Army awards $22.6M dredging contract to Manson Construction Co. for West Coast maintenance

Contract Overview

Contract Amount: $22,616,704 ($22.6M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2024-12-15

Contract Duration: 258 days

Daily Burn Rate: $87.7K/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 2024

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to MANSON CONSTRUCTION CO for work described as: WEST COAST HOPPER MAINTENANCE DREDGING 2024 Key points: 1. Contract value appears reasonable for large-scale civil engineering projects. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a clear scope of work. 4. Fixed-price structure shifts risk to the contractor. 5. Project duration of 258 days is standard for this type of work. 6. Geographic focus on Oregon aligns with West Coast infrastructure needs.

Value Assessment

Rating: good

The contract value of $22.6 million for dredging services is substantial and aligns with typical costs for major civil engineering projects. Benchmarking against similar Army Corps of Engineers contracts for hopper dredging on the West Coast would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor has a strong incentive to manage costs effectively, which can be beneficial 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. This approach generally fosters a competitive environment, leading to potentially better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation implies a robust selection process.

Taxpayer Impact: A competitive bidding process for this dredging contract is favorable for taxpayers, as it increases the likelihood of securing services at a fair market price and encourages cost efficiency from the winning bidder.

Public Impact

Benefits the U.S. Army Corps of Engineers by ensuring navigable waterways. Delivers essential maintenance dredging services along the West Coast, specifically Oregon. Supports maritime commerce and port operations by maintaining channel depths. Impacts the construction and maritime workforce through employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial dredging estimates are inaccurate.
Environmental impact mitigation requirements need careful monitoring.
Weather delays could impact project timeline and costs if not adequately planned for.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market for these services.
Experienced contractor likely to deliver quality work efficiently.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is critical for maintaining national infrastructure, particularly ports and waterways essential for trade and defense. The market for specialized dredging services is often concentrated among a few experienced firms, making competitive bidding crucial for ensuring value.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award. While Manson Construction Co. is a large entity, the potential for subcontracting opportunities with smaller, specialized firms within the dredging or support services ecosystem exists, though not explicitly mandated by the contract type.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for ensuring adherence to contract terms, quality standards, and environmental regulations. The firm fixed-price nature provides a degree of accountability for the contractor to deliver within the agreed budget. Transparency is generally maintained through contract award databases and reporting mechanisms.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Grants
Maritime Administration (MARAD) Programs
Federal Highway Administration (FHWA) Construction Projects

Risk Flags

Potential environmental impact
Weather-related delays
Unforeseen subsurface conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to MANSON CONSTRUCTION CO. WEST COAST HOPPER MAINTENANCE DREDGING 2024

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 $22.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2024-12-15.

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

Manson Construction Co. has a significant history of performing large-scale marine construction and dredging projects for the U.S. Army Corps of Engineers and other federal agencies. Their experience typically includes hopper dredging, pipeline dredging, and related civil works. Reviewing past performance evaluations and contract completion records for similar projects would provide insight into their reliability, quality of work, and ability to meet deadlines and budget constraints. Specific data on past performance ratings and any disputes or claims filed would offer a more granular assessment of their suitability for this contract.

How does the awarded amount compare to the estimated cost or budget for this dredging project?

The awarded amount of $22,616,703.80 represents the total value of the definitive contract. Without access to the government's independent cost estimate or the specific budget allocated for the 'WEST COAST HOPPER MAINTENANCE DREDGING 2024' project, a direct comparison is difficult. However, the fact that it was awarded under full and open competition suggests that the bids received were considered competitive and within an acceptable range relative to the government's expectations. Further analysis would require comparing this award to similar dredging projects undertaken by the Army Corps of Engineers in the same region and timeframe.

What are the primary risks associated with this type of dredging contract?

Key risks for this dredging contract include environmental compliance, as dredging can impact marine ecosystems and require adherence to strict environmental regulations. Unforeseen subsurface conditions (e.g., hard rock, debris) could lead to delays and cost overruns, although the firm fixed-price contract shifts much of this financial risk to the contractor. Weather-related delays, particularly on the West Coast, can also impact the project schedule. Furthermore, the availability and cost of suitable disposal sites for dredged material present logistical and regulatory challenges.

How effective is the firm fixed-price contract type in ensuring value for this project?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value when the scope of work is well-defined and risks can be reasonably anticipated. For a maintenance dredging project like this, where the primary objective is to remove a specified volume of material from designated areas, an FFP contract incentivizes the contractor to perform efficiently and control costs. The contractor assumes the risk of cost overruns, which should be reflected in their bid price. This structure provides cost certainty for the government and encourages the contractor to manage resources effectively to maximize profit.

What is the historical spending trend for West Coast hopper maintenance dredging by the Army Corps of Engineers?

Historical spending on West Coast hopper maintenance dredging by the Army Corps of Engineers has likely fluctuated based on infrastructure needs, funding appropriations, and environmental factors. Major ports and navigation channels require regular maintenance to ensure navigability for commercial and military vessels. Spending patterns are influenced by the condition of federal channels, the volume of maritime traffic, and the availability of federal funds allocated for civil works projects. Analyzing multi-year spending data for similar contracts in Oregon, Washington, and California would reveal trends in contract values, frequency, and the types of services procured.

What are the implications of the definitive contract award type for project management and oversight?

A definitive contract, often used for projects with a clearly defined scope and duration, provides a stable framework for project execution. For this dredging contract, it implies that the requirements, specifications, and deliverables were well-established prior to award. This clarity simplifies oversight for the Army Corps of Engineers, allowing them to focus on monitoring performance against the defined terms, ensuring quality control, and verifying compliance with environmental and safety standards. The fixed price and defined period (April 1 to December 15, 2024) offer clear benchmarks for progress and accountability.

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: W9127N24B0003

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: $28,391,704

Exercised Options: $22,616,704

Current Obligation: $22,616,704

Actual Outlays: $14,618,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline