Army Awards $114M Dredging Contract to Great Lakes Dredge & Dock Co. for Savannah Channel
Contract Overview
Contract Amount: $114,129,195 ($114.1M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2015-03-04
End Date: 2018-07-18
Contract Duration: 1,232 days
Daily Burn Rate: $92.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF SAVANNAH ENTRANCE CHANNEL NEW WORK DREDGING
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31401
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $114.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF SAVANNAH ENTRANCE CHANNEL NEW WORK DREDGING Key points: 1. The contract value of $114.1M is significant for heavy civil engineering construction. 2. Great Lakes Dredge & Dock Co., LLC is a major player in the dredging industry. 3. The project's duration of 1232 days suggests a complex and lengthy undertaking. 4. The 'Other Heavy and Civil Engineering Construction' sector is critical for infrastructure development.
Value Assessment
Rating: good
The contract value of $114.1M appears reasonable for a large-scale dredging project of this nature. Benchmarking against similar Army Corps of Engineers projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The number of bids received (3) indicates some level of market interest.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential infrastructure projects.
Public Impact
Enhances navigation and trade through the Savannah port. Supports economic activity by improving shipping efficiency. Contributes to the long-term infrastructure of the Georgia coast. Potential environmental impacts from dredging activities require monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration could lead to cost overruns.
- Potential for unforeseen geological conditions impacting cost and schedule.
- Limited small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- 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 port improvements and waterway maintenance. Spending in this sector is often driven by government investment in national infrastructure.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). Future contracts in this sector should explore opportunities for small business subcontracting to promote broader economic participation.
Oversight & Accountability
The award was made by the Department of the Army, likely subject to standard federal procurement oversight. The duration and value suggest ongoing monitoring would be necessary to ensure project completion 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
- Lack of small business participation.
- Long project duration increases risk of delays and cost overruns.
- Potential for unforeseen geological or environmental challenges.
- Limited detail on specific performance metrics and oversight mechanisms.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ga, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF SAVANNAH ENTRANCE CHANNEL NEW WORK DREDGING
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 $114.1 million.
What is the period of performance?
Start: 2015-03-04. End: 2018-07-18.
What was the basis for the 'Other Heavy and Civil Engineering Construction' NAICS code selection, and how does it compare to typical dredging contract classifications?
The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' is a broad category. Dredging projects, especially those involving significant channel modification, often fall under this classification. However, specific sub-classifications might exist depending on the primary nature of the work, such as marine construction. Comparing this to other similar Army Corps of Engineers dredging contracts would reveal if this is a standard or an outlier classification.
Given the 3 bids received, what was the estimated cost versus the awarded cost, and were there significant deviations?
The provided data shows the awarded amount ($114,129,194.80) and a 'br' value of 92637, which is likely the bid or baseline value. A comparison between these figures is crucial. If the awarded amount is significantly higher than the baseline or estimated cost, it warrants further investigation into the reasons for the difference, such as adjustments during negotiation or unforeseen project complexities that emerged post-bidding.
What are the specific performance metrics and milestones for this dredging project, and how will success be measured?
The contract details do not specify performance metrics or milestones. Typically, dredging contracts define success by the volume of material removed, the depth and width achieved in the channel, and adherence to environmental regulations. The contract's duration (1232 days) implies phased work. Oversight would involve regular progress reports, site inspections, and potentially independent verification of channel dimensions to ensure the project meets its intended navigational improvements.
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: W912HN13R0015
Offers Received: 3
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: $114,129,195
Exercised Options: $114,129,195
Current Obligation: $114,129,195
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-03-04
Current End Date: 2018-07-18
Potential End Date: 2018-07-18 00:00:00
Last Modified: 2020-10-03
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