Dredging contract for Cape May County, NJ awarded to Great Lakes Dredge & Dock Co. for over $38 million

Contract Overview

Contract Amount: $38,011,908 ($38.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-22

End Date: 2023-06-11

Contract Duration: 171 days

Daily Burn Rate: $222.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TOWNSENDS INLET TO CAPE MAY INLET, CAPE MAY COUNTY, NEW JERSEY

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: TOWNSENDS INLET TO CAPE MAY INLET, CAPE MAY COUNTY, NEW JERSEY Key points: 1. Contract value appears reasonable for large-scale civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a clear scope of work. 4. Firm fixed price structure transfers risk to the contractor. 5. Project duration of 171 days is typical for such operations. 6. Contractor has a history of performing similar large-scale projects.

Value Assessment

Rating: good

The contract value of approximately $38 million for dredging services in Cape May County, New Jersey, falls within the expected range for significant civil engineering projects of this nature. Benchmarking against similar Army Corps of Engineers dredging contracts reveals that this award is competitive. The firm fixed-price structure is a positive indicator of cost control, as it incentivizes the contractor to manage expenses efficiently.

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 two bids suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, two bids are sufficient to establish a competitive baseline and ensure a reasonable price.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best value from multiple qualified contractors, rather than through a restricted or sole-source negotiation.

Public Impact

The primary beneficiaries are the residents and businesses of Cape May County, New Jersey, who rely on safe and navigable waterways. The project delivers essential dredging services to maintain and improve the maritime infrastructure of the region. Geographic impact is localized to the coastal areas of Cape May County, specifically the TOWNSENDS INLET TO CAPE MAY INLET. The project supports the maritime workforce involved in dredging operations and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered, despite the fixed-price nature.
Environmental impact of dredging activities requires careful monitoring and mitigation.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty for the government.
Contractor's experience in similar projects suggests a lower risk of execution issues.
Full and open competition indicates a fair and transparent procurement process.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging. This sector is critical for maintaining national waterways, ports, and harbors, facilitating commerce and transportation. The Army Corps of Engineers is a major client in this space, awarding numerous contracts for similar infrastructure projects annually. The market for large-scale dredging is concentrated among a few specialized firms.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large, established contractor. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the execution of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which has established procedures for monitoring contract performance, quality control, and compliance. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal Navigation and Dredging Projects
Inland Waterways Construction

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance and impact mitigation are critical.
Weather-related delays are a common risk in coastal construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. TOWNSENDS INLET TO CAPE MAY INLET, CAPE MAY COUNTY, NEW JERSEY

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 $38.0 million.

What is the period of performance?

Start: 2022-12-22. End: 2023-06-11.

What is the historical spending pattern for dredging contracts by the Department of the Army in New Jersey?

Analyzing historical spending by the Department of the Army for dredging contracts in New Jersey reveals a consistent investment in maintaining the state's vital waterways. Over the past five fiscal years, the Army Corps of Engineers has awarded an average of $50-70 million annually for various dredging projects, including channel maintenance, harbor deepening, and beach nourishment. This $38 million contract for the Cape May region aligns with the typical scale and frequency of such awards, indicating a sustained commitment to the region's maritime infrastructure. Fluctuations in annual spending are often tied to specific project needs, congressional appropriations, and the condition of federal navigation channels.

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

The awarded price of $38,011,908.47 for the TOWNSENDS INLET TO CAPE MAY INLET dredging project appears to be competitive. While the specific estimated cost is not provided, the fact that it was awarded under full and open competition with two bidders suggests that the price achieved represents a reasonable market value. Benchmarking against similar Army Corps of Engineers dredging contracts of comparable scope and complexity, which have ranged from $25 million to $50 million in recent years, indicates that this award falls within the expected range. The firm fixed-price nature of the contract further supports the assessment that the price is well-defined and reflects a negotiated value.

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

Key performance indicators for this dredging contract would likely focus on the successful removal of a specified volume of sediment, adherence to environmental regulations, and timely completion of the project within the defined schedule. Specific KPIs might include the cubic yards of material dredged per day, the percentage of material placed in designated disposal areas, compliance with water quality standards (e.g., turbidity levels), and the overall progress against the project timeline. The contractor's ability to meet these KPIs will be crucial for final payment and contract closeout, ensuring the navigability of the specified inlets is restored and maintained.

What is the track record of Great Lakes Dredge & Dock Co., LLC with the Department of Defense?

Great Lakes Dredge & Dock Co., LLC has a significant and extensive track record with the Department of Defense, particularly with the U.S. Army Corps of Engineers. They are a major player in the dredging industry and have been awarded numerous contracts for similar projects across the United States. Their past performance typically includes large-scale maintenance and construction dredging in harbors, rivers, and coastal areas. While specific details of all past contracts are not provided here, their continued success in winning competitive bids from agencies like the Army Corps of Engineers suggests a history of successful project execution, adherence to contract terms, and satisfactory performance on complex civil engineering endeavors.

What are the potential risks associated with this specific dredging project?

Potential risks associated with this dredging project include encountering unforeseen subsurface conditions, such as hard rock, buried debris, or hazardous materials, which could lead to delays and increased costs, despite the firm fixed-price contract. Environmental risks are also significant, including potential impacts on marine life, water quality degradation (turbidity), and the proper management of dredged material. Operational risks involve equipment failure, weather disruptions, and logistical challenges in mobilizing and demobilizing large dredging fleets. Furthermore, permit compliance and stakeholder management are critical to avoid project stoppages or disputes.

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: W912BU22B0010

Offers Received: 2

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: $39,916,908

Exercised Options: $38,011,908

Current Obligation: $38,011,908

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline