Army awards $17M dredging contract to Great Lakes Dredge & Dock Co. for Texas channel maintenance

Contract Overview

Contract Amount: $16,967,069 ($17.0M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-18

End Date: 2024-09-13

Contract Duration: 239 days

Daily Burn Rate: $71.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TEXAS ENTRANCE AND JETTY CHANNEL HOPPER DREDGING, BRAZORIA COUNTY, TX.

Place of Performance

Location: FREEPORT, BRAZORIA County, TEXAS, 77541

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: TEXAS ENTRANCE AND JETTY CHANNEL HOPPER DREDGING, BRAZORIA COUNTY, TX. Key points: 1. Contract focuses on essential infrastructure maintenance for navigation in Brazoria County, Texas. 2. The award represents a significant investment in maintaining critical waterways for commerce and defense. 3. Competition dynamics suggest a potentially competitive bidding environment for specialized dredging services. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. Performance period spans approximately 8 months, indicating a focused scope of work. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a previously established contract.

Value Assessment

Rating: good

The contract value of approximately $17 million for dredging services appears reasonable given the scope of maintaining a significant channel. Benchmarking against similar large-scale civil engineering projects, particularly those involving waterway maintenance and dredging, suggests this price falls within expected ranges. The firm-fixed-price structure provides a degree of cost control, though the specific value-for-money assessment would benefit from a detailed cost breakdown and comparison to historical dredging costs for this specific channel or similar ones in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought, which is positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation among contractors vying for the work.

Public Impact

Benefits commercial shipping and maritime industries by ensuring navigable waterways. Supports economic activity in Brazoria County and the wider Texas Gulf Coast region. Enhances the operational readiness of military assets that rely on port access. Contributes to the maintenance of critical national infrastructure. Potentially supports local employment in skilled labor for dredging operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered during dredging.
Dependence on a single contractor for a critical infrastructure maintenance task.
Environmental impact concerns related to dredging operations and spoil disposal.

Positive Signals

Award to an established contractor with a track record in large-scale dredging projects.
Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging and waterway maintenance. This is a critical sub-sector supporting national infrastructure, trade, and defense. The market for large-scale dredging is specialized, often dominated by a few key players due to the significant capital investment required for specialized equipment. Comparable spending benchmarks would involve looking at other Army Corps of Engineers or port authority dredging contracts along the Gulf Coast and other major waterways.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is Great Lakes Dredge & Dock Co., LLC, a large entity, there is no explicit information provided regarding subcontracting opportunities for small businesses within this specific award. Further analysis would be needed to determine if subcontracting plans were a requirement or if small businesses are likely to be involved in supporting roles.

Oversight & Accountability

The contract is managed by the Department of the Army, likely through the Army Corps of Engineers, which has established oversight mechanisms for infrastructure projects. The firm-fixed-price contract type provides a degree of accountability by setting a defined cost. Transparency would be enhanced by public availability of performance reports and any post-award modifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Coastal Navigation Projects

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance and spoil disposal management.
Weather-related delays impacting project timeline.
Dependence on specialized equipment and skilled labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to GREAT LAKES DREDGE & DOCK CO, LLC. TEXAS ENTRANCE AND JETTY CHANNEL HOPPER DREDGING, BRAZORIA COUNTY, TX.

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 $17.0 million.

What is the period of performance?

Start: 2024-01-18. End: 2024-09-13.

What is the historical spending pattern for dredging services in the Texas region by the Department of Defense?

Analyzing historical spending by the Department of Defense (DoD) for dredging services in Texas reveals a consistent need for waterway maintenance, driven by the strategic importance of the state's ports and coastal infrastructure. The Army Corps of Engineers, a primary entity within DoD responsible for waterways, regularly awards contracts for channel deepening, maintenance dredging, and jetty construction. Spending fluctuates based on project cycles, congressional appropriations, and the specific maintenance requirements of channels like the Houston Ship Channel, Corpus Christi Ship Channel, and others along the Texas coast. While specific aggregate figures for Texas dredging contracts by DoD are not readily available in this dataset, the recurring nature of these awards, often in the multi-million dollar range, underscores the ongoing investment required to maintain navigability for commercial and military purposes. This particular $17 million award for Brazoria County fits within this pattern of significant, periodic investments in critical Texas waterways.

How does the awarded price compare to similar dredging contracts awarded by the Army Corps of Engineers?

Comparing the awarded price of approximately $17 million for the Texas Entrance and Jetty Channel Hopper Dredging to similar contracts requires access to a broader database of Army Corps of Engineers (USACE) dredging awards. However, based on general knowledge of the sector, large-scale hopper dredging projects for major channels can range from several million to tens of millions of dollars, depending on the volume of material to be moved, the complexity of the site, and the duration of the contract. Contracts for maintaining significant federal channels, especially those supporting major ports, often involve substantial investment. Without specific comparable contract data (e.g., cubic yards dredged per dollar, contract duration, specific channel characteristics), a precise benchmark is difficult. However, the $17 million figure for a project described as 'Entrance and Jetty Channel Hopper Dredging' in a significant coastal county suggests a project of considerable scale, likely falling within the expected range for such critical infrastructure maintenance.

What are the key performance indicators (KPIs) for this dredging contract, and how will success be measured?

Key performance indicators (KPIs) for a dredging contract like this typically revolve around the successful removal of a specified volume of material to achieve and maintain required channel depths and widths, adherence to environmental regulations, and timely completion of the work within the contract period. Success is measured by the contractor's ability to meet the technical specifications outlined in the contract, such as the volume of sediment dredged, the accuracy of placement of dredged material (if applicable), and the final achieved channel dimensions. The government, likely represented by the US Army Corps of Engineers, will monitor progress through site inspections, survey data confirming channel depths, and reports from the contracting officer's representative (COR). Timeliness, safety performance, and compliance with environmental permits are also critical metrics. Failure to meet these KPIs could result in contract penalties or deductions.

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

Great Lakes Dredge & Dock Co., LLC (GLDD) is a major player in the U.S. dredging industry with a long history of performing large-scale federal contracts, particularly for the U.S. Army Corps of Engineers. Their track record typically includes extensive experience in hopper dredging, maintenance dredging, beach nourishment, and capital construction projects. GLDD has been awarded numerous contracts for maintaining and deepening major navigation channels across the country, including significant projects along the Gulf Coast. Their performance on these contracts generally indicates a capacity to handle complex projects, manage large fleets of vessels, and comply with stringent environmental and safety regulations. While specific performance metrics for every past contract are not detailed here, their continued success in winning competitive bids for substantial federal projects suggests a generally positive performance history and established expertise in the field.

Are there any significant risks associated with this specific dredging project, and how are they being mitigated?

Significant risks associated with dredging projects often include encountering unforeseen subsurface conditions (e.g., hard rock, debris, hazardous materials), environmental compliance issues (e.g., impact on marine life, water quality, spoil disposal challenges), weather disruptions, and potential equipment failures. For this contract, the specific location in Brazoria County, Texas, may present unique geological challenges or environmental sensitivities. Mitigation strategies typically involve thorough pre-contract site investigations, robust environmental monitoring plans, contingency planning for weather delays, and ensuring the contractor has adequate resources and backup equipment. The firm-fixed-price contract structure also incentivizes the contractor to manage risks effectively to avoid cost overruns. The government's oversight role, including regular inspections and adherence to permit conditions, further helps mitigate risks.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HY23R0008

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: $41,059,919

Exercised Options: $16,967,069

Current Obligation: $16,967,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HY24D0003

IDV Type: IDC

Timeline