Newark Bay Deepening Contract Awarded to Great Lakes Dredge & Dock for $114.5M
Contract Overview
Contract Amount: $114,515,171 ($114.5M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2007-06-21
End Date: 2010-11-30
Contract Duration: 1,258 days
Daily Burn Rate: $91.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 50 FT DEEPENING OF NEWARK BAY
Place of Performance
Location: NEWARK, ESSEX County, NEW JERSEY, 07114
Plain-Language Summary
Department of Defense obligated $114.5 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: 50 FT DEEPENING OF NEWARK BAY Key points: 1. The contract value of $114.5 million is significant for a single heavy civil engineering project. 2. Great Lakes Dredge & Dock Co, LLC secured the award, indicating strong capabilities in this specialized sector. 3. The project's duration of 1258 days suggests potential for cost overruns or schedule delays. 4. This contract falls under 'Other Heavy and Civil Engineering Construction', a sector vital for infrastructure development.
Value Assessment
Rating: fair
The contract was awarded at a firm fixed price, which typically offers good value if the scope is well-defined. However, the duration and potential for unforeseen conditions in dredging could impact the final cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. The award to a single entity implies they offered the best value among competing bids.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, ensuring competitive pricing and efficient use of funds for this critical infrastructure project.
Public Impact
Enhances maritime transport capacity in Newark Bay, supporting economic activity. Potential for environmental impact during dredging operations requires careful monitoring. Job creation in the construction and maritime sectors during the project's execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration increases risk of cost escalation.
- Environmental concerns associated with dredging activities.
- Potential for unforeseen subsurface conditions impacting schedule and cost.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract structure.
Sector Analysis
This contract is within the heavy and civil engineering construction sector, specifically focusing on maritime infrastructure. Benchmarks for similar large-scale dredging projects would typically consider factors like cubic yards dredged, depth achieved, and environmental mitigation costs.
Small Business Impact
The contract was awarded to Great Lakes Dredge & Dock Co, LLC, a large prime contractor. There is no explicit indication of small business subcontracting in the provided data, which could be an area for further review.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve monitoring progress, adherence to environmental regulations, and quality control throughout the project lifecycle to ensure taxpayer funds are used effectively.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (1258 days).
- Potential for environmental impacts from dredging.
- Risk of unforeseen subsurface conditions.
- Lack of explicit small business participation noted.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.5 million to GREAT LAKES DREDGE & DOCK CO, LLC. 50 FT DEEPENING OF NEWARK BAY
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 $114.5 million.
What is the period of performance?
Start: 2007-06-21. End: 2010-11-30.
What were the key performance indicators used to evaluate bids for this Newark Bay deepening project, and how did they ensure the best value for taxpayers?
Evaluation likely focused on technical approach, past performance, schedule adherence, and price. For taxpayers, 'best value' implies a balance between cost and the contractor's ability to successfully complete the complex dredging operation within the specified parameters, minimizing risks of delays and cost overruns.
What specific environmental mitigation measures were included in the contract to address potential impacts of dredging Newark Bay?
The contract likely includes stipulations for sediment containment, monitoring of water quality, and proper disposal of dredged material. Detailed environmental impact assessments and compliance with EPA regulations would be critical components to minimize ecological disruption in the bay ecosystem.
Given the project's duration, what mechanisms are in place to manage potential scope creep or unforeseen issues that could inflate the final cost beyond the initial $114.5 million?
A firm fixed price contract provides a baseline cost, but change order processes are crucial. The contract would outline procedures for addressing unforeseen conditions, with rigorous review and approval required for any modifications that could increase the total cost, ensuring accountability.
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
Solicitation ID: W912DS06B0008
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 2ND FL, OAK BROOK, IL, 60523
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $115,052,171
Exercised Options: $114,515,171
Current Obligation: $114,515,171
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-21
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2021-02-25
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