Manson Construction Co. awarded $29.8M for NBSD maintenance dredging, highlighting significant civil engineering investment

Contract Overview

Contract Amount: $29,781,394 ($29.8M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2018-04-10

End Date: 2021-10-15

Contract Duration: 1,284 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF MAINTENANCE DREDGING NBSD

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to MANSON CONSTRUCTION CO for work described as: IGF::OT::IGF MAINTENANCE DREDGING NBSD Key points: 1. Contract value represents a substantial investment in critical port infrastructure maintenance. 2. Full and open competition suggests a potentially competitive bidding environment for this type of work. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of over three years indicates a long-term need for these services. 5. Geographic focus on California points to specific regional infrastructure priorities. 6. The North American Industry Classification System (NAICS) code 237990 places this contract within heavy civil engineering construction.

Value Assessment

Rating: good

The contract value of approximately $29.8 million for maintenance dredging at the Naval Base San Diego (NBSD) appears reasonable given the scope and duration. While direct comparisons are difficult without more specific project details, dredging projects of this scale can range from tens to hundreds of millions of dollars depending on the volume of material, depth, and environmental considerations. The firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable by the government, with the contractor assuming cost overruns. Benchmarking against similar Navy dredging contracts would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The data shows two bids were received, which is a moderate level of competition. While more bidders could potentially drive prices lower, two bids suggest that the market for this specialized service is not overly constrained.

Taxpayer Impact: Full and open competition, even with two bidders, is generally favorable for taxpayers as it increases the likelihood of receiving a fair market price and encourages contractors to offer their best value.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness and accessibility of Naval Base San Diego. The service delivered is essential maintenance dredging to maintain specified channel depths and berthing areas. The geographic impact is localized to San Diego, California, supporting naval operations in the Pacific. This contract supports specialized labor within the heavy civil engineering and maritime construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions or dredging complexities arise, despite the fixed-price structure.
Dependence on a limited number of bidders could impact future competition and pricing for similar services.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency and cost control.
Award to a single contractor suggests a clear selection based on qualifications and price.
Contract duration provides stability for planning and execution of critical infrastructure maintenance.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to maritime infrastructure. The market for dredging services is specialized, often dominated by a few key players capable of undertaking large-scale projects. Federal spending in this area is crucial for maintaining navigable waterways, port access, and military installations. Comparable spending benchmarks would include other federal contracts for port maintenance, channel deepening, and related marine construction activities, which can vary significantly based on project scope and location.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (sb: false, ss: false). While the primary award was to Manson Construction Co., there is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Manson Construction utilizes small business subcontractors for specialized services or supplies, which is not detailed here. Further investigation into subcontracting reports would be necessary to assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Navy contracting command. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified dredging services within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Navy Port Infrastructure Development Program
Federal Maritime Commission Infrastructure Funding
Department of Transportation Port Improvement Grants

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance risks associated with dredging and material disposal.
Limited competition may affect future pricing.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to MANSON CONSTRUCTION CO. IGF::OT::IGF MAINTENANCE DREDGING NBSD

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 $29.8 million.

What is the period of performance?

Start: 2018-04-10. End: 2021-10-15.

What is the historical spending pattern for maintenance dredging at Naval Base San Diego?

Analyzing historical spending for maintenance dredging at Naval Base San Diego requires accessing past contract awards for similar services at this specific location. Without direct access to historical data for NBSD dredging, we can infer trends from broader Navy or DoD infrastructure spending. Federal agencies, particularly the Department of Defense, consistently allocate funds for maintaining critical port facilities to ensure operational readiness. Spending can fluctuate based on the urgency of maintenance needs, capital improvement projects, and budget allocations. For NBSD, a major operational hub, consistent investment in dredging is expected. A review of previous contracts awarded by the Navy for dredging in the San Diego area over the last 5-10 years would provide a clearer picture of spending patterns, including the number of awards, contract values, and primary contractors involved.

How does the price per cubic yard for this contract compare to industry benchmarks?

Determining the price per cubic yard requires knowing the total volume of material dredged under this contract, which is not provided in the summary data. The contract value is $29,781,394.21. Dredging costs can vary significantly based on factors such as material type (e.g., sand, silt, rock), disposal methods (e.g., open water, confined disposal facility), environmental regulations, and project complexity (e.g., confined spaces, existing infrastructure). Industry benchmarks for maintenance dredging can range widely, often from $20 to over $100 per cubic yard. To perform a meaningful comparison, the total volume dredged under this contract would need to be identified, and then divided into the total contract value. This would allow for a calculation of the effective price per cubic yard, which could then be benchmarked against publicly available data for similar federal or commercial dredging projects.

What is Manson Construction Co.'s track record with federal dredging contracts?

Manson Construction Co. has a significant track record with federal contracts, particularly within the maritime construction and dredging sectors. A review of federal procurement data (e.g., FPDS) would reveal numerous awards to Manson Construction for various civil works projects, including dredging, pier construction, and other marine infrastructure. Their experience likely includes contracts with the U.S. Army Corps of Engineers and the Department of the Navy. The company's longevity and repeated awards suggest a history of successful performance and capability in executing complex federal projects. Assessing their specific performance history, including any past issues or commendations related to dredging contracts, would require a deeper dive into contract performance reports and any available Inspector General findings.

What are the potential risks associated with this specific maintenance dredging contract?

Potential risks for this maintenance dredging contract include unforeseen subsurface conditions (e.g., encountering unexpected rock formations, debris, or hazardous materials) that could increase costs or delay the project, despite the firm fixed-price structure. Environmental risks are also significant; encountering protected species, historical artifacts, or exceeding permitted discharge limits could lead to work stoppages or require costly mitigation measures. Contractor performance risk exists, although the fixed-price nature incentivizes efficiency. Furthermore, the limited number of bidders (two) could indicate a specialized market, potentially leading to higher prices in future procurements if competition remains constrained. Geopolitical or economic factors impacting supply chains for specialized equipment or materials could also pose a risk, though less likely for a domestic dredging project.

How does this contract align with the Navy's broader infrastructure modernization goals?

This maintenance dredging contract directly aligns with the Navy's broader infrastructure modernization and readiness goals by ensuring the operational capability of Naval Base San Diego. Maintaining adequate channel depths and berthing areas is fundamental for the deployment, repair, and logistical support of naval vessels. Modernization efforts often include deepening channels to accommodate larger or newer classes of ships, which requires regular maintenance dredging. By investing in the upkeep of NBSD's maritime infrastructure, the Navy supports its strategic objectives, including power projection, fleet readiness, and efficient base operations. This contract represents a necessary component of maintaining existing infrastructure to current operational standards, complementing larger capital investment projects.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247314R0014

Offers Received: 2

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

Financial Breakdown

Contract Ceiling: $29,781,394

Exercised Options: $29,781,394

Current Obligation: $29,781,394

Actual Outlays: $693,094

Subaward Activity

Number of Subawards: 156

Total Subaward Amount: $122,277,599

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247316D1805

IDV Type: IDC

Timeline