DoD awards $26M for Mobilization & Demobilization to Great Lakes Dredge & Dock Co
Contract Overview
Contract Amount: $26,018,346 ($26.0M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2022-10-01
End Date: 2023-03-24
Contract Duration: 174 days
Daily Burn Rate: $149.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MOBILIZATION & DEMOBILIZATION
Place of Performance
Location: MONTAUK, SUFFOLK County, NEW YORK, 11954
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MOBILIZATION & DEMOBILIZATION Key points: 1. Contract awarded to a single, established firm. 2. Competition method was full and open, suggesting market availability. 3. Risk appears moderate given the fixed-price nature and defined scope. 4. Construction sector spending often involves significant capital outlay.
Value Assessment
Rating: good
The contract value of $26M for mobilization and demobilization appears reasonable for a large-scale construction project. Benchmarking against similar heavy civil engineering contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors could have bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it encourages market-driven pricing and potentially lower overall costs.
Public Impact
Ensures critical infrastructure readiness for military operations. Supports economic activity within the heavy construction sector. Provides employment opportunities for skilled labor in construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on a single contractor for critical mobilization/demobilization.
Positive Signals
- Clear contract type (Firm Fixed Price) limits cost uncertainty.
- Defined duration of 174 days provides a clear timeline.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is characterized by large project values and specialized equipment. Spending in this sector is often tied to infrastructure development and defense readiness.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial audits.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a single entity.
- Potential for cost overruns if unforeseen site conditions arise.
- Lack of specific small business participation noted.
- Dependence on contractor's logistical capabilities.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. MOBILIZATION & DEMOBILIZATION
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 $26.0 million.
What is the period of performance?
Start: 2022-10-01. End: 2023-03-24.
What is the typical cost range for mobilization and demobilization services in similar heavy civil engineering projects?
The typical cost range for mobilization and demobilization in heavy civil engineering projects can vary significantly based on project scale, location, and complexity. However, for projects in the tens of millions, these costs can represent 5-15% of the total contract value. Factors like specialized equipment transport, site preparation, and personnel deployment heavily influence these figures.
What are the primary risks associated with a firm fixed-price contract for mobilization and demobilization?
The primary risk with a firm fixed-price contract for mobilization and demobilization is that the contractor may incur costs exceeding the agreed price, potentially leading to disputes or requests for modification. Conversely, if costs are lower than anticipated, the contractor benefits from higher profit margins. For the government, the risk lies in potentially paying a premium if the contractor's cost estimates were overly conservative.
How effectively does full and open competition ensure value for money in specialized construction contracts like this?
Full and open competition is generally effective in ensuring value for money by exposing the government to a wider range of potential bidders and fostering competitive pricing. For specialized construction, it allows the government to identify contractors with the best technical capabilities and most competitive cost structures. However, the effectiveness can be limited if the market for such specialized services is inherently narrow.
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: W912DS22B0020
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Great Lakes Dredge & Dock Corporation
Address: 9811 KATY FWY STE 1200, HOUSTON, TX, 77024
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,018,346
Exercised Options: $26,018,346
Current Obligation: $26,018,346
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-01
Current End Date: 2023-03-24
Potential End Date: 2023-03-24 00:00:00
Last Modified: 2023-10-19
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