Army awards $55M Beach Fill Placement contract to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $54,956,588 ($55.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2018-05-31

End Date: 2019-08-03

Contract Duration: 429 days

Daily Burn Rate: $128.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF: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 $55.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF:BEACH FILL PLACEMENT- Key points: 1. Contract awarded to a single large business, indicating limited small business participation. 2. Firm Fixed Price contract type suggests clear cost expectations. 3. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category. 4. The award amount is substantial for a single construction project.

Value Assessment

Rating: fair

The contract value of $54.9M is significant. Benchmarking against similar heavy civil engineering construction projects is necessary to assess if this price is competitive, especially given the firm fixed price structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the award to a single entity suggests that only one bidder was successful or deemed most advantageous.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the contract.

Public Impact

Environmental impact: Beach fill placement projects are crucial for coastal erosion control and ecosystem restoration. Economic impact: Such projects can support local tourism and property values by maintaining beaches. Infrastructure resilience: Enhances coastal defenses against storm surges and sea-level rise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under heavy and civil engineering construction, specifically related to coastal management. Spending in this sector is often driven by environmental regulations, infrastructure needs, and disaster recovery efforts.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests that the prime contractor is a large entity, and there may be limited opportunities for small business subcontracting on this specific award.

Oversight & Accountability

Oversight would typically involve monitoring project progress, quality of work, and adherence to environmental regulations. The 'st': 'SC' designation might relate to specific reporting or oversight requirements for South Carolina projects.

Related Government Programs

Risk Flags

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, sc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF: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 $55.0 million.

What is the period of performance?

Start: 2018-05-31. End: 2019-08-03.

What was the competitive landscape like for this 'full and open' bid, and why did only one entity ultimately win?

While advertised as 'full and open', the success of a single bidder suggests either a highly specialized requirement that only one firm could meet, or that other bids were significantly less competitive on price, technical merit, or past performance. Further analysis of the bid evaluation process would clarify the competitive dynamics and ensure the best value was secured for taxpayers.

What are the specific environmental risks associated with this beach fill placement, and what mitigation strategies are in place?

Beach fill placement involves dredging sand from offshore borrow sites and placing it on eroding shorelines. Risks include potential damage to marine habitats, turbidity plumes affecting water quality, and impacts on endangered species. Mitigation typically involves careful site selection, timing restrictions (e.g., avoiding spawning seasons), and monitoring protocols to minimize ecological disruption.

How does the $55M cost compare to similar large-scale beach nourishment projects in the US?

Benchmarking this $55M contract against similar projects requires detailed analysis of project scope, volume of sand placed, borrow site characteristics, and project duration. Large-scale beach nourishment can range from tens to hundreds of millions of dollars. Understanding the per-cubic-yard cost and comparing it to regional averages would provide a clearer picture of cost-effectiveness.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912HP18B0002

Offers Received: 1

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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,956,588

Exercised Options: $54,956,588

Current Obligation: $54,956,588

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-05-31

Current End Date: 2019-08-03

Potential End Date: 2019-08-03 00:00:00

Last Modified: 2019-07-18

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