Manson Construction Co. awarded $31.6M for dredging services, a definitive contract with a firm fixed price

Contract Overview

Contract Amount: $31,636,629 ($31.6M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2006-10-27

End Date: 2013-12-30

Contract Duration: 2,621 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING, FIRST CYCLE

Place of Performance

Location: SOUTH EL MONTE, LOS ANGELES County, CALIFORNIA, 91733

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to MANSON CONSTRUCTION CO for work described as: DREDGING, FIRST CYCLE Key points: 1. The contract value of $31.6 million represents a significant investment in essential maritime infrastructure. 2. Competition dynamics for this contract were robust, indicating potential for competitive pricing. 3. The firm fixed-price structure shifts cost risk to the contractor, potentially benefiting the government. 4. The contract duration of over 7 years suggests a long-term need for these services. 5. The dredging sector is critical for maintaining navigable waterways, supporting trade and defense. 6. The award to Manson Construction Co. highlights their established presence in heavy civil engineering.

Value Assessment

Rating: good

The $31.6 million award for dredging services appears reasonable given the contract's duration and scope. While specific benchmarks for this exact type of dredging project are not readily available, the firm fixed-price nature of the contract suggests that the government secured a predictable cost. Comparing this to other large-scale civil engineering projects, the price point seems aligned with industry standards for complex, long-term infrastructure work. The absence of significant modifications or overruns, if applicable, would further support its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The fact that it was competed openly is a positive sign for price discovery and ensures that the government received offers from a range of qualified contractors. The specific number of bidders is not provided, but the 'full and open' designation implies a competitive process that likely drove down costs compared to a sole-source or limited competition scenario.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors. This approach maximizes the chances of securing the best value for public funds.

Public Impact

Benefits the U.S. Army Corps of Engineers and the Department of Defense by ensuring navigable waterways for military and commercial purposes. Delivers essential dredging services to maintain and improve maritime infrastructure. Geographic impact is primarily focused on areas requiring waterway maintenance within the Army Corps' jurisdiction, likely in California given the 'SN' field. Workforce implications include employment opportunities for skilled labor in the construction and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by firm fixed-price.
Dependence on a single contractor for a critical, long-term service.
Environmental impact of large-scale dredging operations requires careful monitoring.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process.
Contract awarded to a known entity in heavy construction, implying experience.

Sector Analysis

The dredging industry is a specialized segment within heavy and civil engineering construction, crucial for maintaining ports, harbors, and inland waterways. This contract falls under the broader category of infrastructure development and maintenance, a sector that sees consistent government investment. The market size for dredging services is substantial, driven by global trade and national security needs. Comparable spending benchmarks would typically be found within Army Corps of Engineers project portfolios for similar waterway maintenance and improvement initiatives.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, Manson Construction Co., is a large business. There is no explicit information on subcontracting plans for small businesses within this data. The focus on a large prime contractor may limit direct opportunities for small businesses unless they are engaged as subcontractors by Manson Construction Co.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the awarding agency, the Department of the Army, and potentially the Department of Defense's Inspector General. Mechanisms would include contract performance reviews, site inspections, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided in this data snippet.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Harbor Maintenance
Maritime Transportation System
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for environmental impact
Risk of unforeseen site conditions
Long-term contract dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to MANSON CONSTRUCTION CO. DREDGING, FIRST CYCLE

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 $31.6 million.

What is the period of performance?

Start: 2006-10-27. End: 2013-12-30.

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

Historical spending on dredging by the Department of the Army, particularly through the Army Corps of Engineers, is substantial and consistent, reflecting the ongoing need to maintain navigable waterways. Annual budgets for dredging and related civil works projects often run into the hundreds of millions, and sometimes billions, of dollars. This spending is driven by factors such as aging infrastructure, increased shipping volumes, and environmental regulations. Analyzing past contracts reveals trends in pricing, contractor performance, and the types of dredging activities prioritized, such as channel deepening, maintenance dredging, and environmental restoration projects. The $31.6 million awarded to Manson Construction Co. for this specific cycle fits within the broader historical context of significant, long-term investments in this critical infrastructure sector.

How does Manson Construction Co.'s track record compare for similar dredging contracts?

Manson Construction Co. has a significant track record in heavy civil engineering and marine construction, including dredging projects. Their history with the Army Corps of Engineers and other federal agencies suggests experience with large-scale infrastructure work. To assess their performance on similar contracts, one would typically examine past contract awards, any reported performance issues or disputes, and their success rate in winning competitive bids. A review of their project portfolio would likely show a capacity for handling complex dredging operations. Without specific performance ratings or detailed historical data on this particular contractor's past dredging awards, a direct comparison is limited, but their established presence in the industry implies a level of competence.

What are the primary risks associated with this type of dredging contract?

The primary risks associated with large-scale dredging contracts like this one include environmental risks, such as the disturbance of sensitive habitats or the improper disposal of dredged material, which can lead to regulatory issues and project delays. Operational risks involve potential equipment failures, adverse weather conditions impacting work schedules, and unforeseen subsurface geological conditions that could increase costs or complexity. Furthermore, there's a risk of cost escalation if the firm fixed-price contract doesn't adequately account for all potential variables, although this is mitigated by the contract type. Finally, schedule delays can have cascading effects on downstream projects or port operations, impacting economic activity.

How effective are firm fixed-price contracts in managing costs for long-term infrastructure projects like dredging?

Firm fixed-price (FFP) contracts are generally considered effective in managing costs for projects where the scope of work is well-defined and risks can be reasonably estimated. For dredging, an FFP contract shifts the primary cost risk to the contractor, incentivizing them to manage their resources efficiently and control expenses. This provides budget certainty for the government. However, if unforeseen conditions arise that were not reasonably foreseeable during the bidding process, the contractor may seek adjustments, or the project could face significant challenges if the FFP price is too low to cover necessary work. The success of an FFP contract often hinges on the thoroughness of the initial scope definition and risk assessment.

What is the typical duration and value range for Army Corps of Engineers dredging contracts?

The duration and value range for Army Corps of Engineers dredging contracts can vary significantly based on the project's scope, location, and complexity. Routine maintenance dredging contracts might be shorter-term (1-3 years) and valued in the single-digit millions. However, larger capital projects, such as channel deepening, harbor expansions, or major maintenance initiatives, can extend over several years (5-10+ years) and easily reach tens or even hundreds of millions of dollars. The $31.6 million award over approximately 7 years for this contract falls within the mid-to-upper range for significant, long-term dredging efforts, indicative of a substantial infrastructure undertaking.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PL06B0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5209 E MARGINAL WAY S, SEATTLE, WA, 98134

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,542,375

Exercised Options: $31,828,625

Current Obligation: $31,636,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline