Dredging Contract Awarded to Great Lakes Dredge & Dock Co. for $28.8M
Contract Overview
Contract Amount: $28,845,648 ($28.8M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2009-06-23
End Date: 2012-02-29
Contract Duration: 981 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DREDGING
Place of Performance
Location: BELLE CHASSE, PLAQUEMINES County, LOUISIANA, 70037
Plain-Language Summary
Department of Defense obligated $28.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: DREDGING Key points: 1. Significant contract value of $28.8 million for dredging services. 2. Competition involved exclusion of sources, raising questions about full and open competition. 3. Risk associated with the contract type and duration. 4. Construction sector spending, specifically heavy and civil engineering.
Value Assessment
Rating: fair
The contract was awarded under a firm fixed price structure. Benchmarking against similar dredging contracts is difficult without more specific scope details, but the duration and value suggest a substantial project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources were excluded, potentially limiting the breadth of price discovery and innovation.
Taxpayer Impact: The firm fixed price structure aims to control costs, but the limited competition may have impacted the final price achieved for taxpayers.
Public Impact
Impacts navigation and waterway infrastructure maintenance. Supports economic activity through improved shipping routes. Potential environmental considerations related to dredging operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Long contract duration (981 days)
- Exclusion of sources
Positive Signals
- Firm fixed price contract type
- Definitive contract award
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to dredging. Spending in this sector is often tied to infrastructure projects, national security, and economic development initiatives.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests the prime contractor is likely a large business, and subcontracting opportunities for small businesses are not explicitly detailed.
Oversight & Accountability
Oversight would typically involve monitoring contract performance, adherence to specifications, and financial reporting by the Department of the Army. The 'definitive contract' type implies a more structured oversight process.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Exclusion of sources
- Long contract duration
- Potential for cost overruns impacting fixed price
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. 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 $28.8 million.
What is the period of performance?
Start: 2009-06-23. End: 2012-02-29.
What was the rationale for excluding specific sources from the competition, and how did this impact the final price?
The rationale for excluding sources is not provided in the data. However, excluding potential competitors typically reduces the number of bids received, which can lead to higher prices for the government compared to a truly open and full competition. Further investigation into the justification for source exclusion is warranted.
What are the specific risks associated with a 981-day dredging contract awarded on a firm fixed price basis?
A long-duration firm fixed price contract like this carries risks for both parties. The contractor assumes the risk of cost overruns due to unforeseen conditions, material price increases, or extended timelines. The government risks paying a premium if market conditions change favorably for the contractor, or if the initial price did not adequately account for potential risks.
How does the $28.8 million contract value compare to typical dredging projects of similar scope and duration?
Without detailed scope information (e.g., cubic yards dredged, depth, location specifics), a direct comparison is challenging. However, $28.8 million for nearly three years of work suggests a significant and complex dredging operation. Benchmarking would require access to more granular project data and market rates for dredging services.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912P809B0054
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Great Lakes Dredge & Dock Corporation (UEI: 362899130)
Address: 2122 YORK RD 2ND FL, OAK BROOK, IL, 60523
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,845,648
Exercised Options: $28,845,648
Current Obligation: $28,845,648
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-06-23
Current End Date: 2012-02-29
Potential End Date: 2012-02-29 00:00:00
Last Modified: 2020-09-27
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