DoD's $45M St. Augustine Beach renourishment contract awarded to Great Lakes Dredge & Dock Co. for coastal resilience

Contract Overview

Contract Amount: $45,067,164 ($45.1M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-30

End Date: 2025-01-24

Contract Duration: 452 days

Daily Burn Rate: $99.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SHORE PROTECTION PROJECT ST. AUGUSTINE BEACH, RENOURISHMENT 2023 ST. JOHNS COUNTY, FLORIDA

Place of Performance

Location: SAINT AUGUSTINE, SAINT JOHNS County, FLORIDA, 32080

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: SHORE PROTECTION PROJECT ST. AUGUSTINE BEACH, RENOURISHMENT 2023 ST. JOHNS COUNTY, FLORIDA Key points: 1. Contract addresses critical coastal erosion and storm surge risks for St. Johns County, Florida. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Project duration of 452 days aligns with the scope of a significant renourishment effort. 5. Geographic focus on Florida highlights vulnerability to hurricane season impacts. 6. No small business set-aside indicates the primary contractor is likely a large entity.

Value Assessment

Rating: good

The contract value of $45,067,164.18 for a shore protection project appears reasonable given the scale and complexity of coastal renourishment. While direct comparisons are difficult without specific project details, large-scale civil engineering projects of this nature often involve significant material and equipment costs. The firm fixed-price structure provides cost certainty, which is a positive indicator for value. Benchmarking against similar Army Corps of Engineers projects would provide further insight into pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids (implied by 'no': 2) indicates a degree of competition, which generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer a more complete picture of the competitive landscape.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of companies to bid, driving down prices and ensuring the government receives the best value for its investment in critical infrastructure.

Public Impact

Residents and businesses in St. Johns County, Florida, benefit from enhanced protection against storm surge and erosion. The project delivers vital coastal renourishment services, crucial for maintaining beach ecosystems and recreational areas. Geographic impact is concentrated in St. Augustine Beach, Florida, a region prone to coastal degradation. The project supports the construction and engineering workforce, likely involving specialized labor in dredging and civil works.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions or material availability issues arise, despite fixed-price contract.
Dependence on a single large contractor for a critical infrastructure project raises concerns about long-term maintenance and future competition.
Environmental impacts of large-scale dredging operations require careful monitoring and mitigation.

Positive Signals

Addresses a clear and present need for coastal resilience in a vulnerable area.
Firm fixed-price contract provides budget certainty for this significant federal investment.
Awarded through full and open competition, suggesting a competitive market for these services.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on coastal protection and infrastructure. This sector is critical for national resilience, particularly in areas prone to natural disasters like hurricanes and coastal erosion. The market for large-scale dredging and shore protection is specialized, often dominated by a few key players with the necessary equipment and expertise. Spending in this area is often driven by federal and state initiatives aimed at mitigating climate change impacts and protecting valuable coastal real estate and ecosystems.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary contract was awarded to a large business capable of undertaking such a significant civil engineering project. While large prime contractors often utilize small businesses for specialized services or material supply, the direct award mechanism here does not prioritize small business participation. Further review of the contract details would be needed to ascertain any subcontracting plans or opportunities for small businesses.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the contracting officer and program managers within the relevant Army Corps of Engineers district. The firm fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Regular progress reports and site inspections would likely be part of the oversight process to ensure project completion according to specifications.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal Zone Management Programs
Disaster Mitigation and Infrastructure Resilience Initiatives
Federal Shoreline Protection Projects

Risk Flags

Potential for weather-related delays impacting project timeline.
Environmental compliance monitoring is critical throughout the project lifecycle.
Dependence on sand borrow site availability and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. SHORE PROTECTION PROJECT ST. AUGUSTINE BEACH, RENOURISHMENT 2023 ST. JOHNS COUNTY, FLORIDA

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 $45.1 million.

What is the period of performance?

Start: 2023-10-30. End: 2025-01-24.

What is the historical spending pattern for similar shore protection projects by the Department of Defense in Florida?

Analyzing historical spending for similar shore protection projects by the Department of Defense in Florida requires accessing detailed contract databases. Typically, the Army Corps of Engineers is the primary agency responsible for such projects. Past projects have varied significantly in cost depending on the scale of renourishment, the specific location's erosion rates, and the complexity of the engineering required. For instance, major hurricane recovery efforts often lead to spikes in spending. Benchmarking this $45 million contract against projects of comparable scope, such as those in the Panhandle or South Florida, would reveal if the current award represents a typical investment or an outlier. Factors like material costs (sand), dredging equipment rates, and environmental compliance measures all influence the final price, making direct historical comparisons valuable for assessing value for money.

How does the awarded price compare to the original estimated cost or baseline budget for this project?

The provided data does not include the original estimated cost or baseline budget for the St. Augustine Beach renourishment project. To assess the value for money, a comparison between the awarded contract price ($45,067,164.18) and the government's initial cost estimate is crucial. If the awarded price is significantly lower than the estimate, it suggests successful competition and potentially favorable market conditions. Conversely, if it's close to or exceeds the estimate, further investigation into the bidding process and cost drivers would be warranted. Without this baseline, it's challenging to definitively state whether the government secured a competitive price or if the project came in at the expected range.

What are the specific performance metrics and deliverables outlined in the contract for Great Lakes Dredge & Dock Co.?

The contract data indicates a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' for a 'SHORE PROTECTION PROJECT ST. AUGUSTINE BEACH, RENOURISHMENT 2023'. While specific performance metrics and deliverables are not detailed in the summary, typical requirements for such projects include the volume of sand to be placed, the specified beach width and elevation, the duration of the dredging and placement operations, and adherence to environmental mitigation plans. The contract likely specifies quality control measures, reporting requirements, and acceptance criteria for the completed work. The performance period, from October 30, 2023, to January 24, 2025, suggests a phased approach to completion. Failure to meet these deliverables could result in penalties or withholding of payment, underscoring the importance of clear contractual obligations.

What is the track record of Great Lakes Dredge & Dock Co. with similar federal contracts, particularly with the Department of Defense?

Great Lakes Dredge & Dock Co. (GLDD) has a substantial history of performing large-scale dredging and marine construction projects for various federal agencies, including the Department of Defense (primarily the Army Corps of Engineers) and the Department of the Interior. Their track record typically includes numerous contracts for beach nourishment, channel deepening, and port construction across the United States. Reviewing their past performance on similar projects would involve examining contract completion history, any instances of disputes or claims, and client satisfaction ratings. GLDD is generally recognized as one of the largest and most experienced dredging contractors in North America, suggesting a strong capability to execute complex projects like the St. Augustine Beach renourishment. Their extensive experience often translates into efficient project execution and a good understanding of regulatory and environmental requirements.

Are there any identified risks or challenges associated with this specific shore protection project, beyond general contract risks?

Specific risks for this shore protection project in St. Augustine Beach could include unforeseen environmental conditions, such as the presence of submerged debris or sensitive habitats requiring special handling. The availability and quality of suitable borrow material (sand) for renourishment is another critical factor; if the designated sand sources are depleted or unsuitable, it could lead to delays and increased costs. Weather disruptions, particularly during hurricane season, pose a significant risk to dredging operations and the project timeline. Furthermore, regulatory compliance, including adherence to environmental permits and monitoring requirements, can introduce complexities. The success of the project hinges on effective management of these site-specific and environmental risks by Great Lakes Dredge & Dock Co.

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: W912EP23B0009

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: $45,067,164

Exercised Options: $45,067,164

Current Obligation: $45,067,164

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline