Manson Construction Co. awarded $31.3M contract for Army Corps of Engineers' Redfish Reef project in Texas

Contract Overview

Contract Amount: $31,298,996 ($31.3M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2019-08-09

End Date: 2021-03-01

Contract Duration: 570 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HSC REDFISH REEF TO BEACON 78 HOPPER

Place of Performance

Location: GALVESTON, GALVESTON County, TEXAS, 77550

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to MANSON CONSTRUCTION CO for work described as: HSC REDFISH REEF TO BEACON 78 HOPPER Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 570 days is standard for this type of infrastructure work. 5. Awarded by the Army Corps of Engineers, indicating a focus on critical infrastructure. 6. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category.

Value Assessment

Rating: good

The contract value of $31.3 million for heavy civil engineering construction is within a typical range for projects of this nature. Benchmarking against similar Army Corps of Engineers projects for coastal or waterway infrastructure would provide a more precise value-for-money assessment. The firm-fixed-price structure generally leads to predictable costs for the government, assuming the scope is well-defined.

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. The presence of two bidders suggests a moderate level of competition for this specific project. A higher number of bidders typically leads to more aggressive pricing and 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, potentially driving down costs and ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the public through improved coastal infrastructure. The project involves heavy civil engineering construction, likely related to waterway management, flood control, or port development. The geographic impact is localized to Texas, specifically where the Redfish Reef project is situated. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not precisely defined.
Risk of unforeseen site conditions impacting schedule and cost, despite fixed-price.
Dependence on a single contractor for project completion could pose delivery risks.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process.
Awarded by a reputable agency (Army Corps of Engineers) with extensive project management experience.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects. The market for such services is substantial, driven by government investments in transportation, water resources, and defense infrastructure. Comparable spending benchmarks would involve looking at other Army Corps of Engineers projects or similar large-scale civil works contracts awarded by federal or state agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Manson Construction Co., there is no explicit information on subcontracting plans for small businesses. Further review would be needed to determine if subcontracting opportunities were offered or utilized, impacting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within budget. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly available.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Coastal Infrastructure Development
Flood Control and Navigation Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance and adherence to quality standards.
Adequacy of the competitive bidding process to ensure best value.
Environmental compliance and impact mitigation during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to MANSON CONSTRUCTION CO. HSC REDFISH REEF TO BEACON 78 HOPPER

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 $31.3 million.

What is the period of performance?

Start: 2019-08-09. End: 2021-03-01.

What is the specific nature of the 'HSC REDFISH REEF TO BEACON 78 HOPPER' project?

The contract description 'HSC REDFISH REEF TO BEACON 78 HOPPER' likely refers to a specific dredging, construction, or maintenance project within the Army Corps of Engineers' operational area, possibly related to navigation channels or coastal defenses. 'HSC' could denote a specific vessel or project designation. 'Redfish Reef' and 'Beacon 78 Hopper' are geographical or navigational markers. Without further project-specific documentation, the exact scope remains generalized under 'Other Heavy and Civil Engineering Construction'.

How does the $31.3 million award compare to similar Army Corps of Engineers projects?

Comparing the $31.3 million award requires identifying similar projects by the Army Corps of Engineers in terms of scope, complexity, and location. Projects involving dredging, breakwater construction, or significant coastal engineering typically fall within this value range. For instance, other contracts for maintaining or improving navigation channels or constructing protective structures in coastal areas could serve as benchmarks. A detailed comparison would necessitate analyzing project specifications, duration, and the specific engineering challenges addressed.

What are the potential risks associated with a firm-fixed-price contract for this type of construction?

While firm-fixed-price contracts are generally favorable for cost control, risks can still arise. For heavy civil engineering, unforeseen site conditions (e.g., unexpected soil composition, submerged obstructions) can lead to significant cost increases if not adequately accounted for in the initial bid or if change orders become extensive. Contractor performance issues, material price volatility beyond reasonable expectations, or complex logistical challenges can also strain the fixed price. Effective government oversight and a well-defined scope are crucial to mitigating these risks.

What does the 'Other Heavy and Civil Engineering Construction' NAICS code (237990) typically encompass?

NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' covers establishments primarily engaged in constructing heavy and civil engineering projects not elsewhere classified. This includes projects such as marine construction (dredging, docks, piers, seawalls), flood control projects, canals, dams, reservoirs, and tunnels. It represents a broad category for large-scale infrastructure projects that don't fit into more specific construction classifications like highway, street, or bridge construction.

What is the significance of the contract award date (2019-08-09) and end date (2021-03-01) in relation to the project's execution?

The award date of August 9, 2019, and the end date of March 1, 2021, indicate a contract duration of approximately 1 year and 7 months (570 days). This timeframe suggests a project of moderate complexity and scale. The period between the award and completion allows for planning, mobilization, execution, and closeout. The duration is crucial for assessing the contractor's resource allocation and the project's impact on the local environment and economy.

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: W912HY19B0018

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: $31,508,996

Exercised Options: $31,298,996

Current Obligation: $31,298,996

Actual Outlays: $5,784,588

Subaward Activity

Number of Subawards: 85

Total Subaward Amount: $9,836,937

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline