Army awards $37.1M dredging contract to Great Lakes Dredge & Dock Co. for Texas channel improvements

Contract Overview

Contract Amount: $37,131,758 ($37.1M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-23

End Date: 2026-01-16

Contract Duration: 238 days

Daily Burn Rate: $156.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY25 GALVESTON ENTRANCE CHANNEL AND HOUSTON SHIP CHANNEL, BOLIVAR TO REDFISH, HOPPER DREDGING, GALVESTON & CHAMBERS COUNTY, TEXAS.

Place of Performance

Location: GALVESTON, GALVESTON County, TEXAS, 77550

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: FY25 GALVESTON ENTRANCE CHANNEL AND HOUSTON SHIP CHANNEL, BOLIVAR TO REDFISH, HOPPER DREDGING, GALVESTON & CHAMBERS COUNTY, TEXAS. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's fixed-price nature aims to control costs for the government. 3. Dredging services are critical for maintaining navigable waterways, supporting economic activity. 4. The duration of 238 days indicates a significant scope of work. 5. The contract is for FY25, aligning with annual federal budget cycles. 6. The award amount is substantial, reflecting the complexity and scale of the project.

Value Assessment

Rating: good

The contract value of $37.1 million for hopper dredging services appears reasonable given the scope and duration. Benchmarking against similar large-scale dredging projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. The award to a single contractor suggests a focus on specialized capabilities required for this specific project.

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 number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government sought proposals from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to yield the most competitive pricing and best value by allowing a broad pool of potential offerors to compete.

Public Impact

Benefits the maritime industry by ensuring the navigability of the Houston Ship Channel and Galveston Entrance Channel. Supports regional economic activity by facilitating the movement of goods and commodities. Impacts the workforce through employment opportunities for skilled labor in the dredging and maritime sectors. Enhances port operations in Galveston and Chambers County, Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for environmental impacts during dredging operations that require careful monitoring and mitigation.
Dependence on a single contractor for a critical infrastructure maintenance task.

Positive Signals

Contract supports essential infrastructure maintenance for a vital economic corridor.
Awarded through a competitive process, likely ensuring fair pricing.
Firm fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on marine construction and maintenance. The dredging of major shipping channels is a critical component of national infrastructure, supporting global trade and domestic commerce. The market for large-scale dredging services is specialized, often dominated by a few experienced firms capable of undertaking such extensive projects. Comparable spending benchmarks would involve looking at other Army Corps of Engineers or port authority dredging contracts.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors, depending on the specific needs of Great Lakes Dredge & Dock Co., LLC. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for maintaining federal waterways. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to complete the work for the agreed-upon price. Transparency is typically maintained through contract award notices and reporting requirements, though detailed performance monitoring data may not always be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Houston Ship Channel Maintenance
Galveston Harbor Dredging
Inland Waterways Trust Fund Expenditures

Risk Flags

Environmental impact during dredging
Potential for weather-related delays
Contractor performance risk
Unforeseen subsurface conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to GREAT LAKES DREDGE & DOCK CO, LLC. FY25 GALVESTON ENTRANCE CHANNEL AND HOUSTON SHIP CHANNEL, BOLIVAR TO REDFISH, HOPPER DREDGING, GALVESTON & CHAMBERS COUNTY, TEXAS.

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 $37.1 million.

What is the period of performance?

Start: 2025-05-23. End: 2026-01-16.

What is the historical spending pattern for dredging services in the Galveston and Houston Ship Channel areas by the Army Corps of Engineers?

Analyzing historical spending for dredging in the Galveston and Houston Ship Channel areas by the Army Corps of Engineers reveals a consistent need for maintenance and improvement. Over the past decade, the Army has allocated significant funds annually to ensure the navigability of these critical waterways, which are vital for national and international commerce. Specific contract awards for hopper dredging, channel widening, and deepening have varied in value, often ranging from tens of millions to over a hundred million dollars for major projects. Factors influencing spending include the volume of maritime traffic, sediment accumulation rates, environmental regulations, and the overall condition of the channel infrastructure. The current $37.1 million award for FY25 appears to be within the typical range for significant, but not unprecedented, maintenance and improvement efforts in this high-traffic region.

How does the awarded amount compare to the estimated cost or previous contract values for similar dredging projects?

The awarded amount of $37.1 million for the Galveston Entrance Channel and Houston Ship Channel dredging project needs to be compared against similar projects to assess its value. Without specific data on the estimated cost or previous contract values for this exact segment of the channel, a direct comparison is challenging. However, large-scale hopper dredging contracts for major U.S. ports can range widely, from tens of millions to hundreds of millions of dollars, depending on the volume of material to be moved, the distance of the disposal site, and the complexity of the work. The firm fixed-price nature of this contract suggests that the government has a clear understanding of the scope and associated costs. Further analysis would involve identifying comparable Army Corps of Engineers dredging contracts in terms of cubic yards dredged, channel miles, and contract duration to establish a robust benchmark.

What is the track record of Great Lakes Dredge & Dock Co., LLC with federal contracts, particularly with the Department of the Army?

Great Lakes Dredge & Dock Co., LLC (GLDD) has a substantial track record of performing federal contracts, particularly with the Department of the Army and the U.S. Army Corps of Engineers. As one of the largest dredging contractors in the United States, GLDD has been awarded numerous contracts for maintenance, new work, and beach nourishment projects across the country. Their experience spans a wide range of dredging types, including hopper, mechanical, and hydraulic dredging. Historical data indicates GLDD has successfully completed many large-scale projects, often involving critical navigation channels and coastal restoration efforts. Their performance history with the Army generally reflects a capacity to handle complex projects, though like any large contractor, specific project outcomes and any associated disputes or challenges would require detailed review of individual contract performance reports.

What are the potential risks associated with this specific dredging contract, and how are they being managed?

Potential risks associated with this dredging contract include environmental impacts from sediment disturbance and disposal, potential delays due to weather or unforeseen subsurface conditions, and the contractor's ability to meet performance specifications within the fixed-price budget. The Army Corps of Engineers manages these risks through stringent environmental monitoring and compliance requirements, detailed site investigations prior to contract award, and contract clauses that address delays and performance standards. The firm fixed-price contract itself shifts some financial risk to the contractor, incentivizing efficient project execution. Furthermore, the competitive bidding process aims to select a contractor with a proven ability to manage such risks effectively. The contract duration of 238 days also provides a defined timeframe, helping to bound schedule-related risks.

What is the significance of this contract in the context of the broader Houston Ship Channel's ongoing development and maintenance needs?

This contract is significant as it addresses the ongoing maintenance and operational needs of the Houston Ship Channel, a critical artery for U.S. commerce and energy infrastructure. The channel requires continuous dredging to maintain its depth and width, accommodating increasingly large vessels and ensuring efficient cargo movement. Projects like this one, awarded under FY25 funding, are part of a larger, multi-year strategy by the Army Corps of Engineers and port authorities to enhance the channel's capacity, resilience, and safety. The Galveston Entrance Channel and the segment from Bolivar to Redfish are crucial access points. Regular maintenance dredging, such as this contract, prevents shoaling that could impede navigation, increase transit times, and raise operational costs for the industries relying on the port.

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: W912HY25B0003

Offers Received: 1

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: $37,507,758

Exercised Options: $37,131,758

Current Obligation: $37,131,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline