DoD Awards $34.8M Industrial Building Construction Contract to M. A. Mortenson Company
Contract Overview
Contract Amount: $34,859,440 ($34.9M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2007-05-17
End Date: 2008-10-14
Contract Duration: 516 days
Daily Burn Rate: $67.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION AWARD/BCT(H)TEMF/ORG
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $34.9 million to M. A. MORTENSON COMPANY for work described as: CONSTRUCTION AWARD/BCT(H)TEMF/ORG Key points: 1. Awarded under full and open competition, indicating a competitive bidding process. 2. The contract value is $34.8 million for industrial building construction. 3. The contractor, M. A. Mortenson Company, is a significant player in the construction sector. 4. The contract duration is 516 days, suggesting a substantial project timeline.
Value Assessment
Rating: good
The award amount of $34.8 million appears reasonable for a large-scale industrial building construction project. Benchmarking against similar DoD construction contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The presence of 3 bids suggests a healthy level of interest and price discovery.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely receiving a fair price for the construction services rendered.
Public Impact
Enhances military infrastructure capabilities for the Department of Defense. Supports regional economic activity through construction jobs and material procurement. The project's completion will contribute to the operational readiness of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on contractor's ability to meet strict construction timelines.
- Risk of material price fluctuations impacting the firm fixed price.
Positive Signals
- Awarded through full and open competition, maximizing value.
- Experienced contractor selected, reducing execution risk.
- Clear project scope defined for industrial building construction.
Sector Analysis
Industrial building construction is a critical sector for defense infrastructure. Spending benchmarks vary widely based on project scope, location, and complexity. This $34.8 million award falls within the typical range for significant facility construction.
Small Business Impact
While this specific award went to a large contractor, the construction sector often involves significant subcontracting opportunities for small businesses in specialized trades and material supply.
Oversight & Accountability
The Department of the Army's procurement process, including competitive bidding and contract oversight, is designed to ensure accountability and efficient use of funds. Monitoring project milestones and adherence to specifications are key oversight functions.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting operational readiness.
- Risk of scope creep if project requirements are not rigidly managed.
- Contractor performance risk, despite selection based on qualifications.
- Geopolitical or economic factors impacting material availability or cost.
Tags
industrial-building-construction, department-of-defense, co, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.9 million to M. A. MORTENSON COMPANY. CONSTRUCTION AWARD/BCT(H)TEMF/ORG
Who is the contractor on this award?
The obligated recipient is M. A. MORTENSON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2007-05-17. End: 2008-10-14.
What specific industrial capabilities will this building support for the Department of the Army?
The provided data does not specify the exact industrial capabilities the building will support. Further details from the contract statement of work or project documentation would be needed to ascertain its specific purpose, such as manufacturing, maintenance, storage, or research and development facilities critical to Army operations.
What are the key performance indicators (KPIs) for this construction contract to ensure successful project delivery?
Key performance indicators would likely include adherence to the project schedule (516 days), quality of construction meeting specified standards, safety compliance on-site, and staying within the firm fixed price budget. Regular progress reports and site inspections by the contracting officer's representative would monitor these KPIs.
How does the $34.8 million cost compare to similar industrial building construction projects within the Department of Defense?
Without specific benchmarks for comparable DoD industrial buildings (considering size, complexity, and location), a direct comparison is difficult. However, $34.8 million suggests a substantial project. A detailed cost-benefit analysis and comparison with industry cost data would be necessary for a definitive assessment.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9128F07R0006
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M. a. Mortenson Companies, Inc. (UEI: 130731797)
Address: 700 MEADOW LN N, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,859,440
Exercised Options: $34,859,440
Current Obligation: $34,859,440
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F07D0010
IDV Type: IDC
Timeline
Start Date: 2007-05-17
Current End Date: 2008-10-14
Potential End Date: 2008-10-14 00:00:00
Last Modified: 2009-02-19
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