DoD Awards $96.3M Construction Contract to Manson Construction Co. for P440 Project
Contract Overview
Contract Amount: $96,318,634 ($96.3M)
Contractor: Manson Construction CO
Awarding Agency: Department of Defense
Start Date: 2019-06-14
End Date: 2021-10-31
Contract Duration: 870 days
Daily Burn Rate: $110.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION CONTRACT FOR P440
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $96.3 million to MANSON CONSTRUCTION CO for work described as: CONSTRUCTION CONTRACT FOR P440 Key points: 1. Significant contract value of $96.3 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 870 days, indicating a substantial project timeline. 4. The project falls under 'Other Heavy and Civil Engineering Construction' within the Defense sector.
Value Assessment
Rating: good
The contract value of $96.3 million appears reasonable for a large-scale civil engineering construction project of this duration. Benchmarking against similar large DoD construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows all responsible sources to submit bids, fostering a competitive environment that typically leads to more favorable pricing for the government.
Taxpayer Impact: The competitive bidding process is expected to have resulted in a fair market price, maximizing the value of taxpayer funds for this construction project.
Public Impact
Taxpayers benefit from a competitive bidding process for a large infrastructure project. The project supports the Department of Defense's operational capabilities through construction. Local economy in California may see job creation and business opportunities due to the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration significantly exceeds initial estimates (870 days vs. planned 3 days).
- Potential for cost overruns due to extended project timeline.
- Lack of small business participation noted.
Positive Signals
- Contract awarded through full and open competition.
- Firm fixed price contract type helps control costs.
- Project is essential for defense infrastructure.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is critical for national infrastructure and defense installations. Spending in this sector can vary significantly based on government needs and economic conditions.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is not a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for large construction projects. Monitoring the project's progress and adherence to the firm fixed price will be key accountability measures.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Significant increase in contract duration.
- No small business participation identified.
- Potential for contractor performance issues due to extended timeline.
- Need for detailed cost-benefit analysis of extended duration.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $96.3 million to MANSON CONSTRUCTION CO. CONSTRUCTION CONTRACT FOR P440
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 $96.3 million.
What is the period of performance?
Start: 2019-06-14. End: 2021-10-31.
What specific factors contributed to the significant increase in contract duration from 3 days to 870 days?
The substantial increase in contract duration from 3 to 870 days warrants investigation. Potential causes could include unforeseen site conditions, scope changes, design modifications, permitting delays, or contractor performance issues. Understanding these factors is crucial for assessing project management effectiveness and potential impacts on final cost.
Given the firm fixed price, how will the extended duration impact the contractor's profitability and the government's risk of cost overruns?
A firm fixed price contract generally shifts cost overrun risk to the contractor. However, an extended duration can strain contractor resources and potentially lead to claims for equitable adjustments if delays are government-caused. The government's risk lies in potential contractor default or requests for contract modifications if the project becomes unviable under the original terms due to unforeseen circumstances.
What is the benchmark cost per day for similar heavy and civil engineering construction projects of this scale within the DoD?
Benchmarking the daily cost for this $96.3 million contract, which spans 870 days, requires comparison with similar DoD heavy and civil engineering projects. Without specific project details and market data, a precise benchmark is difficult. However, large-scale infrastructure projects often have daily costs ranging from tens of thousands to hundreds of thousands of dollars, depending on complexity, location, and labor rates.
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: N6247319R1208
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Manson Construction CO.
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: $96,318,634
Exercised Options: $96,318,634
Current Obligation: $96,318,634
Subaward Activity
Number of Subawards: 1065
Total Subaward Amount: $910,326,019
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-06-14
Current End Date: 2021-10-31
Potential End Date: 2021-10-31 00:00:00
Last Modified: 2022-03-02
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