Army awards $172.4M dredging contract for Freeport Harbor, Texas, to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $172,434,669 ($172.4M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-11

End Date: 2026-08-22

Contract Duration: 1,138 days

Daily Burn Rate: $151.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UNRESTRICTED PROCUREMENT FOR FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT, DREDGING REACHES 1, 2 AND 4, IN BRAZORIA COUNTY, FREEPORT, TEXAS. HOPPER DREDGING

Place of Performance

Location: FREEPORT, BRAZORIA County, TEXAS, 77541

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $172.4 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: UNRESTRICTED PROCUREMENT FOR FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT, DREDGING REACHES 1, 2 AND 4, IN BRAZORIA COUNTY, FREEPORT, TEXAS. HOPPER DREDGING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a clear scope of work and pricing. 3. Project duration of 1138 days suggests a significant and long-term infrastructure undertaking. 4. The firm-fixed-price structure aims to control costs for the government. 5. The contract is for heavy civil engineering construction, a critical sector for port infrastructure. 6. Awarded by the Department of the Army, highlighting defense-related infrastructure investment.

Value Assessment

Rating: good

The contract value of $172.4 million for dredging services appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale federal dredging projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the government has secured a predictable cost, which is a positive indicator for value.

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 3 bidders suggests a healthy level of competition for this significant infrastructure project. This competitive environment is generally expected to drive down prices and encourage efficient service delivery.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, potentially leading to more favorable pricing than a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the maritime industry, which relies on navigable waterways. The project will deliver essential dredging services to improve the navigability of Freeport Harbor. The geographic impact is concentrated in Brazoria County, Freeport, Texas, a key port location. The contract supports the heavy and civil engineering construction sector, potentially creating or sustaining jobs in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered during dredging.
Risk of project delays due to weather, environmental regulations, or equipment issues.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Firm-fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process.
Clear project scope and defined completion dates provide accountability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging. This sector is vital for maintaining and improving port infrastructure, facilitating trade and commerce. The market for large-scale dredging projects is specialized, often dominated by a few experienced firms. The $172.4 million award is substantial, reflecting the scale and importance of maintaining deep-water channels.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Great Lakes Dredge & Dock Co., LLC, may engage small businesses as subcontractors for specialized services or materials, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for managing federal navigation projects. Accountability measures are embedded in the definitive contract structure, including defined performance standards and completion dates. Transparency is generally maintained through federal contract databases and reporting requirements, though specific oversight mechanisms for this particular project would require further investigation.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
National Defense Authorization Act (NDAA) appropriations for infrastructure

Risk Flags

Potential for environmental impact during dredging operations.
Risk of encountering unforeseen subsurface conditions.
Dependence on weather and tidal conditions for optimal performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $172.4 million to GREAT LAKES DREDGE & DOCK CO, LLC. UNRESTRICTED PROCUREMENT FOR FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT, DREDGING REACHES 1, 2 AND 4, IN BRAZORIA COUNTY, FREEPORT, 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 $172.4 million.

What is the period of performance?

Start: 2023-07-11. End: 2026-08-22.

What is the historical spending by the Department of the Army on dredging projects in Texas?

Historical spending by the Department of the Army on dredging projects in Texas is substantial, reflecting the state's extensive coastline and numerous ports. While specific figures for dredging alone are not readily available without deep database dives, the Army Corps of Engineers consistently allocates significant funds annually for maintenance, improvement, and construction of federal navigation channels across the nation. Texas ports, such as Houston, Galveston, and Corpus Christi, frequently require dredging to maintain operational depths. The Freeport Harbor project itself has likely seen previous investments for maintenance and upgrades over the years, indicating a recurring need for such services funded through various appropriations.

How does the awarded amount compare to similar large-scale federal dredging contracts?

The $172.4 million award for the Freeport Harbor channel improvement project is a significant sum, placing it among larger federal dredging contracts. Comparable projects often involve deepening or widening major shipping channels, harbor expansions, or significant maintenance dredging in high-traffic areas. For instance, contracts for major port deepening projects on the East Coast or Gulf Coast can range from tens of millions to hundreds of millions of dollars, depending on the volume of material to be moved, the complexity of the work (e.g., rock removal), and environmental mitigation requirements. The firm-fixed-price nature of this contract suggests a well-defined scope, which is typical for projects of this magnitude to ensure cost control.

What are the potential risks associated with the contractor, Great Lakes Dredge & Dock Co., LLC?

Great Lakes Dredge & Dock Co., LLC is a major player in the dredging industry with a long history. Potential risks associated with any large contractor include project delays due to unforeseen site conditions, equipment failures, labor disputes, or environmental compliance issues. While specific performance issues for this contractor on past projects would require detailed review of contract performance databases and any associated claims or disputes, their extensive experience suggests a generally capable operation. However, the inherent risks of large-scale marine construction projects remain, such as weather impacts and the need for strict adherence to environmental regulations.

What is the expected impact of this project on the local economy in Freeport, Texas?

This dredging project is expected to have a positive impact on the local economy in Freeport, Texas. Improved navigability of the harbor will enhance the efficiency and capacity of port operations, supporting existing businesses and potentially attracting new ones involved in shipping and logistics. The project itself will likely create temporary jobs during its construction phase, benefiting local workers and service providers. Furthermore, by ensuring the harbor remains accessible for larger vessels, the project contributes to the long-term economic viability and competitiveness of the Port of Freeport, a significant economic engine for the region.

How does the firm-fixed-price contract structure benefit the government in this scenario?

The firm-fixed-price (FFP) contract structure is highly beneficial for the government in this dredging project scenario as it shifts the majority of the risk for cost overruns to the contractor, Great Lakes Dredge & Dock Co., LLC. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the Department of the Army with cost certainty, making budgeting more predictable. While the contractor may build in a contingency to cover potential risks, the government's liability is capped at the agreed-upon price, assuming the scope of work remains unchanged. This structure incentivizes the contractor to manage costs efficiently to maximize their profit.

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: W912HY23B0001

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: $174,778,269

Exercised Options: $172,434,669

Current Obligation: $172,434,669

Actual Outlays: $24,175,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline