Manson Construction awarded $22.5M contract for Southwest Pass dredging, a critical infrastructure project

Contract Overview

Contract Amount: $22,518,800 ($22.5M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2026-01-17

End Date: 2027-04-08

Contract Duration: 446 days

Daily Burn Rate: $50.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOUTHWEST PASS - DREDGING

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to MANSON CONSTRUCTION CO for work described as: SOUTHWEST PASS - DREDGING Key points: 1. The contract's firm fixed-price structure aims to control costs for this essential waterway maintenance. 2. Full and open competition suggests a potentially competitive bidding process, which can benefit price discovery. 3. The duration of the contract (446 days) indicates a significant, ongoing need for dredging services. 4. The project's location in Louisiana highlights its importance to regional and national maritime commerce. 5. This award falls within the 'Other Heavy and Civil Engineering Construction' NAICS code, a broad category.

Value Assessment

Rating: good

The contract value of $22.5 million for a 446-day dredging project appears reasonable given the scope. While specific benchmarks for this exact type of dredging are not provided, the firm fixed-price nature suggests an effort to lock in costs. Comparing this to similar Army Corps of Engineers dredging contracts in the Gulf Coast region would provide further insight into its value-for-money.

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 bidders suggests a moderate level of competition for this specific contract. A higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition generally leads to better price discovery, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Benefits commercial shipping and trade by maintaining navigable depths in the Southwest Pass. Ensures the continued flow of goods and materials through this vital Louisiana port. Supports the regional economy in Louisiana through infrastructure maintenance and associated activities. Impacts the maritime workforce involved in dredging operations and port logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen conditions arise during dredging.
Dependence on a single contractor for a critical infrastructure maintenance task.
Environmental impacts associated with large-scale dredging operations.

Positive Signals

Firm fixed-price contract helps mitigate cost uncertainty for the government.
Awarded through full and open competition, suggesting a competitive process.
Contract duration aligns with the sustained need for waterway maintenance.

Sector Analysis

This contract falls under the heavy and civil engineering construction sector, specifically focusing on dredging. This sector is crucial for maintaining and developing national infrastructure, including ports, waterways, and coastal defenses. The Army Corps of Engineers is a major client in this space, awarding numerous contracts for similar projects to ensure navigability and protect coastlines. Market size for dredging services is substantial, driven by both commercial needs and government infrastructure investment.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside. The contractor, Manson Construction Co., is a large business. There is no specific information provided regarding subcontracting plans for small businesses, which could represent missed opportunities for the small business ecosystem in this sector.

Oversight & Accountability

The Army Corps of Engineers typically has robust oversight mechanisms for its construction contracts, including site inspections, progress reports, and quality assurance procedures. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified services within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be limited.

Related Government Programs

Army Corps of Engineers Dredging Contracts
Inland Waterways Navigation Projects
Port Infrastructure Maintenance
Gulf Coast Maritime Commerce Support

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Environmental compliance monitoring is crucial.
Contractor's ability to mobilize and maintain equipment effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to MANSON CONSTRUCTION CO. SOUTHWEST PASS - 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 $22.5 million.

What is the period of performance?

Start: 2026-01-17. End: 2027-04-08.

What is the historical spending by the Department of the Army on dredging services in Louisiana?

Historical spending data for the Department of the Army on dredging services in Louisiana is extensive, reflecting the critical role of the state's waterways. While precise figures for specific past contracts are not readily available in this context, the Army Corps of Engineers consistently allocates significant funds annually to maintain and improve navigation channels. This includes projects for the Mississippi River, its tributaries, and various port facilities. Factors influencing spending include the volume of material to be dredged, the type of dredging equipment required, environmental regulations, and the specific location's accessibility. The recurring nature of dredging needs, driven by natural sedimentation and increased vessel traffic, ensures a continuous demand and associated budgetary allocations for these services.

How does the per-day cost of this contract compare to similar dredging projects?

To benchmark the per-day cost of this $22.5 million contract, which spans approximately 446 days, we can estimate a daily rate. This yields roughly $50,448 per day. Comparing this to similar dredging projects requires access to a database of comparable contracts, including factors like the type of dredging (e.g., hopper, cutterhead), the material being dredged (e.g., sand, silt, rock), the location, and the specific equipment used. Generally, larger, more complex projects or those in challenging environments command higher daily rates. Without specific comparative data for recent Army Corps of Engineers dredging contracts in the Gulf Coast region, it is difficult to definitively state whether this rate is high or low. However, the firm fixed-price nature suggests the contractor has factored in anticipated costs and risks.

What are the potential risks associated with this specific dredging contract?

Several risks are associated with this dredging contract. Firstly, unforeseen subsurface conditions (e.g., buried debris, hard rock formations) could increase dredging time and costs, although the firm fixed-price contract aims to mitigate this for the government. Secondly, environmental risks, such as the discovery of contaminated sediments or impacts on sensitive marine habitats, could lead to project delays or require additional mitigation measures. Thirdly, equipment breakdowns or labor shortages could impact the contractor's ability to meet the schedule. Finally, weather-related disruptions, particularly during hurricane season in Louisiana, pose a significant risk to the project timeline. The contract's duration and the nature of dredging work inherently carry operational risks.

What is the track record of Manson Construction Co. in performing similar federal contracts?

Manson Construction Co. has a significant track record of performing large-scale marine construction and dredging projects for federal agencies, including the U.S. Army Corps of Engineers. Their portfolio often includes contracts for port improvements, channel deepening, and coastal restoration. Publicly available contract data indicates they have been awarded numerous contracts over the years, demonstrating their capacity and experience in this specialized field. While a detailed analysis of their past performance on specific contracts, including any instances of disputes, delays, or cost overruns, would require deeper research into contract close-out reports and performance evaluations, their continued success in winning competitive bids suggests a generally positive performance history.

How does the competition level (2 bidders) impact the value for taxpayers?

A competition level of two bidders for this contract suggests a moderate, rather than robust, competitive environment. While competition is generally beneficial for taxpayers, a limited number of bidders can reduce the downward pressure on pricing. If only two firms possess the specialized equipment and expertise required for this type of dredging, they may have more leverage in their pricing strategies. This could potentially lead to a higher contract price than if there were, for example, five or more bidders actively competing. Therefore, while the contract was awarded through 'full and open competition,' the limited number of actual bidders might mean that the price achieved is not as low as it could have been under more intense competition.

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: W912P825B0018

Offers Received: 2

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: $27,572,000

Exercised Options: $22,518,800

Current Obligation: $22,518,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline