Army Awards $36.9M Hydraulic Beach Fill Contract to Great Lakes Dredge & Dock Co
Contract Overview
Contract Amount: $36,900,000 ($36.9M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2013-09-16
End Date: 2014-04-25
Contract Duration: 221 days
Daily Burn Rate: $167.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HYDRAULIC BEACH FILL FOR KEANSBURG
Place of Performance
Location: KEANSBURG, MONMOUTH County, NEW JERSEY, 07734
Plain-Language Summary
Department of Defense obligated $36.9 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: HYDRAULIC BEACH FILL FOR KEANSBURG Key points: 1. Significant investment in coastal resilience for Keansburg, NJ. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for environmental impacts and long-term maintenance needs. 4. Construction sector contract focused on civil engineering.
Value Assessment
Rating: fair
The contract value of $36.9 million for hydraulic beach fill is substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess if this price represents excellent value. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed. The rationale for the sole-source award is not provided.
Taxpayer Impact: The lack of competition suggests taxpayers may have paid a premium for this essential infrastructure project.
Public Impact
Enhances coastal protection for Keansburg, NJ, mitigating storm surge and erosion. Supports local economy through construction jobs and related services. Potential for long-term environmental benefits through restored beach and dune systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential cost overruns due to fixed-price contract in a complex environment
Positive Signals
- Addresses critical infrastructure need
- Potential for long-term community benefit
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal infrastructure. Spending in this area is often driven by environmental concerns, disaster recovery, and long-term resilience planning. Benchmarks are difficult without specific project scope.
Small Business Impact
The contract was awarded to Great Lakes Dredge & Dock Co., LLC, a large entity. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award, which is common for large-scale civil engineering projects.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure the contractor is performing according to the contract terms and that the price remains justified throughout the project lifecycle. Transparency regarding the justification for the sole-source award would enhance accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs due to sole-source award
- Limited transparency on justification for sole-source
- Uncertainty regarding long-term maintenance and environmental costs
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.9 million to GREAT LAKES DREDGE & DOCK CO, LLC. HYDRAULIC BEACH FILL FOR KEANSBURG
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 $36.9 million.
What is the period of performance?
Start: 2013-09-16. End: 2014-04-25.
What was the justification for awarding this contract on a sole-source basis, and were any alternatives considered?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source is available or capable of meeting the government's needs. Without this information, it's impossible to assess if the government adequately explored competitive options or if the lack of competition was truly unavoidable.
How does the $36.9 million cost compare to similar hydraulic beach fill projects in other coastal regions?
Benchmarking this $36.9 million contract against similar projects is challenging without detailed project specifications, scope of work, and geographic location comparisons. Factors like material sourcing, transport distance, environmental regulations, and project complexity significantly influence costs. A comprehensive cost-benefit analysis would be needed to determine if this represents a fair price.
What are the long-term maintenance costs and environmental monitoring requirements associated with this beach fill project?
The initial contract focuses on the construction phase. Long-term maintenance costs for beach nourishment projects can be substantial and recurring, depending on erosion rates and storm frequency. Environmental monitoring is also critical to assess the impact on marine life and ecosystems. These ongoing costs need to be factored into the overall lifecycle cost and effectiveness assessment.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912DS13B0009
Offers Received: 1
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: $36,900,000
Exercised Options: $36,900,000
Current Obligation: $36,900,000
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,709,537
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-16
Current End Date: 2014-04-25
Potential End Date: 2014-04-25 00:00:00
Last Modified: 2021-04-28
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