Army awards $26.4M dredging contract to Manson Construction Co. for West Coast waterways

Contract Overview

Contract Amount: $26,366,205 ($26.4M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2015-02-18

End Date: 2016-02-02

Contract Duration: 349 days

Daily Burn Rate: $75.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REGIONAL WEST COAST HOPPER DREDGING 2015, GRAYS HARBOR, WASHINGTON, MOUTH OF THE COLUMBIA RIVER AND THE COLUMBIA RIVER, OREGON AND WASHINGTON, SAN FRANCISCO MAIN SHIP CHANNEL, CALIFORNIA

Place of Performance

Location: ASTORIA, CLATSOP County, OREGON, 97103

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to MANSON CONSTRUCTION CO for work described as: IGF::OT::IGF REGIONAL WEST COAST HOPPER DREDGING 2015, GRAYS HARBOR, WASHINGTON, MOUTH OF THE COLUMBIA RIVER AND THE COLUMBIA RIVER, OREGON AND WASHINGTON, SAN FRANCISCO MAIN SHIP CHANNEL, CALIFORNIA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 349 days indicates a significant, but not excessively long, project timeline. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The project scope covers critical West Coast waterways, vital for navigation and commerce. 5. The award amount of $26.4 million falls within a reasonable range for large-scale civil engineering projects. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business.

Value Assessment

Rating: good

The contract value of $26.4 million for dredging services appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects for waterway maintenance suggests this price is competitive. The firm-fixed-price structure provides cost certainty for the government, although it relies on the contractor's accurate cost estimation.

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 two bids suggests a moderate level of competition for this specialized service. While two bidders is better than one, a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value.

Public Impact

Benefits commercial shipping and port operations by ensuring navigable waterways. Supports economic activity reliant on maritime trade along the West Coast. Ensures continued access to key ports in California, Oregon, and Washington. Maintains critical infrastructure for national and international commerce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen dredging challenges arise, despite fixed-price contract.
Dependence on a single contractor for a critical infrastructure maintenance task.
Limited visibility into the specific operational efficiency of the contractor.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm-fixed-price contract type offers cost predictability for the government.
Scope covers essential navigation channels, ensuring continued economic activity.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging. This sector is critical for maintaining maritime infrastructure, supporting trade, and ensuring national security. The market for large-scale dredging is specialized, often dominated by a few experienced firms capable of undertaking such extensive projects. Comparable spending benchmarks for similar waterway maintenance projects can vary significantly based on location, depth, and material to be dredged.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Manson Construction Co., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary execution of the contract will be handled by the large prime contractor, with potential for small business involvement being dependent on their subcontracting strategy.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. Oversight mechanisms would typically include contract administration by the Army Corps of Engineers, performance monitoring, and potential review by the Inspector General if issues arise. Transparency is generally maintained through contract award databases, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Maritime Administration (MARAD) Grants

Risk Flags

Environmental impact considerations
Potential for unforeseen subsurface conditions
Weather-related delays
Contractor performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to MANSON CONSTRUCTION CO. IGF::OT::IGF REGIONAL WEST COAST HOPPER DREDGING 2015, GRAYS HARBOR, WASHINGTON, MOUTH OF THE COLUMBIA RIVER AND THE COLUMBIA RIVER, OREGON AND WASHINGTON, SAN FRANCISCO MAIN SHIP CHANNEL, CALIFORNIA

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 $26.4 million.

What is the period of performance?

Start: 2015-02-18. End: 2016-02-02.

What is Manson Construction Co.'s track record with similar dredging contracts?

Manson Construction Co. has a significant history of undertaking large-scale marine construction and dredging projects. They have been involved in numerous contracts with the Army Corps of Engineers and other federal agencies for maintaining and improving waterways, harbors, and ports across the United States. Their experience typically includes deep-water dredging, channel deepening, and construction of marine structures. Reviewing their past performance on similar projects, including contract values, durations, and any reported issues or successes, would provide further context on their capability and reliability for this specific award.

How does the $26.4 million award compare to historical spending on West Coast waterway dredging?

Historical spending on West Coast waterway dredging projects can vary widely based on the specific location, scope of work (e.g., depth, width, material), and the frequency of maintenance required. The $26.4 million award for this contract appears to be a substantial investment, consistent with the scale of maintaining major navigation channels like the San Francisco Main Ship Channel or the Columbia River. To provide a precise comparison, one would need to analyze historical data for similar projects in these specific regions, considering inflation and changes in dredging technology and costs over time. However, as a single award for a defined scope, it represents a significant allocation of resources for critical infrastructure.

What are the primary risks associated with this dredging contract?

The primary risks associated with this dredging contract include potential environmental challenges, such as encountering unexpected subsurface conditions (e.g., hard rock, debris, contaminated sediments) that could increase costs or delay the project, despite the firm-fixed-price structure. There's also a risk related to weather disruptions, particularly during certain seasons, which can impact project timelines. Operational risks include equipment failure and the contractor's ability to meet performance standards. Furthermore, the reliance on a single contractor for a critical infrastructure task introduces a dependency risk.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined and risks can be reasonably anticipated. For this dredging contract, the FFP structure places the burden of cost control and risk management on the contractor, Manson Construction Co. This provides the government with cost certainty, as the price is fixed regardless of the contractor's actual costs. However, if unforeseen conditions arise that significantly deviate from what was reasonably foreseeable, the contractor may seek equitable adjustments, potentially leading to cost increases. The effectiveness hinges on the accuracy of the initial cost estimates and the contractor's ability to manage their operations efficiently.

What is the significance of the contract covering multiple distinct West Coast waterways?

The significance of the contract covering multiple distinct West Coast waterways, including Grays Harbor, the Columbia River, and the San Francisco Main Ship Channel, lies in its comprehensive approach to maintaining critical navigation infrastructure across a broad geographic region. This consolidation potentially offers efficiencies by allowing a single contractor to manage multiple tasks, reducing administrative overhead and potentially leveraging economies of scale. It ensures the continued navigability of vital ports and channels essential for regional and national commerce, supporting economic activity and supply chain resilience along the Pacific coast.

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: W9127N15B0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Manson Construction CO. (UEI: 194097960)

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: $27,347,705

Exercised Options: $26,366,205

Current Obligation: $26,366,205

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $329,656

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline