Army awards $22.9M Craney Island expansion contract to Manson Construction Co

Contract Overview

Contract Amount: $22,931,822 ($22.9M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2012-07-19

End Date: 2013-04-30

Contract Duration: 285 days

Daily Burn Rate: $80.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CRANEY ISLAND EASTWARD EXPANSION, CRANEY ISLAND, PORTSMOUTH, VIRGINIA

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to MANSON CONSTRUCTION CO for work described as: CRANEY ISLAND EASTWARD EXPANSION, CRANEY ISLAND, PORTSMOUTH, VIRGINIA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating clear cost expectations. 3. The project duration of 285 days suggests a focused, medium-term construction effort. 4. The contract was awarded by the Department of the Army, a major federal agency. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The contract was awarded in Virginia, indicating a specific geographic focus for the project.

Value Assessment

Rating: fair

The contract value of $22.9 million for heavy civil engineering construction appears within a reasonable range for a project of this nature, though specific benchmarks for the Craney Island expansion are not readily available. The firm fixed-price structure suggests the government aimed to control costs upfront. Without detailed cost breakdowns or comparisons to similar dredging and expansion projects, a precise value-for-money assessment is challenging. However, the competitive award process may have helped secure a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a degree of competition for this project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and ensuring the government receives the best possible offer.

Public Impact

The primary beneficiary is the U.S. Army Corps of Engineers, responsible for managing and executing the expansion. The project delivers critical infrastructure improvements to the Craney Island facility, likely enhancing its operational capacity. The geographic impact is localized to Portsmouth, Virginia, where Craney Island is located. The project likely involves a skilled construction workforce, contributing to employment in the heavy civil engineering sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Dependence on the contractor's ability to meet project timelines and quality standards.
Environmental impact considerations during the construction phase require careful monitoring.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides cost certainty for the government.
The contractor, Manson Construction Co., likely has experience in similar large-scale civil engineering projects.

Sector Analysis

The contract falls within the heavy and civil engineering construction sector, specifically related to port and waterway infrastructure. This sector is crucial for national commerce and defense, involving significant capital investment. Comparable spending benchmarks would typically involve other dredging, port expansion, or similar large-scale civil works projects undertaken by federal agencies like the Army Corps of Engineers or the Department of Transportation.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large contractor, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for overseeing construction projects. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to progress. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports for this particular contract may not be publicly accessible.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Projects
Naval Support Facilities Construction
Coastal Resilience Projects

Risk Flags

Potential for environmental impact during dredging and construction.
Risk of schedule delays due to weather or unforeseen site conditions.
Contractor performance and adherence to quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to MANSON CONSTRUCTION CO. CRANEY ISLAND EASTWARD EXPANSION, CRANEY ISLAND, PORTSMOUTH, VIRGINIA

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 $22.9 million.

What is the period of performance?

Start: 2012-07-19. End: 2013-04-30.

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

Manson Construction Co. has a significant history of performing large-scale marine construction projects for various federal agencies, including the U.S. Army Corps of Engineers. Their portfolio often includes dredging, breakwater construction, and port facility development. Reviewing their past performance on similar projects, particularly those involving significant environmental considerations or complex engineering challenges, would provide insight into their capabilities and reliability. Data from contract databases often shows their award history, contract values, and any reported performance issues or successes. A deeper dive would involve examining specific project outcomes, client feedback, and any disputes or claims filed during contract execution.

How does the $22.9 million award compare to other heavy civil engineering construction contracts awarded by the Department of the Army?

The $22.9 million award for the Craney Island Eastward Expansion falls within the mid-range for major civil engineering construction projects undertaken by the Department of the Army. Larger projects, such as significant infrastructure overhauls or new facility constructions, can easily exceed hundreds of millions or even billions of dollars. Smaller projects might be in the single-digit millions. This specific award suggests a substantial but not exceptionally large undertaking within the Army's construction portfolio. Benchmarking against similar port, dredging, or waterway improvement projects would provide a more precise comparison, considering factors like project scope, duration, and complexity.

What are the primary risks associated with the Craney Island Eastward Expansion project?

Key risks for the Craney Island Eastward Expansion project include potential environmental challenges, such as the discovery of contaminated sediments or impacts on marine ecosystems during dredging and construction activities. Schedule delays are another significant risk, often stemming from unforeseen subsurface conditions, weather disruptions, or permitting issues. Cost overruns, while mitigated by the firm fixed-price contract, remain a risk if scope changes are introduced or if the contractor encounters unexpected difficulties requiring change orders. Furthermore, the logistical complexities of working in an active port environment and ensuring the safety of personnel and the public are ongoing risks that require diligent management.

What is the historical spending pattern for Craney Island infrastructure projects?

Historical spending on Craney Island infrastructure projects, particularly those managed by the U.S. Army Corps of Engineers, would likely show a pattern of consistent investment in maintaining and expanding its capabilities as a strategic port and dredging material placement site. Specific figures would require accessing historical budget data and contract award databases for the specific location. Spending would fluctuate based on modernization needs, environmental regulations, and capacity demands. The Craney Island Eastward Expansion represents a specific investment within this broader historical context, aimed at addressing current or future operational requirements.

What is the significance of the firm fixed-price contract type for this project?

The firm fixed-price (FFP) contract type is significant because it places the primary risk of cost overruns on the contractor, Manson Construction Co. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of any unforeseen cost increases they encounter during performance. For the government, this offers a high degree of cost certainty and predictability. It incentivizes the contractor to manage their costs efficiently and to perform the work as specified to maximize their profit. However, FFP contracts can sometimes lead to higher initial bid prices as contractors factor in potential risks, and they may be less suitable for projects with high uncertainty or evolving requirements.

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: SEALED BID

Solicitation ID: W9123612B0013

Offers Received: 3

Pricing Type: FIRM 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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,931,822

Exercised Options: $22,931,822

Current Obligation: $22,931,822

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline