Army awards $52M contract for hydraulic beach fill at Ocean Bay Park, NY

Contract Overview

Contract Amount: $51,994,150 ($52.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-15

End Date: 2026-01-10

Contract Duration: 513 days

Daily Burn Rate: $101.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HYDRAULIC BEACH FILL OCEAN BAY PARK TO

Place of Performance

Location: BABYLON, SUFFOLK County, NEW YORK, 11702

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: HYDRAULIC BEACH FILL OCEAN BAY PARK TO Key points: 1. Contract value appears reasonable for large-scale coastal restoration projects. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 513 days indicates a significant undertaking. 5. Geographic focus on New York highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $51.99 million for hydraulic beach fill is substantial, reflecting the scale of coastal protection and restoration. Benchmarking against similar Army Corps of Engineers projects for beach nourishment and dune construction suggests this pricing is within the expected range for large-scale, multi-year efforts. The firm fixed-price structure provides cost certainty for the government, assuming the scope of work remains stable.

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 a bid. With two bids received, the competition level suggests a moderate but potentially effective process for price discovery. While more bidders could theoretically drive prices lower, two offers are sufficient to establish a competitive baseline.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to vie for the contract, potentially leading to more favorable pricing and innovative solutions.

Public Impact

Residents and businesses in Ocean Bay Park, NY, will benefit from enhanced coastal storm damage reduction and shoreline stabilization. The project will deliver critical beach nourishment and potentially dune restoration services. The geographic impact is localized to the Ocean Bay Park area in New York. While direct workforce implications are not detailed, such projects typically support skilled labor in the construction and engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen environmental conditions arise during the project.
Reliance on a single contractor for a critical infrastructure project requires robust oversight.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a fair and transparent procurement process.
Project addresses critical coastal resilience needs for the community.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on coastal infrastructure and environmental remediation. The market for such services is driven by federal and state investments in climate resilience, disaster recovery, and shoreline protection. Comparable spending benchmarks for large-scale beach nourishment projects can range from tens to hundreds of millions of dollars, depending on the project's scope, location, and environmental complexities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for executing civil works projects. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver the specified work within the agreed-upon cost. Transparency is generally maintained through public contract awards and reporting mechanisms, though specific oversight details are not provided.

Related Government Programs

Coastal Storm Risk Management Projects
Beach Nourishment Programs
Army Corps of Engineers Civil Works

Risk Flags

Environmental compliance during dredging operations.
Weather-related delays impacting project schedule.
Accuracy of sand volume placement and beach profile.
Contractor's ability to meet environmental mitigation requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. HYDRAULIC BEACH FILL OCEAN BAY PARK TO

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 $52.0 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-01-10.

What is the historical spending pattern for similar hydraulic beach fill projects by the Army Corps of Engineers in New York?

Historical spending on similar hydraulic beach fill projects by the Army Corps of Engineers in New York can vary significantly based on project scale, location, and specific environmental requirements. For instance, major nourishment projects on Long Island have previously seen contracts in the tens of millions of dollars, sometimes exceeding $100 million for extensive, multi-phase efforts. The $51.99 million awarded to Great Lakes Dredge & Dock Co, LLC for Ocean Bay Park aligns with the upper end of typical single-phase projects but is not unprecedented. Factors influencing cost include the volume of sand required, pumping distances, environmental mitigation measures, and the duration of the contract. Analyzing past awards for projects like those in Fire Island or Jones Beach can provide further context on cost per cubic yard of sand placed and overall project economics.

How does the awarded amount compare to the estimated cost or previous bids for this specific project or similar ones?

Without access to the government's cost estimate or previous bid history for this specific Ocean Bay Park project, a direct comparison is challenging. However, the $51.99 million award for a firm fixed-price contract suggests that the received bids were competitive and likely within the government's anticipated budget range. Great Lakes Dredge & Dock Co, LLC is a major player in the dredging and marine construction industry, and their ability to secure this contract indicates their pricing was deemed fair and reasonable. For similar large-scale beach nourishment efforts, contract values often fall within a broad range, but this award appears to be a significant investment consistent with substantial coastal protection needs.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

Key performance indicators and deliverables for this hydraulic beach fill contract would primarily revolve around the successful placement of a specified volume of sand to achieve a target beach width and elevation, as outlined in the contract's technical specifications. Deliverables would include the completed beach fill, adherence to environmental compliance standards during operations (e.g., minimizing turbidity, protecting marine life), and potentially post-construction monitoring reports. The contractor is expected to mobilize equipment, execute the dredging and pumping operations efficiently, and demobilize upon completion, all within the defined project timeline of 513 days. Performance will be assessed based on meeting these volumetric, dimensional, environmental, and schedule requirements.

What is the track record of Great Lakes Dredge & Dock Co, LLC with the Department of the Army or similar federal agencies?

Great Lakes Dredge & Dock Co, LLC (GLDD) has a long and extensive track record with the U.S. Army Corps of Engineers and other federal agencies, particularly for large-scale dredging, beach nourishment, and coastal infrastructure projects. They are one of the largest marine construction contractors in the United States. Historically, GLDD has been awarded numerous contracts for similar work across the country, often involving significant dollar values. While specific performance metrics for every contract are not publicly detailed, their consistent success in winning competitive bids for complex projects indicates a generally positive standing and capability. Any past performance issues or disputes would typically be documented in federal procurement databases, but their continued presence and success suggest a reliable operational history.

Are there any significant risks associated with this type of contract or the contractor's performance?

Significant risks associated with this type of hydraulic beach fill contract include potential environmental challenges (e.g., unexpected weather, marine conditions, or discovery of historical artifacts), logistical complexities in sand sourcing and placement, and potential for scope adjustments if unforeseen conditions necessitate changes. For the contractor, Great Lakes Dredge & Dock Co, LLC, risks could involve underestimating project complexities, equipment failures, or fluctuations in operating costs. However, the firm fixed-price nature of the contract shifts much of the cost risk to the contractor. The Army Corps of Engineers' extensive experience in managing such projects, coupled with robust contract oversight, aims to mitigate these risks. The contractor's established reputation suggests a capacity to manage these inherent challenges.

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: W912DS24B0017

Offers Received: 2

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: $51,999,150

Exercised Options: $51,994,150

Current Obligation: $51,994,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline