREDGE & DOCK CO, LLC. 200512!500640!96CE!W912DS!USA ENGINEER DISTRICT NEW YORK !W912DS05C0018 !A!N! !N! ! !20050928!20071110!006930358!006930358!362899130!N!GREAT LAKES DREDGE & DOCK COMP!2122 YORK RD FL 2 !OAK BROOK !IL!60523!99085!085!36!RICHMOND !RICHMOND !NEW YORK !+000001500000!N!N!000017478481!Y216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !* !237990!E! !3! ! ! ! ! !202

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 $18.4 million.

What is the period of performance?

Start: 2005-09-28. End: 2006-11-07.

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

Historical spending on dredging services by the Department of the Army, particularly through the Army Corps of Engineers, has been substantial and consistent, driven by the mandate to maintain navigable waterways and coastal defenses. Annual expenditures can range from hundreds of millions to over a billion dollars, depending on infrastructure needs, environmental regulations, and congressional appropriations. Major dredging efforts often involve large, multi-year contracts similar to the one awarded to Great Lakes Dredge & Dock Co, LLC. Factors influencing spending include the aging of existing infrastructure, the need for deeper channels to accommodate larger vessels, and coastal resilience projects in response to climate change. Analyzing past contract awards within the 'DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS' category and related heavy civil construction codes provides insight into the typical contract values, durations, and the competitive landscape for these specialized services.

How does the awarded amount compare to other similar dredging contracts?

The awarded amount of approximately $18.37 million for this dredging contract is significant but falls within the typical range for substantial waterway maintenance or improvement projects. Large-scale federal dredging contracts can often exceed $50 million, and some major port deepening or coastal restoration projects can reach hundreds of millions of dollars. The specific nature of the dredging (excluding dustpan and sea-going hoppers) suggests a focus on inland waterways, harbors, or specific channel maintenance rather than deep ocean work. Comparing this contract's value requires looking at contracts with similar scope, geographic location, and dredging type. For instance, contracts for maintenance dredging in major harbors or rivers often fall into this mid-range value. The firm-fixed-price nature and 405-day duration are also key comparison points. Without access to a comprehensive database of all dredging contracts with detailed specifications, a precise benchmark is difficult, but this award represents a considerable investment in maintaining critical water infrastructure.

What are the key risks associated with this type of dredging contract?

Key risks associated with this dredging contract include environmental challenges, such as the discovery of contaminated sediments requiring special handling and disposal, which can significantly increase costs and timelines. Unforeseen subsurface conditions, like hard rock or buried debris, can also impede progress and escalate expenses, although the firm-fixed-price contract shifts much of this risk to the contractor. Operational risks involve equipment failure, weather disruptions (especially in coastal or riverine environments), and logistical challenges in transporting dredged material. Furthermore, regulatory hurdles and permit compliance are critical; delays or changes in environmental regulations can impact project execution. The contractor's financial stability and capacity to manage a project of this scale are also considerations. Finally, potential disputes over contract scope, performance, or payment can arise, necessitating robust contract management and dispute resolution mechanisms.

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

Great Lakes Dredge & Dock Co, LLC (GLDD) has a long and extensive track record of performing federal contracts, particularly with the U.S. Army Corps of Engineers and other maritime agencies. As one of the largest dredging contractors in the United States, GLDD has been involved in numerous high-profile projects, including port deepening, coastal restoration, and maintenance dredging across the country. Their history includes successfully executing large-scale, complex contracts, often under challenging environmental and logistical conditions. While specific performance metrics for every contract are not publicly detailed, their continued success in winning competitive bids for significant federal work suggests a generally positive performance record. Like any large contractor, they may have experienced contract modifications, claims, or minor disputes on some projects, which is common in the heavy construction industry. However, their sustained presence and market share indicate a strong capability and reliability in delivering dredging services.

What is the significance of the NAICS code 237990 for this contract?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' is highly significant as it precisely categorizes the nature of the work performed under this contract. This code encompasses the construction of projects such as waterways, harbors, dams, and flood control structures, which directly aligns with dredging activities. By assigning this code, the government identifies the contract as pertaining to specialized heavy infrastructure development and maintenance. This classification is crucial for statistical purposes, allowing for tracking of federal spending within this specific industry segment. It also helps in identifying relevant market participants, understanding industry trends, and benchmarking contract values and performance against similar projects within the heavy civil engineering sector. The code signals the need for contractors with specific expertise, equipment, and certifications required for large-scale civil engineering undertakings.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Great Lakes Dredge & Dock Corporation (UEI: 362899130)

Address: 2122 YORK RD FL 2, OAK BROOK, IL, 60523

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline