Army's $26.8M FY26 SAD Regional Harbor Dredging Contract Awarded to Great Lakes Dredge & Dock Co

Contract Overview

Contract Amount: $26,852,500 ($26.9M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2026-04-15

Contract Duration: 135 days

Daily Burn Rate: $198.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY26 SOUTH ATLANTIC DIVISION (SAD) REGIONAL HARBOR DREDGING CONTRACT (RHDC), CONTRACT 2

Place of Performance

Location: MOREHEAD CITY, CARTERET County, NORTH CAROLINA, 28557

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: FY26 SOUTH ATLANTIC DIVISION (SAD) REGIONAL HARBOR DREDGING CONTRACT (RHDC), CONTRACT 2 Key points: 1. Awarded to a single, established contractor for a specific regional need. 2. Definitive contract type suggests a well-defined scope of work. 3. Firm Fixed Price contract aims to control costs for this construction project. 4. The project falls under 'Other Heavy and Civil Engineering Construction' sector.

Value Assessment

Rating: good

The contract value of $26.85M for a 135-day dredging project appears reasonable given the scope. Benchmarking against similar regional dredging contracts would provide a more precise assessment, but the fixed-price nature offers cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for essential harbor maintenance.

Public Impact

Ensures continued navigability of vital waterways in the South Atlantic Division. Supports regional economic activity by maintaining port access for commercial shipping. Contributes to the operational readiness of military assets requiring clear waterways. Potential for environmental impact mitigation through proper dredging practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for schedule delays impacting critical waterway access.
  • Environmental compliance risks associated with dredging operations.

Positive Signals

  • Firm Fixed Price contract provides cost predictability.
  • Full and open competition suggests a competitive award.
  • Definitive contract indicates a clear scope of work.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. Spending in this area is crucial for maintaining maritime infrastructure and supporting trade.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee is a large, established company. Opportunities for small businesses may exist as subcontractors.

Oversight & Accountability

Standard DoD oversight for construction contracts will apply, focusing on performance, quality, and compliance with contract terms. The definitive contract type allows for clear performance metrics.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for cost increases if unforeseen site conditions arise.
  • Environmental compliance and permitting challenges.
  • Dependence on a single contractor for a critical infrastructure service.
  • Schedule slippage impacting port operations.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, nc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to GREAT LAKES DREDGE & DOCK CO, LLC. FY26 SOUTH ATLANTIC DIVISION (SAD) REGIONAL HARBOR DREDGING CONTRACT (RHDC), CONTRACT 2

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 $26.9 million.

What is the period of performance?

Start: 2025-12-01. End: 2026-04-15.

What is the historical cost performance of Great Lakes Dredge & Dock Co. on similar federal contracts?

Assessing Great Lakes Dredge & Dock Co.'s historical cost performance on comparable federal dredging contracts is crucial. Reviewing past projects for cost overruns, schedule adherence, and change order frequency will provide insight into their reliability and efficiency. This analysis helps determine if their pricing reflects a history of successful, cost-effective project execution or potential future cost risks for the government.

What are the specific environmental risks associated with this dredging project and the mitigation strategies in place?

The environmental risks of dredging, such as sediment disruption, water quality degradation, and impact on marine life, need careful evaluation. Understanding the specific mitigation strategies outlined in the contract, including containment measures, monitoring protocols, and disposal plans for dredged material, is essential. This ensures compliance with environmental regulations and minimizes ecological harm.

How does the awarded price compare to the government's independent cost estimate for this project?

Comparing the awarded price of $26.85 million to the government's independent cost estimate (if available) is key to assessing value. A significant variance could indicate issues with the bidding process, the estimate's accuracy, or the contractor's pricing strategy. Understanding this comparison helps confirm if taxpayers are receiving a fair price for the required dredging services.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PM25BA010

Offers Received: 1

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: $28,059,425

Exercised Options: $26,852,500

Current Obligation: $26,852,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-12-01

Current End Date: 2026-04-15

Potential End Date: 2026-04-15 00:00:00

Last Modified: 2025-11-12

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