Army awards $42.7M contract for New York shoal removal, highlighting heavy civil engineering needs

Contract Overview

Contract Amount: $42,713,500 ($42.7M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2015-01-07

Contract Duration: 470 days

Daily Burn Rate: $90.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NY NJ HDP SHOAL REMOVAL (S-SR-2) PROJECT, BASE + OPTIONAL ITEM #2

Place of Performance

Location: STATEN ISLAND, RICHMOND County, NEW YORK, 10308

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $42.7 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: NY NJ HDP SHOAL REMOVAL (S-SR-2) PROJECT, BASE + OPTIONAL ITEM #2 Key points: 1. Contract value represents a significant investment in waterway maintenance and navigation. 2. Full and open competition suggests a robust bidding process for this infrastructure project. 3. The definitive contract type indicates a clear scope of work for the awarded period. 4. Fixed-price structure aims to control costs and provide budget certainty. 5. Project duration of 470 days points to a substantial undertaking in dredging operations. 6. Geographic focus on New York highlights regional infrastructure priorities.

Value Assessment

Rating: good

The contract value of $42.7 million for shoal removal in New York appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale dredging projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests an effort to manage costs effectively, but the absence of detailed cost breakdowns makes a granular price assessment challenging. The contract's duration and the nature of the work (shoal removal) are typical for maintaining navigable waterways.

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 3 bidders suggests a competitive environment for this type of specialized heavy civil engineering service. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven price for essential infrastructure services.

Public Impact

Benefits commercial shipping and maritime industries by ensuring safe and efficient navigation in New York waterways. Supports the economic vitality of the region by facilitating the movement of goods and services. Enhances port accessibility and operational capacity for vessels of various sizes. Contributes to the maintenance of critical U.S. maritime infrastructure. Potentially involves local labor and equipment, supporting regional employment in the construction and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered.
Dependence on specialized dredging equipment and skilled labor, which can be subject to availability and cost fluctuations.
Environmental compliance and permitting can introduce delays and additional costs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a known entity (Great Lakes Dredge & Dock Co.) suggests a level of contractor experience.
Full and open competition likely drove a competitive price.
Project addresses a clear and necessary infrastructure maintenance requirement.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on marine infrastructure and dredging. The North American Industry Classification System (NAICS) code 237990 covers dredging and surface mining. The market for such services is specialized, often dominated by a few large firms with the necessary equipment and expertise. Spending in this sector is driven by the need to maintain and upgrade critical transportation and trade infrastructure, including ports and waterways.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Great Lakes Dredge & Dock Co., LLC, there is no explicit information regarding subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the definitive contract structure and firm fixed-price terms, requiring the contractor to deliver the specified work within the agreed budget and timeline. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
Waterway and Channel Maintenance Contracts
Coastal Navigation Projects

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance and disposal regulations require careful management.
Weather-dependent operations can lead to schedule delays.
Reliance on specialized, high-cost equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to GREAT LAKES DREDGE & DOCK CO, LLC. NY NJ HDP SHOAL REMOVAL (S-SR-2) PROJECT, BASE + OPTIONAL ITEM #2

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 $42.7 million.

What is the period of performance?

Start: 2013-09-24. End: 2015-01-07.

What is the historical spending pattern for shoal removal contracts by the Department of the Army in New York?

Analyzing historical spending for shoal removal in New York by the Department of the Army requires access to extensive contract databases. However, general trends indicate consistent investment in maintaining navigable waterways due to their critical role in commerce and defense. The Army Corps of Engineers, responsible for most federal waterway projects, typically awards multiple contracts annually for dredging and channel maintenance across various regions. Factors influencing spending include the volume of sediment accumulation, the size and draft requirements of vessels using the waterways, and the frequency of maintenance cycles. The $42.7 million awarded to Great Lakes Dredge & Dock Co. for this specific project should be viewed within the context of the overall federal budget allocated to civil works and navigation infrastructure, which can fluctuate based on infrastructure needs, economic conditions, and congressional appropriations.

How does the awarded price compare to other similar shoal removal projects in the region or nationally?

A direct price comparison for this $42.7 million contract is challenging without access to detailed cost breakdowns and specific project scopes. However, shoal removal projects are highly variable, influenced by factors such as the volume of material to be removed, the type of material (e.g., sand, silt, rock), the distance to disposal sites, environmental regulations, and the complexity of the work environment (e.g., confined spaces, high traffic areas). Great Lakes Dredge & Dock Co. is a major player in this field, and their pricing is generally considered competitive within the industry. To benchmark effectively, one would need to compare metrics like cost per cubic yard of material removed, adjusted for project-specific variables. The firm fixed-price nature suggests the government sought to lock in a price, implying a degree of confidence in the contractor's cost estimation based on prior experience or detailed proposals.

What are the key performance indicators (KPIs) used to evaluate the success of this shoal removal contract?

Key performance indicators for a shoal removal contract typically revolve around the successful completion of the dredging work according to specified parameters and within the contractual constraints. Primary KPIs would include the volume of material successfully removed and disposed of, measured against the contract's requirements. Adherence to the project schedule, ensuring timely completion within the 470-day duration, is another critical KPI. Environmental compliance, ensuring all dredging and disposal activities meet regulatory standards and permit conditions, is paramount. Furthermore, the final depth and width of the navigation channel achieved, verified through post-dredging surveys, would be a key indicator of the project's effectiveness in restoring or improving navigability. Contractor safety performance and quality control measures throughout the project lifecycle would also be closely monitored.

What is the track record of Great Lakes Dredge & Dock Co. with similar Army contracts?

Great Lakes Dredge & Dock Co., LLC has a long and extensive track record of performing dredging and marine construction services for the U.S. Army Corps of Engineers and other federal agencies. They are one of the largest dredging contractors in the United States, frequently awarded contracts for major navigation projects, beach nourishment, and environmental restoration. Their experience spans a wide range of project types and complexities, including deep-water dredging, harbor deepening, and maintenance dredging in various geographic locations. Publicly available contract data often shows them as a frequent awardee for large-scale civil works projects. This history suggests a strong understanding of federal contracting processes, regulatory requirements, and the technical demands of large-scale dredging operations, making them a well-established entity for such contracts.

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

Heavy civil engineering construction, particularly large-scale dredging like shoal removal, carries several inherent risks. One significant risk is encountering unforeseen subsurface conditions, such as harder-than-expected materials, buried obstructions, or hazardous materials, which can lead to delays and increased costs. Environmental risks are also substantial, including potential impacts on marine ecosystems, the need for strict adherence to disposal regulations, and the possibility of encountering protected species or historical artifacts. Weather-related delays are common in marine environments, potentially impacting project schedules. Furthermore, the availability and cost of specialized equipment and skilled labor can fluctuate, posing logistical and financial risks. Finally, ensuring compliance with complex permitting and regulatory frameworks adds another layer of potential challenges.

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: W912DS13B0018

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: $42,736,000

Exercised Options: $42,713,500

Current Obligation: $42,713,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline