Army awards $18.2M for Dredging, highlighting fixed-price contract with full competition

Contract Overview

Contract Amount: $18,210,435 ($18.2M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2007-12-06

End Date: 2008-09-30

Contract Duration: 299 days

Daily Burn Rate: $60.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: MAINTENANCE DREDGING

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: MAINTENANCE DREDGING Key points: 1. Contract value of $18.2M for maintenance dredging. 2. Competition was full and open, indicating market availability. 3. Risk appears moderate given fixed-price structure and established contractor. 4. Construction sector spending benchmark for similar projects is relevant.

Value Assessment

Rating: good

The fixed-price contract suggests a clear scope and budget. Benchmarking against similar dredging contracts would confirm if $18.2M is competitive for the specified work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing multiple bidders to propose. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of full and open competition is taxpayer-beneficial as it encourages competitive pricing and ensures the government receives value for its investment.

Public Impact

Ensures navigation channels remain clear for military and commercial use. Supports economic activity by maintaining vital waterways. Potential environmental impact from dredging activities requires monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Contract duration (299 days) is relatively short, but scope creep could increase costs.
Fixed-price contracts can shift risk to the contractor, but require precise scope definition.

Positive Signals

Full and open competition suggests a healthy market.
Fixed-price contract provides cost certainty.
Contract awarded to a known entity (GREAT LAKES DREDGE & DOCK CO, LLC).

Sector Analysis

This contract falls under heavy and civil engineering construction, specifically maintenance dredging. Benchmarks for similar dredging projects would provide context for the $18.2M award.

Small Business Impact

The data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Standard contract oversight by the Department of the Army applies. Monitoring performance and adherence to contract terms is crucial for successful project completion.

Related Government Programs

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

Risk Flags

Potential for unforeseen subsurface conditions impacting cost.
Environmental compliance and disposal challenges.
Contractor performance history review needed.
Scope definition clarity for fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to GREAT LAKES DREDGE & DOCK CO, LLC. MAINTENANCE 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 $18.2 million.

What is the period of performance?

Start: 2007-12-06. End: 2008-09-30.

What is the typical cost range for maintenance dredging of this scope and location?

Determining the typical cost range requires detailed analysis of project specifics like volume of material, disposal methods, and environmental regulations. Benchmarking against historical data for similar Army Corps of Engineers dredging projects in the region would provide a more accurate comparison point for the $18.2M award.

What are the potential risks associated with fixed-price dredging contracts?

Fixed-price contracts carry risks of scope creep if not clearly defined, potentially leading to change orders and cost overruns. Unforeseen subsurface conditions or environmental issues can also strain the fixed price, shifting risk to the contractor unless contingencies are well-managed.

How effective is full and open competition in ensuring value for dredging services?

Full and open competition is generally effective in ensuring value by fostering a competitive environment that drives down prices and encourages innovation. For dredging, it allows multiple specialized firms to bid, increasing the likelihood of selecting a contractor offering the best combination of price, technical capability, and schedule.

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: W912DR07B0017

Offers Received: 2

Pricing Type: 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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,564,935

Exercised Options: $18,210,435

Current Obligation: $18,210,435

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline