Army awards $6.7M for harbor repair to Great Lakes Dock and Materials, LLC

Contract Overview

Contract Amount: $6,726,564 ($6.7M)

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

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-07-06

Contract Duration: 643 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HARBOR REPAIR

Place of Performance

Location: VERMILION, ERIE County, OHIO, 44089

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to GREAT LAKES DOCK AND MATERIALS, L.L.C. for work described as: HARBOR REPAIR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for flexibility. 3. Fixed-price contract type generally shifts risk to the contractor, potentially stabilizing costs. 4. The duration of 643 days indicates a significant, multi-year project. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction, a specialized field. 6. The award is for harbor repair, a critical infrastructure maintenance activity.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the IDIQ contract it falls under. However, the firm fixed-price nature suggests that the contractor has committed to a specific price, which can be beneficial for cost predictability. The awarded amount of approximately $6.7 million for a 643-day project needs to be compared against similar harbor repair projects to assess if it represents a competitive price point. Without more data on the scope of work and market rates for specialized marine construction, a definitive value assessment is difficult.

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. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected in such a scenario. This level of competition is crucial for ensuring that the government receives the best possible pricing and value for the services rendered. The specific number of bids received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among contractors.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers, responsible for maintaining vital waterways and ports. The services delivered include essential harbor repair, ensuring the operational capacity and safety of maritime infrastructure. The geographic impact is focused on the area where the harbor repair is being conducted, likely a port or naval facility. Workforce implications include employment opportunities for skilled laborers, engineers, and project managers in the heavy civil engineering and construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large civil engineering projects if not meticulously managed.
Reliance on specialized equipment and materials could lead to supply chain disruptions.
Weather-dependent nature of marine construction can impact project timelines and costs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting competitive pricing.
Contractor has experience in heavy and civil engineering construction, as indicated by NAICS code.

Sector Analysis

The heavy and civil engineering construction sector (NAICS 237990) encompasses a wide range of infrastructure projects, including marine construction, dredging, and port development. This contract for harbor repair fits squarely within this sector, which is critical for national defense, commerce, and transportation. Spending in this sector can fluctuate based on infrastructure needs, federal funding allocations, and geopolitical considerations. Comparable spending benchmarks would typically be found within the Army Corps of Engineers' historical contract data for similar repair and maintenance projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, Great Lakes Dock and Materials, LLC, may still engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services. The absence of a small business set-aside means that opportunities for small businesses in this specific contract are not guaranteed by federal mandate.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract databases like SAM.gov, where award details are published. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
Naval Facilities Engineering Command Contracts
Department of Transportation Maritime Administration Projects

Risk Flags

Potential for cost overruns due to long project duration and fixed-price nature.
Reliance on specialized marine construction expertise.
Environmental compliance risks inherent in marine construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to GREAT LAKES DOCK AND MATERIALS, L.L.C.. HARBOR REPAIR

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 $6.7 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-07-06.

What is the track record of Great Lakes Dock and Materials, LLC with federal contracts, particularly with the Department of the Army?

To assess the track record of Great Lakes Dock and Materials, LLC, a review of their past federal contract awards would be necessary. This would involve examining data from sources like the Federal Procurement Data System (FPDS) or the System for Award Management (SAM.gov) to identify previous contracts awarded to this entity. Key metrics to analyze would include the total value of contracts held, the agencies they have contracted with, the types of services or goods provided, and their performance ratings, if available. A history of successful contract completion, adherence to timelines and budgets, and positive performance reviews would indicate a reliable contractor. Conversely, a pattern of contract disputes, terminations, or poor performance could raise concerns about their capability to execute the current harbor repair project effectively.

How does the awarded amount of $6.7 million compare to similar harbor repair projects undertaken by the Department of the Army or other federal agencies?

Comparing the $6.7 million award for this 643-day harbor repair project requires access to a database of similar federal contracts. Analysts would typically search for contracts with comparable NAICS codes (e.g., 237990 - Other Heavy and Civil Engineering Construction), contract types (firm fixed-price), and project scopes (harbor repair, marine construction). The size and duration of the project are also critical factors for comparison. Benchmarking would involve looking at the average cost per day, cost per linear foot of repair, or cost per cubic yard of material moved, depending on the specific nature of the repair. Without access to a comprehensive historical contract database and detailed project specifications, it is difficult to definitively state whether this award represents a competitive value. However, a higher-than-average cost for similar work could indicate potential overpricing or a more complex scope than initially apparent.

What are the primary risks associated with a firm fixed-price contract for a project of this duration and nature?

The primary risk associated with a firm fixed-price contract, especially for a long-duration project like this 643-day harbor repair, lies with the contractor. Great Lakes Dock and Materials, LLC assumes the risk of cost overruns. If material costs increase unexpectedly, labor becomes more expensive, or unforeseen site conditions require additional work beyond the original scope, the contractor must absorb these additional costs. This can incentivize the contractor to cut corners on quality or safety to maintain profitability, although contract specifications and oversight are designed to mitigate this. For the government, the risk is that the contractor might underbid the project initially, leading to potential quality issues or, in extreme cases, contractor default if they cannot complete the work profitably. The long duration also increases the probability of encountering unforeseen challenges, such as environmental issues or changes in regulatory requirements, which could strain the fixed price.

What is the significance of the NAICS code 237990 (Other Heavy and Civil Engineering Construction) in understanding the scope and complexity of this contract?

The NAICS code 237990 signifies that this contract falls under the broad category of heavy and civil engineering construction. This includes a wide array of infrastructure projects such as highways, streets, bridges, tunnels, dams, and marine facilities. For harbor repair, this code indicates that the work likely involves complex marine engineering, potentially including dredging, structural repairs to docks and piers, breakwater construction or repair, and other specialized activities related to port and waterway infrastructure. Projects under this code often require significant planning, specialized equipment (e.g., barges, cranes, pile drivers), adherence to stringent environmental regulations, and a skilled workforce experienced in marine environments. The complexity suggested by this NAICS code implies that the project is not a simple maintenance task but requires substantial engineering expertise and execution capabilities.

How does the fact that this is a 'Delivery Order' under an IDIQ contract affect the analysis of spending and competition?

This contract being a 'Delivery Order' under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract means it is one of potentially many orders placed against a pre-negotiated master contract. IDIQs provide agencies with flexibility to procure goods or services over a period of time, up to a certain ceiling amount, without needing to establish a new contract for each individual need. For spending analysis, the $6.7 million represents the value of this specific order, not necessarily the total value of the IDIQ contract. The competition analysis is also nuanced; while this specific delivery order was competed (as indicated by 'full and open competition'), the underlying IDIQ contract may have been competed initially. The competition for individual delivery orders can vary; some might be competed among all IDIQ holders, while others might be competed among a subset or even awarded sole-source if the IDIQ terms allow. This structure allows for streamlined procurement but requires careful tracking of total spending against the IDIQ ceiling.

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: 1

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: $6,726,564

Exercised Options: $6,726,564

Current Obligation: $6,726,564

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