Dredging Contract for Port Jersey Awarded to Great Lakes Dredge & Dock for $90.8M by Army
Contract Overview
Contract Amount: $90,775,037 ($90.8M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2007-10-19
End Date: 2011-06-30
Contract Duration: 1,350 days
Daily Burn Rate: $67.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PORT JERSEY, NY & NJ
Place of Performance
Location: AVENEL, MIDDLESEX County, NEW JERSEY, 07001
Plain-Language Summary
Department of Defense obligated $90.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: PORT JERSEY, NY & NJ Key points: 1. Significant contract value of $90.8 million for heavy civil engineering construction. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of 1350 days indicates a long-term project. 4. No small business participation noted, which could be a missed opportunity for economic inclusion.
Value Assessment
Rating: fair
The contract value of $90.8M for heavy civil engineering construction is substantial. Benchmarking against similar large-scale dredging projects would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. The existence of multiple bids (4) suggests a robust price discovery mechanism.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for the best value. The final price reflects the outcome of this competition.
Public Impact
Enhances critical port infrastructure, supporting maritime trade and economic activity. Project completion impacts shipping efficiency and capacity in the Port Jersey area. Long-term nature of the contract provides stability for the awarded contractor.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to cost overruns if not managed effectively.
Positive Signals
- Awarded through full and open competition.
- Significant investment in vital infrastructure.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. Spending in this sector is often tied to infrastructure development and maintenance, with significant capital investment required.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests that the scale and nature of the project may have favored larger, established firms, potentially limiting opportunities for smaller enterprises in this specific award.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management and performance monitoring by the agency to ensure compliance and successful project completion.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Long contract duration.
- Potential for unforeseen site conditions in dredging.
- Dependence on a single large contractor for a critical infrastructure project.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $90.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. PORT JERSEY, NY & 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 $90.8 million.
What is the period of performance?
Start: 2007-10-19. End: 2011-06-30.
What was the total number of bids received, and how did the winning bid compare to others?
The contract data indicates that 4 bids were received. While the specific details of the other bids are not provided, the award to Great Lakes Dredge & Dock Co, LLC suggests their bid was deemed the most advantageous to the government, likely based on a combination of price and other factors.
Are there any specific risks associated with the long duration of this dredging contract?
A long contract duration of 1350 days (approximately 3.7 years) can introduce risks such as potential cost escalation due to inflation, changes in environmental regulations, or unforeseen geological conditions. Effective contract management and contingency planning are crucial to mitigate these risks.
How does the firm fixed price contract type impact overall cost certainty for the government?
A Firm Fixed Price (FFP) contract type generally provides the greatest cost certainty for the government, as the price is set and not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns to the contractor, encouraging efficiency.
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: W912DS07B0011
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: $91,844,537
Exercised Options: $90,775,037
Current Obligation: $90,775,037
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-10-19
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2020-09-27
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