DoD Awards $115.9M Construction Contract to Great Lakes Dredge & Dock Co. for New Jersey Project
Contract Overview
Contract Amount: $115,927,503 ($115.9M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2012-09-30
Contract Duration: 1,461 days
Daily Burn Rate: $79.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SKVK-1 CLIN 0001, CLIN 0002, CLIN 0003, CLIN 0004, CLIN 0009 (OPTION 5)
Place of Performance
Location: BAYONNE, HUDSON County, NEW JERSEY, 07002
Plain-Language Summary
Department of Defense obligated $115.9 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: SKVK-1 CLIN 0001, CLIN 0002, CLIN 0003, CLIN 0004, CLIN 0009 (OPTION 5) Key points: 1. The contract value of $115.9 million represents a significant investment in heavy civil engineering construction. 2. Competition was full and open, suggesting a robust bidding process. 3. The contract duration of 1461 days indicates a long-term, complex project. 4. The absence of small business participation is noted.
Value Assessment
Rating: fair
The contract's firm fixed price structure provides cost certainty. However, without specific performance metrics or benchmarks for similar heavy civil engineering projects, a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The firm fixed price award suggests that the government secured a set price after evaluating bids.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to achieve the best value for public funds on this substantial construction project.
Public Impact
Significant infrastructure development in New Jersey, potentially improving public works or environmental conditions. Job creation within the construction sector, particularly for heavy and civil engineering roles. Potential for long-term economic impact in the region due to the completed project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may introduce unforeseen cost risks.
Positive Signals
- Full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which involves large-scale infrastructure projects. Spending in this sector can fluctuate based on government infrastructure initiatives and economic conditions.
Small Business Impact
The contract was not awarded to small businesses, as indicated by the 'sb' field being false. This suggests that the scale or nature of the project may have favored larger, specialized firms.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management and performance monitoring to ensure project completion and adherence to terms.
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.
- Potential for cost overruns for the contractor due to long duration and fixed price.
- Limited insight into specific project scope and public benefit.
- No indication of performance metrics or quality assurance details.
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 $115.9 million to GREAT LAKES DREDGE & DOCK CO, LLC. SKVK-1 CLIN 0001, CLIN 0002, CLIN 0003, CLIN 0004, CLIN 0009 (OPTION 5)
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 $115.9 million.
What is the period of performance?
Start: 2008-09-30. End: 2012-09-30.
What specific type of heavy and civil engineering construction was undertaken, and what is the expected public benefit?
The provided data does not specify the exact nature of the construction beyond the NAICS code '237990 - Other Heavy and Civil Engineering Construction'. This could encompass a wide range of projects such as port improvements, environmental remediation, or infrastructure upgrades. The public benefit would depend on the project's specific goals, such as enhanced transportation, improved environmental quality, or increased resilience.
Are there any identified risks associated with the long contract duration and firm fixed price?
A long contract duration (1461 days) coupled with a firm fixed price can pose risks if unforeseen circumstances arise, such as material cost escalations or significant changes in site conditions. While the fixed price protects the government from cost overruns, the contractor may face reduced profit margins or seek change orders if costs exceed projections, potentially leading to disputes.
How does the $115.9 million award compare to typical spending for similar large-scale civil engineering projects?
Without specific benchmarks for comparable projects in New Jersey or nationally, it's difficult to definitively state if $115.9 million is high or low. However, it represents a substantial investment, suggesting a project of significant scope and complexity, likely involving specialized equipment and extensive labor, which are characteristic of major 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
Solicitation ID: W912DS08B0004
Offers Received: 3
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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,722,240
Exercised Options: $116,283,240
Current Obligation: $115,927,503
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2020-10-03
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