DoD awards $31M dredging contract to Great Lakes Dredge & Dock Co. for South Carolina project

Contract Overview

Contract Amount: $30,962,306 ($31.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2013-10-29

End Date: 2015-09-25

Contract Duration: 696 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 2ND RENOURISHMENT CONTRACT (100% FED)

Place of Performance

Location: FOLLY BEACH, CHARLESTON County, SOUTH CAROLINA, 29439

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: 2ND RENOURISHMENT CONTRACT (100% FED) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of 696 days indicates a significant, long-term construction project. 4. The contract was awarded by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The base award amount of approximately $31 million represents a substantial investment in infrastructure.

Value Assessment

Rating: good

The base award of $30,962,305.99 for this dredging project appears reasonable given the scope and duration. While direct comparisons are difficult without more specific project details, the firm fixed-price nature of the contract suggests that the contractor has assumed the cost risk. The contract was awarded to Great Lakes Dredge & Dock Co., LLC, a known entity in this sector. Further analysis would require benchmarking against similar dredging projects in terms of cost per unit of material moved or per linear foot of channel dredged.

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 two bids suggests a moderate level of competition for this significant infrastructure project. A higher number of bidders might typically lead to more aggressive pricing, but the specific nature of specialized heavy civil engineering construction can limit the pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value and price for the government. Full and open competition generally leads to more favorable pricing than sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of Defense and potentially commercial entities relying on navigable waterways in South Carolina. The contract delivers essential heavy and civil engineering construction services, likely related to maintaining or improving port infrastructure or waterways. The geographic impact is focused on South Carolina, where the dredging activities will take place. The project will likely involve a skilled workforce in the construction and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure project.
Environmental impact of dredging activities requires careful monitoring and mitigation.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition, promoting price discovery.
Contractor has experience in large-scale dredging projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is critical for maintaining maritime trade routes, port accessibility, and coastal resilience. The market for large-scale dredging services is specialized, with a limited number of major players capable of undertaking such extensive federal projects. Spending in this area is often driven by infrastructure needs, environmental regulations, and national security requirements related to port operations.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Given the specialized nature and scale of this heavy civil engineering project, it is likely that the prime contractor will handle the majority of the work. Further investigation into the subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability is established through the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements, though specific project details and oversight activities may not always be publicly disclosed.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Port Infrastructure Development Program
Coastal Navigation Improvement Projects
Federal Dredging Contracts

Risk Flags

Potential for environmental impact
Contract duration suggests significant project scope
Specialized industry with limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. 2ND RENOURISHMENT CONTRACT (100% FED)

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 $31.0 million.

What is the period of performance?

Start: 2013-10-29. End: 2015-09-25.

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

Great Lakes Dredge & Dock Co., LLC has a significant history of performing federal contracts, primarily with agencies like the Army Corps of Engineers (part of the Department of the Army) and the Department of Transportation. Their experience often involves large-scale dredging, marine construction, and environmental remediation projects. Reviewing their past performance on similar contracts, including any past performance evaluations or contract disputes, would provide further insight into their reliability and capability. Data from contract databases often shows a pattern of successful awards and completions for this company in the heavy civil engineering and maritime construction space.

How does the awarded amount of $31 million compare to similar dredging projects undertaken by the federal government?

Benchmarking the $31 million award requires comparing it to similar dredging projects in terms of scope, volume of material moved, geographic location, and complexity. Projects involving deep channel dredging, maintenance of high-traffic ports, or complex environmental considerations typically command higher costs. Without specific metrics like cost per cubic yard dredged or cost per linear foot of channel improved, a direct comparison is challenging. However, $31 million for a multi-year, significant dredging effort in a key coastal area like South Carolina is within the expected range for major federal infrastructure investments in this sector.

What are the primary risks associated with this specific dredging contract, and how are they being managed?

Key risks for this contract include unforeseen subsurface conditions (e.g., encountering unexpected rock formations or hazardous materials), environmental compliance challenges (e.g., managing dredged material disposal, protecting marine life), and potential weather-related delays, especially in a coastal environment. The firm fixed-price contract structure mitigates financial risk for the government by capping the contractor's payment. However, the contractor bears the risk of cost overruns due to these factors. The contract likely includes clauses for differing site conditions and environmental protection, and oversight by the Army Corps of Engineers would focus on monitoring compliance and progress.

What is the historical spending pattern for dredging and related heavy civil engineering construction by the Department of the Army?

The Department of the Army, primarily through the Army Corps of Engineers, is a consistent and significant spender on dredging and civil works projects. Historical spending patterns show substantial annual investments in maintaining and improving the nation's waterways, ports, and coastal infrastructure. This spending fluctuates based on infrastructure needs, congressional appropriations, and national priorities (e.g., disaster recovery, economic stimulus). The total annual federal spending on dredging can range from hundreds of millions to over a billion dollars, with the Army Corps of Engineers being the largest single federal procurer in this domain.

What are the potential long-term implications of this contract for South Carolina's port infrastructure and economy?

This contract likely aims to improve or maintain the navigability of key waterways or port facilities in South Carolina. Enhanced navigability can lead to increased efficiency for commercial shipping, potentially attracting larger vessels and boosting trade volumes. This, in turn, can stimulate economic activity, support jobs in logistics and related industries, and improve the competitiveness of the region's ports. The specific benefits depend on which waterways or facilities are being dredged and the intended outcome of the project, such as accommodating larger cargo ships or ensuring year-round access.

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: SEALED BID

Solicitation ID: W912HP13B0006

Offers Received: 2

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: $30,962,306

Exercised Options: $30,962,306

Current Obligation: $30,962,306

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline