Army awards $25.8M contract for Rouge River environmental dredging to Great Lakes Dock and Materials

Contract Overview

Contract Amount: $25,828,001 ($25.8M)

Contractor: Great Lakes Dock and Materials, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2025-05-30

Contract Duration: 2,437 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION CONTRACT FOR ENVIRONMENTAL DREDGING AND CAP PLACEMENT IN THE LOWER ROUGE RIVER OLD CHANNEL, AT DETROIT, MICHIGAN

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48209

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to GREAT LAKES DOCK AND MATERIALS, L.L.C. for work described as: CONSTRUCTION CONTRACT FOR ENVIRONMENTAL DREDGING AND CAP PLACEMENT IN THE LOWER ROUGE RIVER OLD CHANNEL, AT DETROIT, MICHIGAN Key points: 1. The contract focuses on environmental remediation, a critical but often costly area of civil engineering. 2. Great Lakes Dock and Materials, a single awardee, suggests potential for specialized expertise or limited market. 3. The firm-fixed-price structure aims to control costs, but the long duration presents potential for unforeseen expenses. 4. This project falls under 'Other Heavy and Civil Engineering Construction,' a broad category with varying cost benchmarks.

Value Assessment

Rating: fair

The contract value of $25.8 million for environmental dredging and cap placement appears within a reasonable range for a project of this scope and duration. However, without specific benchmarks for similar complex environmental remediation projects in the Great Lakes region, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for this environmental cleanup project.

Public Impact

Improves environmental quality and navigability of the Rouge River. Supports ecological restoration efforts in the Great Lakes region. Addresses potential environmental hazards through cap placement. Long-term project with benefits extending beyond the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2437 days) increases risk of cost overruns due to inflation or unforeseen site conditions.
Environmental remediation projects can be complex and prone to unexpected challenges.
Single awardee may limit future competition or innovation.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Project addresses critical environmental needs.

Sector Analysis

This contract falls under 'Other Heavy and Civil Engineering Construction,' a sector that includes a wide range of infrastructure projects. Spending in this sector can vary significantly based on project complexity, location, and environmental factors. Benchmarks are difficult without more specific project details.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Great Lakes Dock and Materials, L.L.C. Further analysis would be needed to determine the size status of the awardee and if small business participation was encouraged or achieved.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for federal construction contracts should be in place to monitor progress, quality, and adherence to terms.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration increases risk.
Complexity of environmental remediation.
Potential for unforeseen site conditions.
Dependence on specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to GREAT LAKES DOCK AND MATERIALS, L.L.C.. CONSTRUCTION CONTRACT FOR ENVIRONMENTAL DREDGING AND CAP PLACEMENT IN THE LOWER ROUGE RIVER OLD CHANNEL, AT DETROIT, MICHIGAN

Who is the contractor on this award?

The obligated recipient is GREAT LAKES DOCK AND MATERIALS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2018-09-27. End: 2025-05-30.

What specific environmental factors or challenges in the Lower Rouge River Old Channel justified the $25.8 million cost and the long project duration?

The significant cost and duration likely stem from the complexity of dredging contaminated sediments and the subsequent placement of protective caps. Factors such as the volume and type of contaminants, water depth, accessibility, environmental regulations, and the need for specialized equipment and disposal methods all contribute to the project's scale and expense. Detailed site assessments and remediation plans would outline these specific challenges.

How does the cost of this dredging and capping project compare to similar environmental remediation efforts in other major U.S. waterways?

Benchmarking this project requires comparing it to contracts with similar scope, scale, and environmental conditions. Factors like sediment contamination levels, volume to be dredged, capping material requirements, and regional labor/material costs significantly influence pricing. Without access to detailed cost breakdowns and comparable project data, it's challenging to definitively state if this contract represents a high or low cost relative to industry standards.

What are the potential long-term environmental benefits and risks associated with this specific dredging and cap placement project?

The primary benefit is the reduction of contaminants in the riverbed, improving water quality, aquatic habitats, and potentially human health. The cap placement aims to isolate remaining contaminants, preventing their spread. Potential risks include the effectiveness and longevity of the cap, unforeseen environmental impacts during the dredging process (e.g., sediment resuspension), and the long-term stability of the remediated site.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W911XK18B0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 1800 LAKESHORE DR, MUSKEGON, MI, 49441

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,828,001

Exercised Options: $25,828,001

Current Obligation: $25,828,001

Actual Outlays: $5,281,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline