Army awards $48.8M dredging contract to Great Lakes Dredge & Dock Co. for Charleston channel maintenance

Contract Overview

Contract Amount: $48,784,170 ($48.8M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-08

End Date: 2022-03-31

Contract Duration: 1,665 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF POST 45 CHARLESTON ENTRANCE CHANNEL MAINTENANCE AND NEW WORK DREDGING - CONTRACT 1

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $48.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF POST 45 CHARLESTON ENTRANCE CHANNEL MAINTENANCE AND NEW WORK DREDGING - CONTRACT 1 Key points: 1. Contract value represents a significant investment in critical port infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this specialized service. 3. Contract duration of over 1600 days indicates a long-term need for ongoing maintenance. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. This contract addresses essential navigation requirements for a major East Coast port. 6. The award falls within the broader category of heavy civil engineering construction.

Value Assessment

Rating: good

The contract value of $48.8 million for dredging services appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, large-scale channel maintenance projects often involve substantial costs. The firm-fixed-price nature of the contract suggests that the contractor has assessed the risks and costs associated with the work, and the price reflects this assessment. Benchmarking against similar Army Corps of Engineers dredging contracts would provide a more precise value-for-money assessment.

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. The presence of two bidders suggests a degree of competition, though the exact number of interested parties and the nature of their proposals would offer further insight. A competitive process is generally favorable for price discovery and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Benefits the U.S. Army Corps of Engineers in maintaining navigable waterways. Ensures continued access for commercial shipping and naval operations through the Charleston port. Supports economic activity by facilitating the movement of goods and materials. Impacts the maritime industry and related logistics sectors in South Carolina. Contributes to the operational readiness of military assets requiring port access.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure maintenance task.
Environmental impact considerations during dredging operations require careful monitoring.

Positive Signals

Award to an experienced contractor with a track record in large-scale dredging projects.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for sustained maintenance and planning.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on marine construction and dredging. This sector is vital for maintaining and improving critical infrastructure such as ports, harbors, and waterways. The market for large-scale dredging services is specialized, often dominated by a few key players capable of undertaking such extensive projects. The Army Corps of Engineers is a significant client in this space, awarding numerous contracts for channel maintenance and improvement 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 award went to a large business. The scale and specialized nature of this dredging project likely made it less suitable for small business participation as prime contractors. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, which is responsible for managing and monitoring the performance of dredging contracts. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Program
Port Infrastructure Development Program
Inland Waterways Trust Fund
Federal Maritime Commission Oversight

Risk Flags

Potential for environmental impact during dredging operations.
Risk of encountering unforeseen subsurface conditions.
Dependence on contractor's specialized equipment and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF POST 45 CHARLESTON ENTRANCE CHANNEL MAINTENANCE AND NEW WORK DREDGING - CONTRACT 1

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 $48.8 million.

What is the period of performance?

Start: 2017-09-08. End: 2022-03-31.

What is the historical spending pattern for Charleston Harbor dredging by the Army Corps of Engineers?

Historical spending on Charleston Harbor dredging by the Army Corps of Engineers has been substantial and recurring, reflecting the ongoing need to maintain and deepen the channel to accommodate larger vessels. Prior to this $48.8 million contract, the Corps has awarded numerous contracts for various phases of dredging, including maintenance, deepening, and widening projects. These contracts can range from a few million dollars for routine maintenance to tens or even hundreds of millions for major capital improvements. Analyzing past contract awards for this specific harbor reveals a consistent investment in its navigability, driven by economic demands and evolving shipping technologies. The frequency and value of these awards underscore the strategic importance of Charleston as a major East Coast port and the Army Corps' role in ensuring its infrastructure meets modern requirements.

How does the awarded price compare to other similar large-scale dredging contracts?

Comparing the $48.8 million awarded to Great Lakes Dredge & Dock Co. for Charleston channel maintenance requires access to a database of similar large-scale dredging contracts, including their scope, duration, and specific work performed. Generally, major port dredging projects can cost tens to hundreds of millions of dollars. Factors influencing price include the volume of material to be moved, the type of material (e.g., sand, silt, rock), the distance of material placement, environmental mitigation requirements, and the complexity of the work area. Given that this contract covers a significant period (over 1600 days) and involves maintenance and new work, the price appears to be within the expected range for substantial infrastructure projects of this nature. However, a precise benchmark would necessitate a detailed comparison with contracts of comparable scope and location.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for large dredging contracts managed by the Army Corps of Engineers include adherence to project schedules, meeting specified dredging depths and widths, proper disposal of dredged material in designated areas, compliance with environmental regulations, and maintaining operational safety standards. The contractor's performance is usually monitored through regular site inspections, progress reports, and potentially independent surveys of the channel. Successful completion of milestones and final project acceptance are critical measures. Failure to meet these KPIs can result in penalties, withholding of payments, or even contract termination, depending on the severity of the performance issues.

What is the track record of Great Lakes Dredge & Dock Co. with the Army Corps of Engineers?

Great Lakes Dredge & Dock Co., LLC (GLDD) has a long and extensive track record of performing dredging and marine construction services for the U.S. Army Corps of Engineers. They are one of the largest dredging contractors in the United States and have been awarded numerous contracts over many years for various projects, including harbor deepening, channel maintenance, beach nourishment, and environmental restoration. Their history with the Corps includes successfully completing many large-scale, complex projects across the country. This extensive experience suggests a familiarity with the Corps' contracting processes, technical requirements, and performance expectations, making them a well-established and capable bidder for significant federal dredging opportunities like the Charleston channel contract.

What are the potential risks associated with this specific dredging contract?

Potential risks associated with this dredging contract include unforeseen subsurface geological conditions (e.g., encountering harder material than anticipated, buried obstructions) which could increase costs or delay the schedule, despite the firm-fixed-price structure. Environmental risks are also significant, such as the discovery of contaminated sediments requiring special handling and disposal, or impacts on marine life and habitats that could lead to work stoppages or require costly mitigation measures. Operational risks include equipment breakdowns, adverse weather conditions impacting work schedules, and potential labor disputes. Furthermore, changes in regulatory requirements or public opposition to dredging activities could pose risks. The contractor's ability to manage these risks effectively is crucial for successful project completion.

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: W912HP17B0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Great Lakes Dredge & Dock Corporation

Address: 2122 YORK RD STE 200, OAK BROOK, IL, 60523

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: $48,784,170

Exercised Options: $48,784,170

Current Obligation: $48,784,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline