Manson Construction Co. awarded $14.1M for dredging and placement services in California

Contract Overview

Contract Amount: $14,087,060 ($14.1M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-10-19

Contract Duration: 1,114 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DREDGING, PLACEMENT AT SURFSIDE

Place of Performance

Location: ANAHEIM, ORANGE County, CALIFORNIA, 92801

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to MANSON CONSTRUCTION CO for work described as: DREDGING, PLACEMENT AT SURFSIDE Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a single, long-term agreement. 4. Project duration of over three years implies significant logistical planning. 5. Fixed-price contract shifts risk to the contractor. 6. Geographic focus on California may indicate specific regional needs.

Value Assessment

Rating: good

The contract value of approximately $14.1 million for dredging and placement services falls within a reasonable range for large-scale civil engineering projects. Without specific benchmarks for this exact type of coastal work in California, a direct per-unit cost comparison is difficult. However, the fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. The duration of the contract (over three years) also suggests a substantial undertaking.

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. This suggests a robust bidding environment, likely leading to competitive pricing. The presence of multiple bidders, though not explicitly stated in the data, is implied by the 'full and open' designation. This level of competition generally benefits the government by ensuring a wider range of options and potentially lower prices.

Taxpayer Impact: Taxpayers benefit from full and open competition through the likelihood of receiving the best possible price for the services rendered. This process minimizes the risk of overpayment and ensures that public funds are used efficiently.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers and potentially local port authorities or environmental agencies requiring coastal maintenance or development. Services delivered include dredging of waterways and placement of dredged material, crucial for maintaining navigable depths and managing environmental impacts. The geographic impact is concentrated in Surfside, California, addressing specific local environmental and infrastructure needs. Workforce implications may include employment for skilled laborers, equipment operators, and project managers within the construction and maritime industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered, though mitigated by fixed-price contract.
Environmental risks associated with dredging and material placement, requiring strict adherence to regulations.
Logistical challenges in coordinating large-scale dredging operations over an extended period.

Positive Signals

Fixed-price contract structure transfers cost risk to the contractor.
Full and open competition likely resulted in a competitive price.
Long contract duration allows for sustained focus and efficient project execution.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine construction and dredging. This sector is critical for maintaining and developing vital infrastructure such as ports, waterways, and coastal defenses. The market size for such specialized services can be substantial, driven by government and private sector needs for infrastructure upkeep and expansion. Comparable spending benchmarks would typically involve other large-scale dredging and marine construction contracts awarded by agencies like the Army Corps of Engineers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The prime contractor, Manson Construction Co., is likely a large entity capable of handling such a significant project. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of the Army, likely through the U.S. Army Corps of Engineers, which is responsible for managing civil works projects. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases and public reporting, although specific project-level oversight details may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for unforeseen subsurface conditions impacting cost and schedule.
Environmental compliance risks associated with dredging and material disposal.
Logistical complexities of managing a multi-year marine construction project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to MANSON CONSTRUCTION CO. DREDGING, PLACEMENT AT SURFSIDE

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 $14.1 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-10-19.

What is the historical spending pattern for dredging and placement services by the Department of the Army in California?

Analyzing historical spending patterns for dredging and placement services by the Department of the Army in California requires access to comprehensive federal procurement data over an extended period. While this specific contract awarded $14.1 million to Manson Construction Co. for services in Surfside, California, understanding broader trends involves looking at similar contracts awarded to various entities within the state. Factors influencing spending include infrastructure needs, environmental regulations, and budget allocations for coastal maintenance and improvement projects. Historically, the Army Corps of Engineers has been a major procurer of such services due to its mandate for maintaining navigable waterways and managing coastal erosion. Fluctuations in spending can be attributed to major storm events requiring extensive repairs, new infrastructure development initiatives, or shifts in environmental policy impacting dredging practices. A detailed analysis would involve aggregating contract data by fiscal year, contractor, and specific location within California to identify significant projects, average contract values, and the frequency of such procurements.

How does the per-unit cost of this contract compare to similar dredging projects in other regions?

Benchmarking the per-unit cost of this $14.1 million dredging and placement contract against similar projects in other regions is challenging without detailed cost breakdowns and specific project parameters. Factors such as dredging depth, material type, disposal methods, environmental mitigation requirements, and labor costs vary significantly by location and project scope. For instance, dredging in areas with hard rock or contaminated sediments will be considerably more expensive than in soft, clean material. Similarly, the cost of placing dredged material (e.g., beneficial use, confined disposal facility, offshore placement) heavily influences the overall price. While this contract is designated as 'full and open competition,' the specific number of bidders and their proposed prices are not detailed, which would be crucial for a robust comparison. Generally, coastal dredging in high-cost labor markets like California might be expected to be higher than in regions with lower operational expenses. A precise comparison would necessitate access to detailed cost data from comparable Army Corps of Engineers projects nationwide.

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

Key Performance Indicators (KPIs) for a dredging and placement contract like this typically focus on ensuring the project is completed safely, on time, within budget, and to the specified technical standards. For Manson Construction Co., these KPIs would likely include: 1. **Volume of Material Dredged and Placed:** Measuring the cubic yards or tons of material successfully removed and deposited according to project specifications. 2. **Dredging Depth and Tolerance:** Ensuring the seabed is excavated to the required depth and within acceptable tolerances to maintain navigational safety. 3. **Schedule Adherence:** Tracking progress against the project timeline, including milestones for mobilization, dredging phases, material placement, and demobilization. 4. **Environmental Compliance:** Monitoring adherence to all environmental permits and regulations, including water quality standards and disposal site requirements. 5. **Safety Performance:** Recording incident rates (e.g., lost time injuries) and compliance with safety protocols. 6. **Quality Control:** Assessing the quality of the work, including the accuracy of placement and the integrity of any engineered structures created with the dredged material. Contract administration by the Army Corps of Engineers would involve regular progress reviews and performance evaluations against these KPIs.

What is the track record of Manson Construction Co. with similar federal contracts, particularly with the Department of the Army?

Manson Construction Co. has a significant track record of performing large-scale marine construction and dredging projects, including numerous contracts with the U.S. Army Corps of Engineers. Publicly available federal procurement data indicates they have been awarded substantial contracts for work such as port improvements, breakwater construction, and channel deepening across various coastal regions of the United States. Their experience often involves complex projects requiring specialized equipment and expertise in navigating stringent environmental regulations. The Department of the Army, through its various districts of the Corps of Engineers, frequently relies on contractors like Manson for critical infrastructure maintenance and development. While specific performance ratings for individual contracts are not always public, the consistent award of large-value, complex projects suggests a history of successful execution and reliability in meeting federal requirements. This particular $14.1 million contract for dredging and placement in California aligns well with their established capabilities.

What are the potential risks associated with the 'definitive contract' type for this dredging project?

The 'definitive contract' type, in this context, likely refers to a type of contract that establishes the terms and conditions for a specific project or period, often used for complex or long-term requirements. For this dredging project, the primary risks associated with a definitive contract structure are generally related to scope definition and potential for change orders. If the full scope of work, including unforeseen subsurface conditions (e.g., encountering unexpected rock formations or debris), is not perfectly defined upfront, it can lead to change orders that increase the contract price and extend the schedule. However, since this contract is 'firm fixed price,' the contractor bears the primary financial risk for cost overruns related to the defined scope. The government's risk is more centered on ensuring the contractor adequately addresses all potential issues within the fixed price and that the final outcome meets all technical specifications. Effective contract administration and clear communication are crucial to mitigate these risks.

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: W912PL08B0005

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,887,060

Exercised Options: $14,087,060

Current Obligation: $14,087,060

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline