DoD Awards $23.6M Construction Contract to M. A. Mortenson Company Under Full and Open Competition
Contract Overview
Contract Amount: $23,587,752 ($23.6M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2009-08-21
End Date: 2011-05-08
Contract Duration: 625 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF COMBINED
Place of Performance
Location: FORT STEWART, LIBERTY County, GEORGIA, 31315
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $23.6 million to M. A. MORTENSON COMPANY for work described as: CONSTRUCTION OF COMBINED Key points: 1. The contract value of $23.6 million falls within a typical range for large-scale construction projects. 2. M. A. Mortenson Company is a well-established firm, suggesting a competitive bidding process. 3. The project's duration of 625 days indicates a significant undertaking with potential for cost overruns. 4. The 'Commercial and Institutional Building Construction' sector is subject to standard market fluctuations and material costs.
Value Assessment
Rating: good
The award amount of $23.6 million appears reasonable for a project of this scope and duration, especially considering the firm fixed price contract type which shifts risk to the contractor. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process is expected to have resulted in a fair market price, maximizing the value of taxpayer dollars spent on this construction project.
Public Impact
Construction projects of this magnitude can lead to job creation and economic activity in the local Georgia area. The project's successful completion will provide necessary facilities for the Department of the Army. Delays or cost overruns could impact the operational readiness or budget of the Army unit receiving the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays given the 625-day duration.
- Firm fixed price contracts can lead to higher initial bids to cover contractor risk.
Positive Signals
- Awarded under full and open competition.
- Contractor has a strong track record.
- Firm fixed price contract limits government cost exposure.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, which is a significant part of the overall construction industry. Spending in this sector can be influenced by economic cycles, material costs, and government infrastructure needs.
Small Business Impact
The data indicates that the prime contractor is M. A. Mortenson Company, a large firm. There is no explicit information on subcontracting to small businesses, which is a common practice in construction but not detailed here.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. The firm fixed price nature and the duration suggest a need for diligent project management and inspection to ensure quality and adherence to schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation if material prices rise significantly.
- Risk of project delays due to unforeseen site conditions or weather.
- Contractor performance risk, despite a reputable firm.
- Scope creep could lead to change orders, impacting the fixed price.
Tags
commercial-and-institutional-building-co, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.6 million to M. A. MORTENSON COMPANY. CONSTRUCTION OF COMBINED
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 $23.6 million.
What is the period of performance?
Start: 2009-08-21. End: 2011-05-08.
What specific facilities are being constructed, and how do they align with the Army's strategic needs?
The provided data does not specify the exact nature of the 'COMBINED' construction. Understanding the purpose of the facility (e.g., barracks, training center, administrative building) is crucial to assess its strategic importance and justify the $23.6 million investment. This information would help determine if the spending directly supports critical military operations or readiness.
What were the key factors driving the bid prices from competing firms in this full and open competition?
In a full and open competition for a large construction project like this, bid prices are typically influenced by factors such as the estimated cost of labor and materials, project complexity, site conditions, required profit margins, and the perceived risks associated with a firm fixed price contract. The number of bidders and their specific expertise also play a role in price discovery.
How effectively was the project managed to stay within the $23.6 million budget and the 625-day timeline?
Assessing project management effectiveness requires post-award data on schedule adherence and final costs. Given the firm fixed price, any deviation from the budget would primarily impact the contractor's profitability. However, significant delays could still affect the government's operational needs. Oversight by the Department of the Army is key to ensuring successful execution.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912HN07R0100
Offers Received: 6
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,587,752
Exercised Options: $23,587,752
Current Obligation: $23,587,752
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912HN08D0035
IDV Type: IDC
Timeline
Start Date: 2009-08-21
Current End Date: 2011-05-08
Potential End Date: 2011-05-08 00:00:00
Last Modified: 2011-03-08
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