Army awards $77.1M dredging contract to Manson Construction Co. for West Coast maintenance

Contract Overview

Contract Amount: $77,101,047 ($77.1M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2023-05-01

End Date: 2025-03-30

Contract Duration: 699 days

Daily Burn Rate: $110.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WEST COAST HOPPER MAINTENANCE DREDGING 2023

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $77.1 million to MANSON CONSTRUCTION CO for work described as: WEST COAST HOPPER MAINTENANCE DREDGING 2023 Key points: 1. Contract value represents a significant investment in critical maritime infrastructure. 2. Manson Construction Co. has a history of performing large-scale civil engineering projects. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. Project duration of nearly two years suggests a substantial scope of work. 5. Geographic focus on the West Coast highlights regional infrastructure needs. 6. The contract falls under heavy and civil engineering construction, a vital sector.

Value Assessment

Rating: good

The contract value of $77.1 million for dredging services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has secured a defined cost, assuming the contractor's bid was competitive and accounted for all potential risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This competitive process is expected to drive down costs and ensure the government receives the best value. The number of bids received and the range of pricing 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 leads to more favorable pricing and a wider selection of qualified contractors.

Public Impact

Ensures continued navigability of West Coast ports and waterways, facilitating commerce and trade. Supports the U.S. Army Corps of Engineers' mission to maintain vital federal navigation channels. Benefits maritime industries, including shipping, fishing, and recreational boating, by ensuring access. Potentially creates or sustains jobs in the construction and maritime sectors along the West Coast. Contributes to the economic vitality of regions dependent on maritime transportation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price structure.
Environmental compliance challenges could lead to delays or increased costs.
Dependence on a single contractor for a critical infrastructure service.
Weather-related delays could impact project timelines and potentially costs if not adequately managed.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a robust bidding process and potential for competitive pricing.
Contractor's experience in heavy civil engineering likely ensures technical capability.
Clear project scope and defined deliverables reduce ambiguity.
Project duration allows for methodical execution and quality control.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is critical for maintaining and improving national infrastructure, including ports, waterways, and coastal defenses. The market for large-scale dredging services is specialized, often dominated by a few experienced firms capable of undertaking such extensive projects. The Army Corps of Engineers is a major client in this space, frequently awarding contracts for maintaining federal navigation channels.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The scale of this project suggests that large, specialized firms are likely to be the primary contractors, with potential for smaller businesses to participate as subcontractors if opportunities arise.

Oversight & Accountability

The contract is managed by the Department of the Army, likely under the purview of the Army Corps of Engineers, which has established oversight mechanisms for infrastructure projects. The firm fixed-price contract type provides a degree of financial oversight by locking in costs. Transparency would be enhanced by public reporting on project milestones, expenditures, and any modifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Waterway Dredging Contracts
Maritime Infrastructure Projects
Federal Navigation Channel Maintenance

Risk Flags

Potential for environmental impact during dredging operations.
Risk of encountering unforeseen subsurface conditions.
Dependence on weather conditions for timely execution.
Long-term maintenance needs beyond this contract's scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.1 million to MANSON CONSTRUCTION CO. WEST COAST HOPPER MAINTENANCE DREDGING 2023

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 $77.1 million.

What is the period of performance?

Start: 2023-05-01. End: 2025-03-30.

What is Manson Construction Co.'s track record with similar large-scale dredging or civil engineering projects for the federal government?

Manson Construction Co. has a significant history of performing large-scale civil engineering and marine construction projects. While specific dredging contract details are not provided in this data, their portfolio typically includes major infrastructure work such as bridge construction, port development, and other heavy civil projects. Their experience in complex marine environments suggests a capability to handle the technical demands of this dredging contract. A deeper dive into their past performance on Army Corps of Engineers projects or similar federal contracts would reveal their specific success rates, any past performance issues, and their ability to manage large budgets and timelines effectively.

How does the awarded amount of $77.1 million compare to historical spending on West Coast dredging maintenance by the Army Corps of Engineers?

To benchmark the $77.1 million award, historical spending data for similar West Coast dredging maintenance contracts by the Army Corps of Engineers would be necessary. Without direct comparative data, it's challenging to definitively assess if this amount is high or low. However, considering the scale of West Coast ports and the ongoing need for channel maintenance due to sedimentation and vessel traffic, this figure appears to be within the expected range for a multi-year, large-scale project. Factors such as the specific channels being dredged, the volume of material to be removed, and the environmental requirements of the region would influence the overall cost.

What are the primary risks associated with this specific dredging contract, and how are they being mitigated?

The primary risks for this contract include unforeseen subsurface conditions (e.g., encountering unexpected debris or rock), environmental compliance issues (e.g., managing dredged material disposal, protecting marine life), and potential weather delays impacting the schedule. The firm fixed-price contract structure mitigates financial risk for the government by capping the contractor's potential profit and placing the burden of cost overruns on Manson Construction Co. Mitigation for technical and environmental risks would rely on thorough site investigations prior to bidding, detailed contract specifications, and robust project management and monitoring by the Army Corps of Engineers. Weather contingency planning is also a standard practice in such contracts.

What is the expected impact of this contract on the navigability and economic activity of West Coast ports?

This contract is crucial for maintaining and improving the navigability of key West Coast ports and federal navigation channels. By removing accumulated sediment, dredging ensures that channels remain at their authorized depths and widths, allowing larger vessels to access ports safely and efficiently. This directly supports economic activity by facilitating the smooth flow of goods, reducing shipping costs, and enhancing the competitiveness of West Coast ports in global trade. Reliable access for maritime commerce underpins regional economies that rely heavily on port operations and related industries.

What are the implications of awarding a large contract like this under 'full and open competition' for taxpayer value?

Awarding a contract of this magnitude under 'full and open competition' is generally beneficial for taxpayers. It signals that the government actively sought bids from all responsible sources, fostering a competitive environment. This competition typically drives down prices as contractors vie for the award, leading to a more cost-effective outcome for the government compared to sole-source or limited competition scenarios. Furthermore, it ensures that the selected contractor is deemed capable and offers the best value, balancing price with technical qualifications and past performance, thereby maximizing the return on taxpayer investment in critical infrastructure.

How does the duration of the contract (699 days) influence the assessment of its value and potential risks?

The contract duration of 699 days (approximately 23 months) indicates a substantial and complex scope of work, likely involving extensive dredging operations across multiple locations or a significant volume of material removal. From a value perspective, a longer duration can sometimes allow for more efficient operations and potentially better pricing per unit of work, as the contractor can amortize mobilization and setup costs over a longer period. However, it also increases the exposure to risks such as market fluctuations, potential changes in environmental regulations, and the contractor's long-term financial stability. For the government, a longer duration requires sustained oversight and management.

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: W9127N23B0003

Offers Received: 1

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: $92,008,547

Exercised Options: $77,101,047

Current Obligation: $77,101,047

Actual Outlays: $10,938,415

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $181,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline