Army Awards $72.3M Contract for Myrtle Beach Emergency Renourishment Project
Contract Overview
Contract Amount: $72,336,435 ($72.3M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2024-12-12
End Date: 2026-07-13
Contract Duration: 578 days
Daily Burn Rate: $125.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY24 MYRTLE BEACH EMERGENCY RENOURISHMENT
Place of Performance
Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29403
Plain-Language Summary
Department of Defense obligated $72.3 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: FY24 MYRTLE BEACH EMERGENCY RENOURISHMENT Key points: 1. The contract value of $72.3 million addresses an urgent need for coastal protection. 2. Great Lakes Dredge & Dock Co, LLC secured the award through full and open competition. 3. The project's emergency nature may have influenced pricing and urgency. 4. Construction sector spending for heavy civil engineering is a key context.
Value Assessment
Rating: good
The contract value of $72.3 million appears reasonable for a large-scale emergency renourishment project. Benchmarking against similar coastal defense or heavy civil engineering contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for critical infrastructure protection.
Public Impact
Protects Myrtle Beach's coastline and infrastructure from erosion and storm damage. Supports local tourism and economy by preserving beach access and appeal. Demonstrates federal commitment to coastal resilience and disaster preparedness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Emergency nature of the contract may lead to premium pricing.
- Potential for scope creep or unforeseen challenges in emergency projects.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and defined scope of work.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal protection. Spending in this sector can fluctuate based on environmental factors and federal infrastructure priorities.
Small Business Impact
The contract was awarded through full and open competition and does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Army, which has established oversight mechanisms for construction projects. The definitive contract type suggests a clear scope, aiding accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Emergency procurement may lead to higher costs.
- Potential for environmental impacts during execution.
- Long-term effectiveness dependent on ongoing maintenance and natural forces.
- Lack of explicit small business participation noted.
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 $72.3 million to GREAT LAKES DREDGE & DOCK CO, LLC. FY24 MYRTLE BEACH EMERGENCY RENOURISHMENT
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 $72.3 million.
What is the period of performance?
Start: 2024-12-12. End: 2026-07-13.
What is the historical cost for similar renourishment projects in the region or of comparable scale?
Historical cost data for similar renourishment projects is crucial for validating the $72.3 million award. Factors like project complexity, environmental conditions, material costs, and the urgency of the need can significantly influence pricing. A comparative analysis with past projects of similar scope and duration would help determine if this contract represents a fair and reasonable price for the services rendered.
What are the specific risks associated with emergency coastal renourishment projects?
Emergency coastal renourishment projects carry inherent risks, including unpredictable weather impacting work schedules and effectiveness, potential for unforeseen subsurface conditions requiring scope adjustments, and the possibility of higher material and labor costs due to the urgent demand. Environmental sensitivities and regulatory compliance during rapid deployment also pose challenges that could affect project timelines and final costs.
How effectively will this renourishment project address long-term coastal erosion and storm resilience?
The effectiveness of this emergency renourishment project in addressing long-term coastal erosion and storm resilience depends on several factors beyond the immediate sand placement. The quality and type of sand used, the engineering design of the renourishment, and the ongoing maintenance strategy are critical. While providing immediate protection, its long-term impact will be influenced by future storm events and the natural processes of coastal dynamics.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912HP24B0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Great Lakes Dredge & Dock Corporation
Address: 9811 KATY FWY STE 1200, HOUSTON, TX, 77024
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: $72,336,435
Exercised Options: $72,336,435
Current Obligation: $72,336,435
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-12-12
Current End Date: 2026-07-13
Potential End Date: 2026-07-13 00:00:00
Last Modified: 2025-02-28
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