Army awards $38.1M contract for Canaveral Harbor sand bypass, boosting Florida coastal resilience

Contract Overview

Contract Amount: $38,132,266 ($38.1M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-07-27

Contract Duration: 665 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CANAVERAL HARBOR SAND BYPASS PROJECT VI 2025, BREVARD COUNTY, FLORIDA

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: CANAVERAL HARBOR SAND BYPASS PROJECT VI 2025, BREVARD COUNTY, FLORIDA Key points: 1. Contract value represents a significant investment in coastal infrastructure maintenance. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of work. 3. Project duration of 665 days indicates a substantial undertaking requiring extensive planning and execution. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Brevard County, Florida, highlights regional importance for coastal protection. 6. The award to Great Lakes Dredge & Dock Co., LLC, points to specialized contractor capabilities in this sector.

Value Assessment

Rating: good

The contract value of $38.1 million for the Canaveral Harbor Sand Bypass Project VI appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale dredging and coastal nourishment projects suggests that pricing is within expected ranges for specialized environmental and infrastructure work. The firm fixed-price nature of the contract provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

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 bids. The presence of 3 bidders suggests a moderately competitive landscape for this specific project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price comparison and selection.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value. It ensures that the government is not limited to a single provider, fostering a more efficient use of public funds.

Public Impact

Beneficiaries include residents and businesses in Brevard County, Florida, who rely on a stable coastline. Services delivered include critical sand bypass operations to maintain beach and harbor depth. Geographic impact is concentrated on the coastline of Brevard County, Florida. Workforce implications include employment opportunities for skilled labor in the heavy construction and dredging industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting coastal protection timelines.
Environmental impacts during dredging operations require careful monitoring.
Contractor's ability to manage large-scale, long-duration projects effectively.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust bidding process.
Project addresses critical coastal infrastructure needs.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal management and infrastructure. The market for such specialized services is often dominated by a few large firms with the necessary equipment and expertise, such as Great Lakes Dredge & Dock Co. Spending in this area is crucial for maintaining navigable waterways and protecting shorelines from erosion, with significant federal investment allocated annually to similar projects nationwide.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Great Lakes Dredge & Dock Co., LLC, will likely perform the majority of the work with its own resources. Further analysis would be needed to determine if any subcontracting opportunities exist within the broader ecosystem of this project.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature of the award provides a degree of financial oversight by locking in costs. Accountability will be managed through contract performance monitoring by the Department of the Army. Transparency is generally maintained through public contract databases, though specific operational oversight details are not provided.

Related Government Programs

Coastal Zone Management
Beach Erosion Control
Harbor Maintenance
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for cost overruns on fixed-price contract.
Risk of schedule delays impacting project completion.
Environmental impact during dredging operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. CANAVERAL HARBOR SAND BYPASS PROJECT VI 2025, BREVARD 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 $38.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-07-27.

What is the historical spending pattern for sand bypass projects in Canaveral Harbor?

Historical spending data for sand bypass projects in Canaveral Harbor would reveal trends in project frequency, cost escalation, and the types of contractors awarded these contracts. Analyzing past awards, such as previous 'Canaveral Harbor Sand Bypass Project' iterations, would allow for a comparison of current pricing against historical benchmarks. This analysis could identify any significant deviations in cost or scope, potentially indicating changes in market conditions, material costs, or the complexity of the required work. Understanding these patterns is crucial for assessing the long-term investment required for maintaining the harbor's navigability and coastal integrity.

How does the number of bidders (3) compare to similar large-scale civil engineering construction contracts awarded by the Department of the Army?

The number of bidders on large-scale civil engineering construction contracts awarded by the Department of the Army can vary significantly based on project complexity, specialized requirements, and market conditions. While three bidders suggest a degree of competition, it may not represent the maximum possible for a project of this magnitude. Contracts for major infrastructure projects, especially those requiring specialized dredging or heavy construction, can sometimes attract more bidders if the barriers to entry are lower or if the market is particularly robust. Conversely, highly specialized or geographically constrained projects might naturally see fewer, but highly qualified, bidders. A comparative analysis with similar projects would determine if three bidders is typical, low, or high, providing context for the effectiveness of the competition strategy.

What are the primary risks associated with a 665-day firm fixed-price contract for heavy civil engineering construction?

A 665-day firm fixed-price contract for heavy civil engineering construction, such as the Canaveral Harbor Sand Bypass Project, carries several primary risks. For the contractor, the main risk is cost overrun due to unforeseen site conditions, material price fluctuations, labor shortages, or extended project timelines caused by weather or regulatory delays. For the government, risks include potential contractor default if the project becomes financially unviable, or if the contractor cuts corners to manage costs, impacting quality or safety. Schedule delays are also a significant risk, potentially impacting the intended benefits of the sand bypass, such as coastal protection or navigational access. Effective risk mitigation strategies, including thorough site investigations, contingency planning, and robust contract administration, are essential.

What is the typical profit margin for contractors in the heavy and civil engineering construction sector for government contracts?

Profit margins in the heavy and civil engineering construction sector for government contracts can vary widely depending on project type, risk, competition, and contract structure. Generally, profit margins for large federal construction projects are often in the range of 5% to 15% of the contract value. Firm fixed-price contracts, like this one, can offer higher potential profits if managed efficiently but also carry greater risk for the contractor. Factors such as the contractor's overhead, specialized equipment costs, and the complexity of the work influence the final profit margin. Without specific financial data from Great Lakes Dredge & Dock Co., LLC, it's difficult to pinpoint the exact margin, but industry averages provide a benchmark for assessing the overall financial viability and potential profitability of the contract.

How does the contract value of $38.1 million compare to the total annual federal spending on coastal protection and infrastructure maintenance?

The contract value of $38.1 million for the Canaveral Harbor Sand Bypass Project VI is a significant sum for a single project but represents a portion of the overall federal investment in coastal protection and infrastructure maintenance. The U.S. Army Corps of Engineers, responsible for many such projects, manages billions of dollars annually for civil works, including navigation, flood control, and coastal storm damage reduction. While this specific award is substantial, it must be viewed within the context of the broader federal budget allocated to maintaining and improving the nation's coastlines and waterways. Annual federal spending on these initiatives fluctuates based on appropriations, disaster recovery needs, and infrastructure priorities, making direct comparisons to total annual spending require access to comprehensive budget data.

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: W912EP24B0009

Offers Received: 3

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: $38,132,266

Exercised Options: $38,132,266

Current Obligation: $38,132,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline