DoD awards $38.4M dredging contract to Manson Construction Co. for Louisiana operations

Contract Overview

Contract Amount: $38,422,905 ($38.4M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2025-02-01

End Date: 2025-09-27

Contract Duration: 238 days

Daily Burn Rate: $161.4K/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 $38.4 million to MANSON CONSTRUCTION CO for work described as: DREDGING Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs by establishing a set price. 3. The contract duration of 238 days indicates a focused, short-term project. 4. Awarded by the Department of the Army, this contract supports critical infrastructure maintenance. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The contract is for dredging services, essential for maintaining navigable waterways.

Value Assessment

Rating: good

The contract value of $38.4 million for dredging services appears reasonable given the scope of heavy civil engineering construction. Without specific details on the volume of material to be dredged or the complexity of the site, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests an effort to ensure cost certainty for the government. Benchmarking against similar large-scale dredging projects would provide a more definitive assessment of value for money.

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 requirement. A higher number of bidders typically leads to more competitive pricing, but the specific nature of specialized dredging services can sometimes limit the pool of qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The fact that multiple bids were received suggests that the government likely secured a fair market price for the dredging services.

Public Impact

The primary beneficiaries are the Department of Defense and potentially commercial entities relying on the affected waterways. The contract will deliver essential dredging services to maintain or improve navigation. The geographic impact is localized to Louisiana, specifically the area designated by the contract. The contract supports the heavy civil engineering construction workforce, likely involving skilled laborers and equipment operators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions significantly increase dredging complexity.
Dependence on specialized equipment and skilled labor, which could face availability constraints.
Environmental impact mitigation requirements could add to project costs and timelines.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a competitive bidding process.
Contract duration is defined, allowing for focused project management and resource allocation.

Sector Analysis

Dredging falls under the broader heavy and civil engineering construction sector, which is critical for maintaining and developing infrastructure such as ports, waterways, and flood control systems. The market for specialized dredging services is often characterized by a limited number of highly capable firms due to the significant capital investment required for specialized equipment. This contract represents a specific instance of federal investment in maintaining vital maritime infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Given the specialized nature and scale of major dredging projects, it is common for prime contracts to be awarded to larger firms with the necessary resources and expertise. However, opportunities may exist for small businesses to participate as subcontractors to the prime contractor, Manson Construction Co.

Oversight & Accountability

The Department of the Army, as the awarding agency, will be responsible for overseeing the performance of this contract. Oversight mechanisms likely include contract administration, progress monitoring, and quality assurance checks to ensure compliance with the contract terms and specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Inland Waterways Trust Fund
Port Infrastructure Development Program
Coastal Navigation Dredging Projects

Risk Flags

Unforeseen subsurface conditions
Environmental compliance challenges
Equipment availability and maintenance
Schedule adherence risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 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 $38.4 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-09-27.

What is the historical spending pattern for dredging services by the Department of Defense in Louisiana?

Analyzing historical spending by the Department of Defense (DoD) for dredging in Louisiana requires access to detailed federal procurement data. Typically, the Army Corps of Engineers, a component of the DoD, is heavily involved in waterway maintenance and infrastructure projects, including dredging, in coastal and riverine areas like Louisiana. Historical data would likely show recurring investments in maintaining navigation channels, port access, and flood control structures. The frequency and magnitude of these awards can fluctuate based on infrastructure needs, environmental conditions (e.g., hurricane impacts), and budget allocations. Without specific historical contract data for this region and service type, it's challenging to provide precise figures, but it's reasonable to assume consistent, significant federal investment in maintaining Louisiana's critical waterways.

How does the awarded amount of $38.4 million compare to other recent large-scale dredging contracts awarded by federal agencies?

Comparing the $38.4 million award to other large-scale federal dredging contracts requires a benchmark of similar projects. Major dredging projects, especially those involving significant material removal, complex environmental considerations, or extensive channel deepening/widening, can range from tens of millions to hundreds of millions of dollars. For instance, large port deepening projects or major hurricane-related recovery dredging efforts often exceed this amount. Conversely, smaller maintenance dredging tasks or projects in less demanding environments might be awarded for less. The firm-fixed-price nature of this contract suggests a defined scope, and the $38.4 million figure appears to be within the typical range for substantial, but not exceptionally massive, federal dredging contracts, particularly for specific project phases or locations.

What are the key performance indicators (KPIs) likely being used to evaluate Manson Construction Co.'s performance on this contract?

Key performance indicators (KPIs) for a dredging contract typically focus on efficiency, quality, safety, and environmental compliance. For Manson Construction Co., likely KPIs would include the volume of material dredged per unit of time (e.g., cubic yards per day), adherence to specified dredging depths and tolerances, equipment operational uptime, and project schedule adherence. Safety performance, measured by incident rates (e.g., lost time injury frequency rate), is paramount. Environmental KPIs would involve compliance with permits, proper disposal of dredged material, and minimization of turbidity or other environmental impacts. Meeting these KPIs ensures the project is completed on time, within budget, and to the required specifications, maintaining the integrity of the waterway.

What is Manson Construction Co.'s track record with federal dredging contracts, particularly with the Department of Defense?

Manson Construction Co. has a significant history of performing heavy civil construction, including dredging, for various government agencies. A review of federal procurement databases would reveal numerous past awards to Manson for similar services. Their experience likely includes projects for the U.S. Army Corps of Engineers, which is the primary federal entity responsible for civil works and navigation projects. Assessing their track record would involve examining past performance evaluations, any history of contract disputes or claims, and their success in completing projects on schedule and within budget. Generally, companies awarded large federal contracts like this one have demonstrated a capacity to handle complex projects and meet stringent government requirements.

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

Potential risks for this dredging contract include encountering unforeseen subsurface conditions (e.g., hard rock, debris, hazardous materials) that could increase costs and delay the schedule. Environmental risks, such as exceeding turbidity limits or discovering protected species, could lead to work stoppages or require costly mitigation measures. Equipment failure or breakdown is another risk, given the intensive use of specialized machinery. Mitigation strategies typically involve thorough site investigations prior to award, contingency planning for unexpected conditions, robust environmental monitoring protocols, and maintaining backup equipment or readily available repair services. The firm-fixed-price contract structure incentivizes the contractor to proactively manage these risks to avoid impacting their profit margin.

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: W912P824B0011

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: $38,620,905

Exercised Options: $38,422,905

Current Obligation: $38,422,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline