Army awards $39.9M contract for Long Beach port deepening and land creation project

Contract Overview

Contract Amount: $39,912,991 ($39.9M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2013-05-04

Contract Duration: 1,313 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::105152::RP# PORT OF LONG BEACH (DEEPENING) AND OTHER LONG BEACH PROJECTS, SAN PEDRO BAY, LOS ANGELES COUNTY, CA THE PROJECT CONSISTS OF FILLING THE NORTHERN PORTION OF THE SLIP G AREA TO CREATE LAND. THIS WORK INCLUDES CONSTRUCITON OF ROCK DIKE, DREDGING, FILL OPERATIONS, WICK DRAIN INSTALLATION, SETTLEMENT MONITORING, ETC. ALSO DEEPENING OF THE PORT OF LONG BEACH (POLB) TRUNING BASIN TO - 76 FT. APPROXIMATELY 600,00 CUBIC YARDS

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90802

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to MANSON CONSTRUCTION CO for work described as: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::105152::RP# PORT OF LONG BEACH (DEEPENING) AND OTHER LONG BEACH PROJECTS, SAN PEDRO BAY, LOS ANGELES COUNTY, CA THE PROJECT CONSISTS OF FILLING THE NORTHERN PORTION OF THE SLIP G AREA TO CREATE LAND. THIS WORK INCLUDES CONSTRUC… Key points: 1. Project involves significant civil engineering work including dredging, fill operations, and dike construction. 2. The contract was awarded using full and open competition, suggesting a robust bidding process. 3. The duration of the contract (over 3 years) indicates a complex and lengthy undertaking. 4. The project's location in a major port area highlights its strategic importance for trade and logistics. 5. The fixed-price contract type aims to control costs for the government. 6. The project scope includes creating new land, which has long-term implications for port capacity.

Value Assessment

Rating: good

The contract value of approximately $39.9 million for a large-scale civil engineering project like port deepening and land creation appears reasonable. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment, but the scope of work, including extensive dredging and fill operations, suggests a significant investment. The firm fixed-price nature of the contract is a positive indicator for cost control, provided the initial estimates were accurate.

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 two bidders (no) suggests a competitive environment, though the exact number of bids received would offer a clearer picture of the competition's intensity. A competitive process generally leads to better pricing and value for the government.

Taxpayer Impact: A full and open competition likely resulted in a more favorable price for taxpayers by encouraging multiple companies to offer their best terms.

Public Impact

The project directly benefits the Port of Long Beach and the broader logistics and shipping industry by enhancing operational capacity. It will result in the creation of approximately 600,000 cubic yards of new land, expanding port facilities. The geographic impact is concentrated in Los Angeles County, California, a critical hub for international trade. The project supports jobs in the construction and maritime sectors within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological conditions are encountered during dredging and fill operations.
Environmental impact assessments and mitigation efforts will be crucial throughout the project lifecycle.
Long-term maintenance costs for the newly created land and deepened channels may exceed initial projections.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the government.
Awarding to a known entity like Manson Construction Co. suggests a level of confidence in their capabilities.
The project's completion will enhance the strategic importance and economic activity of the Port of Long Beach.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to port infrastructure development. The market for such projects is characterized by large, specialized firms capable of undertaking complex, capital-intensive undertakings. Spending in this sector is often driven by government investment in trade infrastructure, economic development initiatives, and national security needs. Comparable spending benchmarks would typically involve other major port expansion or modernization projects across the United States.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this large-scale civil engineering project. Given the specialized nature and significant scale of port infrastructure development, it is unlikely that small businesses would be primary contractors. However, opportunities for subcontracting to small businesses for specific components or services may exist, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve project management by the contracting agency, regular progress reports from the contractor, and potentially site inspections. Accountability measures are inherent in the firm fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and public reporting, although detailed day-to-day oversight specifics are not provided.

Related Government Programs

Port Infrastructure Development Program
Army Corps of Engineers Civil Works Projects
Department of Transportation Maritime Administration Programs

Risk Flags

Potential for environmental impact
Risk of unforeseen geological conditions
Weather-related construction delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to MANSON CONSTRUCTION CO. TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::105152::RP# PORT OF LONG BEACH (DEEPENING) AND OTHER LONG BEACH PROJECTS, SAN PEDRO BAY, LOS ANGELES COUNTY, CA THE PROJECT CONSISTS OF FILLING THE NORTHERN PORTION OF THE SLIP G AREA TO CREATE LAND. THIS WORK INCLUDES CONSTRUCITON OF ROCK DIKE, DREDGING, FILL OPERATIONS, WICK DRAIN INSTALLATION, SETTLEMENT MONITORING, ETC. ALSO DEEPENING OF THE PORT OF LONG BEACH (POLB) TRUNING BASIN TO - 76 FT. APPROXIMATELY 600,00 CUBIC YARDS

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 $39.9 million.

What is the period of performance?

Start: 2009-09-29. End: 2013-05-04.

What is the track record of Manson Construction Co. on similar large-scale civil engineering projects?

Manson Construction Co. has a history of undertaking significant civil engineering and marine construction projects. While specific details on past performance for projects of identical scope and value to the Long Beach port deepening are not provided here, their involvement in such contracts suggests they possess the necessary expertise and resources. A deeper dive into their project portfolio, client reviews, and any past disputes or claims would offer a more comprehensive understanding of their capabilities and reliability. Government contract databases and industry publications often contain information on contractor performance on federal projects.

How does the cost per cubic yard of dredged material compare to industry averages for this region?

The provided data does not include a specific cost breakdown for dredging operations, making a direct per-cubic-yard cost comparison difficult. The total contract value of $39.9 million covers a wide range of activities including dredging, fill operations, dike construction, and settlement monitoring. To assess this, one would need to isolate the dredging costs from the total and divide by the approximately 600,000 cubic yards of material to be dredged. Industry benchmarks for dredging costs vary significantly based on material type, location, disposal methods, and environmental regulations. A detailed cost analysis of the contract's components would be necessary to perform this benchmark.

What are the primary risks associated with this type of port infrastructure project?

Primary risks for port infrastructure projects like this include unforeseen geological conditions encountered during dredging, which can lead to delays and cost increases. Environmental risks are also significant, involving potential impacts on marine ecosystems, the need for strict adherence to environmental regulations, and the management of dredged material. Weather-related delays, particularly during critical construction phases, can impact project timelines. Furthermore, the long-term economic viability and utilization of the expanded port facilities represent a market risk. Finally, managing the complex logistics of construction within an active port environment poses operational risks.

How effective has the Army Corps of Engineers been in managing similar large-scale civil works projects?

The Army Corps of Engineers has a long and extensive history of managing large-scale civil works projects, including navigation, flood control, and environmental restoration. Their effectiveness is generally considered high, given their technical expertise, established project management frameworks, and significant resources. However, like any large organization managing complex projects, they have faced challenges, including budget constraints, schedule delays, and cost overruns on certain projects. Performance can vary depending on the specific project's complexity, location, and funding stability. Publicly available reports from the Government Accountability Office (GAO) and the Corps' own Inspector General often provide insights into project management effectiveness.

What has been the historical spending trend for port infrastructure development by the Department of Defense?

Historical spending by the Department of Defense (DoD) on port infrastructure development, while not its primary mission, is often tied to strategic sealift capabilities, military logistics, and support for national security objectives. Funding for such projects can fluctuate based on geopolitical priorities, modernization needs, and specific infrastructure vulnerabilities. While the provided data points to a specific Army project, broader DoD spending trends would encompass various initiatives across different branches and agencies. Analyzing historical budget allocations for military construction, specifically related to maritime facilities, and examining specific large-scale projects funded over the years would be necessary to identify trends.

What are the long-term economic benefits anticipated from the Port of Long Beach expansion?

The long-term economic benefits anticipated from the Port of Long Beach expansion are substantial. The creation of new land and deepened channels will increase the port's capacity to handle larger vessels and greater cargo volumes, enhancing its competitiveness in global trade. This increased efficiency and capacity can lead to job creation in port operations, logistics, warehousing, and related industries. Furthermore, a more efficient port can reduce shipping costs and transit times, benefiting businesses and consumers. The expansion also strengthens the region's position as a critical gateway for international commerce, attracting further investment and economic activity.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912PL09B0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Manson Construction CO. (UEI: 194097960)

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: $40,718,591

Exercised Options: $39,912,991

Current Obligation: $39,912,991

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline