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

Positive Signals

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

Risk Flags

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: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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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