DOD Awards $39.5M for Hydraulic Beach Fill to Manson Construction Co

Contract Overview

Contract Amount: $39,454,596 ($39.5M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2015-01-16

End Date: 2017-03-31

Contract Duration: 805 days

Daily Burn Rate: $49.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF HYDRAULIC BEACH FILL.

Place of Performance

Location: DEAL, MONMOUTH County, NEW JERSEY, 07723

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to MANSON CONSTRUCTION CO for work described as: IGF::OT::IGF HYDRAULIC BEACH FILL. Key points: 1. Significant contract value of $39.5 million awarded. 2. Sole-source award raises questions about competition and price discovery. 3. Construction sector contract with potential environmental and infrastructure implications. 4. Long contract duration of 805 days. 5. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $39.5 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar heavy civil engineering construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying a premium for the services rendered.

Public Impact

Impacts coastal infrastructure and potentially environmental conditions. Award to a single large contractor may limit broader economic benefits. Transparency in sole-source justifications is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically for hydraulic beach fill. Spending in this sector can be project-specific and influenced by environmental regulations and infrastructure needs.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that opportunities for small businesses in this specific project were either not sought or not realized.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award is robust and that the contractor delivers the required services effectively and efficiently within the fixed price.

Related Government Programs

Risk Flags

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, nj, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to MANSON CONSTRUCTION CO. IGF::OT::IGF HYDRAULIC BEACH FILL.

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 $39.5 million.

What is the period of performance?

Start: 2015-01-16. End: 2017-03-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without further details, it's impossible to ascertain the specific reasons for this award. Agencies are expected to document these justifications thoroughly and explore competitive options whenever feasible to ensure best value for the government.

How does the $39.5 million contract value compare to industry benchmarks for similar hydraulic beach fill projects of comparable scale and complexity?

Benchmarking this $39.5 million contract requires detailed analysis of project scope, location, environmental factors, and specific fill materials. Given the sole-source nature, direct comparison is challenging. However, reviewing historical data for similar DOD or other federal projects, adjusted for inflation and regional cost differences, could provide an indicative range for fair pricing.

What are the potential risks associated with a sole-source award in heavy construction, particularly concerning project timelines and quality?

Sole-source awards in heavy construction can carry risks such as inflated costs due to lack of competition, potential for schedule delays if the contractor faces unforeseen issues without competitive pressure to mitigate them, and quality concerns if oversight is not rigorous. The absence of competitive tension might reduce the contractor's incentive to innovate or optimize processes.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DS15B0002

Offers Received: 4

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: $39,454,596

Exercised Options: $39,454,596

Current Obligation: $39,454,596

Subaward Activity

Number of Subawards: 51

Total Subaward Amount: $7,757,681

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2015-01-16

Current End Date: 2017-03-31

Potential End Date: 2017-03-31 00:00:00

Last Modified: 2021-02-25

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