DoD's $22.7M Monmouth Beach hurricane recovery contract awarded to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $22,686,071 ($22.7M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2013-06-19

End Date: 2014-07-20

Contract Duration: 396 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEA BRIGHT TO MONMOUTH BEACH HURRICANE SANDY

Place of Performance

Location: MONMOUTH BEACH, MONMOUTH County, NEW JERSEY, 07750

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: SEA BRIGHT TO MONMOUTH BEACH HURRICANE SANDY Key points: 1. Contract value appears reasonable given the scope of hurricane recovery and coastal restoration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The definitive contract type with a firm fixed price offers cost certainty for the government. 4. Project duration of 396 days aligns with the complexity of large-scale civil engineering tasks. 5. The contract falls within the 'Other Heavy and Civil Engineering Construction' category, indicating specialized services. 6. Awarded by the Department of the Army, indicating a focus on infrastructure resilience and support.

Value Assessment

Rating: good

The contract value of $22.7 million for hurricane recovery and coastal restoration is within a typical range for such large-scale civil engineering projects. While specific benchmarks for 'SEA BRIGHT TO MONMOUTH BEACH HURRICANE SANDY' are not readily available, the scope implies significant material, labor, and equipment costs. The firm fixed-price nature of the contract provides cost predictability for the government, which is a positive indicator of value management. Comparing to similar large-scale coastal defense or disaster recovery projects would offer further insight into the pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 4 bidders, this suggests a healthy level of competition for this significant civil engineering project. A competitive environment generally leads to more favorable pricing and better quality offerings as contractors vie for the award. The presence of multiple bidders helps ensure that the government receives a fair market price.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through a competitive bidding process. This approach maximizes the potential for cost savings compared to less competitive or sole-source awards.

Public Impact

The primary beneficiaries are the residents and infrastructure of Sea Bright and Monmouth Beach, New Jersey, through restored coastal defenses. The services delivered include critical heavy and civil engineering construction aimed at hurricane damage repair and coastal resilience. The geographic impact is localized to the specific beach areas in Monmouth County, New Jersey, protecting a vulnerable coastline. The project likely involved a significant workforce of skilled laborers, engineers, and support staff in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental conditions arise during dredging and construction.
Risk of schedule delays due to weather, permitting issues, or supply chain disruptions common in large construction projects.
Ensuring long-term effectiveness of the restored coastline against future storm events requires ongoing monitoring and maintenance.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Award to a known entity in the dredging and marine construction industry suggests technical capability.
Full and open competition indicates a robust process for selecting the most capable and cost-effective bidder.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, a broad category encompassing projects like highways, bridges, dams, and coastal infrastructure. The market for such services is characterized by large, specialized firms capable of undertaking complex, capital-intensive projects. The value of this contract, approximately $22.7 million, is substantial but not extraordinary within the context of major civil engineering endeavors. Comparable spending benchmarks would typically be found in other federal or state-level coastal protection, flood control, or disaster recovery infrastructure projects.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature and scale of heavy civil engineering and coastal restoration, it is common for such large prime contracts to be awarded to larger, established firms. However, the prime contractor, Great Lakes Dredge & Dock Co., LLC, may engage small businesses as subcontractors for specific services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

The Department of the Army, as the awarding agency, is responsible for oversight of this contract. Oversight would typically involve contract administration, performance monitoring, and ensuring compliance with contract terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's lifecycle.

Related Government Programs

Army Corps of Engineers Civil Works Programs
FEMA Disaster Relief and Coastal Restoration Funds
National Oceanic and Atmospheric Administration (NOAA) Coastal Management Programs
Department of the Interior - Bureau of Reclamation Projects

Risk Flags

Potential for environmental impact during dredging and construction activities.
Risk of schedule delays due to weather or unforeseen site conditions.
Ensuring long-term resilience of restored coastal features against future storm events.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to GREAT LAKES DREDGE & DOCK CO, LLC. SEA BRIGHT TO MONMOUTH BEACH HURRICANE SANDY

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 $22.7 million.

What is the period of performance?

Start: 2013-06-19. End: 2014-07-20.

What is the track record of Great Lakes Dredge & Dock Co., LLC with federal contracts, particularly in disaster recovery?

Great Lakes Dredge & Dock Co., LLC (GLDD) has a significant history of performing large-scale marine construction and dredging projects for various federal agencies, including the Army Corps of Engineers. Their portfolio includes numerous contracts related to navigation, coastal protection, and environmental remediation. While specific disaster recovery contracts for hurricane events would need detailed review, GLDD's core competencies in dredging, breakwater construction, and beach nourishment are directly applicable to post-hurricane restoration efforts. Their extensive experience suggests a strong capability to execute complex projects of this nature, often involving substantial federal funding and stringent performance requirements.

How does the $22.7 million contract value compare to similar coastal restoration projects?

The $22.7 million contract value for the Sea Bright to Monmouth Beach hurricane recovery project is substantial, reflecting the scale and complexity of restoring significant coastal infrastructure post-disaster. Similar large-scale coastal restoration and hurricane protection projects managed by the Army Corps of Engineers or FEMA can range from tens of millions to hundreds of millions of dollars, depending on the geographic scope, engineering requirements, and materials involved. For instance, major beach nourishment projects or the construction of new breakwaters or seawalls often fall within or exceed this range. Therefore, $22.7 million appears to be a reasonable investment for a critical recovery effort in a vulnerable coastal area, aligning with the typical cost profiles of comparable federal civil engineering initiatives.

What are the primary risks associated with this type of heavy civil engineering construction contract?

The primary risks for a contract of this nature include unforeseen subsurface conditions (e.g., encountering unexpected rock formations or contaminated sediments during dredging), environmental challenges (e.g., impact on marine life, permitting delays), and weather-related disruptions, especially given the coastal location and the nature of hurricane recovery. Schedule delays are a significant risk, which can lead to cost overruns if not managed effectively. Furthermore, the long-term effectiveness of the restored coastline against future storm events is a performance risk that requires careful design and execution. The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, but scope creep or significant unforeseen issues could still lead to claims or disputes.

How effective is the firm fixed-price contract type in ensuring value for taxpayer money in this context?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for taxpayer money when the scope of work is well-defined and risks can be reasonably anticipated, as is often the case in construction projects with established engineering parameters. For this hurricane recovery contract, the FFP structure incentivizes the contractor to control costs and manage the project efficiently to maximize profit. It provides the government with a high degree of cost certainty, minimizing the risk of budget overruns due to contractor inefficiencies or rising material costs. However, if unforeseen conditions arise that significantly alter the scope or complexity, the FFP can sometimes lead to contractor claims or disputes if not managed carefully through contract modifications.

What is the historical spending pattern for similar coastal restoration or hurricane recovery contracts by the Department of Defense?

The Department of Defense, primarily through the Army Corps of Engineers, has a long history of significant spending on coastal restoration, hurricane protection, and disaster recovery projects, particularly in areas affected by major storms. Annual spending can fluctuate considerably based on the frequency and severity of hurricanes and other natural disasters. In years with significant storm activity, federal spending on such infrastructure can surge into the billions of dollars across various agencies. The Army Corps of Engineers alone manages billions in civil works projects annually, a portion of which is dedicated to coastal resilience and recovery. This $22.7 million contract represents a specific, localized investment within a broader federal commitment to protecting coastal communities and infrastructure.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS13B0011

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 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: $22,686,071

Exercised Options: $22,686,071

Current Obligation: $22,686,071

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $428,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline