Army awards $19.2M dredging contract to Manson Construction Co. for Alaska infrastructure
Contract Overview
Contract Amount: $19,217,729 ($19.2M)
Contractor: Manson Construction CO
Awarding Agency: Department of Defense
Start Date: 2006-02-15
End Date: 2008-01-31
Contract Duration: 715 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200605!600148!96CE!W911KB!USA ENGR DISTR ALASKA !W911KB06C0003 !A!N! !N! ! !20060215!20071130!007942824!007942824!007942824!N!MANSON CONSTRUCTION CO !5209 E MARGINAL WAY S !SEATTLE !WA!98134!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000009643820!N!N!000019831400!Y216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!004!B! !D!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! ! ! !0001! !
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to MANSON CONSTRUCTION CO for work described as: 200605!600148!96CE!W911KB!USA ENGR DISTR ALASKA !W911KB06C0003 !A!N! !N! ! !20060215!20071130!007942824!007942824!007942824!N!MANSON CONSTRUCTION CO !5209 E MARGINAL WAY S !SEATTLE !WA!98134!03000!020!02!ANCHORAGE !ANCH… Key points: 1. The contract is for dredging services, excluding specialized equipment, indicating a focus on core civil engineering tasks. 2. Awarded under full and open competition, suggesting a competitive bidding process that likely secured a fair price. 3. The fixed-price contract type shifts risk to the contractor, potentially leading to cost savings for the government if managed efficiently. 4. The project is located in Alaska, a region often associated with higher logistical costs and unique environmental considerations for construction projects.
Value Assessment
Rating: good
The contract value of $19.2 million for dredging services appears reasonable given the fixed-price nature and the duration of the contract. Benchmarking against similar large-scale dredging projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and fosters price discovery. This method is expected to result in a competitive price.
Taxpayer Impact: The competitive bidding process is likely to have resulted in a cost-effective outcome for taxpayers, ensuring the government receives value for its investment in critical infrastructure.
Public Impact
Enhances critical infrastructure in Alaska, potentially improving navigation and port access. Supports economic activity by ensuring waterways remain clear for commercial and military vessels. Represents a significant federal investment in regional development and national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological conditions arise during dredging.
- Environmental impact mitigation requirements could add complexity and cost.
- Logistical challenges in remote Alaska may affect project timelines and expenses.
Positive Signals
- Fixed-price contract limits government exposure to cost increases.
- Award to an established contractor suggests a higher likelihood of successful project completion.
- Competition ensures a market-driven price, maximizing taxpayer value.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. Spending in this sector is often driven by infrastructure needs, port modernization, and environmental remediation projects. Federal benchmarks for similar projects vary widely based on location, scope, and environmental factors.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Manson Construction Co., a large entity. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of project execution, adherence to environmental regulations, and budget management by the Army Corps of Engineers is crucial for accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation due to unforeseen site conditions.
- Environmental compliance complexities in sensitive Alaskan ecosystems.
- Logistical challenges inherent in remote project locations.
- Contract duration may be subject to weather delays.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to MANSON CONSTRUCTION CO. 200605!600148!96CE!W911KB!USA ENGR DISTR ALASKA !W911KB06C0003 !A!N! !N! ! !20060215!20071130!007942824!007942824!007942824!N!MANSON CONSTRUCTION CO !5209 E MARGINAL WAY S !SEATTLE !WA!98134!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000009643820!N!N!000019831400!Y216!DREDGING, EXCL. DUSTPAN AND SEA-GOING HOPPERS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !237990!E! !3! ! ! ! ! !999
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 Army).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 2006-02-15. End: 2008-01-31.
What specific environmental factors in Alaska might influence the cost and timeline of this dredging project?
Alaska's unique environment presents several potential challenges for dredging projects. These include permafrost, which can be unstable and require specialized handling; sensitive marine ecosystems that necessitate strict environmental protection measures; and potential presence of hazardous materials in sediments requiring careful disposal. Furthermore, remote locations often mean limited access to equipment, specialized labor, and increased transportation costs, all of which can impact project budgets and schedules.
How does the fixed-price contract structure mitigate risks for the government in this large-scale dredging operation?
A fixed-price contract shifts the primary financial risk to the contractor, Manson Construction Co. This means the government agrees to pay a set amount for the defined scope of work, regardless of the contractor's actual costs. If the contractor encounters unforeseen difficulties or manages the project more efficiently than anticipated, the profit margin adjusts accordingly. This structure incentivizes the contractor to control costs and manage risks effectively to maintain profitability, thereby protecting the government from potential cost overruns.
What is the long-term strategic importance of this dredging contract for the US Army Corps of Engineers in Alaska?
This contract is likely crucial for maintaining and improving vital navigation channels and port infrastructure in Alaska, which are essential for both military readiness and economic commerce in the region. Ensuring deep-water access supports the movement of personnel, equipment, and supplies, as well as facilitates trade. The Army Corps of Engineers is responsible for managing such critical waterways, and contracts like this enable them to fulfill their mission of ensuring safe and efficient maritime operations in a strategically important, yet challenging, operational environment.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5209 E MARGINAL WAY S, SEATTLE, WA, 98134
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-02-15
Current End Date: 2008-01-31
Potential End Date: 2008-01-31 00:00:00
Last Modified: 2020-09-26
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