Army's $30M Mississippi River dredging contract awarded to Great Lakes Dredge & Dock Co. for Southwest Pass

Contract Overview

Contract Amount: $29,927,371 ($29.9M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2023-03-27

Contract Duration: 481 days

Daily Burn Rate: $62.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MISSISSIPPI RIVER, BATON ROUGE TO GULF OF MEXICO, SOUTHWEST PASS HOPPER DREDGE CONTRACT NO. 1-2021, PLAQUEMINES PARISH, LOUISIANA (OM-21-001).

Place of Performance

Location: VENICE, PLAQUEMINES County, LOUISIANA, 70091

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MISSISSIPPI RIVER, BATON ROUGE TO GULF OF MEXICO, SOUTHWEST PASS HOPPER DREDGE CONTRACT NO. 1-2021, PLAQUEMINES PARISH, LOUISIANA (OM-21-001). Key points: 1. The contract's value of approximately $30 million represents a significant investment in maintaining critical waterway infrastructure. 2. Awarded under full and open competition, the contract suggests a competitive bidding process that could lead to favorable pricing. 3. The duration of the contract (481 days) indicates a substantial project scope requiring sustained effort. 4. The fixed-price nature of the contract shifts performance risk to the contractor, Great Lakes Dredge & Dock Co., LLC. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' NAICS code, highlighting its focus on infrastructure development. 6. The contract's geographic focus on the Mississippi River, Southwest Pass, and Plaquemines Parish, Louisiana, underscores its regional importance.

Value Assessment

Rating: good

The contract value of $29.9 million for 481 days of dredging services appears reasonable given the critical nature of maintaining the Southwest Pass. Benchmarking against similar large-scale dredging contracts is challenging due to the unique specifications and geographic requirements of the Mississippi River system. However, the firm fixed-price structure suggests that the contractor has assessed the risks and costs, and the price reflects their bid in a competitive environment. The award to a single entity implies a thorough evaluation of proposals.

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 4 bidders (as suggested by 'no': 4) signifies a healthy level of competition for this significant infrastructure project. This competitive environment generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: A competitive bidding process for essential infrastructure like the Southwest Pass ensures that taxpayer dollars are used efficiently, securing the best possible value for the investment in maintaining vital shipping channels.

Public Impact

The primary beneficiaries are the maritime industry and businesses relying on the Mississippi River for trade and transportation, ensuring continued access to the Gulf of Mexico. The services delivered include essential hopper dredging to maintain the required depth and width of the Southwest Pass, crucial for navigation. The geographic impact is concentrated in Plaquemines Parish, Louisiana, and the broader region dependent on the Mississippi River's navigability. The contract supports jobs within the dredging industry and related logistical and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental conditions arise, though mitigated by fixed-price contract.
Dependence on a single contractor for a critical piece of infrastructure could pose risks if performance issues emerge.
Environmental impacts of dredging activities require careful monitoring and mitigation.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract structure provides cost certainty for the government.
Contractor, Great Lakes Dredge & Dock Co., LLC, is a major player in the industry, suggesting experience and capability.

Sector Analysis

This contract operates within the heavy and civil engineering construction sector, specifically focusing on marine construction and maintenance. The dredging industry is vital for maintaining navigable waterways, supporting global trade and domestic commerce. The market is characterized by a few large, specialized firms capable of undertaking such extensive projects. The Army Corps of Engineers is a major client in this sector, frequently awarding contracts for river and harbor maintenance.

Small Business Impact

The contract details do not indicate a specific small business set-aside. Given the specialized nature and scale of hopper dredging, it is likely that large, experienced firms dominate the bidding landscape. Subcontracting opportunities for small businesses might exist in supporting roles, such as logistics, equipment repair, or specialized services, but the primary award is to a large corporation.

Oversight & Accountability

Oversight is likely managed by the U.S. Army Corps of Engineers, which is responsible for the planning, execution, and monitoring of dredging contracts. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful completion of dredging milestones. Transparency is generally maintained through public contract awards and reporting, though specific operational details may be proprietary.

Related Government Programs

Mississippi River Maintenance Contracts
Inland Waterways Navigation Projects
Army Corps of Engineers Dredging Contracts
Port and Harbor Deepening Projects

Risk Flags

Critical Infrastructure Maintenance
Environmental Sensitivity
Large-Scale Civil Engineering Project

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to GREAT LAKES DREDGE & DOCK CO, LLC. MISSISSIPPI RIVER, BATON ROUGE TO GULF OF MEXICO, SOUTHWEST PASS HOPPER DREDGE CONTRACT NO. 1-2021, PLAQUEMINES PARISH, LOUISIANA (OM-21-001).

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 $29.9 million.

What is the period of performance?

Start: 2021-12-01. End: 2023-03-27.

What is the historical spending pattern for dredging contracts at the Southwest Pass?

Historical spending on dredging at the Southwest Pass has been substantial and recurring, reflecting the continuous need to maintain channel depths against natural sedimentation. The Army Corps of Engineers consistently allocates significant funds to this critical artery. While specific dollar amounts fluctuate annually based on project scope, urgency, and available funding, the overall trend indicates a sustained commitment to keeping the pass navigable. For instance, prior to this contract, similar efforts in preceding years would have involved millions of dollars in dredging activities. Analyzing past contract awards, including their values, durations, and awarded contractors, reveals a pattern of significant investment, often involving competitive bidding processes similar to the one for Contract No. 1-2021. This historical context underscores the ongoing importance and financial commitment required for the upkeep of this vital waterway.

How does the awarded price compare to the estimated cost or previous similar contracts?

The awarded price of approximately $29.9 million for this contract is a key indicator of its value. Without access to the government's initial cost estimates or detailed pricing from the other three bidders, a direct comparison is limited. However, the fact that it was awarded under full and open competition with four bidders suggests the price is likely competitive. To assess value thoroughly, one would ideally compare this price against the cost of similar dredging projects of comparable scope and duration, adjusted for geographic location and specific environmental conditions. The firm fixed-price nature also implies the contractor believes this price adequately covers their costs and provides a reasonable profit margin, having factored in potential risks. Further analysis would involve examining the contractor's performance on previous, similar contracts to gauge their efficiency and cost-effectiveness.

What are the key performance indicators (KPIs) for this dredging contract?

Key performance indicators (KPIs) for this dredging contract would primarily focus on the successful and timely removal of sediment to achieve and maintain specified channel depths and widths in the Southwest Pass. Essential KPIs likely include the volume of material dredged (cubic yards or tons), the rate of dredging (cubic yards per hour or day), and the achievement of target depths and cross-sections as verified by hydrographic surveys. Adherence to the project schedule, minimizing environmental impact (e.g., turbidity levels, protection of marine life), and maintaining operational safety are also critical performance metrics. The contractor's ability to meet these KPIs directly influences payment milestones under the firm fixed-price contract and ensures the continued navigability of this vital shipping channel.

What is the track record of Great Lakes Dredge & Dock Co., LLC on similar government contracts?

Great Lakes Dredge & Dock Co., LLC (GLDD) has a long and extensive track record of performing large-scale dredging and marine construction projects for government agencies, including the U.S. Army Corps of Engineers. They are one of the largest dredging contractors in the United States, frequently awarded significant contracts for channel maintenance, deepening, and coastal restoration. Their portfolio includes numerous projects involving hopper dredges, similar to what would be required for the Southwest Pass. Historical performance data, often available through contract databases and agency reports, would typically show their success in meeting contract requirements, managing costs, and adhering to schedules on similar federal projects. While specific past performance evaluations are usually internal to the awarding agency, GLDD's consistent presence and success in winning major contracts suggest a generally positive track record.

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

Potential risks associated with this dredging contract include unforeseen subsurface conditions (e.g., hard rock, debris, unstable soils) that could impede dredging progress or increase costs, although the firm fixed-price structure shifts much of this financial risk to the contractor. Environmental risks, such as the impact of dredging on water quality, marine ecosystems, and nearby sensitive habitats, are significant. Operational risks, including equipment breakdowns, weather disruptions, and safety incidents, also pose challenges. Management of these risks is typically addressed through detailed contract specifications, pre-award site investigations, environmental monitoring protocols, contingency planning, and the contractor's own risk management strategies. The Army Corps of Engineers' oversight and the contractor's experience are key to mitigating these potential issues.

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: W912P821B0006

Offers Received: 4

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: $35,537,483

Exercised Options: $29,927,371

Current Obligation: $29,927,371

Actual Outlays: $5,332,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline