Manson Construction awarded $110.9M for floating dry dock mooring facility by the Navy

Contract Overview

Contract Amount: $110,907,507 ($110.9M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2024-01-08

End Date: 2026-09-15

Contract Duration: 981 days

Daily Burn Rate: $113.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P508: FLOATING DRY DOCK MOORING FACILITY

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $110.9 million to MANSON CONSTRUCTION CO for work described as: P508: FLOATING DRY DOCK MOORING FACILITY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating phased execution. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The project duration of 981 days spans over two fiscal years. 5. The facility is located in California, a key hub for naval operations. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction.

Value Assessment

Rating: good

The contract value of $110.9 million for a floating dry dock mooring facility appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale naval infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price contract structure implies that the contractor has a strong incentive to manage costs effectively to maintain profitability. Without specific cost breakdowns or comparisons to similar projects, a definitive assessment of exceptional value is difficult, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized construction project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices. However, with only two bidders, the potential for significant cost savings may be limited compared to scenarios with numerous competing firms.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive a critical piece of maritime infrastructure. The facility will support naval operations and fleet readiness, enhancing national security. The project's geographic impact is concentrated in California, likely benefiting the local economy through job creation and material sourcing. The construction activities will likely involve a skilled workforce in heavy civil engineering and maritime construction trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather, material availability, or labor issues.
Ensuring compliance with stringent environmental regulations during construction in a coastal area.

Positive Signals

Firm fixed-price contract transfers cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive pricing environment.
Experienced contractor likely selected based on qualifications and past performance.

Sector Analysis

The construction sector, particularly heavy civil engineering, is a significant area of federal spending. This contract falls under the broader category of infrastructure development, which is crucial for military readiness and national defense. The market for specialized maritime construction, such as floating dry dock facilities, is relatively niche, often dominated by a smaller number of experienced firms. Federal spending in this sub-sector is driven by the need to maintain and modernize naval assets and port facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of this project, it is unlikely that small businesses would be primary bidders or subcontractors unless they are part of a larger joint venture. The prime contractor, Manson Construction Co., is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy's contracting and project management offices. The firm fixed-price nature of the contract incentivizes the contractor to manage costs, but regular progress reviews and quality assurance checks will be essential to ensure adherence to specifications and timelines. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense may conduct audits or investigations if any irregularities or fraud are suspected.

Related Government Programs

Naval Shipyard Infrastructure Modernization
Port and Harbor Construction
Military Construction Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns
Environmental compliance challenges
Logistical complexities in marine construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $110.9 million to MANSON CONSTRUCTION CO. P508: FLOATING DRY DOCK MOORING FACILITY

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 $110.9 million.

What is the period of performance?

Start: 2024-01-08. End: 2026-09-15.

What is the track record of Manson Construction Co. on similar federal contracts?

Manson Construction Co. has a history of performing large-scale civil engineering and construction projects, including significant work for government entities. While specific details on prior floating dry dock facilities are not provided in this data snippet, their experience in heavy marine construction, such as bridges, piers, and dredging, suggests a capability to handle complex projects. A deeper dive into their contract history with the Department of Defense and other federal agencies would reveal their performance metrics, including on-time delivery, budget adherence, and quality of work on comparable projects. Analyzing past performance can provide strong indicators of their likelihood to successfully execute this current contract.

How does the awarded price compare to industry benchmarks for similar floating dry dock facilities?

Benchmarking the $110.9 million award against industry standards for floating dry dock mooring facilities is challenging without access to detailed cost data and specific project requirements. The complexity, size, and technological features of dry docks can vary significantly, impacting their cost. Factors such as the depth, length, lifting capacity, and specialized equipment integrated into the facility all influence the final price. A comprehensive comparison would require analyzing data from similar projects awarded by the Navy or other maritime organizations, considering the year of award, geographic location, and the specific scope of work. The firm fixed-price nature suggests the contractor has factored in these variables and associated risks into their bid.

What are the primary risks associated with the construction of a floating dry dock mooring facility?

The construction of a floating dry dock mooring facility involves several inherent risks. These include significant engineering challenges related to structural integrity, buoyancy, and stability, especially in dynamic marine environments. Environmental risks are also prominent, such as potential impacts on marine ecosystems during construction, the need for specialized waste disposal, and compliance with stringent environmental regulations. Furthermore, logistical challenges related to material procurement, transportation of large components to the site, and coordination of specialized labor in a potentially remote or restricted area can lead to delays and cost overruns. Finally, the long-term operational risks, including maintenance and potential damage from severe weather or operational incidents, must also be considered during the design and construction phases.

What is the historical spending trend for floating dry dock facilities by the Department of the Navy?

Analyzing the historical spending trend for floating dry dock facilities by the Department of the Navy requires access to comprehensive contract databases over several fiscal years. Generally, investments in such critical infrastructure are cyclical, often driven by fleet modernization programs, aging asset replacement needs, and strategic geopolitical considerations. Periods of increased naval expansion or significant upgrades to shipbuilding and repair capabilities typically correlate with higher spending in this area. Conversely, budget constraints or shifts in naval strategy might lead to reduced investment. Without specific historical data, it's difficult to pinpoint precise trends, but the need for robust naval infrastructure suggests consistent, albeit potentially fluctuating, investment over time.

What is the potential impact of this contract on the small business ecosystem in California?

As this contract was awarded under full and open competition and is not a small business set-aside, its direct impact on the small business ecosystem is likely limited. The prime contractor, Manson Construction Co., is presumed to be a large business. While large federal construction projects often involve subcontracting, the extent to which small businesses in California will benefit depends on the prime contractor's subcontracting plan and the availability of qualified small businesses for specific tasks. Opportunities might arise for specialized services or material supply, but the core construction work is likely to be handled by the prime or its larger subcontractors. The primary economic benefit will likely be through direct job creation and local procurement by the prime contractor.

How does the delivery order structure affect the overall project management and cost control?

A delivery order structure, as indicated for this contract, means that this $110.9 million award is one of potentially multiple orders placed against a larger, pre-negotiated contract. This approach allows the government to procure goods or services incrementally, providing flexibility in scheduling and funding. For project management, it means that the overall contract may have a longer duration, with specific tasks and timelines defined for each delivery order. Cost control is managed through the established pricing in the base contract, which is applied to each order. However, it necessitates careful oversight to ensure that the cumulative cost of all delivery orders does not exceed the ceiling of the parent contract and that each order represents good value.

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: 2

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: $110,907,507

Exercised Options: $110,907,507

Current Obligation: $110,907,507

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