Army awards $32.6M contract for Fire Island mitigation, highlighting significant civil engineering investment

Contract Overview

Contract Amount: $32,616,828 ($32.6M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2015-01-08

End Date: 2016-08-01

Contract Duration: 571 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FIRE ISLAND MITIGATION ROBERT MOSES PARK

Place of Performance

Location: BABYLON, SUFFOLK County, NEW YORK, 11702

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF FIRE ISLAND MITIGATION ROBERT MOSES PARK Key points: 1. Contract value represents a substantial investment in coastal resilience and infrastructure. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Project duration of 571 days indicates a medium-term construction effort. 5. Geographic focus on New York highlights regional infrastructure priorities. 6. The award to Great Lakes Dredge & Dock Co., LLC points to specialized contractor capabilities.

Value Assessment

Rating: good

The contract value of $32.6 million for heavy civil engineering construction appears reasonable given the scope of coastal mitigation projects. Benchmarking against similar Army Corps of Engineers projects for shoreline protection and storm damage reduction would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government sought cost predictability, which is generally a positive indicator for managing taxpayer funds on projects with defined scopes.

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 bids. The presence of two bidders suggests a moderate level of competition for this specific project. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value. A competitive process helps prevent inflated costs and promotes efficiency.

Public Impact

Residents and businesses in the Fire Island and surrounding areas benefit from enhanced protection against storm surges and erosion. The project delivers critical coastal infrastructure improvements, bolstering natural defenses. The geographic impact is concentrated in New York, specifically along the Fire Island coastline. The contract supports jobs in the heavy civil engineering and construction sectors, including specialized roles in dredging and marine construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise during construction.
Risk of project delays due to weather or permitting issues common in coastal construction.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive pricing process.
Contractor has experience in large-scale marine and civil engineering projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal resilience and environmental mitigation. This sector is crucial for national infrastructure, addressing challenges like climate change and aging public works. Spending in this area often involves significant capital investment, with projects ranging from port development and waterway maintenance to shoreline protection and flood control. The market is characterized by large, specialized firms capable of undertaking complex, large-scale projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors, particularly in areas like material supply, specialized labor, or support services. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for executing civil works projects. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases and public reporting requirements. The Army Corps of Engineers often has an internal Inspector General or relies on external oversight bodies for auditing and ensuring compliance.

Related Government Programs

Army Corps of Engineers Coastal Navigation Projects
FEMA Hazard Mitigation Grants
National Park Service Coastal Restoration Initiatives
State-level Coastal Zone Management Programs

Risk Flags

Potential environmental impacts during construction.
Risk of schedule delays due to weather or unforeseen site conditions.
Contract performance and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF FIRE ISLAND MITIGATION ROBERT MOSES PARK

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 $32.6 million.

What is the period of performance?

Start: 2015-01-08. End: 2016-08-01.

What is the track record of Great Lakes Dredge & Dock Co., LLC on similar Army Corps of Engineers projects?

Great Lakes Dredge & Dock Co., LLC has a significant history of performing large-scale marine construction and dredging projects for the U.S. Army Corps of Engineers. Their portfolio includes numerous contracts for beach nourishment, channel deepening, breakwater construction, and environmental restoration. Analyzing their past performance on projects with similar scope, complexity, and geographic location can provide insights into their ability to deliver this Fire Island mitigation project successfully. Key performance indicators to examine would include on-time completion rates, adherence to budget, quality of work, and any history of contract disputes or claims. Their extensive experience suggests a strong capability to handle the technical challenges associated with coastal engineering.

How does the awarded amount compare to the estimated cost or budget for this Fire Island mitigation project?

The awarded contract value of $32.6 million represents the final negotiated price for the project. To assess value for money, this amount should be compared against the government's initial cost estimates or budget allocations for the Fire Island mitigation effort. If the awarded amount is significantly lower than estimates, it could indicate successful competition or conservative initial budgeting. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive bidding environment than anticipated. Detailed budget documents and cost-benefit analyses, if publicly available, would provide the necessary context for this comparison.

What are the primary risks associated with this specific coastal mitigation project, and how are they being managed?

Primary risks for this project likely include environmental factors (e.g., weather, marine life, unforeseen seabed conditions), potential for scope creep, and contractor performance. Weather delays are a significant concern for coastal construction, potentially impacting the 571-day duration. Unforeseen subsurface conditions could lead to change orders and cost increases, although the firm-fixed-price contract aims to mitigate this. Contractor performance risk is managed through pre-award vetting and ongoing oversight by the Army Corps of Engineers. Risk mitigation strategies would involve detailed site investigations, robust project management plans, contingency planning for weather, and clear communication protocols between the government and the contractor.

What is the expected effectiveness of the Fire Island mitigation measures in providing long-term protection?

The effectiveness of the Fire Island mitigation measures will depend on the specific engineering solutions implemented, such as dune restoration, breakwater construction, or beach nourishment. These measures are designed to reduce erosion and provide a buffer against storm surges, thereby protecting coastal communities and infrastructure. Long-term effectiveness is typically evaluated based on engineering studies, post-project monitoring of shoreline changes, and performance during significant storm events. The Army Corps of Engineers' design standards and the quality of construction are critical factors influencing the durability and success of the mitigation efforts.

How has federal spending on coastal resilience and infrastructure projects in New York trended over the past five years?

Federal spending on coastal resilience and infrastructure projects in New York has generally seen an increasing trend, driven by heightened awareness of climate change impacts, increased storm frequency and intensity, and federal infrastructure initiatives. Agencies like the Army Corps of Engineers, FEMA, and the Department of the Interior allocate significant funds to projects aimed at protecting coastlines, restoring natural habitats, and upgrading infrastructure. Specific funding levels can fluctuate annually based on appropriations, disaster recovery needs, and the prioritization of different projects. Examining historical data from these agencies would reveal the overall investment trajectory in New York's coastal defenses.

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: W912DS15B0001

Offers Received: 2

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: $43,855,378

Exercised Options: $32,616,828

Current Obligation: $32,616,828

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,738,270

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline