Navy Awards $109M Pier 6 Replacement Contract to Manson Construction
Contract Overview
Contract Amount: $108,891,970 ($108.9M)
Contractor: Manson Construction CO
Awarding Agency: Department of Defense
Start Date: 2021-04-30
End Date: 2024-01-19
Contract Duration: 994 days
Daily Burn Rate: $109.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P443 DB CONSTRUCTION PIER 6 REPLACEMENT NBSD
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $108.9 million to MANSON CONSTRUCTION CO for work described as: P443 DB CONSTRUCTION PIER 6 REPLACEMENT NBSD Key points: 1. Contract awarded for critical infrastructure replacement at Naval Base San Diego. 2. Manson Construction Co. secured the award through full and open competition. 3. Project duration is 994 days, indicating a significant construction timeline. 4. The contract value is approximately $109 million, reflecting substantial investment.
Value Assessment
Rating: good
The contract value of $108.9 million appears reasonable for a major pier replacement project. Benchmarking against similar large-scale civil engineering projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this essential infrastructure upgrade.
Public Impact
Ensures continued operational readiness for naval vessels at NBSD. Supports local economy through construction jobs and material procurement. Replaces aging infrastructure, mitigating potential safety and operational risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to complex construction environment.
- Schedule delays could impact naval operations.
- Environmental considerations during construction.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Experienced contractor selected.
Sector Analysis
This contract falls under heavy and civil engineering construction, a sector critical for maintaining national infrastructure. Spending in this sector can fluctuate based on government infrastructure priorities and funding cycles.
Small Business Impact
While the primary award went to Manson Construction Co., there may be opportunities for small businesses to participate as subcontractors for specialized services or material supply.
Oversight & Accountability
The Department of the Navy's oversight will be crucial to ensure the project adheres to specifications, budget, and schedule, with regular progress reports and site inspections.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule delays impacting military readiness.
- Risk of unforeseen subsurface conditions.
- Exposure to material price fluctuations despite fixed price.
- Environmental compliance challenges during construction.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $108.9 million to MANSON CONSTRUCTION CO. P443 DB CONSTRUCTION PIER 6 REPLACEMENT 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 $108.9 million.
What is the period of performance?
Start: 2021-04-30. End: 2024-01-19.
What is the benchmark cost per linear foot for similar pier replacement projects in comparable coastal regions?
Benchmarking pier replacement costs requires detailed analysis of project scope, materials, and location. However, preliminary estimates for similar large-scale projects can range from $5,000 to $15,000 per linear foot, depending on complexity, seismic requirements, and environmental factors. A more precise comparison would necessitate data on the specific dimensions and structural requirements of Pier 6.
What are the primary risks associated with the 994-day construction duration, and how are they being mitigated?
The extended duration presents risks such as potential schedule slippage due to unforeseen site conditions (e.g., subsurface obstructions, weather), material price volatility, and labor availability. Mitigation strategies likely include detailed pre-construction surveys, robust contingency planning, flexible scheduling, and strong contract management to address issues promptly and minimize impacts on naval operations.
How does the firm fixed price contract ensure cost-effectiveness for this complex infrastructure project?
A firm fixed price contract shifts the risk of cost overruns to the contractor, incentivizing efficient project management and cost control. For this pier replacement, it provides the Navy with a high degree of cost certainty, assuming the initial scope is well-defined. However, it's crucial that change orders are managed strictly to prevent scope creep from undermining the fixed-price benefit.
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 NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247319R2434
Offers Received: 5
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: $108,891,970
Exercised Options: $108,891,970
Current Obligation: $108,891,970
Actual Outlays: $101,020,153
Subaward Activity
Number of Subawards: 1251
Total Subaward Amount: $511,004,563
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247321D1406
IDV Type: IDC
Timeline
Start Date: 2021-04-30
Current End Date: 2024-01-19
Potential End Date: 2024-01-19 00:00:00
Last Modified: 2025-04-26
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