Over $14.4 million awarded for dredging and construction near Oregon Inlet Bridge, with 3 bidders

Contract Overview

Contract Amount: $14,422,163 ($14.4M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2009-06-30

End Date: 2009-11-30

Contract Duration: 153 days

Daily Burn Rate: $94.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3135::TAS ENTITLED MAINTENANCE DREDGING, MANTEO (SHALLOWBAG) BAY (OREGON INLET) BRIDGE VICINITY (SPIT) AND OCEAN BAR ARRA::YES::ARRA

Place of Performance

Location: AVON, DARE County, NORTH CAROLINA, 27915

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: TAS::96 3135::TAS ENTITLED MAINTENANCE DREDGING, MANTEO (SHALLOWBAG) BAY (OREGON INLET) BRIDGE VICINITY (SPIT) AND OCEAN BAR ARRA::YES::ARRA Key points: 1. Contract awarded to Great Lakes Dredge & Dock Co, LLC for essential infrastructure maintenance. 2. The project involved significant civil engineering work, indicating a need for specialized construction services. 3. A firm-fixed-price contract suggests clear cost expectations and risk allocation. 4. The duration of 153 days points to a focused, short-term project execution. 5. Awarded under full and open competition, implying a robust bidding process. 6. The contract was part of ARRA funding, highlighting its role in economic stimulus.

Value Assessment

Rating: good

The contract value of $14.4 million for a 153-day dredging and construction project appears reasonable given the scope of work. While specific benchmarks for this exact type of coastal infrastructure maintenance are difficult to ascertain without more granular data, the presence of multiple bidders suggests a competitive environment that likely drove a fair price. The firm-fixed-price structure further supports the expectation of cost control.

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. With three bidders participating, the competition level was moderate. This suggests that while there was some choice, the market for such specialized heavy civil engineering services might be concentrated among a few key players.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The presence of three bidders indicates that taxpayer funds were likely used efficiently, as the government had options to select the most advantageous offer.

Public Impact

Benefits residents and businesses in North Carolina by ensuring the navigability and structural integrity of the Oregon Inlet. Delivered critical dredging and construction services to maintain vital transportation infrastructure. Geographic impact is concentrated around the Manteo (Shallowbag) Bay and Oregon Inlet area in North Carolina. The project likely supported a specialized workforce in the heavy civil engineering and dredging sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental conditions arise during dredging.
Dependence on a single contractor for a critical infrastructure project could pose risks if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive process to secure the best value.
Project is part of ARRA funding, indicating a focus on economic stimulus and job creation.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to maritime infrastructure. The dredging and construction services are crucial for maintaining navigable waterways and coastal defenses. The market for such specialized services is often characterized by a limited number of large, experienced firms capable of undertaking complex projects of this scale.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Great Lakes Dredge & Dock Co, LLC, likely possesses the specialized equipment and expertise required for this project, and the scope may not have been easily divisible for smaller entities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm-fixed-price nature of the award provides a degree of accountability by fixing the cost. Transparency is facilitated by the public availability of contract award data, though detailed project-specific oversight reports are not provided here.

Related Government Programs

Army Corps of Engineers Civil Works Projects
ARRA Infrastructure Spending
Coastal Navigation and Dredging Contracts
Oregon Inlet Bridge Maintenance

Risk Flags

Environmental impact of dredged material disposal
Potential for unforeseen subsurface conditions
Weather-related project delays
Contractor performance and adherence to schedule

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to GREAT LAKES DREDGE & DOCK CO, LLC. TAS::96 3135::TAS ENTITLED MAINTENANCE DREDGING, MANTEO (SHALLOWBAG) BAY (OREGON INLET) BRIDGE VICINITY (SPIT) AND OCEAN BAR ARRA::YES::ARRA

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 $14.4 million.

What is the period of performance?

Start: 2009-06-30. End: 2009-11-30.

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

Great Lakes Dredge & Dock Co, LLC has a significant history of performing large-scale dredging and marine construction projects for various federal agencies, including the Army Corps of Engineers. Their portfolio often includes maintenance dredging, beach nourishment, and construction of navigation channels and harbors. While this specific contract was for $14.4 million, the company has undertaken projects valued in the tens and hundreds of millions of dollars. Their experience suggests a strong capability to execute complex maritime engineering tasks, which is crucial for projects like the Manteo (Shallowbag) Bay dredging. Federal procurement data typically shows a pattern of successful contract performance for companies with their level of specialization and longevity in the industry.

How does the awarded amount compare to similar dredging projects in North Carolina?

Comparing the $14.4 million award for the Manteo (Shallowbag) Bay dredging to similar projects in North Carolina requires access to a comprehensive database of historical contracts and their specific scopes. However, given the critical nature of the Oregon Inlet and its role in regional access and commerce, projects of this magnitude are not uncommon for maintaining navigability. Factors influencing cost include the volume of material to be dredged, the distance of material placement, the type of dredging equipment used, and the specific environmental mitigation measures required. The fact that this was a firm-fixed-price contract awarded under full and open competition with three bidders suggests that the price was deemed competitive within the market for such specialized coastal engineering work in the region.

What are the primary risks associated with this type of coastal dredging contract?

Coastal dredging contracts, like the one awarded for Manteo (Shallowbag) Bay, carry several inherent risks. Environmental risks are significant, including the potential disturbance of sensitive marine habitats, the management of dredged material disposal to prevent pollution, and compliance with environmental regulations. Geological risks include encountering unexpected subsurface conditions such as hard rock, debris, or unstable sediments, which can increase costs and extend timelines. Operational risks involve the performance of specialized dredging equipment, weather disruptions (especially in coastal areas prone to storms), and logistical challenges in transporting materials. Furthermore, there's a risk of contractor underperformance or financial instability, although the firm-fixed-price contract and competitive bidding process aim to mitigate these.

How effective was the ARRA funding in stimulating economic activity through this contract?

The American Recovery and Reinvestment Act (ARRA) of 2009 aimed to stimulate economic activity, preserve and create jobs, and promote long-term economic growth. Contracts awarded under ARRA, such as this $14.4 million dredging project, directly contributed to these goals by injecting funds into the construction sector. The project likely supported jobs for skilled laborers, equipment operators, engineers, and project managers. Furthermore, it addressed critical infrastructure needs, enhancing the long-term economic viability of the region by ensuring continued access and maritime operations. While the direct economic impact is hard to quantify precisely without further analysis, such infrastructure investments are generally considered effective in generating immediate employment and providing lasting public benefits.

What is the historical spending trend for dredging and civil engineering in the Oregon Inlet area?

Historical spending on dredging and civil engineering in the Oregon Inlet area, managed primarily by the U.S. Army Corps of Engineers, has been consistent due to the dynamic nature of coastal environments and the importance of maintaining navigation channels. The Oregon Inlet is known for its challenging shoaling patterns, necessitating regular maintenance dredging. While specific historical dollar amounts for this precise location fluctuate based on project scope, urgency, and available funding (including stimulus packages like ARRA), the need for ongoing investment in dredging and related infrastructure maintenance is a recurring theme. This $14.4 million contract represents a significant, but not unprecedented, investment in addressing these persistent navigational challenges.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Great Lakes Dredge & Dock Corporation

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: $14,422,163

Exercised Options: $14,422,163

Current Obligation: $14,422,163

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline