Army Awards $27.2M Dredging Contract to Great Lakes Dredge & Dock Co. for Louisiana Project
Contract Overview
Contract Amount: $27,207,650 ($27.2M)
Contractor: Great Lakes Dredge & Dock CO, LLC
Awarding Agency: Department of Defense
Start Date: 2024-02-01
End Date: 2025-12-14
Contract Duration: 682 days
Daily Burn Rate: $39.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOUTHWEST PASS DREDGING
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118
Plain-Language Summary
Department of Defense obligated $27.2 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: SOUTHWEST PASS DREDGING Key points: 1. Contract awarded to a single, established firm in the heavy civil engineering sector. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The contract value is significant for a single dredging project. 4. No small business participation was noted in this award.
Value Assessment
Rating: good
The contract value of $27.2 million for a 682-day duration appears reasonable for a large-scale dredging operation. Benchmarking against similar large civil engineering construction contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified contractors to bid, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this essential infrastructure project.
Public Impact
Ensures navigation and commerce in Louisiana waterways. Supports critical infrastructure maintenance for the Department of the Army. Provides economic activity through the awarded contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for cost overruns in long-duration projects.
Positive Signals
- Utilized full and open competition.
- Awarded to a reputable firm with relevant experience.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. Spending in this sector is often driven by infrastructure needs and maintenance of waterways.
Small Business Impact
The award notice indicates that small businesses were not involved in this specific contract. Future solicitations could explore opportunities for small business subcontracting to promote broader economic participation.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition, suggests a degree of oversight. However, ongoing monitoring of contract performance and costs is crucial.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Potential for scope creep in long-term contracts.
- Dependence on a single contractor for a critical service.
- Environmental compliance risks associated with dredging operations.
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 $27.2 million to GREAT LAKES DREDGE & DOCK CO, LLC. SOUTHWEST PASS 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 $27.2 million.
What is the period of performance?
Start: 2024-02-01. End: 2025-12-14.
What is the historical cost performance of Great Lakes Dredge & Dock Co. on similar large-scale dredging contracts?
Analyzing the contractor's past performance on comparable projects is essential to assess their ability to deliver within budget and schedule. This includes reviewing any instances of cost overruns, delays, or disputes on previous firm-fixed-price contracts of similar magnitude and complexity.
How does the awarded price compare to independent government cost estimates for this dredging project?
Comparing the awarded contract price to the government's independent cost estimate provides a key metric for evaluating value for money. A significant variance could indicate issues with the bidding process, the estimate's accuracy, or the contractor's pricing strategy.
What are the specific performance metrics and penalties included in the contract to ensure timely and effective completion?
Understanding the contract's performance standards, key performance indicators (KPIs), and any associated penalties for non-performance is vital for assessing effectiveness. This ensures accountability and incentivizes the contractor to meet or exceed project requirements.
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: W912P823B0021
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: $27,391,650
Exercised Options: $27,207,650
Current Obligation: $27,207,650
Actual Outlays: $4,192,474
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-01
Current End Date: 2025-12-14
Potential End Date: 2025-12-14 00:00:00
Last Modified: 2025-08-06
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