Manson Construction Co. awarded $28.2M for dredging in Ventura County, California

Contract Overview

Contract Amount: $28,245,500 ($28.2M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2012-12-12

End Date: 2017-06-07

Contract Duration: 1,638 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DREDGING FIRST CYCLE CHANNEL ISLANDS, VENTURA COUNTY, CALIFORNIA

Place of Performance

Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to MANSON CONSTRUCTION CO for work described as: IGF::OT::IGF DREDGING FIRST CYCLE CHANNEL ISLANDS, VENTURA COUNTY, CALIFORNIA Key points: 1. Contract value appears reasonable for a large-scale civil engineering project. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a single award after competition. 4. Project duration of over 4 years suggests a significant undertaking. 5. Fixed-price contract type shifts cost risk to the contractor. 6. Geographic focus on California highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $28.2 million for dredging services in Ventura County, California, appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar Army Corps of Engineers dredging contracts would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor assumed the majority of the cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

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 a bid. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the most advantageous offer. The use of a definitive contract after competition suggests a single award was made based on the evaluation of proposals.

Taxpayer Impact: A full and open competition process is taxpayer-favorable as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers and the local port authorities in Ventura County, California, who rely on maintained navigation channels. The services delivered include essential dredging to maintain or improve the navigability of waterways. The geographic impact is concentrated in Ventura County, California, supporting maritime commerce and potentially recreational boating. Workforce implications would include employment for skilled labor in construction, engineering, and maritime operations during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered, despite the fixed-price nature.
Environmental compliance risks associated with dredging operations, such as sediment disposal and impact on marine life.
Contract performance risks if the contractor faces financial difficulties or operational challenges over the multi-year duration.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive award process, likely yielding a fair price.
Long contract duration allows for sustained focus on a critical infrastructure need.
Contract awarded to a known entity (Manson Construction Co.) may imply prior experience and capability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to marine construction and dredging. This sector is critical for maintaining national infrastructure, including ports, waterways, and coastal defenses. The market size for dredging services can be substantial, driven by federal investments in navigation projects managed by agencies like the Army Corps of Engineers. Comparable spending benchmarks would involve analyzing other large-scale dredging contracts awarded by federal agencies for similar types of work.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the contract was not set aside for small businesses and the prime contractor is Manson Construction Co., a large entity. There is no explicit mention of subcontracting plans for small businesses. The impact on the small business ecosystem would be minimal unless significant subcontracting opportunities were later identified and awarded to smaller firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, responsible for managing and monitoring performance. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally facilitated through contract award databases, though specific operational details might be less public. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development Program
Coastal Navigation Improvement Projects
Federal Dredging Contracts

Risk Flags

Potential for environmental impact due to dredging activities.
Risk of unforeseen subsurface conditions affecting cost and schedule.
Contract performance monitoring over a multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to MANSON CONSTRUCTION CO. IGF::OT::IGF DREDGING FIRST CYCLE CHANNEL ISLANDS, VENTURA COUNTY, CALIFORNIA

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 $28.2 million.

What is the period of performance?

Start: 2012-12-12. End: 2017-06-07.

What is the historical spending pattern for dredging contracts awarded by the Department of the Army in California?

Analyzing historical spending for dredging contracts by the Department of the Army in California reveals a consistent investment in maintaining and improving the state's vital waterways. Over the past decade, the Army Corps of Engineers has awarded numerous contracts for projects ranging from harbor deepening to channel maintenance. Spending levels can fluctuate based on federal appropriations, specific infrastructure needs, and the scale of ongoing projects. For instance, major port expansions or critical maintenance cycles often see higher aggregate spending in a given fiscal year. The $28.2 million awarded to Manson Construction Co. for the Ventura County project represents a significant, but not unprecedented, investment within this historical context. Understanding these patterns helps in assessing the current contract's relative size and the ongoing commitment to California's maritime infrastructure.

How does the firm fixed-price contract type impact the risk profile for this dredging project compared to other contract types?

The firm fixed-price (FFP) contract type significantly shifts the cost risk from the government to the contractor, Manson Construction Co., for this dredging project. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the government with high cost certainty, making budgeting more predictable. However, it also means the contractor must meticulously estimate all potential costs, including labor, materials, equipment, and contingencies. If the contractor's actual costs exceed their estimate, their profit margin shrinks or they may incur a loss. Conversely, if they manage costs effectively, their profit increases. This contrasts with cost-reimbursement contracts, where the government bears most of the cost risk, or time-and-materials contracts, which offer less price certainty. For a project like dredging, where subsurface conditions can be unpredictable, an FFP contract incentivizes the contractor to be highly efficient and thorough in their planning and execution to mitigate their own risk.

What is Manson Construction Co.'s track record with federal dredging contracts, particularly with the Army Corps of Engineers?

Manson Construction Co. has a substantial track record of performing large-scale marine construction and dredging projects for federal agencies, including the U.S. Army Corps of Engineers. Their history includes numerous contracts for similar work across various locations, indicating established experience and capability in this specialized field. Reviewing their past performance on projects of comparable size and complexity would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Awards like the $28.2 million contract for Ventura County suggest that the Army Corps of Engineers has confidence in Manson's ability to execute such demanding tasks. Examining past contract performance evaluations, any disputes, or contract modifications can offer a more nuanced understanding of their operational strengths and potential weaknesses.

What are the potential environmental considerations and mitigation strategies associated with this dredging contract?

Dredging projects inherently involve environmental considerations, primarily related to the disturbance and disposal of sediment, potential impacts on aquatic habitats, and water quality. For this contract in Ventura County, California, environmental compliance would be a critical aspect. Potential issues include the presence of contaminants in the dredged material, which would necessitate specific handling and disposal procedures, possibly at designated upland sites or specialized aquatic disposal facilities. Mitigation strategies typically involve detailed environmental impact assessments, adherence to strict water quality monitoring protocols during operations, and careful planning of dredge material placement to minimize disruption to marine ecosystems, such as seagrass beds or sensitive species habitats. Compliance with regulations set forth by the Environmental Protection Agency (EPA) and state environmental agencies would be paramount throughout the project lifecycle.

How does the 'definitive contract' designation influence the understanding of the procurement process for this award?

The designation of this award as a 'definitive contract' (specifically, a definitive contract awarded after full and open competition) provides clarity on the procurement pathway. A definitive contract is a fixed-price or cost-reimbursement contract that is fully funded and has a defined scope of work, delivery schedule, and price. In this context, it signifies that after the competitive bidding process (full and open competition) was completed, a single, formal contract document was established with Manson Construction Co. This contrasts with other contract types like 'basic ordering agreements' or 'indefinite-delivery/indefinite-quantity (IDIQ) contracts,' which may involve multiple awards or allow for future orders under pre-negotiated terms. The definitive nature of this contract implies a clear commitment of funds and a finalized agreement for the specified dredging work, providing a stable framework for project execution and oversight.

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: W912PL13B0002

Offers Received: 1

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: $30,228,000

Exercised Options: $28,245,500

Current Obligation: $28,245,500

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $2,535,711

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline