Army Awards $216M Miami Harbor Phase 3 Construction Contract to Great Lakes Dredge & Dock Co
Contract Overview
Contract Amount: $215,820,210 ($215.8M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2013-05-15
End Date: 2015-10-01
Contract Duration: 869 days
Daily Burn Rate: $248.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MIAMI HBR PHASE 3 CONSTRUCITON
Place of Performance
Location: HIALEAH, MIAMI-DADE County, FLORIDA, 33002
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $215.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MIAMI HBR PHASE 3 CONSTRUCITON Key points: 1. Contract awarded to a single, large company, indicating potential for specialized capabilities. 2. The project falls under 'Other Heavy and Civil Engineering Construction,' a sector often involving significant capital investment. 3. Risk assessment is moderate due to the fixed-price nature, but project complexity and duration warrant attention. 4. The award represents a substantial investment in infrastructure, potentially impacting regional economic activity.
Value Assessment
Rating: good
The contract value of $215.8 million for heavy civil engineering construction appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale dredging and construction projects 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, suggesting a robust price discovery process. The use of a firm fixed-price contract aims to transfer risk to the contractor and incentivize cost control.
Taxpayer Impact: The significant investment of $215.8 million is for critical infrastructure improvement, which, while costly, is intended to yield long-term economic and navigational benefits for the public.
Public Impact
Enhances navigational capacity and safety in a major U.S. port. Supports regional economic development through improved trade and transportation infrastructure. Potential for job creation during the construction phase. Contributes to the modernization of critical U.S. maritime infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration of 869 days presents schedule risk.
- Large contract value increases financial exposure.
- Potential for unforeseen site conditions in heavy civil projects.
Positive Signals
- Firm fixed-price contract limits cost overruns.
- Awarded under full and open competition, suggesting competitive pricing.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which includes large-scale infrastructure projects like dredging, port development, and waterway improvements. Spending in this sector is often driven by government investment in national infrastructure and defense readiness.
Small Business Impact
The contract was awarded to Great Lakes Dredge & Dock Co., LLC, a large entity. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct participation of small businesses in this specific prime contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating federal oversight. The firm fixed-price structure provides a degree of cost accountability. Further oversight would involve monitoring project progress, quality, and adherence to contract terms.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value
- Long project duration
- Potential for unforeseen site conditions
- Limited small business participation noted
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $215.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. MIAMI HBR PHASE 3 CONSTRUCITON
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 $215.8 million.
What is the period of performance?
Start: 2013-05-15. End: 2015-10-01.
What is the estimated long-term economic benefit of the Miami Harbor Phase 3 improvements?
The long-term economic benefits are expected to be substantial, primarily through enhanced shipping efficiency, reduced transit times, and increased cargo capacity. This improved infrastructure supports regional trade, facilitates commerce, and can attract further investment, ultimately boosting economic activity and potentially creating sustained employment opportunities in related industries.
What are the primary risks associated with the 869-day duration of this construction project?
The extended duration of 869 days introduces several risks, including potential for inflation impacting material and labor costs (though mitigated by fixed-price), environmental or weather-related delays, and the possibility of unforeseen subsurface conditions common in dredging and civil works. Contractor performance degradation over a long period and potential changes in regulatory requirements also pose risks.
How effectively does the firm fixed-price contract ensure value for taxpayer money in this large-scale project?
The firm fixed-price contract is designed to ensure value by transferring cost overrun risk to the contractor, incentivizing efficient project execution. However, its effectiveness hinges on the initial bid accuracy and the contractor's ability to manage unforeseen challenges. Robust government oversight is crucial to ensure the contractor meets quality standards and avoids scope creep, thereby maximizing taxpayer value.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912EP12R0013
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: $215,820,210
Exercised Options: $215,820,210
Current Obligation: $215,820,210
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $22,420,084
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-15
Current End Date: 2015-10-01
Potential End Date: 2015-10-01 00:00:00
Last Modified: 2020-10-03
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