Army Awards $36M Dredging Contract for Houston Ship Channel to Great Lakes Dredge & Dock
Contract Overview
Contract Amount: $35,982,176 ($36.0M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2022-11-07
End Date: 2023-09-02
Contract Duration: 299 days
Daily Burn Rate: $120.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: UNRESTRICTED PROCUREMENT FOR HOUSTON SHIP CHANNEL, TEXAS, REDFISH TO BEACON 78 AND BAYPORT FLARE, IN CHAMBERS COUNTY, TEXAS, HOPPER DREDGING.
Place of Performance
Location: BAYTOWN, CHAMBERS County, TEXAS, 77523
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $36.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: UNRESTRICTED PROCUREMENT FOR HOUSTON SHIP CHANNEL, TEXAS, REDFISH TO BEACON 78 AND BAYPORT FLARE, IN CHAMBERS COUNTY, TEXAS, HOPPER DREDGING. Key points: 1. The contract is for hopper dredging of the Houston Ship Channel, a critical piece of infrastructure. 2. Great Lakes Dredge & Dock Co, LLC was awarded the contract under full and open competition. 3. The project duration is 299 days, indicating a significant but time-bound undertaking. 4. The contract type is Firm Fixed Price, which provides cost certainty for the government.
Value Assessment
Rating: good
The award amount of $35,982,176.40 appears reasonable for a large-scale dredging project of this nature. Benchmarking against similar Army Corps of Engineers dredging contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. The existence of multiple bids (no: 3) further supports effective price discovery.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars for this essential infrastructure project.
Public Impact
Ensures continued navigability of a major U.S. shipping artery, supporting economic activity. Supports maritime trade and the efficient movement of goods through the Port of Houston. Contributes to the maintenance and improvement of vital federal infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen subsurface conditions are encountered.
- Dependence on a single contractor for a critical infrastructure task.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Full and open competition promotes competitive pricing.
- Project addresses a clear and ongoing need for waterway maintenance.
Sector Analysis
This contract falls under the Heavy and Civil Engineering Construction sector, specifically related to waterway and port infrastructure. Spending in this sector is often driven by federal infrastructure priorities and maintenance needs.
Small Business Impact
The contract was awarded to Great Lakes Dredge & Dock Co, LLC, a large business. There is no indication of small business participation in this specific award, which is common for large-scale, specialized construction projects.
Oversight & Accountability
The Department of the Army, through its contracting activities, is responsible for overseeing this project. Standard government oversight procedures for construction contracts would apply to ensure quality and timely completion.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen subsurface conditions impacting cost and schedule.
- Environmental permit compliance and potential delays.
- Availability of specialized dredging equipment and personnel.
- Weather-related disruptions affecting project timeline.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. UNRESTRICTED PROCUREMENT FOR HOUSTON SHIP CHANNEL, TEXAS, REDFISH TO BEACON 78 AND BAYPORT FLARE, IN CHAMBERS COUNTY, TEXAS, HOPPER 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 $36.0 million.
What is the period of performance?
Start: 2022-11-07. End: 2023-09-02.
What is the historical cost performance of Great Lakes Dredge & Dock Co, LLC on similar Army Corps of Engineers contracts?
Analyzing the contractor's past performance on comparable projects, particularly those involving hopper dredging for the Army Corps of Engineers, would provide valuable insight into their reliability and cost control. This includes reviewing any instances of cost overruns, schedule delays, or quality issues on previous contracts to better assess the risk associated with this current award.
What are the specific performance metrics and quality assurance measures included in the contract to ensure effective dredging?
The contract likely includes detailed specifications for dredging depth, width, and material removal, along with quality assurance procedures to verify compliance. Understanding these metrics and the government's inspection protocols is crucial for assessing the effectiveness of the dredging work and ensuring the intended navigational improvements are achieved.
How does the awarded price compare to the government's independent cost estimate for this dredging project?
Comparing the awarded price of $35,982,176.40 to the government's baseline estimate is essential for validating value. If the awarded price is significantly lower, it suggests strong competition and potentially a good deal. Conversely, if it's higher, it might warrant further investigation into the bidding process or the estimate's accuracy.
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: W912HY22B0008
Offers Received: 3
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: $36,112,176
Exercised Options: $35,982,176
Current Obligation: $35,982,176
Actual Outlays: $3,411,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-07
Current End Date: 2023-09-02
Potential End Date: 2023-09-02 00:00:00
Last Modified: 2023-11-17
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