Manson Construction awarded $24.4M for Alaska harbor dredging, highlighting critical infrastructure maintenance needs

Contract Overview

Contract Amount: $24,359,263 ($24.4M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2023-12-19

End Date: 2026-04-30

Contract Duration: 863 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 2024 - 2026 MAINTENANCE DREDGING, ANCHORAGE HARBOR, ALASKA

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to MANSON CONSTRUCTION CO for work described as: 2024 - 2026 MAINTENANCE DREDGING, ANCHORAGE HARBOR, ALASKA Key points: 1. Contract value represents a significant investment in maintaining vital maritime infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of specialized service. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. Project duration of over two years indicates a substantial scope of work. 5. Geographic focus on Alaska underscores the importance of this contract for regional economic activity and defense readiness. 6. The contract's value is benchmarked against similar heavy civil engineering projects.

Value Assessment

Rating: good

The contract value of approximately $24.4 million for maintenance dredging in Anchorage Harbor appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, similar large-scale civil engineering projects, especially in remote or challenging environments like Alaska, often involve multi-million dollar price tags. The firm fixed-price structure suggests that the contractor has assessed the risks and costs associated with the project, and the awarded price reflects this assessment. Benchmarking against the bid amount of $28.2 million indicates potential cost savings for the government.

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. With two bids received, the competition level suggests a moderate level of interest for this specialized service. While two bidders are better than one, a higher number of bidders could potentially drive prices down further. However, the fact that the contract was awarded below the highest bid indicates that the competitive process yielded a favorable outcome for the government.

Taxpayer Impact: The full and open competition, despite receiving only two bids, resulted in an award below the highest bid, suggesting that taxpayer funds were used efficiently in securing this essential infrastructure service.

Public Impact

Benefits the U.S. Army Corps of Engineers and the Department of Defense by ensuring the operational readiness of Anchorage Harbor. Delivers essential maintenance dredging services to maintain navigable depths for commercial and military vessels. Geographic impact is concentrated in Alaska, supporting regional trade, resource extraction, and military logistics. Workforce implications include employment opportunities for skilled labor in heavy construction and maritime operations within Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered, despite the firm fixed-price structure.
Dependence on a single contractor for a critical infrastructure maintenance task in a remote location.
Environmental compliance challenges inherent in dredging operations in sensitive Alaskan waters.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract type provides cost certainty for the government.
Contractor has a track record in heavy construction and civil engineering projects.
Project addresses a critical need for maintaining navigational access in a key Alaskan port.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the nation's infrastructure. This sector encompasses a wide range of projects, including ports, harbors, bridges, and other public works. Spending in this sector is often driven by government investment in maintaining and upgrading essential public assets. Comparable spending benchmarks would involve analyzing other Army Corps of Engineers dredging contracts or similar large-scale civil construction projects awarded by federal agencies, particularly those in challenging geographic locations.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most capable contractor for this specialized dredging work. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract may be limited, though they could potentially engage as subcontractors if opportunities arise and are offered by the prime contractor.

Oversight & Accountability

The contract is managed by the Department of the Army, likely through the U.S. Army Corps of Engineers, which has established oversight mechanisms for infrastructure projects. Accountability is ensured through the firm fixed-price contract terms, requiring the contractor to complete the work within the agreed-upon price. Transparency is generally maintained through federal contract databases, although specific project-level performance details may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Harbor Maintenance
Infrastructure Investment and Jobs Act Projects
National Defense Authorization Act Spending

Risk Flags

Potential for environmental impact during dredging operations.
Risk of unforeseen subsurface conditions affecting cost and schedule.
Dependence on a single contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to MANSON CONSTRUCTION CO. 2024 - 2026 MAINTENANCE DREDGING, ANCHORAGE HARBOR, ALASKA

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 $24.4 million.

What is the period of performance?

Start: 2023-12-19. End: 2026-04-30.

What is Manson Construction Co.'s track record with similar federal dredging contracts, particularly with the Army Corps of Engineers?

Manson Construction Co. has a history of performing large-scale civil engineering and marine construction projects. While specific details on past dredging contracts with the Army Corps of Engineers require deeper database analysis, their portfolio typically includes work on bridges, dams, and marine facilities. Their experience in heavy construction suggests they possess the necessary equipment, expertise, and safety protocols for complex projects like harbor maintenance dredging. Further investigation into their contract performance ratings and any past issues with federal agencies would provide a more complete picture of their reliability for this specific task.

How does the awarded price of $24.4 million compare to the estimated value or the bids received for this project?

The awarded price of $24,359,262.50 is notably lower than the highest bid received, which was $28,226,000. This indicates a significant cost saving for the government, potentially around $3.87 million. Without knowing the government's independent cost estimate, it's difficult to definitively state if the awarded price is 'low,' but the competitive bidding process clearly resulted in a favorable outcome. The difference between the bids suggests varying assessments of project complexity, risk, and overhead by the competing firms.

What are the primary risks associated with this maintenance dredging contract in Anchorage Harbor?

Key risks for this contract include unforeseen subsurface conditions (e.g., hard rock, buried debris) that could increase dredging costs or time, despite the firm fixed-price structure. Environmental risks are also significant, given the potential impact of dredging on marine ecosystems and the need for strict compliance with environmental regulations in Alaska. Operational risks include potential equipment failures, weather delays (especially during certain seasons), and logistical challenges in a remote location like Alaska. The contractor's ability to manage these risks effectively is crucial for successful project completion.

What is the expected impact of this contract on the operational effectiveness of Anchorage Harbor?

This contract is crucial for maintaining the operational effectiveness of Anchorage Harbor by ensuring adequate channel depths for safe navigation. Dredging removes accumulated sediment that can impede vessel traffic, particularly for larger commercial ships and military assets. By performing this maintenance, the contract directly supports the harbor's role as a vital economic hub for Alaska and a strategic point for national defense logistics. Failure to maintain these depths could lead to draft restrictions, increased transit times, and potential safety hazards.

How has federal spending on similar heavy and civil engineering construction projects in Alaska trended over the past five years?

Analyzing federal spending trends for heavy and civil engineering construction in Alaska over the past five years would require access to detailed historical contract data. Generally, federal investment in Alaskan infrastructure is driven by strategic importance, resource development, and the unique challenges of operating in the region. Spending often fluctuates based on specific project needs, congressional appropriations, and national priorities. Projects like port improvements, military base infrastructure, and transportation networks are common. A detailed trend analysis would likely show significant investment, potentially increasing in recent years due to infrastructure initiatives.

What are the performance metrics or deliverables expected under this contract?

The primary deliverable under this contract is the successful completion of maintenance dredging within Anchorage Harbor to specified depth and width requirements. Performance metrics would likely include adherence to the project schedule, compliance with environmental permits and regulations, and the quality of the dredged material placement. The firm fixed-price nature implies that the contractor is responsible for achieving these outcomes within the agreed budget. The Army Corps of Engineers would monitor progress and ensure that the final dredged depths meet the contract's technical specifications.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB24R0002

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: $34,812,903

Exercised Options: $20,207,003

Current Obligation: $24,359,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline