DoD's FY08 Regional Hopper Contract Awarded to Great Lakes Dredge & Dock for $23.6M

Contract Overview

Contract Amount: $23,557,472 ($23.6M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-17

End Date: 2009-04-21

Contract Duration: 400 days

Daily Burn Rate: $58.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY08 REGIONAL HOPPER CONTRACT

Place of Performance

Location: ASTORIA, CLATSOP County, OREGON, 97103

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: FY08 REGIONAL HOPPER CONTRACT Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The award value of $23.6 million for a 400-day duration indicates a significant investment in heavy civil engineering. 4. The contractor, Great Lakes Dredge & Dock Co, LLC, has experience in this sector. 5. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category. 6. The contract was awarded in FY08, providing historical context for current spending.

Value Assessment

Rating: fair

Benchmarking the value of this FY08 contract is challenging without more specific details on the scope of work and market conditions at the time. The award value of $23.6 million for a 400-day duration suggests a substantial project. However, without comparable contracts from the same period or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm fixed-price nature of the contract is a positive indicator for cost control, as it places the financial risk on the contractor.

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 a bid. The presence of 3 bidders, as noted in the data, suggests a degree of competition. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is a key factor in assessing the robustness of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are likely entities requiring dredging and heavy civil engineering services, potentially related to waterway maintenance or infrastructure development. The services delivered involve the operation of regional hopper equipment for construction or maintenance purposes. The geographic impact is implied to be regional, focusing on specific operational areas within the United States. Workforce implications include employment for skilled labor in heavy construction and maritime operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.
The age of the data (FY08) limits its relevance for current market comparisons and value assessments.
The broad 'Other Heavy and Civil Engineering Construction' category may obscure specific cost drivers and efficiencies.
No information is provided on potential environmental impacts or mitigation strategies related to dredging operations.

Positive Signals

The use of a Firm Fixed Price contract structure is a positive signal for cost certainty.
Awarding under full and open competition suggests a robust process for selecting the most capable and cost-effective provider.
The contractor, Great Lakes Dredge & Dock Co, LLC, is a known entity in the heavy construction and dredging sector, implying relevant expertise.
The contract duration of 400 days indicates a significant project scope, potentially addressing substantial infrastructure needs.

Sector Analysis

The 'Other Heavy and Civil Engineering Construction' sector encompasses a wide range of infrastructure projects, including dredging, marine construction, and land development. Spending in this sector is often driven by government needs for maintaining and improving transportation networks, ports, and waterways. Comparable spending benchmarks would typically involve analyzing other large-scale civil engineering contracts awarded by agencies like the Army Corps of Engineers or the Department of Transportation during similar fiscal periods.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information available regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct impact on small businesses is unclear, though large prime contracts can sometimes create opportunities for small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the awarding agency, the Department of the Army. Accountability measures are inherent in the contract terms, particularly the Firm Fixed Price structure which incentivizes contractor performance. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Specific Inspector General jurisdiction would depend on whether any fraud, waste, or abuse was alleged or investigated.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Maritime Administration Infrastructure Projects
Department of Transportation Civil Engineering Projects
Naval Facilities Engineering Command Construction Contracts

Risk Flags

Data Age: FY08 data may not reflect current market conditions or contractor performance.
Scope Ambiguity: 'Regional Hopper Contract' is broad; specific deliverables and performance standards are not detailed.
Limited Competition Data: Only 3 bidders noted; further analysis needed to confirm robustness of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to GREAT LAKES DREDGE & DOCK CO, LLC. FY08 REGIONAL HOPPER CONTRACT

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 $23.6 million.

What is the period of performance?

Start: 2008-03-17. End: 2009-04-21.

What was the specific scope of work for the FY08 Regional Hopper Contract awarded to Great Lakes Dredge & Dock Co, LLC?

The provided data identifies the contract as 'FY08 REGIONAL HOPPER CONTRACT' and categorizes it under 'Other Heavy and Civil Engineering Construction.' While the specific scope of work is not detailed, the term 'hopper contract' typically refers to agreements involving the use of hopper dredges or vessels for the transport and disposal of dredged material, or for other heavy civil engineering tasks. This could include maintenance dredging of navigation channels, construction of marine infrastructure, or land reclamation projects. The duration of 400 days suggests a substantial operational period for the equipment and personnel involved.

How does the award value of $23.6 million compare to similar heavy civil engineering contracts from FY08?

Comparing the $23.6 million award value for this FY08 contract requires access to a broader dataset of similar heavy civil engineering projects from that fiscal year. Without such comparative data, it's difficult to definitively state whether this represents a high, low, or average value. However, for a 400-day operational contract involving specialized equipment like hopper dredges, $23.6 million suggests a significant undertaking. Factors influencing value include the specific type of dredging (maintenance vs. capital), the volume of material moved, the complexity of the work environment (e.g., open ocean vs. confined harbor), and the prevailing market rates for equipment and labor at that time.

What are the potential risks associated with a Firm Fixed Price contract for heavy civil engineering services?

While Firm Fixed Price (FFP) contracts are generally favored for shifting cost risk to the contractor, they can present specific risks in heavy civil engineering. If the scope of work is not precisely defined or if unforeseen site conditions arise (e.g., encountering unexpected rock formations during dredging), the contractor may incur significant cost overruns. In such scenarios, the contractor might seek change orders, potentially negating the FFP benefit, or face financial distress if they absorb the unexpected costs. Thorough pre-award site investigations and clearly defined contract terms are crucial to mitigate these risks.

What is the track record of Great Lakes Dredge & Dock Co, LLC in performing government contracts, particularly in dredging and civil engineering?

Great Lakes Dredge & Dock Co, LLC is a well-established company with a long history in the dredging and marine construction industry. They have a significant track record of performing contracts for various government agencies, including the U.S. Army Corps of Engineers, which is a primary client for dredging services. Their experience typically spans a wide range of projects, from maintenance and capital dredging of navigation channels to beach nourishment and port development. While this specific contract was awarded in FY08, the company's continued operations and market presence suggest a generally reliable performance history in executing complex civil engineering and dredging projects.

How has federal spending in 'Other Heavy and Civil Engineering Construction' evolved since FY08?

Federal spending in 'Other Heavy and Civil Engineering Construction' has likely seen fluctuations since FY08, influenced by economic conditions, infrastructure priorities, and federal budget cycles. Following the 2008 financial crisis, stimulus packages may have temporarily boosted spending. More recently, infrastructure legislation, such as the Bipartisan Infrastructure Law, aims to significantly increase investments in transportation, water infrastructure, and energy projects, which fall under this broad category. Therefore, while FY08 spending provides a historical baseline, current and future spending levels are likely to be higher, driven by renewed national focus on infrastructure modernization.

What does the 'Other Heavy and Civil Engineering Construction' category typically encompass in federal procurement?

The 'Other Heavy and Civil Engineering Construction' category is a broad classification used in federal procurement to cover a diverse range of construction activities not easily categorized elsewhere. It typically includes projects related to infrastructure development and maintenance, such as dredging, marine construction (piers, seawalls), land reclamation, site preparation, utility infrastructure installation (water, sewer, gas lines), and other large-scale civil works. This category often involves significant earthmoving, material handling, and specialized heavy equipment operations, frequently undertaken by agencies like the Army Corps of Engineers, Department of Transportation, and port authorities.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W9127N08B0002

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,557,472

Exercised Options: $23,557,472

Current Obligation: $23,557,472

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline