DoD awards $50.9M contract for channel dredging in Ventura County, CA, to Manson Construction Co

Contract Overview

Contract Amount: $50,939,995 ($50.9M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2024-09-15

Contract Duration: 2,181 days

Daily Burn Rate: $23.4K/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 1ST CYC-CHANNEL ISLANDS, VENTURA COUNTY, CA

Place of Performance

Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $50.9 million to MANSON CONSTRUCTION CO for work described as: IGF::OT::IGF DREDGING 1ST CYC-CHANNEL ISLANDS, VENTURA COUNTY, CA Key points: 1. Contract awarded to a single, established firm suggests potential for streamlined execution but warrants scrutiny of pricing. 2. The firm-fixed-price structure aims to control costs, but the long duration may introduce unforeseen expenses. 3. Competition was full and open, indicating a broad market search, yet only one bid was received. 4. The contract's value is significant within the heavy civil engineering construction sector. 5. Performance context is crucial given the extended period of performance and potential environmental factors. 6. Geographic focus on California's coast highlights critical infrastructure needs in the region.

Value Assessment

Rating: fair

The contract value of $50.9 million for dredging services appears substantial. Benchmarking against similar Army Corps of Engineers dredging contracts would be necessary for a precise value-for-money assessment. The firm-fixed-price type suggests cost certainty for the government, but the long duration (over 6 years) could lead to cost escalations if not managed carefully. Without specific per-unit cost data or comparisons to market rates for similar dredging volumes and depths, it is difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the solicitation was broadly advertised to all eligible contractors. However, only one bid was received. This could suggest that the market for this specific type of specialized dredging work in this location is limited, or that other potential bidders found the requirements or terms unfavorable. The lack of multiple bids raises questions about the effectiveness of the competition in driving down prices.

Taxpayer Impact: While full and open competition was intended, receiving only one bid means taxpayers may not have benefited from the price reductions typically achieved through robust bidding processes.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the Department of Defense, ensuring navigational access in Ventura County. The contract delivers essential dredging services to maintain and improve the navigability of channels. Geographic impact is concentrated in Ventura County, California, supporting maritime activities and port operations. Workforce implications include employment opportunities for skilled labor in the construction and maritime industries within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) despite full and open solicitation raises concerns about price competitiveness.
Long contract duration (over 6 years) increases the risk of cost overruns and scope creep.
Lack of detailed performance metrics in the provided data makes assessing efficiency challenging.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to an established contractor may indicate a higher likelihood of successful project completion.
Full and open competition was utilized, demonstrating an attempt to engage the broader market.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on marine construction and dredging. The market for large-scale dredging is specialized, often dominated by a few key players capable of undertaking such extensive projects. The value of this contract is significant, representing a substantial investment in critical maritime infrastructure. Comparable spending benchmarks would typically involve analyzing other Army Corps of Engineers dredging projects or similar port infrastructure investments nationwide.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Given the specialized nature and large value of dredging projects, it is common for prime contracts to be awarded to larger firms. However, the prime contractor, Manson Construction Co., may engage small businesses as subcontractors for specific services or supplies, though this is not detailed in the provided information. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the U.S. Army Corps of Engineers district responsible for the Ventura County area. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified dredging services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port and Waterway Infrastructure Projects
Maritime Navigation Improvement Contracts
Coastal Infrastructure Maintenance

Risk Flags

Limited competition (one bid)
Long contract duration
Potential for cost escalation
Specialized industry requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.9 million to MANSON CONSTRUCTION CO. IGF::OT::IGF DREDGING 1ST CYC-CHANNEL ISLANDS, VENTURA COUNTY, CA

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 $50.9 million.

What is the period of performance?

Start: 2018-09-26. End: 2024-09-15.

What is the historical spending pattern for Manson Construction Co. with the Department of Defense?

Manson Construction Co. has a history of receiving contracts from the Department of Defense, primarily for construction and dredging services. Analyzing their contract awards over the past decade reveals a pattern of securing significant infrastructure projects, often in coastal regions. While this specific $50.9 million contract is substantial, it aligns with the company's established capabilities and previous awards. A deeper dive into their DoD award history would show the frequency and value of similar projects, providing context for their track record and capacity to handle large-scale civil engineering endeavors. This historical data is crucial for assessing their reliability and performance consistency on government contracts.

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

Determining the precise per-unit cost for this dredging contract is challenging without specific metrics such as cubic yards dredged, depth achieved, or material type removed. The total award of $50.9 million covers a period of 2181 days (approximately 6 years). To benchmark effectively, one would need to compare this contract's value against other Army Corps of Engineers dredging contracts that specify similar volumes, depths, and geographical conditions. For instance, if similar contracts in the region or for comparable channel maintenance cost significantly less per cubic yard, it might indicate a less favorable price for this specific award. Conversely, if market rates for dredging have increased or if the project involves particularly difficult conditions, the price might be justified. Without granular data, a definitive comparison is not possible.

What are the primary risks associated with this long-duration dredging contract?

The primary risks associated with this contract stem from its extended duration of over six years. Firstly, there's a significant risk of cost escalation. While it's a firm-fixed-price contract, unforeseen environmental conditions, changes in material costs (fuel, labor, equipment), or regulatory requirements could lead to change orders or claims, increasing the overall cost to the government. Secondly, performance risk is elevated; maintaining consistent quality and efficiency over such a long period can be challenging. Equipment wear and tear, potential labor shortages, and the contractor's focus potentially shifting to newer, more profitable projects are factors. Lastly, there's a risk of scope creep if the definition of 'dredging' or the areas requiring it are not precisely defined and managed, leading to work beyond the original intent.

What does the fact that only one bid was received imply about the contractor's market position?

The receipt of only one bid, despite the contract being advertised under full and open competition, suggests several possibilities regarding the contractor's market position and the competitive landscape. It could indicate that Manson Construction Co. is one of the few firms possessing the specialized equipment, expertise, and bonding capacity required for this specific type of large-scale, long-duration dredging project in the Ventura County area. Alternatively, it might imply that the solicitation's requirements, timelines, or pricing structure were perceived as unattractive or unachievable by other potential bidders, leading them to not submit a proposal. This situation could suggest a degree of market dominance or limited competition for this particular niche.

How effective is the firm-fixed-price contract type in managing costs for this dredging project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs by shifting the risk of cost overruns to the contractor. For this dredging project, the FFP structure provides the government with a high degree of cost certainty, as the price is set upfront. This incentivizes the contractor, Manson Construction Co., to control its own costs efficiently to maximize profit. However, the effectiveness can be diminished by the contract's long duration. If significant unforeseen circumstances arise (e.g., major environmental discoveries, unexpected geological challenges), the contractor might seek adjustments through change orders, potentially negating some of the FFP benefits. Robust contract administration and clear definition of work are crucial to ensure the FFP structure truly limits cost variability.

What is the significance of this contract for California's coastal infrastructure?

This $50.9 million contract is highly significant for California's coastal infrastructure, particularly in Ventura County. Dredging is essential for maintaining the depth and capacity of harbors and navigation channels, which are critical for commercial shipping, recreational boating, and naval operations. Ensuring these waterways remain navigable supports economic activity, facilitates trade, and maintains the operational readiness of military facilities. The long-term nature of the contract suggests a commitment to sustained maintenance of these vital assets, addressing potential degradation due to sedimentation and usage, thereby safeguarding the region's maritime capabilities and economic vitality.

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: W912PL18B0007

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,039,995

Exercised Options: $50,939,995

Current Obligation: $50,939,995

Subaward Activity

Number of Subawards: 297

Total Subaward Amount: $20,700,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline