Naval Base San Diego Pier Project Exceeds $117M, Awarded to Manson Construction Co
Contract Overview
Contract Amount: $117,410,187 ($117.4M)
Contractor: Manson Construction CO
Awarding Agency: Department of Defense
Start Date: 2011-09-29
End Date: 2016-10-01
Contract Duration: 1,829 days
Daily Burn Rate: $64.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P327 DEMOLITION AND REPLACEMENT OF PIER 12 AND UPGRADE TO PIER 13, NAVAL BASE SAN DIEGO, SAN DIEGO, CA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $117.4 million to MANSON CONSTRUCTION CO for work described as: P327 DEMOLITION AND REPLACEMENT OF PIER 12 AND UPGRADE TO PIER 13, NAVAL BASE SAN DIEGO, SAN DIEGO, CA Key points: 1. The project involves significant infrastructure upgrades at Naval Base San Diego. 2. Manson Construction Co. secured the contract through full and open competition. 3. The contract type is Firm Fixed Price, indicating a defined cost structure. 4. The project duration was 1829 days, suggesting a complex and lengthy undertaking.
Value Assessment
Rating: fair
The total award amount of $117.4M for heavy civil engineering construction is substantial. Benchmarking against similar large-scale naval infrastructure projects is necessary to fully assess value, but the fixed-price nature suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The fixed-price structure further supports price discovery by setting clear expectations.
Taxpayer Impact: Taxpayer funds are being utilized for critical military infrastructure upgrades. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Enhances critical naval infrastructure at a key West Coast base. Supports military readiness and operational capabilities. Potential for disruption during construction phases for base operations. Long-term economic impact through construction jobs and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Potential for cost overruns despite fixed-price contract due to project complexity.
- Long project duration may lead to scope creep or unforeseen issues.
- No small business participation noted, potentially missing opportunities for economic inclusion.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm Fixed Price contract provides cost certainty.
- Addresses critical infrastructure needs for national defense.
Sector Analysis
This project falls under Heavy and Civil Engineering Construction, a sector critical for national infrastructure. Spending benchmarks for similar large-scale port and pier construction projects would be relevant for comparison.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor did not subcontract to small businesses, or the contract was too large/specialized for typical small business involvement.
Oversight & Accountability
The award was made by the Department of the Navy, part of the Department of Defense. Standard procurement oversight processes would apply, with potential for further review by the Government Accountability Office (GAO) if issues arise.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Large contract value.
- Long project duration.
- No small business participation.
- Potential for unforeseen site conditions.
- Firm Fixed Price contract may not fully account for all potential escalations.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.4 million to MANSON CONSTRUCTION CO. P327 DEMOLITION AND REPLACEMENT OF PIER 12 AND UPGRADE TO PIER 13, NAVAL BASE SAN DIEGO, SAN DIEGO, CA
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 $117.4 million.
What is the period of performance?
Start: 2011-09-29. End: 2016-10-01.
What was the initial estimated cost versus the final award amount, and were there any significant changes during the procurement process?
The provided data shows the final award amount is $117,410,187.18. Without the initial estimate or details on modifications, it's difficult to assess if the final price reflects efficient cost management or significant changes. Further investigation into the contract's history and any amendments would be needed to determine if the final cost aligns with initial expectations and represents good value.
Given the project's scale and duration, what are the primary risks associated with cost overruns or schedule delays?
The primary risks include unforeseen site conditions (e.g., subsurface issues, environmental hazards), material price fluctuations despite the fixed-price contract, and potential labor shortages impacting schedule. The long duration (1829 days) increases exposure to these risks. Effective risk mitigation strategies by the contractor and diligent oversight by the Navy are crucial to prevent cost overruns and delays.
How does the final award amount compare to industry benchmarks for similar pier demolition and construction projects of this magnitude?
Benchmarking this $117.4M project against similar large-scale naval or port infrastructure projects is essential for a comprehensive value assessment. Factors like geographic location, specific technical requirements (e.g., seismic resilience, load-bearing capacity), and prevailing market conditions influence costs. A detailed comparison would reveal if this award represents a competitive and cost-effective outcome for the taxpayer.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N6247311R2805
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Manson Construction CO. (UEI: 194097960)
Address: 5209 E MARGINAL WAY S, SEATTLE, WA, 98134
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $117,410,187
Exercised Options: $117,410,187
Current Obligation: $117,410,187
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-29
Current End Date: 2016-10-01
Potential End Date: 2016-10-01 00:00:00
Last Modified: 2016-09-20
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