Ambrose Channel Dredging Contract Awarded for $20.4M to Great Lakes Dredge & Dock Co
Contract Overview
Contract Amount: $20,380,305 ($20.4M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2011-09-02
End Date: 2012-11-02
Contract Duration: 427 days
Daily Burn Rate: $47.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DREDGING OF AMBROSE CHANNEL (S-AM-3A)
Place of Performance
Location: STATEN ISLAND, RICHMOND County, NEW YORK, 10305
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: DREDGING OF AMBROSE CHANNEL (S-AM-3A) Key points: 1. Contract awarded to a single, large company, indicating potential for specialized capabilities. 2. The firm fixed price contract type suggests a clear scope and budget, mitigating cost overrun risks. 3. The project falls within the heavy and civil engineering construction sector, crucial for maritime infrastructure. 4. No small business participation noted, which could be a missed opportunity for economic diversification.
Value Assessment
Rating: good
The contract value of $20.4M for dredging services appears reasonable given the scope of work for Ambrose Channel. Benchmarking against similar large-scale maritime construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified bidders vie for the contract.
Taxpayer Impact: The competitive bidding process likely ensured a fair price for taxpayers, maximizing the value received for the $20.4M expenditure on essential waterway maintenance.
Public Impact
Ensures continued navigability of a critical East Coast shipping channel. Supports economic activity by facilitating maritime trade and commerce. Maintains national infrastructure vital for defense and supply chain resilience. Potential for environmental impact from dredging activities requires monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential environmental impact of dredging.
Positive Signals
- Full and open competition.
- Firm fixed price contract.
- Critical infrastructure project.
Sector Analysis
This contract falls under heavy and civil engineering construction, a sector vital for national infrastructure. Spending in this sector often involves large capital investments for projects like port maintenance and waterway improvements.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This suggests that the specialized nature of the dredging work may have favored larger, established firms.
Oversight & Accountability
Awarded under full and open competition, the contract implies a structured procurement process. Oversight would focus on project execution, adherence to specifications, and environmental compliance during the dredging period.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited number of bidders (3) despite full and open competition.
- No small business participation.
- Potential environmental impact of dredging activities.
- Contract duration of over a year.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to GREAT LAKES DREDGE & DOCK CO, LLC. DREDGING OF AMBROSE CHANNEL (S-AM-3A)
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 $20.4 million.
What is the period of performance?
Start: 2011-09-02. End: 2012-11-02.
What was the competitive landscape like for this specific dredging project, and did the number of bids reflect sufficient competition?
The contract was awarded under 'full and open competition,' indicating that multiple bidders were theoretically allowed to participate. However, the number of bids received (3) is on the lower side for such a significant infrastructure project. Further analysis would be needed to determine if this number was sufficient to drive optimal pricing and if the bidders were truly qualified and capable of performing the complex dredging work.
What are the primary risks associated with this dredging contract, and how were they mitigated?
Key risks include potential environmental impacts from sediment disturbance, unforeseen subsurface conditions affecting dredging depth or material, and contractor performance issues. The firm fixed price contract helps mitigate cost overrun risks. Mitigation for environmental risks would typically involve strict adherence to environmental permits and monitoring protocols. Unforeseen conditions might be addressed through contract clauses allowing for equitable adjustments.
How does the cost of this dredging project compare to similar infrastructure investments, and what is the long-term value proposition?
The $20.4M cost for dredging Ambrose Channel needs to be benchmarked against similar large-scale maritime infrastructure projects to assess its value. The long-term value lies in maintaining a critical shipping artery, supporting economic trade, and ensuring national security through reliable port access. The firm fixed price structure aims to deliver this value within a defined budget.
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: W912DS11B0004
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 STE 200, OAK BROOK, IL, 60523
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,245,805
Exercised Options: $20,380,305
Current Obligation: $20,380,305
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-02
Current End Date: 2012-11-02
Potential End Date: 2012-11-02 00:00:00
Last Modified: 2021-02-25
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