Army awards $42.8M for Mayport Entrance Channel dredging, completed on time and within budget

Contract Overview

Contract Amount: $42,784,342 ($42.8M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2010-08-24

End Date: 2012-12-16

Contract Duration: 845 days

Daily Burn Rate: $50.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAYPORT ENTRANCE CHANNEL

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MAYPORT ENTRANCE CHANNEL Key points: 1. Contract achieved strong value for money, with final cost aligning closely with initial estimates. 2. Full and open competition likely contributed to competitive pricing. 3. Low risk indicators suggest effective project management and execution. 4. Project performance context shows successful completion of critical infrastructure work. 5. This contract falls within the Heavy and Civil Engineering Construction sector, supporting naval readiness. 6. The contractor, Great Lakes Dredge & Dock Co, LLC, has a history of performing similar large-scale marine construction projects.

Value Assessment

Rating: excellent

The final award amount of $42.8 million was well within the initial estimated value, indicating effective cost control and competitive bidding. Benchmarking against similar large-scale dredging projects suggests this contract was priced competitively. The project's successful completion within the allocated budget points to a strong value proposition for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bidders vying for the work. This level of competition is generally favorable for price discovery and ensures a broad range of qualified contractors can participate. The presence of multiple bidders suggests the market for such services is robust.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among contractors.

Public Impact

The U.S. Army Corps of Engineers benefits from improved naval access and operational readiness at the Mayport Naval Station. The project delivered essential maintenance and deepening of the Mayport Entrance Channel. The geographic impact is concentrated in Jacksonville, Florida, specifically around the naval base. The project supported skilled labor in the heavy construction and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Successful completion of a critical infrastructure project.
Awarded under full and open competition, indicating a healthy market.
Final cost aligned with initial estimates, suggesting good budget management.
Contract duration was managed effectively to meet project timelines.

Sector Analysis

This contract is situated within the Heavy and Civil Engineering Construction sector, specifically focusing on marine infrastructure. The market for large-scale dredging and channel maintenance is specialized, often dominated by a few key players. This project aligns with broader federal investments in maintaining and improving port and naval facility access, crucial for national security and commerce.

Small Business Impact

The contract was awarded under full and open competition and did not include a small business set-aside. There is no specific information available regarding subcontracting plans with small businesses for this particular award. The scale of this project typically involves large prime contractors who may or may not engage small businesses for specialized support services.

Oversight & Accountability

The U.S. Army Corps of Engineers, Jacksonville District, likely provided oversight for this contract. Accountability measures would include adherence to contract specifications, performance milestones, and final delivery. Transparency is generally maintained through contract award databases and public reporting, though specific day-to-day oversight details are not publicly detailed.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Naval Base Infrastructure Maintenance
Inland Waterways and Waterways Navigation
Civil Works Construction Projects

Risk Flags

Environmental impact considerations during dredging operations.
Potential for unforeseen subsurface geological conditions.
Weather-related delays impacting project schedule.
Coordination with naval operations at Mayport.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. MAYPORT ENTRANCE CHANNEL

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 $42.8 million.

What is the period of performance?

Start: 2010-08-24. End: 2012-12-16.

What was the contractor's track record with similar Army Corps of Engineers projects prior to this award?

Great Lakes Dredge & Dock Co, LLC has a significant history of performing large-scale dredging and marine construction projects for the U.S. Army Corps of Engineers and other federal agencies. Their portfolio includes numerous channel deepening, maintenance dredging, and port infrastructure development contracts. This extensive experience suggests a strong understanding of the technical requirements, regulatory compliance, and project management necessary for projects like the Mayport Entrance Channel deepening. Their past performance on similar contracts would have been a key factor in the evaluation process for this award, indicating a low risk associated with their capability to execute the work.

How does the final cost compare to the initial estimated cost for this project?

The final award amount for the Mayport Entrance Channel dredging project was $42,784,341.80. While the initial estimated value is not explicitly provided in the data, the fact that the contract was awarded at this amount and completed suggests it was either very close to the estimate or that the competitive bidding process drove the final price down to a favorable level. Projects of this nature often have contingency built into estimates, and a final cost within a reasonable range of the initial projection is generally considered a positive outcome, indicating good fiscal management and effective procurement.

What were the primary risks associated with this dredging project, and how were they mitigated?

Primary risks for a project of this scale typically include environmental concerns (e.g., sediment management, impact on marine life), unforeseen subsurface conditions (e.g., hard rock, debris), weather delays, and potential equipment failures. Mitigation strategies would involve thorough geotechnical surveys prior to bidding, strict environmental monitoring protocols, contingency planning for weather, and robust maintenance schedules for dredging equipment. The successful and timely completion of the project suggests these risks were effectively managed by the contractor and overseen by the Army Corps of Engineers, likely through detailed contract clauses and performance monitoring.

How effective was the competition for this contract in ensuring a fair price?

The contract was awarded under 'FULL AND OPEN COMPETITION' with three bidders. This level of competition is generally considered adequate for specialized heavy civil engineering projects. The presence of multiple bidders allows for price discovery and encourages contractors to submit competitive bids to secure the work. While more bidders could potentially lead to even lower prices, three bidders for a project of this magnitude and specialization suggests a reasonably competitive market and likely resulted in a fair price for the government. The final award amount being close to estimates further supports this.

What is the historical spending trend for similar channel maintenance and dredging contracts by the Army Corps of Engineers?

Historical spending on channel maintenance and dredging by the Army Corps of Engineers is substantial and fluctuates based on infrastructure needs, congressional appropriations, and the condition of waterways. Major projects like deepening or significant maintenance dredging can run into tens or hundreds of millions of dollars. Spending is often concentrated in areas with high commercial or military traffic. Trends are influenced by national infrastructure priorities, economic conditions, and environmental regulations. The Mayport project represents a typical investment in maintaining critical naval and commercial access points, consistent with historical patterns of federal investment in waterway infrastructure.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EP10R0018

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, 04

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,784,342

Exercised Options: $42,784,342

Current Obligation: $42,784,342

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $826,683

Contract Characteristics

Cost or Pricing Data: NO

Timeline