Manson Construction awarded $32.4M contract for dredging services by the Department of the Army

Contract Overview

Contract Amount: $32,447,350 ($32.4M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2023-02-28

End Date: 2023-10-24

Contract Duration: 238 days

Daily Burn Rate: $136.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to MANSON CONSTRUCTION CO for work described as: DREDGING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 3. The duration of 238 days suggests a focused scope of work for the dredging project. 4. The award was made by the Department of the Army, a significant federal agency. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The contract was awarded in Louisiana, potentially indicating a specific regional need for dredging.

Value Assessment

Rating: good

The contract value of $32.4 million for dredging services appears reasonable given the scope of heavy civil engineering construction. Without specific per-unit cost data or comparable project details, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests the government secured a predictable cost. Benchmarking against similar large-scale dredging projects would provide further insight into its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specific dredging project. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of the Army benefits from essential dredging services, likely for maintaining navigable waterways or supporting military infrastructure. The contract delivers heavy civil engineering construction services, specifically related to dredging operations. The geographic impact is focused on Louisiana, suggesting a need for improved or maintained water channels in that state. The workforce implications include employment opportunities for skilled labor in the construction and maritime industries within Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Dependence on a single contractor for a critical infrastructure service.
Environmental impact of large-scale dredging operations requires careful monitoring.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a fair market price was sought.
Contract duration is defined, allowing for clear project timelines and management.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is critical for maintaining and developing infrastructure related to water transportation, flood control, and environmental management. The market for large-scale dredging is often dominated by a few specialized firms due to the significant capital investment and expertise required. Comparable spending benchmarks would typically be found in Army Corps of Engineers project awards or other major port and waterway development initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large contractor, and the direct impact on the small business ecosystem may be limited unless Manson Construction actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project performance details may not always be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Port and Waterway Infrastructure Development
Coastal and Harbor Maintenance
Environmental Dredging Projects

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Environmental impact assessment and mitigation effectiveness.
Contractor's capacity to meet schedule under adverse conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to MANSON CONSTRUCTION CO. DREDGING

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 $32.4 million.

What is the period of performance?

Start: 2023-02-28. End: 2023-10-24.

What is the historical spending pattern for dredging services by the Department of the Army?

Analyzing historical spending patterns for dredging services by the Department of the Army reveals a consistent need for these services, primarily driven by the Army Corps of Engineers' mission to maintain navigable waterways, support flood control, and manage coastal erosion. Spending can fluctuate year-to-year based on specific project requirements, infrastructure investment cycles, and emergency needs (e.g., post-hurricane recovery). While specific aggregate figures require deep dives into budget appropriations and contract databases, major dredging contracts are typically awarded in the tens to hundreds of millions of dollars annually. The trend often reflects national priorities in infrastructure, trade, and environmental protection. For instance, periods of increased focus on port modernization or responses to climate change impacts on coastlines tend to correlate with higher dredging expenditures. Understanding these patterns helps contextualize the $32.4 million award to Manson Construction as part of a larger, ongoing federal commitment to water resource management.

How does the number of bidders (3) compare to similar large-scale dredging contracts?

A competition level of 3 bidders for a $32.4 million dredging contract can be considered moderate. The dredging industry, particularly for large-scale projects, is specialized and requires significant capital, equipment, and expertise. Consequently, the pool of qualified bidders is often smaller than in more general construction sectors. For contracts of this magnitude, receiving between 2 to 5 bids is not uncommon. Fewer than 2 bids might raise concerns about adequate competition and potentially higher pricing. Conversely, significantly more than 5 bids might indicate a highly competitive market or perhaps a less complex project scope. Therefore, 3 bidders suggests that the Department of the Army likely achieved a reasonable level of competition, balancing the need for specialized capabilities with the goal of securing competitive pricing for taxpayers.

What are the potential risks associated with firm fixed-price contracts for dredging?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can introduce specific risks for both parties in complex projects like dredging. For the contractor (Manson Construction), risks include underestimating project costs, encountering unforeseen subsurface conditions (e.g., harder-than-expected materials, buried obstructions), or experiencing significant delays due to weather or regulatory issues, all of which could erode profit margins or lead to losses if not adequately managed. For the government, the primary risk is that the contractor may cut corners on quality or scope to protect their profit if costs escalate beyond initial estimates, although contract specifications and oversight aim to mitigate this. Additionally, if the initial price was set too high due to limited competition or inaccurate cost estimation, the government might overpay. Effective risk mitigation involves thorough pre-bid site investigations, clear contract specifications, robust quality assurance, and contingency planning.

What is Manson Construction's track record with federal dredging contracts?

Manson Construction Co. has a significant history of performing heavy civil construction, including dredging, for various federal agencies. A review of federal procurement data indicates they have been awarded numerous contracts over the years, often for substantial amounts, by entities such as the U.S. Army Corps of Engineers, the Navy, and the Department of Transportation. Their experience spans a range of projects, from port improvements and channel deepening to marine construction and infrastructure repair. The fact that they were awarded this $32.4 million contract suggests they possess the necessary qualifications, past performance record, and competitive pricing to secure federal work. While specific details of past performance on similar projects would require deeper analysis, their sustained presence in the federal contracting landscape points to a generally reliable track record in executing complex marine construction tasks.

How does the $32.4M award compare to the total federal spending on dredging in the last fiscal year?

To accurately compare the $32.4 million award to Manson Construction against total federal spending on dredging in the last fiscal year, comprehensive data from federal procurement databases (like FPDS or SAM.gov) would be necessary. Federal spending on dredging is distributed across multiple agencies, primarily the Army Corps of Engineers (for navigation, flood control, environmental restoration), the Navy (for port access), and potentially the Department of the Interior (for certain water management projects) or the Department of Transportation (for port infrastructure). Annual federal dredging expenditures can range widely, often in the hundreds of millions, depending on infrastructure priorities, congressional appropriations, and the number of large-scale projects initiated. A single $32.4 million contract, while significant, represents a portion of this larger federal investment. Without the total figure for the last fiscal year, it's difficult to state definitively if this award is above or below average, but it is indicative of the substantial resources dedicated to maintaining and improving the nation's waterways.

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: W912P822B0004

Offers Received: 3

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: $32,447,350

Exercised Options: $32,447,350

Current Obligation: $32,447,350

Actual Outlays: $9,012,418

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $179,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline