Army awards $193.5M Jacksonville Harbor dredging contract to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $193,505,218 ($193.5M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2021-05-12

Contract Duration: 958 days

Daily Burn Rate: $202.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JACKSONVILLE HARBOR CONSTRUCTION DREDGING CONTRACT B IGF::CT::IGF

Place of Performance

Location: ATLANTIC BEACH, DUVAL County, FLORIDA, 32233

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $193.5 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: JACKSONVILLE HARBOR CONSTRUCTION DREDGING CONTRACT B IGF::CT::IGF Key points: 1. Contract value represents a significant investment in critical port infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for specialized dredging services. 3. Contract duration of nearly 1000 days indicates a large-scale, long-term project. 4. Fixed-price contract type offers cost certainty for the government. 5. Project location in Florida highlights regional economic and logistical importance. 6. The award to a single, established contractor warrants scrutiny of pricing and performance.

Value Assessment

Rating: good

The contract value of $193.5 million for dredging services in Jacksonville Harbor appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale civil engineering construction projects, particularly those involving significant dredging and environmental considerations, would provide further context. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, though the initial bid price relative to estimated costs is a key factor in assessing value for money. Without direct cost-to-benefit analysis or comparison to alternative solutions, a definitive 'excellent' rating is reserved.

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 moderately competitive landscape for this specialized service. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process, including the range of bids received, would offer deeper insights into the competitiveness.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing. However, the limited number of bidders could mean that taxpayers did not achieve the lowest possible price compared to a scenario with more robust competition.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the broader maritime industry relying on the Port of Jacksonville. The contract delivers essential dredging services to maintain and improve the navigability of the Jacksonville Harbor. Geographic impact is concentrated in Jacksonville, Florida, supporting regional commerce and trade. Workforce implications include employment opportunities for skilled labor in the dredging and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen conditions arise during the extensive dredging period.
Dependence on a single contractor for a critical infrastructure project raises concerns about performance and contingency planning.
The long duration of the contract could lead to scope creep or changes in project requirements.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award under full and open competition suggests a structured procurement process.
The contractor, Great Lakes Dredge & Dock Co., is a well-established entity in the industry, implying experience and capability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging operations. The market for large-scale dredging is specialized, often dominated by a few major players due to the significant capital investment required for specialized equipment and expertise. Comparable spending benchmarks would involve looking at other major port improvement projects and federal dredging contracts, which can run into hundreds of millions of dollars depending on the scope and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding small business subcontracting requirements. Given the specialized nature and large scale of the project, it is likely that the prime contractor will utilize its own resources or subcontract to other large firms. The impact on the small business ecosystem would depend on whether any subcontracting opportunities are made available to smaller, specialized firms within the construction or maritime support industries.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the U.S. Army Corps of Engineers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally facilitated through contract award databases and public reporting, though detailed project-specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Program
Inland Waterways Trust Fund
Port Infrastructure Development Program
Federal Highway Administration - Construction Projects

Risk Flags

Potential for environmental impact
Risk of unforeseen subsurface conditions
Long contract duration increases exposure to market/economic shifts
Limited number of bidders may impact price competitiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $193.5 million to GREAT LAKES DREDGE & DOCK CO, LLC. JACKSONVILLE HARBOR CONSTRUCTION DREDGING CONTRACT B IGF::CT::IGF

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 $193.5 million.

What is the period of performance?

Start: 2018-09-27. End: 2021-05-12.

What is the track record of Great Lakes Dredge & Dock Co. on similar federal contracts?

Great Lakes Dredge & Dock Co. (GLDD) is a major player in the dredging industry with a long history of performing large-scale federal projects, particularly for the U.S. Army Corps of Engineers. They have been involved in numerous harbor deepening and maintenance projects across the United States. Their track record typically includes successful completion of complex dredging operations, often under firm fixed-price contracts. While specific performance metrics for past contracts are not detailed here, their continued success in winning significant federal bids suggests a generally positive performance history. However, like any large contractor, there may be instances of contract modifications, delays, or disputes on specific projects, which would require a deeper dive into individual contract histories and performance evaluations.

How does the awarded price compare to the estimated cost or other bids for this project?

The provided data indicates the awarded contract value was $193,505,218.25. However, it does not include the government's independent cost estimate or the specific bid amounts from other competitors. With two bidders in total, the government likely received at least one other bid. To assess value for money, a comparison of the awarded price against the estimate and the range of bids is crucial. If the awarded price was significantly below the estimate and the other bid, it could indicate strong competition or potentially an aggressive bid by the winner. Conversely, if it was close to or exceeded the estimate, further scrutiny of the pricing structure and scope would be warranted.

What are the primary risks associated with this large-scale, long-duration dredging contract?

The primary risks for this contract include: 1. **Environmental Risks:** Dredging can disturb sediments, potentially releasing contaminants and impacting marine ecosystems, requiring strict environmental compliance and monitoring. 2. **Unforeseen Subsurface Conditions:** Encountering unexpected geological formations, debris, or hazardous materials can lead to delays and increased costs, even under a fixed-price contract, potentially through change orders. 3. **Contractor Performance Risk:** Despite the contractor's experience, the sheer scale and duration (958 days) increase the possibility of performance issues, equipment failures, or labor disputes. 4. **Schedule Delays:** Weather, environmental restrictions, and unforeseen conditions can push the project completion date, impacting the intended benefits of improved harbor navigability. 5. **Scope Creep:** Changes in project requirements or scope during the long execution period could lead to contract modifications and cost increases.

What is the expected impact on the Jacksonville Port's capacity and efficiency?

This dredging contract is expected to significantly improve the capacity and efficiency of the Jacksonville Port by deepening and widening the harbor channels. This will allow larger, more modern vessels (e.g., Post-Panamax ships) to access the port safely and efficiently. Improved navigability reduces transit times, minimizes the risk of groundings, and can accommodate increased cargo volumes. Ultimately, this enhances the port's competitiveness, supports regional economic growth by facilitating trade, and strengthens its role as a key logistics hub on the East Coast.

How does historical spending on Jacksonville Harbor dredging compare to this award?

Historical spending data for Jacksonville Harbor dredging would be necessary for a direct comparison. However, large-scale harbor deepening and maintenance projects are typically multi-year, multi-million dollar endeavors. Given the increasing size of global shipping vessels and the need for modern infrastructure, it's plausible that this $193.5 million award represents a significant, perhaps even record, investment in the harbor's recent history. Without specific historical figures, it's difficult to quantify the increase, but such projects are generally undertaken periodically to maintain or improve channel depths in response to evolving maritime needs.

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: W912EP18R0015

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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $193,505,218

Exercised Options: $193,505,218

Current Obligation: $193,505,218

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline