Army awards $25.1M dredging contract to Great Lakes Dredge & Dock Co. for New York operations

Contract Overview

Contract Amount: $25,127,290 ($25.1M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2013-08-13

End Date: 2015-03-15

Contract Duration: 579 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING, PROCESSING, TRANSPORTATION

Place of Performance

Location: STATEN ISLAND, RICHMOND County, NEW YORK, 10301

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: DREDGING, PROCESSING, TRANSPORTATION Key points: 1. Contract value appears reasonable given the scope of dredging, processing, and transportation services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 579 days indicates a significant, multi-year project. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic focus on New York suggests localized infrastructure support. 6. The award to a single, established contractor implies confidence in their specialized capabilities.

Value Assessment

Rating: good

The contract value of $25.1 million for dredging, processing, and transportation services seems aligned with the scope of work. While specific benchmarks for this exact service in New York are not readily available, similar large-scale civil engineering projects often involve multi-million dollar investments. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor manages costs effectively. The duration of the contract (579 days) also supports the overall value proposition for a project of this scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this specialized service. A competitive bidding process generally allows for price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. The number of bidders provides some assurance that the government received multiple offers to consider.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price. Multiple bids mean the government had options and could select the most cost-effective solution while ensuring the required technical capabilities were met.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers and potentially other federal or state agencies requiring waterway maintenance and infrastructure support in the New York region. The services delivered include essential dredging, processing, and transportation of materials, crucial for maintaining navigable waterways and supporting maritime commerce. The geographic impact is concentrated in New York, specifically where the dredging operations are conducted. Workforce implications include employment opportunities for skilled laborers, equipment operators, and project managers within the dredging and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions significantly increase dredging or processing complexity.
Dependence on a single contractor for a critical infrastructure service could pose a risk if performance issues arise.
Environmental compliance and permitting challenges could lead to delays or increased costs.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The contractor, Great Lakes Dredge & Dock Co., LLC, is a well-established entity with significant experience in this field.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to dredging and marine infrastructure. The market for dredging services is specialized, often dominated by a few large firms capable of undertaking complex projects. The total federal spending on dredging and related services can fluctuate based on infrastructure needs, environmental regulations, and port development initiatives. This contract represents a specific investment in maintaining or improving New York's waterways.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the awarding agency (Department of the Army). Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day operational oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Environmental Dredging Projects

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance and permitting complexities.
Dependence on weather conditions affecting operational timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. DREDGING, PROCESSING, TRANSPORTATION

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 $25.1 million.

What is the period of performance?

Start: 2013-08-13. End: 2015-03-15.

What is the historical spending trend for dredging services by the Department of the Army in New York?

Analyzing historical spending trends for dredging services by the Department of the Army in New York requires access to detailed historical contract data. Generally, federal agencies like the Army Corps of Engineers allocate funds for dredging based on the maintenance needs of ports, harbors, and inland waterways, as well as specific infrastructure projects. Spending can vary year-to-year due to factors such as the condition of waterways, the urgency of maintenance, and the availability of appropriations. Without specific historical data for this region and service type, it's difficult to provide precise figures, but it's reasonable to assume consistent, albeit fluctuating, investment in maintaining critical maritime infrastructure in a major state like New York.

How does the awarded amount compare to similar dredging contracts awarded by other federal agencies?

Comparing the $25.1 million award to similar dredging contracts requires a benchmark of projects with comparable scope, location, and duration. Dredging projects can vary significantly in cost based on factors like the volume of material to be moved, the type of material (e.g., sand, silt, rock), the depth of dredging required, the distance for material transport, and environmental mitigation measures. A $25.1 million contract for a multi-year project involving processing and transportation is substantial but not unusual for significant waterway maintenance or construction. For instance, major port deepening projects or extensive channel maintenance can easily run into tens or hundreds of millions of dollars. A more precise comparison would necessitate identifying contracts with similar cubic yardage, environmental considerations, and logistical challenges.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Key Performance Indicators (KPIs) for a dredging contract typically focus on the successful and timely execution of the work according to the contract specifications. These often include metrics such as the volume of material dredged per unit of time (e.g., cubic yards per day), adherence to project schedules and milestones, compliance with environmental regulations and permit conditions, and the quality of the dredged material placement or disposal. For a firm fixed-price contract, meeting these KPIs is crucial for the contractor to achieve profitability. The government's project managers would monitor these KPIs closely, potentially through daily reports, site inspections, and progress meetings, to ensure the project remains on track and meets all technical and environmental requirements.

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

Great Lakes Dredge & Dock Co., LLC (GLDD) has a long and extensive track record of performing dredging and marine construction services for various federal agencies, including the U.S. Army Corps of Engineers. They are one of the largest dredging contractors in the United States. Their past performance typically includes a wide range of projects, from maintenance dredging of harbors and channels to capital dredging for port expansions and complex environmental restoration projects. While specific details of all past contracts, including any performance issues or disputes, would require a deep dive into federal procurement databases, GLDD's continued success in winning significant federal contracts indicates a generally positive performance history and established capability in the field.

What are the potential risks associated with the firm fixed-price contract type for this dredging project?

The primary risk associated with a firm fixed-price (FFP) contract for a complex project like dredging lies in the potential for unforeseen circumstances to significantly impact the contractor's costs. While FFP shifts performance risk to the contractor, it requires the contractor to accurately estimate all potential costs upfront. For dredging, risks include encountering unexpected subsurface conditions (e.g., harder materials than anticipated, buried debris, hazardous materials), adverse weather conditions that halt operations, or changes in environmental regulations that necessitate different disposal methods. If these risks materialize and are not adequately accounted for in the bid, the contractor could face substantial financial losses, potentially impacting their ability to complete the project or leading to claims for equitable adjustments if contract terms allow.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS13B0010

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: $25,127,290

Exercised Options: $25,127,290

Current Obligation: $25,127,290

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline