Army awards $21.1M for Hurricane Katrina recovery construction, highlighting fixed-price contract for facility repairs

Contract Overview

Contract Amount: $21,135,139 ($21.1M)

Contractor: Manson Gulf, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2005-10-25

End Date: 2007-09-18

Contract Duration: 693 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200606!601050!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0004 !A!N! !N! ! !20051025!20060601!011359671!011359671!011359671!N!MANSON GULF LLC !392 OLD BAYOU DULARGE RD !HOUMA !LA!70363!66935!087!22!ST. BERNARD !ST. BERNARD !LOUISIANA !+000011731550!N!N!000011731550!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !237990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!008!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!Y! !N! ! !96CE!W912P8!0001! !

Place of Performance

Location: MERAUX, SAINT BERNARD County, LOUISIANA, 70075

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to MANSON GULF, L.L.C. for work described as: 200606!601050!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0004 !A!N! !N! ! !20051025!20060601!011359671!011359671!011359671!N!MANSON GULF LLC !392 OLD BAYOU DULARGE RD !HOUMA !LA!70363!66935!087!22!ST. BERNARD !ST. … Key points: 1. Contract awarded for critical infrastructure repair following Hurricane Katrina. 2. Fixed-price contract type suggests defined scope and cost control. 3. Competition level indicates potential for competitive pricing. 4. Contract duration of 693 days points to a substantial recovery effort. 5. Geographic focus on Louisiana highlights regional impact of the disaster. 6. Contractor has a track record with federal agencies, suggesting experience.

Value Assessment

Rating: good

The total award of $21,135,139 for construction services appears reasonable given the scope of Hurricane Katrina recovery. While specific per-unit cost benchmarks are not available without more detailed service descriptions, the fixed-price nature of the contract suggests that the government secured a defined cost for the work. Comparing this to other large-scale disaster recovery contracts would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 8 bids suggests a healthy level of interest and competition for this significant recovery effort. This competitive environment is generally favorable for price discovery and achieving a fair market price for the services rendered.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to drive down costs and ensure the most cost-effective solutions for rebuilding critical infrastructure.

Public Impact

Residents and businesses in St. Bernard Parish, Louisiana, will benefit from the restoration of essential non-building facilities. Services delivered include construction and repair of critical infrastructure damaged by Hurricane Katrina. Geographic impact is concentrated in Louisiana, specifically St. Bernard Parish, a heavily affected area. Workforce implications include employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during extensive reconstruction.
Contract duration may be subject to delays due to weather or supply chain disruptions common in disaster recovery.
Ensuring quality of repairs to withstand future environmental stresses is crucial.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in competitive pricing.
Contractor has prior federal contract experience, suggesting familiarity with requirements.
Awarded for critical infrastructure repair, addressing a significant public need.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically addressing infrastructure repair and reconstruction. The market for disaster recovery construction is often characterized by urgent needs and specialized capabilities. The size of this award is substantial, reflecting the scale of damage from Hurricane Katrina and the significant federal investment in recovery efforts.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Manson Gulf LLC, may engage small businesses for subcontracting opportunities. The scale of the project could provide significant subcontracting work, contributing to the small business ecosystem in the affected region, provided outreach and inclusion efforts are made.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army Corps of Engineers district. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
US Army Corps of Engineers Construction Contracts
Federal Infrastructure Repair Programs
Louisiana Post-Disaster Reconstruction

Risk Flags

Potential for scope creep in disaster recovery projects.
Risk of contractor default or performance issues on large-scale projects.
Unforeseen environmental or geological conditions impacting construction.
Delays due to supply chain disruptions or labor shortages.
Ensuring long-term durability and resilience of repaired infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to MANSON GULF, L.L.C.. 200606!601050!96CE!W912P8!USA ENGINEER DIST NEW ORLEANS !W912P806C0004 !A!N! !N! ! !20051025!20060601!011359671!011359671!011359671!N!MANSON GULF LLC !392 OLD BAYOU DULARGE RD !HOUMA !LA!70363!66935!087!22!ST. BERNARD !ST. BERNARD !LOUISIANA !+000011731550!N!N!000011731550!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is MANSON GULF, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2005-10-25. End: 2007-09-18.

What is the track record of Manson Gulf LLC with federal contracts, particularly in disaster recovery?

Manson Gulf LLC has a history of federal contracting, as indicated by this award and its presence in federal procurement databases. While this specific award is for a substantial amount related to Hurricane Katrina recovery, further analysis would involve examining their portfolio of past federal contracts. This includes reviewing the types of services provided, contract values, performance ratings, and any history of disputes or contract modifications. Understanding their experience with similar large-scale, time-sensitive recovery projects is key to assessing their capability and reliability for this specific contract.

How does the $21.1 million award compare to other Hurricane Katrina recovery contracts?

The $21.1 million award to Manson Gulf LLC is a significant sum, but it must be viewed within the broader context of Hurricane Katrina recovery spending. The total federal expenditure for Katrina relief and reconstruction reached hundreds of billions of dollars across various agencies and contract types. This particular contract focuses on specific construction services for non-building facilities in Louisiana. To benchmark its value, it would be necessary to compare it with other Army Corps of Engineers contracts for similar infrastructure repair work in the Gulf Coast region during the post-Katrina period, considering factors like scope, duration, and complexity.

What are the primary risks associated with a fixed-price contract for disaster recovery construction?

The primary risks with a fixed-price contract in disaster recovery construction include potential cost overruns for the contractor if unforeseen site conditions or material price escalations occur, which could lead to claims or disputes. For the government, the risk is that the contractor may cut corners on quality to maintain profitability, or that the initial scope definition might not fully capture all necessary work, requiring costly change orders. Effective risk mitigation involves thorough site assessments, robust contract language, and diligent government oversight to ensure quality and adherence to the defined scope.

What was the effectiveness of this contract in achieving its stated goals of Hurricane Katrina recovery?

Assessing the effectiveness of this contract requires examining the extent to which the repaired facilities were restored to operational status and their resilience against future events. Performance metrics, final inspection reports, and post-completion assessments would be crucial. Given the contract's focus on 'ALL OTHER NON-BUILDING FACILITIES,' its success would be measured by the functionality and durability of the repaired infrastructure, contributing to the overall recovery and economic stability of the affected Louisiana communities. Without specific performance data, effectiveness is inferred from timely completion and adherence to specifications.

How has federal spending on disaster recovery construction evolved since Hurricane Katrina?

Federal spending on disaster recovery construction has evolved significantly since Hurricane Katrina. Following Katrina, there was a substantial increase in federal investment, highlighting the need for improved disaster preparedness and response mechanisms. Subsequent major disasters have led to further refinements in contracting processes, greater emphasis on resilience and mitigation in reconstruction efforts, and the development of more sophisticated risk management strategies. Agencies like FEMA and the Army Corps of Engineers have adapted their approaches to better manage large-scale recovery operations, incorporating lessons learned from past events to optimize spending and improve outcomes.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Manson Construction CO (UEI: 007942824)

Address: 392 OLD BAYOU DULARGE RD, HOUMA, LA, 70363

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline