Army's $27.3M dredging contract awarded to Great Lakes Dredge & Dock Co. for New Jersey project

Contract Overview

Contract Amount: $27,273,282 ($27.3M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2014-12-09

End Date: 2017-05-31

Contract Duration: 904 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF THE PROJECT CONSISTS OF THE DREDGING AND DISPOSAL OF NON ROCK DRILLING, BLASTING, DREDGING AND DISPOSAL WORK.

Place of Performance

Location: LINDEN, UNION County, NEW JERSEY, 07036

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF THE PROJECT CONSISTS OF THE DREDGING AND DISPOSAL OF NON ROCK DRILLING, BLASTING, DREDGING AND DISPOSAL WORK. Key points: 1. The contract's value of $27.3 million represents a significant investment in civil engineering infrastructure. 2. Awarded under full and open competition, suggesting a robust market for dredging services. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. The project duration of 904 days indicates a complex and lengthy undertaking. 5. Geographic focus on New Jersey highlights regional infrastructure development priorities. 6. The absence of small business set-asides may limit opportunities for smaller firms in this specific contract.

Value Assessment

Rating: good

The contract value of $27.3 million for dredging and disposal work appears reasonable for a project of this scale and duration. Benchmarking against similar Army Corps of Engineers dredging projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor bears the primary financial risk, which can be advantageous for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 3 bidders, as suggested by the data, points to a competitive environment for this type of heavy civil engineering construction. This level of competition is generally expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, potentially leading to cost savings and higher quality outcomes.

Public Impact

The primary beneficiaries are the residents and businesses in New Jersey who will benefit from improved waterways and coastal infrastructure. The project delivers essential dredging and disposal services, crucial for maintaining navigable waterways and protecting shorelines. The geographic impact is concentrated in New Jersey, addressing specific regional environmental and infrastructure needs. The contract supports the heavy and civil engineering construction workforce, likely involving specialized labor and equipment operators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Environmental compliance risks associated with dredging and disposal activities.
Contractor performance risks related to schedule adherence and quality of work over the extended duration.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract shifts risk to the contractor, potentially controlling costs.
Project addresses critical infrastructure needs, suggesting a clear and defined requirement.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector is characterized by large-scale infrastructure projects, often involving significant capital investment and specialized equipment. The market for dredging services is competitive, with a limited number of large firms capable of undertaking major federal projects. Spending in this sector is cyclical and often tied to government infrastructure initiatives and environmental regulations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that small business subcontracting was not a specified element. This suggests that the primary award went to a large prime contractor, and opportunities for small businesses would likely be through direct subcontracting if initiated by the prime. The absence of specific set-aside requirements means that the direct economic impact on the small business ecosystem for this particular contract may be limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The firm-fixed-price nature of the contract implies that performance monitoring is key to ensuring successful delivery. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal and Shoreline Protection Projects
Navigable Waterway Maintenance
Environmental Dredging Contracts

Risk Flags

Potential environmental impact of dredging and disposal activities.
Risk of encountering unforeseen subsurface conditions impacting cost and schedule.
Contractor performance and adherence to strict quality and timeline requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF THE PROJECT CONSISTS OF THE DREDGING AND DISPOSAL OF NON ROCK DRILLING, BLASTING, DREDGING AND DISPOSAL WORK.

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 $27.3 million.

What is the period of performance?

Start: 2014-12-09. End: 2017-05-31.

What is the historical spending pattern for Great Lakes Dredge & Dock Co. with the Department of Defense?

Great Lakes Dredge & Dock Co. has a significant history of contracting with the Department of Defense, particularly for dredging and marine construction projects. Reviewing historical contract awards reveals numerous contracts over the years, indicating a strong working relationship and established capability. The total value of these past contracts would provide context for the $27.3 million award, showing whether this is a typical project size or an outlier. Analyzing the types of services rendered in past contracts can also indicate the company's specialization and reliability in fulfilling complex federal requirements. This historical data is crucial for assessing the contractor's track record and performance consistency.

How does the $27.3 million contract value compare to similar Army dredging projects?

To assess the value-for-money of this $27.3 million contract, it's essential to benchmark it against similar dredging and disposal projects undertaken by the Army Corps of Engineers or other federal agencies. Factors such as project scope, geographic location, environmental conditions, and duration significantly influence costs. If comparable projects of similar complexity and scale have been awarded at lower or similar price points, it could indicate competitive pricing for this contract. Conversely, if this contract's value is substantially higher than benchmarks, further investigation into the specific requirements, site challenges, or market conditions might be warranted. Data from federal procurement databases can help identify relevant comparable contracts for a thorough analysis.

What are the primary risks associated with this specific dredging project?

The primary risks associated with this dredging and disposal project include environmental compliance, unforeseen subsurface conditions, and contractor performance. Dredging activities can disturb sediments, potentially releasing contaminants, necessitating strict adherence to environmental regulations for disposal. Unforeseen geological conditions, such as hard rock or buried debris, can significantly increase costs and extend timelines, even under a firm-fixed-price contract. Contractor performance risks involve the potential for delays, quality issues, or failure to meet project specifications over the 904-day duration. Effective risk mitigation would involve thorough site investigations, robust environmental monitoring, and diligent contract administration by the Army.

What is the typical duration for Army dredging contracts of this magnitude?

The typical duration for Army dredging contracts can vary widely based on the scope, volume of material to be moved, and complexity of the disposal requirements. A 904-day duration (approximately 2.5 years) for a $27.3 million project suggests a substantial undertaking, possibly involving extensive areas, significant depths, or challenging environmental constraints. Shorter durations might be feasible for smaller maintenance dredging tasks, while larger capital projects or those with complex environmental mitigation could extend beyond this timeframe. Benchmarking against similar projects within the Army Corps of Engineers' portfolio would provide a clearer picture of whether this duration is standard, accelerated, or extended for the given contract value and scope.

What does the 'Other Heavy and Civil Engineering Construction' classification imply for this contract?

The classification 'Other Heavy and Civil Engineering Construction' (NAICS 237990) indicates that this contract involves the construction of infrastructure projects that do not fit into more specific categories like highways, bridges, or water treatment plants. Dredging and disposal work, as described, falls under this broad category, encompassing projects that modify land or water features for infrastructure purposes. This classification suggests a project requiring specialized heavy equipment, significant logistical planning, and expertise in managing large-scale earthmoving or water-based construction activities. It implies a focus on public works and infrastructure development critical to transportation, environmental management, or resource development.

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: W912DS14B0020

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: $27,273,282

Exercised Options: $27,273,282

Current Obligation: $27,273,282

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline