DoD awards $13.4M dredging contract to Great Lakes Dredge & Dock Co. for unspecified project

Contract Overview

Contract Amount: $13,370,985 ($13.4M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2009-01-15

End Date: 2009-04-30

Contract Duration: 105 days

Daily Burn Rate: $127.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: DREDGING

Place of Performance

Location: OAK ISLAND, BRUNSWICK County, NORTH CAROLINA, 28465

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: DREDGING Key points: 1. Contract value appears reasonable for large-scale dredging operations, though specific scope is unknown. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 105 days is relatively short for major dredging, implying a focused task. 4. Fixed-price contract type shifts risk to the contractor, potentially impacting final cost if unforeseen issues arise. 5. The North Carolina location points to potential coastal or waterway maintenance needs. 6. Lack of specific project details hinders a deeper value-for-money assessment.

Value Assessment

Rating: fair

The contract value of $13.4 million for dredging services is substantial. Without knowing the specific scope of work, such as the volume of material to be moved, the area to be dredged, or the complexity of the environment, it is difficult to benchmark this against similar contracts. However, large-scale civil engineering projects often involve significant costs. The fixed-price nature suggests an attempt to control costs, but the absence of detailed performance metrics or comparison data makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable contractors were likely solicited. This suggests a competitive environment for dredging services. The presence of a single awardee, Great Lakes Dredge & Dock Co., LLC, is typical for a definitive contract of this nature, but the initial competition phase likely involved several bids. The open competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple companies to bid, driving down costs through market forces.

Public Impact

The primary beneficiary is likely the U.S. Army Corps of Engineers or other Department of Defense entities requiring waterway maintenance or infrastructure development. Services delivered include dredging, which is crucial for maintaining navigable waterways for military and commercial transport. The geographic impact is specified as North Carolina, suggesting projects related to ports, rivers, or coastal areas within the state. Workforce implications would involve skilled labor in dredging operations, marine engineering, and related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific project details makes it difficult to assess the true scope and potential for cost overruns.
The fixed-price contract type could lead to contractor claims if unforeseen conditions significantly impact work.
Limited information on performance metrics hinders evaluation of contractor efficiency and effectiveness.
The contract's age (awarded in 2009) means current market rates and best practices may differ significantly.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Great Lakes Dredge & Dock Co., LLC is a known entity in the dredging industry, implying experience.
Fixed-price contract structure aims to provide cost certainty to the government.
The contract specifies a definitive contract type, often used for well-defined requirements.

Sector Analysis

Dredging falls under the broader Heavy and Civil Engineering Construction sector (NAICS 237990). This sector involves the construction of infrastructure projects such as waterways, dams, bridges, and tunnels. The market for dredging services is driven by the need for maintaining and improving navigation channels, port facilities, and coastal defenses. Spending in this sector can fluctuate based on infrastructure investment cycles, environmental regulations, and national security priorities. Comparable spending benchmarks would typically be found within Army Corps of Engineers civil works budgets or other maritime infrastructure programs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false) and the contractor is not a small business (sb: false). There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract award appears minimal, unless the prime contractor voluntarily engages small businesses for specialized support services not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, likely managed by the U.S. Army Corps of Engineers. Accountability measures would be tied to the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Waterway Infrastructure Projects
Coastal Navigation Channel Maintenance
Marine Construction Contracts

Risk Flags

Lack of specific scope details
Potential for unforeseen conditions in fixed-price contract
Contract awarded in 2009, may not reflect current market conditions or technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to GREAT LAKES DREDGE & DOCK CO, LLC. 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 $13.4 million.

What is the period of performance?

Start: 2009-01-15. End: 2009-04-30.

What specific dredging services were performed under this contract, and what was the total volume of material removed?

The provided data does not specify the exact dredging services performed or the volume of material removed. The contract is classified under NAICS code 237990 (Other Heavy and Civil Engineering Construction) and awarded to Great Lakes Dredge & Dock Co., LLC. Dredging typically involves removing sediment, debris, or other materials from waterways to improve depth and navigability. Without access to the contract's statement of work or performance reports, the precise scope and output remain unknown. This lack of detail limits the ability to assess the efficiency and effectiveness of the contractor's performance relative to the $13.4 million award value.

How does the $13.4 million contract value compare to typical dredging projects of similar scope and duration?

Benchmarking the $13.4 million contract value is challenging without specific details on the project's scope, such as the cubic yards of material dredged, the type of material (e.g., sand, silt, rock), the distance of material placement, and the complexity of the work environment (e.g., open water, confined channel, environmental restrictions). Dredging costs can vary significantly based on these factors. A 105-day duration suggests a relatively focused task. However, large-scale maintenance or capital dredging projects can easily run into tens or hundreds of millions of dollars. The fixed-price nature implies an attempt to cap costs, but the value proposition hinges entirely on the unstated scope of work.

What are the potential risks associated with a fixed-price definitive contract for dredging services?

Fixed-price contracts, while offering cost certainty to the government, can introduce risks for both parties in complex projects like dredging. For the government, the primary risk is that the contractor may cut corners on quality or scope to maximize profit if the initial price was underestimated. Conversely, the contractor bears the risk of cost overruns due to unforeseen subsurface conditions (e.g., encountering unexpected rock formations), adverse weather, equipment failures, or changes in environmental regulations. If these risks materialize significantly, the contractor might seek change orders, potentially negating the cost certainty benefit, or face financial strain. Effective risk management relies on a well-defined scope and robust contract administration.

What is the track record of Great Lakes Dredge & Dock Co., LLC in performing federal dredging contracts?

Great Lakes Dredge & Dock Co., LLC is a major player in the U.S. dredging industry with a long history of performing contracts for various federal agencies, including the U.S. Army Corps of Engineers. They have experience in a wide range of projects, from maintenance dredging of navigation channels to capital dredging for port expansions and coastal restoration efforts. While this specific $13.4 million contract awarded in 2009 lacks detail, the company's established presence suggests a significant track record. A deeper analysis would involve reviewing their past performance ratings on similar federal contracts, any history of disputes or claims, and their capacity to handle large-scale, complex projects.

How has federal spending on dredging and related heavy civil engineering construction evolved since this contract was awarded in 2009?

Federal spending on dredging and heavy civil engineering construction has generally seen fluctuations influenced by infrastructure priorities, economic conditions, and budget allocations. Since 2009, there have been periods of increased focus on infrastructure investment, particularly following major economic stimulus packages and subsequent infrastructure bills. The Army Corps of Engineers' Civil Works program, a primary source of dredging contracts, often faces competing demands for funding. While specific year-over-year spending data would require detailed analysis of budget appropriations and contract awards, overall trends indicate continued investment in maintaining and improving U.S. waterways and ports, driven by economic and national security needs.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HN09R0021

Offers Received: 1

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, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,370,985

Exercised Options: $13,370,985

Current Obligation: $13,370,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline