DoD awards $9.1M for armor stone, with 2 bids received and a 776-day performance period

Contract Overview

Contract Amount: $9,085,877 ($9.1M)

Contractor: Great Lakes Dock and Materials, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2023-08-29

End Date: 2025-10-13

Contract Duration: 776 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARMOR STONE

Place of Performance

Location: OSWEGO, OSWEGO County, NEW YORK, 13126

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $9.1 million to GREAT LAKES DOCK AND MATERIALS, L.L.C. for work described as: ARMOR STONE Key points: 1. The contract value appears reasonable given the scope of heavy civil engineering construction. 2. Limited competition with two bidders suggests potential for price negotiation advantages. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of over two years indicates a substantial, long-term project requirement. 5. The project's focus on essential infrastructure materials positions it as a critical defense support activity.

Value Assessment

Rating: good

The contract value of $9.1 million for armor stone is within a typical range for large-scale civil engineering projects. Benchmarking against similar contracts for bulk construction materials is challenging without more specific project details, but the price appears competitive given the quantity and delivery requirements. The firm-fixed-price structure provides cost certainty, which is a positive indicator of value.

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 bids. With two bids received, the competition level is moderate. While more bidders could potentially drive prices lower, two bids suggest that the market has at least some interest and capability for this type of specialized construction material.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, though further competition could have potentially yielded greater savings.

Public Impact

The U.S. Army benefits from the acquisition of essential armor stone for infrastructure protection and construction. This contract supports the delivery of critical construction materials for defense-related projects. The geographic impact is centered in New York, where the materials will likely be utilized or staged. The contract supports the construction and materials supply sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if market conditions for raw materials fluctuate significantly during the contract period.
Ensuring timely delivery and quality control of a large volume of armor stone over an extended period.
Dependence on a limited number of bidders could pose future supply chain risks if demand increases.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost overruns.
Awarded under full and open competition, ensuring a broad initial market solicitation.
Long performance period allows for planned integration into larger construction schedules.

Sector Analysis

The construction materials sector, particularly for heavy civil engineering, involves the procurement of bulk materials like armor stone for various infrastructure projects. This contract fits within the broader category of defense construction and logistics support. Comparable spending benchmarks are difficult to establish without specific project scope, but large quantities of specialized stone for coastal defense or infrastructure projects can run into millions of dollars.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of bulk material supply for heavy civil engineering, it is possible that larger, specialized suppliers dominate this market segment. Subcontracting opportunities for small businesses might exist in logistics, transportation, or related support services, but are not explicitly detailed in the award information.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price contract, oversight will focus on adherence to delivery schedules, quality specifications, and contract terms. The Department of the Army's contracting office is responsible for administration and oversight. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Bulk Material Procurement
Civil Engineering and Infrastructure Projects

Risk Flags

Limited Competition
Long Performance Period
Potential for Material Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.1 million to GREAT LAKES DOCK AND MATERIALS, L.L.C.. ARMOR STONE

Who is the contractor on this award?

The obligated recipient is GREAT LAKES DOCK AND MATERIALS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $9.1 million.

What is the period of performance?

Start: 2023-08-29. End: 2025-10-13.

What is the typical unit cost for armor stone in large federal contracts?

Determining a precise 'typical' unit cost for armor stone is complex due to significant variations in stone type, size, quality specifications, transportation distances, and project-specific requirements. However, for large federal contracts involving bulk delivery, costs can range broadly. Factors like quarry source, processing (e.g., specific shapes, weights), and delivery logistics heavily influence the price per ton or cubic yard. Without specific details on the type and dimensions of armor stone required for this $9.1 million contract, and its delivery location, providing a direct benchmark is challenging. Generally, larger, heavier, and more specialized armor stone pieces, especially when delivered to remote or difficult-to-access locations, will command higher unit prices. The firm-fixed-price nature of this contract suggests the contractor has factored these variables into their bid.

How does the number of bidders (2) impact the final price compared to contracts with more competition?

A contract with only two bidders, as seen here, generally suggests a less competitive market for that specific good or service. In theory, a higher number of bidders typically leads to more aggressive pricing as companies vie for the contract. With only two bidders, there's a higher likelihood that the winning bid may not represent the absolute lowest possible price achievable in a more robustly competitive environment. However, the impact is nuanced. If the two bidders are highly capable and understand the market dynamics, they might still offer competitive pricing. Conversely, if the market is inherently limited due to specialized requirements or geographic constraints, two bidders might represent the full extent of viable competition. The firm-fixed-price structure also means the government locked in a price, but the initial bid could have been influenced by the limited competition.

What are the primary risks associated with a long-duration contract (776 days) for construction materials?

Long-duration contracts for construction materials like armor stone present several key risks. Firstly, market price volatility for raw materials and transportation is a significant concern; the fixed price might become unfavorable if input costs rise substantially over the 776-day period. Secondly, logistical challenges can escalate over time, including potential disruptions in supply chains, transportation availability, or port congestion. Thirdly, quality control becomes more critical; ensuring consistent quality of materials delivered over an extended period requires robust monitoring. Lastly, contractor performance risk increases with duration; the longer the contract, the higher the chance of unforeseen issues impacting the contractor's ability to deliver, such as financial instability or operational problems. The government's risk is mitigated somewhat by the firm-fixed-price structure, but delays or quality failures can still impact project timelines.

What does the 'Other Heavy and Civil Engineering Construction' NAICS code imply about this contract's scope?

The North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' indicates that this contract falls outside the more specific categories within heavy and civil engineering, such as highway construction, bridge construction, or water/sewer system construction. This broader classification suggests the project likely involves foundational or structural elements for large-scale infrastructure that don't fit neatly into other defined areas. Examples could include site preparation for major facilities, construction of retaining walls, bulkheads, breakwaters, or other specialized non-building structures. The use of 'armor stone' further supports this, implying a need for protective or structural elements, possibly for coastal defenses, erosion control, or foundational support in challenging environments. This implies a significant civil works component.

How does the 'Delivery Order' (aw) type differ from other contract award types in terms of flexibility and risk?

A 'Delivery Order' (aw) is typically issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a basic ordering agreement. This means the contract establishes terms, conditions, and potentially pricing for a range of items or services, but specific quantities and delivery dates are determined through individual orders. For the government, this offers flexibility to order what is needed, when it is needed, up to a certain ceiling. For the contractor, it provides a potential stream of work but less certainty on volume compared to a firm-fixed-price contract for a specific quantity. In this case, the $9.1 million appears to be the total value or ceiling for this specific delivery order, awarded under a broader contract vehicle. The risk profile depends on the underlying contract type; if this delivery order is firm-fixed-price, the risk of cost overrun for this specific order is on the contractor.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P422R0016

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 LAKESHORE DR, MUSKEGON, MI, 49441

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,085,877

Exercised Options: $9,085,877

Current Obligation: $9,085,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P423D0003

IDV Type: IDC

Timeline