DoD awards $34.8M for Willoughby Spit dredging, highlighting significant civil engineering investment

Contract Overview

Contract Amount: $34,811,000 ($34.8M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2016-01-15

End Date: 2017-05-11

Contract Duration: 482 days

Daily Burn Rate: $72.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DREDGING AND BEACH FILL, WILLOUGHBY SPIT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: IGF::OT::IGF DREDGING AND BEACH FILL, WILLOUGHBY SPIT Key points: 1. Contract value represents a substantial investment in coastal resilience and infrastructure. 2. Competition dynamics suggest a healthy market for specialized heavy civil engineering services. 3. Contract duration and firm fixed-price terms indicate a focus on predictable project outcomes. 4. Performance context is crucial for understanding the effectiveness of this large-scale dredging operation. 5. Sector positioning places this contract within the broader context of national infrastructure development. 6. The award to a single, experienced contractor warrants scrutiny of long-term market concentration.

Value Assessment

Rating: good

The contract value of $34.8 million for dredging and beach fill at Willoughby Spit appears reasonable given the scope of heavy civil engineering work. Benchmarking against similar large-scale coastal restoration projects would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the government has locked in costs, but the ultimate value depends on the contractor's efficiency and the project's success in achieving its environmental and protective goals. Without specific comparable contract data, a definitive assessment is challenging, but the scale of the project implies significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a competitive environment for this specialized type of construction. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. A competitive bidding process increases the likelihood that the government secures the best value for its investment, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are the residents and infrastructure of the Willoughby Spit area, protected by enhanced coastal defenses. The project delivers critical services related to coastal erosion control and beach nourishment. Geographic impact is concentrated on the Virginia coastline, specifically the Willoughby Spit region. Workforce implications include employment opportunities for skilled labor in heavy construction and dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise during dredging.
Risk of project delays due to weather or logistical challenges inherent in large-scale marine construction.
Dependence on a single contractor for a critical infrastructure project raises concerns about long-term capacity and future competition.

Positive Signals

Awarded under full and open competition, suggesting a robust market for these services.
Firm fixed-price contract provides cost certainty for the government.
Contract duration of 482 days allows for structured project execution.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on coastal protection and infrastructure. The market for dredging and beach fill services is specialized, often dominated by a few large firms with the necessary equipment and expertise. The size of this contract, at $34.8 million, is significant within this niche, reflecting the substantial investment required for major coastal resilience projects. Comparable spending benchmarks would involve looking at other Army Corps of Engineers or FEMA-funded coastal restoration efforts.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this large-scale civil engineering project. Given the specialized nature and significant value of dredging and beach fill operations, it is common for prime contracts to be awarded to large, experienced firms. Subcontracting opportunities for small businesses may exist in supporting roles, such as equipment rental, logistics, or specialized labor, but the primary awardee is a large entity. The impact on the small business ecosystem is likely indirect, focusing on potential support roles rather than direct prime contract awards.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve the contracting officer's representative (COR) and potentially the Army Corps of Engineers' project management team. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified outcomes within the agreed budget. Transparency is generally facilitated through contract award databases and public reporting, although detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal and Shoreline Protection Projects
Beach Nourishment and Erosion Control
Federal Dredging Contracts
Infrastructure Resilience Initiatives

Risk Flags

Potential for environmental impact during dredging operations.
Risk of schedule delays due to weather or unforeseen site conditions.
Contractor performance monitoring is essential for project success.
Long-term effectiveness of beach fill in mitigating erosion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to GREAT LAKES DREDGE & DOCK CO, LLC. IGF::OT::IGF DREDGING AND BEACH FILL, WILLOUGHBY SPIT

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 $34.8 million.

What is the period of performance?

Start: 2016-01-15. End: 2017-05-11.

What is the track record of Great Lakes Dredge & Dock Co, LLC with similar federal contracts, particularly in coastal restoration?

Great Lakes Dredge & Dock Co, LLC (GLDD) is a major player in the dredging industry with a long history of performing large-scale federal projects, including significant coastal restoration and navigation dredging contracts for the U.S. Army Corps of Engineers. Their track record typically includes numerous awards for beach nourishment, channel deepening, and port maintenance across the United States. Analyzing their past performance on similar projects would involve reviewing contract completion records, any documented disputes or claims, and client satisfaction feedback. GLDD's extensive experience suggests a high likelihood of successful project execution, but it's always prudent to examine specific performance metrics on comparable projects to ensure value and adherence to timelines and specifications.

How does the $34.8 million contract value compare to other large-scale dredging and beach fill projects awarded by the federal government?

The $34.8 million contract value for the Willoughby Spit project is substantial but falls within the typical range for significant coastal restoration and dredging efforts undertaken by the U.S. Army Corps of Engineers. Large-scale projects, especially those involving extensive beach fill volumes or complex environmental mitigation, can easily reach tens of millions of dollars. For instance, major hurricane protection projects or extensive channel deepening initiatives can sometimes exceed $100 million. Conversely, smaller-scale maintenance dredging or localized erosion control efforts might be awarded for amounts ranging from a few million to under $10 million. Therefore, this contract represents a significant, but not exceptionally outlier, investment in coastal infrastructure.

What are the primary risks associated with this type of heavy civil engineering contract, and how were they mitigated?

Key risks in heavy civil engineering contracts like this include unforeseen subsurface conditions (e.g., encountering unexpected rock formations or contaminated sediments), environmental impacts and permitting challenges, weather-related delays, and contractor performance issues. For this specific contract, the firm fixed-price (FFP) structure shifts much of the cost risk to the contractor, incentivizing efficient execution. Mitigation strategies often involve thorough pre-award site investigations, robust environmental impact assessments, contingency planning for weather, and detailed contract specifications with performance standards. The contract's duration (482 days) also allows for scheduled work and potential weather buffers. However, the inherent nature of marine construction means some risks, particularly weather, remain significant.

What does the 'DEFINITIVE CONTRACT' award type imply about the project's scope and flexibility?

A 'Definitive Contract' is a standard, fully funded contract that specifies all the terms and conditions, including price, quantity, and delivery schedule. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, definitive contracts are typically used for projects with a well-defined scope and a fixed price or cost ceiling. For this dredging project, it implies that the requirements for the Willoughby Spit work were clearly established at the time of award, and the $34.8 million represents the total commitment for the defined scope. This structure provides cost certainty for the government and requires the contractor to perform the specified work within the agreed-upon parameters.

How has federal spending on coastal resilience and infrastructure projects evolved, and where does this contract fit?

Federal spending on coastal resilience and infrastructure has seen a notable increase, particularly in recent years, driven by growing awareness of climate change impacts, sea-level rise, and the increasing frequency and intensity of extreme weather events. Historically, funding often focused on navigation or immediate post-disaster recovery. However, there's a greater emphasis now on proactive, long-term resilience measures, including beach nourishment, dune restoration, and living shorelines. This $34.8 million contract for Willoughby Spit fits squarely within this evolving trend, representing a significant investment in proactive coastal protection rather than just reactive repair. It aligns with broader federal initiatives aimed at safeguarding coastal communities and infrastructure.

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: W9123616B0001

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 STE 200, OAK BROOK, IL, 60523

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: $34,811,000

Exercised Options: $34,811,000

Current Obligation: $34,811,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline