Mobile Harbor dredging contract awarded to Manson Construction Co. for $17.78 million

Contract Overview

Contract Amount: $17,783,000 ($17.8M)

Contractor: Manson Construction CO

Awarding Agency: Department of Defense

Start Date: 2023-08-23

End Date: 2026-09-30

Contract Duration: 1,134 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAINTENANCE DREDGING OF MOBILE HARBOR

Place of Performance

Location: CODEN, MOBILE County, ALABAMA, 36523

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to MANSON CONSTRUCTION CO for work described as: MAINTENANCE DREDGING OF MOBILE HARBOR Key points: 1. Contract value appears reasonable for a large-scale civil engineering project of this nature. 2. Full and open competition suggests a healthy market for dredging services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over three years indicates a significant scope of work. 5. Geographic focus on Alabama highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $17.78 million for maintenance dredging of Mobile Harbor is within the expected range for such large-scale civil engineering projects. While specific benchmarks for Mobile Harbor dredging are not readily available, similar large-scale port maintenance and deepening projects can range from tens to hundreds of millions of dollars depending on scope and complexity. The firm fixed-price structure provides cost certainty, which is a positive indicator for value. Further analysis would require comparing the scope of work and unit rates to other recent Army Corps of Engineers dredging contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The number of bidders is not specified in the provided data, but the 'full and open' designation suggests a robust bidding process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that federal funds are used efficiently for essential infrastructure maintenance.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the maritime industry relying on navigable waterways. The service delivered is essential maintenance dredging to ensure the depth and usability of Mobile Harbor. The geographic impact is concentrated in Mobile, Alabama, supporting regional economic activity and trade. Workforce implications include employment opportunities for skilled labor in the construction and maritime sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting port operations if unforeseen conditions arise.
Environmental compliance monitoring is crucial to prevent ecological disruption during dredging.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Long-term contract duration allows for sustained maintenance of critical infrastructure.
Award to an established construction company suggests a higher likelihood of successful project completion.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on dredging services. The market for dredging is specialized, involving significant capital investment in equipment and expertise. Major players often compete for large government contracts, particularly those managed by the Army Corps of Engineers. The size of this contract, at $17.78 million, is substantial within the dredging sub-sector, indicating a significant maintenance requirement for a key U.S. port.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of large-scale dredging projects, they are typically awarded to larger, established firms with the necessary equipment and experience. There is no explicit information on subcontracting plans for small businesses, but it is common for prime contractors on such projects to engage small businesses for specific support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, which manages dredging and waterway maintenance. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to complete the work within the agreed budget. Transparency is generally maintained through public contract awards and reporting, though specific oversight details are not provided. The Inspector General's office may investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Port Infrastructure Development
Maritime Transportation System Investment
Navigation Dredging Contracts

Risk Flags

Potential for environmental impact during dredging operations.
Risk of encountering unforeseen subsurface conditions.
Dependence on weather conditions affecting work schedules.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to MANSON CONSTRUCTION CO. MAINTENANCE DREDGING OF MOBILE HARBOR

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 $17.8 million.

What is the period of performance?

Start: 2023-08-23. End: 2026-09-30.

What is the historical spending pattern for Mobile Harbor maintenance dredging?

Historical spending data for Mobile Harbor maintenance dredging is not directly available in the provided snippet. However, the U.S. Army Corps of Engineers typically undertakes regular maintenance dredging for major ports to ensure navigability. The frequency and cost of these operations can fluctuate based on sediment accumulation rates, vessel traffic, and budget allocations. Analyzing past contracts awarded by the Mobile District of the Army Corps of Engineers for similar dredging activities would provide a clearer picture of historical spending trends and the typical contract values for this specific harbor.

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

Manson Construction Co. is a significant player in the heavy civil construction and marine services industry. While specific details of their track record for similar dredging projects are not in the provided data, they have a history of undertaking large-scale marine construction and infrastructure projects. A comprehensive assessment would involve reviewing their past performance on Army Corps of Engineers contracts, particularly those involving maintenance dredging in other major ports, to evaluate their on-time and on-budget delivery rates, safety records, and overall client satisfaction.

What are the key performance indicators (KPIs) for this dredging contract?

Key performance indicators for this maintenance dredging contract would likely include the volume of material dredged (cubic yards), the depth and width of the channel achieved, adherence to environmental mitigation measures, and project completion within the specified timeline and budget. The firm fixed-price nature of the contract emphasizes adherence to the agreed-upon cost. The contract's success will be measured by the restoration and maintenance of the required navigational depths in Mobile Harbor, ensuring its continued operational capacity for commercial and military vessels.

Are there any significant risks associated with this contract beyond standard project risks?

Beyond standard project risks like weather delays or equipment failure, significant risks for this dredging contract could include unforeseen subsurface conditions (e.g., buried debris, hard rock) that increase dredging difficulty and cost, or environmental challenges such as discovering protected species or historical artifacts. Changes in environmental regulations or permit requirements during the contract period could also pose risks. Effective risk management by the Army Corps of Engineers and Manson Construction Co. would involve thorough site investigations, robust environmental monitoring, and contingency planning.

What is the estimated value of similar dredging contracts awarded by the Army Corps of Engineers annually?

The U.S. Army Corps of Engineers awards numerous dredging contracts annually across the nation, with values varying significantly based on project scope, location, and complexity. While a precise aggregate annual figure is difficult to pinpoint without extensive data analysis, the total federal spending on dredging and related maritime construction projects often runs into the hundreds of millions, and sometimes billions, of dollars each year. Contracts for major port maintenance and deepening can individually range from a few million to over $100 million, making the $17.78 million for Mobile Harbor a mid-to-large-sized project within this category.

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: W9127823B0001

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: $17,783,000

Exercised Options: $17,783,000

Current Obligation: $17,783,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127823D0057

IDV Type: IDC

Timeline