Army awards $33M beach fill contract to Great Lakes Dredge & Dock Co. for South Carolina coastal resilience

Contract Overview

Contract Amount: $33,069,207 ($33.1M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-05

End Date: 2009-08-31

Contract Duration: 726 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: BEACH FILL PLACEMENT

Place of Performance

Location: MYRTLE BEACH, HORRY County, SOUTH CAROLINA, 29577

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: BEACH FILL PLACEMENT Key points: 1. Contract value appears reasonable given the scope of coastal engineering projects. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns for the government. 4. Project duration of 726 days indicates a significant, long-term undertaking. 5. The contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category. 6. Awarded by the Department of the Army, indicating a focus on infrastructure or defense-related needs.

Value Assessment

Rating: good

The contract value of approximately $33 million for beach fill placement is within a typical range for large-scale coastal engineering projects. Benchmarking against similar federal contracts for beach nourishment and erosion control reveals that costs can vary significantly based on location, material volume, and environmental considerations. Without specific details on the volume of sand to be placed and the geographic scope, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides some assurance against unexpected cost escalations.

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. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of multiple bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government by ensuring it receives the best value for its investment.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. This ensures that federal funds are used efficiently by leveraging market forces to drive down costs.

Public Impact

Residents and businesses in coastal South Carolina will benefit from enhanced storm surge protection and reduced erosion. The project aims to restore and maintain vital beach ecosystems, supporting local tourism and recreational activities. Geographic impact is concentrated along the South Carolina coastline, specifically in areas designated for beach nourishment. The project may indirectly support local economies through tourism and potentially create temporary jobs in related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging and placement operations.
Long-term effectiveness of beach fill may be subject to weather patterns and natural erosion.
Contract duration could be subject to delays due to unforeseen site conditions or environmental regulations.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
Fixed-price contract type helps manage budget certainty for the government.
Project addresses critical coastal infrastructure needs, contributing to resilience and protection.

Sector Analysis

The beach fill placement contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on coastal resilience and infrastructure. This sector is characterized by large-scale projects often involving significant environmental considerations and specialized equipment. The market for coastal engineering services is competitive, with a number of established firms possessing the expertise and resources to undertake such projects. Federal spending in this area is often driven by the need to protect coastlines from erosion, storm damage, and the impacts of climate change.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal. However, larger prime contractors may engage small businesses for ancillary services, though this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. The fixed-price nature of the contract implies that the contractor bears most of the risk for cost overruns, but performance monitoring is still crucial. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight mechanisms for this particular contract are not detailed.

Related Government Programs

Coastal Zone Management Programs
Beach Erosion Control Projects
Army Corps of Engineers Civil Works Programs
Disaster Mitigation and Infrastructure Resilience

Risk Flags

Environmental Impact Potential
Weather Dependency
Subsurface Condition Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. BEACH FILL PLACEMENT

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 $33.1 million.

What is the period of performance?

Start: 2007-09-05. End: 2009-08-31.

What is the track record of Great Lakes Dredge & Dock Co., LLC with federal contracts, particularly for beach fill projects?

Great Lakes Dredge & Dock Co., LLC has a substantial history of performing federal contracts, particularly within the U.S. Army Corps of Engineers' civil works program. They are a major player in dredging, marine construction, and environmental services. Their portfolio includes numerous projects involving beach nourishment, inlet sand bypassing, and coastal protection across various regions of the United States. Analyzing their past performance on similar fixed-price contracts would reveal their ability to complete projects on time and within budget, as well as their safety and environmental compliance records. Federal procurement data often shows a consistent award history for this company, indicating a level of trust and proven capability with government agencies.

How does the awarded amount of $33,069,206.51 compare to the estimated cost or budget for this beach fill project?

The provided data does not include the government's estimated cost or budget for this specific beach fill project. Therefore, a direct comparison to assess if the awarded amount represents a favorable outcome (e.g., awarded below estimate) or a potentially high cost (e.g., awarded significantly above estimate) cannot be made. In a competitive bidding process, the awarded amount reflects the price proposed by the winning contractor, which is presumed to be the best value offered. To fully evaluate the value, one would need to compare this award to the government's independent cost estimate, if available, or to the bids submitted by other competitors.

What are the primary risks associated with a large-scale beach fill placement contract, and how might they be mitigated?

Primary risks for a beach fill contract include environmental impacts (e.g., disruption to marine life, water quality degradation), unforeseen subsurface conditions (e.g., buried debris, unsuitable soil), weather-related delays (e.g., storms preventing work), and potential cost overruns if the contract were not fixed-price. Mitigation strategies typically involve thorough environmental impact assessments and permitting, detailed geotechnical surveys prior to work, flexible scheduling to account for weather, and robust contract management to ensure compliance with specifications. For this fixed-price contract, the contractor assumes more of the financial risk for cost overruns, but the government still needs to monitor performance and adherence to scope.

What is the expected effectiveness and longevity of the beach fill provided under this contract?

The expected effectiveness and longevity of the beach fill are contingent upon several factors, including the volume of sand placed, the grain size distribution of the fill material, the design profile of the restored beach, and the prevailing wave and current energy at the site. Typically, beach nourishment projects aim to provide a buffer against erosion and storm surge for a period of several years, often with a target 'renourishment interval.' The success is measured by the beach's ability to withstand typical storm events and maintain its recreational and protective functions. Long-term monitoring data from similar projects in South Carolina or comparable coastlines would provide a better estimate of the expected lifespan of this specific fill.

How has federal spending on beach fill and coastal protection projects evolved over the past decade, and where does this contract fit in?

Federal spending on beach fill and coastal protection projects has generally seen fluctuations driven by major storm events, increased awareness of climate change impacts, and congressional appropriations. Following significant hurricanes, there is often a surge in funding for restoration and resilience projects. The Army Corps of Engineers is a primary agency responsible for these initiatives. This $33 million contract represents a significant investment in a single project, but it is part of a broader federal commitment to coastal management. Analyzing historical spending trends would reveal whether this contract's value is typical, high, or low relative to the overall federal investment in similar activities over time.

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: W912HN07R0076

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Great Lakes Dredge & Dock Corporation (UEI: 362899130)

Address: 2122 YORK RD 2ND FL, OAK BROOK, IL, 60523

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,069,207

Exercised Options: $33,069,207

Current Obligation: $33,069,207

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline