Naval Base Kitsap pier extension awarded to Manson Construction for $93M, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $92,983,181 ($93.0M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2020-02-03

End Date: 2023-01-14

Contract Duration: 1,076 days

Daily Burn Rate: $86.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P834 - SEAWOLF CLASS SERVICE PIER EXTENSION, NAVAL BASE KITSAP BANGOR, SILVERDALE, WA

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98315

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $93.0 million to MANSON CONSTRUCTION CO for work described as: P834 - SEAWOLF CLASS SERVICE PIER EXTENSION, NAVAL BASE KITSAP BANGOR, SILVERDALE, WA Key points: 1. The contract value of $93M represents a substantial investment in naval infrastructure, suggesting a critical need for the pier extension. 2. Awarded under full and open competition, the contract indicates a healthy market for heavy civil engineering construction services. 3. The fixed-price contract type aims to control costs and transfer risk to the contractor, Manson Construction. 4. The duration of the contract (1076 days) suggests a complex and lengthy construction project. 5. The project's location in Silverdale, WA, points to strategic importance for naval operations in the Pacific Northwest. 6. The absence of small business set-asides may indicate that the scope of work required specialized capabilities or large-scale resources.

Value Assessment

Rating: good

The contract value of approximately $93 million for a service pier extension at a major naval base appears to be within a reasonable range for large-scale civil engineering projects of this nature. Benchmarking against similar naval infrastructure projects would provide a more precise assessment, but the scale suggests a significant undertaking. The firm fixed-price structure suggests an effort to establish a clear cost ceiling, which is generally favorable for the government if the contractor can execute within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. With 5 bids received, the competition level appears adequate, suggesting that the Navy sought a broad range of qualified contractors. This level of competition is generally expected to drive more competitive pricing and ensure that the selected contractor offers the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price and encourages a wider pool of contractors to participate, potentially leading to innovation and cost savings.

Public Impact

Naval operations at Naval Base Kitsap will benefit from enhanced berthing and support capabilities provided by the extended service pier. The project directly supports the U.S. Navy's strategic infrastructure requirements in the Pacific Northwest. The construction activities will likely create temporary employment opportunities in the Silverdale, Washington area. The extended pier will facilitate improved logistics and operational readiness for naval vessels stationed or visiting the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive construction period.
Dependence on Manson Construction's capacity and expertise for timely and quality delivery of a complex project.
Risk of schedule delays due to weather, supply chain issues, or permitting challenges inherent in large civil works.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
Firm fixed-price contract type helps to mitigate cost uncertainty for the government.
The project addresses a clear need for enhanced naval infrastructure, indicating strategic alignment and potential for long-term operational benefits.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to maritime infrastructure. The market for such specialized construction is often dominated by a few large firms capable of undertaking complex, high-value projects. Naval base construction is a significant sub-segment, driven by defense spending and the need to maintain and upgrade critical operational facilities. Comparable spending benchmarks would typically involve other large port, pier, or dry dock construction projects for military or major commercial entities.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation. This suggests that the scale and specialized nature of the pier extension project likely required resources and expertise typically found in larger construction firms. While this specific contract may not directly benefit small businesses, the overall defense spending in construction can indirectly support the ecosystem through subcontracting opportunities with the prime contractor, though none are explicitly detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and engineering commands, with potential involvement from the Naval Facilities Engineering Command (NAVFAC). The firm fixed-price nature of the contract implies a focus on adherence to scope, schedule, and budget. Transparency is generally maintained through contract award databases and public reporting, although detailed project progress reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Infrastructure Modernization Programs
Military Construction (MILCON) Projects
Port and Harbor Development Projects
Heavy Civil Engineering Construction Contracts

Risk Flags

Potential for cost growth due to unforeseen site conditions.
Schedule risk associated with complex marine construction.
Contractor performance risk on a large-scale project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.0 million to MANSON CONSTRUCTION CO. P834 - SEAWOLF CLASS SERVICE PIER EXTENSION, NAVAL BASE KITSAP BANGOR, SILVERDALE, WA

Who is the contractor on this award?

The obligated recipient is MANSON CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $93.0 million.

What is the period of performance?

Start: 2020-02-03. End: 2023-01-14.

What is the track record of Manson Construction Co. on similar large-scale federal infrastructure projects?

Manson Construction Co. has a significant history of undertaking large-scale civil engineering and heavy construction projects, including marine and waterfront facilities. While specific details on past federal contracts of this exact scale and type would require deeper database analysis, their portfolio generally includes complex projects such as bridges, dams, and port facilities. Their experience suggests a capability to manage the technical and logistical challenges associated with the Seawolf Class Service Pier Extension. A review of their past performance ratings and any past performance issues on federal contracts would be crucial for a comprehensive assessment of their reliability for this project.

How does the awarded value compare to similar pier extension projects at other naval bases?

Directly comparing the $93 million award for the Naval Base Kitsap pier extension to similar projects requires access to a database of comparable federal construction contracts, including project scope, location, and time of award. However, large-scale naval pier extensions or new constructions can range from tens of millions to hundreds of millions of dollars, depending on complexity, size, and required capabilities (e.g., depth, load-bearing capacity, specialized equipment). Given the strategic importance and likely complexity of supporting a Seawolf-class submarine facility, $93 million appears to be within the expected range for such a significant infrastructure upgrade. Further analysis would involve identifying projects with similar specifications and adjusting for inflation and regional cost differences.

What are the primary risks associated with this specific construction project, and how are they being managed?

The primary risks for this project likely include unforeseen subsurface conditions (geotechnical issues), potential environmental impacts during dredging or construction, weather-related delays impacting the marine environment, and the complexity of integrating new infrastructure with existing base operations. The firm fixed-price contract structure transfers much of the cost risk to Manson Construction. Risk management by the Navy would involve thorough site investigations prior to award, stringent environmental monitoring, clear contract specifications, and potentially liquidated damages clauses for schedule delays. The contractor's own risk mitigation strategies would involve detailed planning, robust safety protocols, and contingency planning for potential disruptions.

How effective is the firm fixed-price contract type in ensuring value for money on this project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For a construction project like a pier extension, where the physical requirements are largely known, an FFP contract incentivizes the contractor to control costs and manage resources efficiently to maximize profit. This shifts the risk of cost overruns to the contractor. However, if unforeseen issues arise that significantly alter the scope or complexity, change orders could increase the total cost. The government's value is maximized if the contractor successfully delivers the project within the agreed-upon price and specifications.

What is the historical spending trend for similar heavy civil engineering construction contracts by the Department of the Navy?

Historical spending by the Department of the Navy on heavy civil engineering construction, particularly for maritime infrastructure like piers, has been substantial and cyclical, often tied to defense budgets, modernization initiatives, and geopolitical priorities. Major projects, such as those involving shipbuilding support facilities, dry docks, and port upgrades, frequently involve contracts in the tens to hundreds of millions of dollars. Trends indicate a consistent need for maintaining and upgrading aging infrastructure, alongside investments in facilities to support new classes of vessels. Analyzing past spending patterns would reveal significant investments in naval base improvements, especially on the East and West Coasts, reflecting the Navy's operational footprint.

What are the potential long-term operational benefits and strategic implications of this pier extension?

The extension of the service pier at Naval Base Kitsap is likely intended to enhance the operational capabilities and readiness of the base, particularly for supporting advanced naval assets like the Seawolf-class submarines. This could include providing additional berthing space, improved access to utilities and support services, and potentially accommodating larger or more technologically advanced vessels. Strategically, it reinforces the base's role as a key operational hub in the Pacific Northwest, ensuring that naval forces have the necessary infrastructure to conduct training, maintenance, and deployment operations effectively. The investment signifies a commitment to maintaining a modern and capable fleet.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4425519R0002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5209 E MARGINAL WAY S, SEATTLE, WA, 98134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,983,181

Exercised Options: $92,983,181

Current Obligation: $92,983,181

Actual Outlays: $36,350,467

Subaward Activity

Number of Subawards: 2907

Total Subaward Amount: $1,509,041,845

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline