Manson Construction awarded $38.7M for Mississippi River dredging, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $38,724,500 ($38.7M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2020-09-08

End Date: 2022-10-05

Contract Duration: 757 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING-MISS RIVER SHIP CHANNEL

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to MANSON CONSTRUCTION CO for work described as: DREDGING-MISS RIVER SHIP CHANNEL Key points: 1. Contract value represents a substantial investment in critical waterway infrastructure. 2. Full and open competition suggests a potentially competitive bidding environment. 3. The contract duration of 757 days indicates a complex and lengthy project. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The project's geographic focus on Louisiana is key for regional commerce. 6. This award falls within the heavy civil engineering construction sector.

Value Assessment

Rating: good

The contract value of $38.7 million for dredging services appears reasonable given the scale and duration of the project. Benchmarking against similar large-scale civil engineering projects would provide further context, but the fixed-price nature suggests a degree of cost certainty for the government. The award to Manson Construction, a known entity in heavy civil construction, implies a level of confidence in their capability to deliver.

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 2 bids suggests a moderate level of competition for this significant dredging project. While more bidders could potentially drive prices lower, the fact that it was competed openly is a positive sign for price discovery and value.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which generally leads to more favorable pricing than sole-source or limited competition awards.

Public Impact

Benefits commercial shipping and navigation along the Mississippi River. Ensures continued economic activity and trade reliant on the waterway. Supports the regional economy of Louisiana through infrastructure maintenance. Potentially creates or sustains jobs in the construction and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions arise, despite fixed-price contract.
Dependence on contractor's operational efficiency and equipment availability for timely completion.
Environmental compliance risks associated with large-scale dredging operations.

Positive Signals

Fixed-price contract structure provides budget certainty for the government.
Award to an established contractor suggests a lower risk of performance failure.
Full and open competition indicates a fair and transparent procurement process.

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, particularly transportation networks like waterways. The market for large-scale dredging is often characterized by a limited number of highly specialized firms capable of undertaking such projects. The $38.7 million award is a significant sum, reflecting the substantial resources and expertise required for major channel maintenance.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large, established contractor. The impact on the small business ecosystem would depend on whether Manson Construction engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a definitive contract awarded by the Department of the Army, it would fall under the purview of the Army's contracting command and potentially the Department of Defense Inspector General for audits and investigations. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not publicly available.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
National Defense Authorization Act (Infrastructure Provisions)

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Environmental compliance monitoring is critical.
Contractor performance risk, though mitigated by FFP and track record.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to MANSON CONSTRUCTION CO. DREDGING-MISS RIVER SHIP CHANNEL

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 $38.7 million.

What is the period of performance?

Start: 2020-09-08. End: 2022-10-05.

What is the historical spending pattern for dredging the Mississippi River Ship Channel by the Army Corps of Engineers?

Historical spending on dredging the Mississippi River Ship Channel by the Army Corps of Engineers has been substantial and ongoing, reflecting the continuous need for maintenance to ensure navigability. While specific figures fluctuate annually based on project scope, funding appropriations, and environmental conditions, the total investment over decades runs into billions of dollars. These expenditures are crucial for maintaining the economic viability of the region and the nation's supply chain. The $38.7 million awarded to Manson Construction in 2020 represents a significant, but not unprecedented, single contract award within this larger, consistent federal commitment to waterway infrastructure.

How does the $38.7 million contract value compare to other similar dredging contracts awarded by the Army Corps of Engineers?

The $38.7 million contract value for the Mississippi River Ship Channel dredging is a considerable sum, placing it among significant infrastructure awards. However, the Army Corps of Engineers frequently awards contracts for major civil works projects, including dredging, that can range from tens to hundreds of millions of dollars, and sometimes even exceed a billion dollars for very large, multi-year initiatives. Factors influencing contract size include the length of channel to be dredged, the amount of material to be removed, the complexity of the material (e.g., rock vs. sediment), and the duration of the contract. This $38.7 million award appears to be a substantial, but not exceptionally outlier, value for a project of this nature and scope.

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

The primary risks associated with this dredging contract include potential environmental impacts (e.g., sediment disruption, habitat effects), unforeseen subsurface conditions (e.g., encountering unexpected rock formations or debris), and contractor performance issues (e.g., equipment failure, delays). Mitigation strategies typically involve rigorous environmental impact assessments and monitoring, detailed geotechnical surveys prior to bidding, and the use of contract types like Firm Fixed Price (FFP) which shifts cost risk to the contractor. The FFP structure incentivizes the contractor to manage costs and timelines efficiently. Furthermore, the Army Corps of Engineers employs project managers and technical experts to oversee contract performance and ensure compliance with specifications and regulations.

What is Manson Construction Co.'s track record with federal dredging contracts, particularly with the Army Corps of Engineers?

Manson Construction Co. has a significant track record of performing large-scale civil engineering and marine construction projects, including numerous dredging contracts, for the U.S. Army Corps of Engineers and other federal agencies. They are a well-established company with extensive experience in port and harbor improvements, waterway maintenance, and marine infrastructure development. Their history includes successfully completing complex projects under various contract types and conditions. The award of this $38.7 million contract by the Department of the Army suggests that Manson Construction met the technical, performance, and cost requirements deemed necessary by the agency, based on their past performance evaluations and capabilities.

How does the 'full and open competition' procurement method impact the value and efficiency of this contract?

The 'full and open competition' method is designed to maximize the pool of potential bidders, thereby fostering a competitive environment that ideally leads to better pricing and value for the government. By allowing all responsible sources to submit proposals, the agency increases the likelihood of receiving innovative solutions and cost-effective bids. In this case, with 2 bids received, the competition was present, though perhaps not as robust as it might be for less specialized or smaller contracts. The 'full and open' approach generally enhances transparency and accountability, assuring taxpayers that the contract was awarded based on merit and competitive offers, rather than restricted access.

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: W912P820B0015

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Manson Construction CO.

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: $38,724,500

Exercised Options: $38,724,500

Current Obligation: $38,724,500

Subaward Activity

Number of Subawards: 514

Total Subaward Amount: $121,680,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline