DoD Navy Awards $21.4M Industrial Building Construction Contract to M. A. Mortenson Company
Contract Overview
Contract Amount: $21,439,636 ($21.4M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2007-04-04
End Date: 2009-04-01
Contract Duration: 728 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: FUND ACRN AA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23521
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.4 million to M. A. MORTENSON COMPANY for work described as: FUND ACRN AA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type aims to control costs for the government. 3. The contract duration of 728 days indicates a significant construction project. 4. The award value of $21.4M falls within typical ranges for large industrial construction projects.
Value Assessment
Rating: good
The contract's fixed-price nature provides cost certainty. The award value of $21.4M appears reasonable for a large industrial building construction project of this duration, though specific benchmarks would require more detailed project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method typically fosters price discovery and competitive pricing.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for the construction services.
Public Impact
Supports military infrastructure development for the Department of the Navy. Provides construction services that contribute to national defense capabilities. The project likely creates jobs in the construction sector and related industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise in fixed-price contracts.
- Dependence on contractor performance for timely and quality completion.
- Long project duration increases exposure to market fluctuations.
Positive Signals
- Competitive award process likely secured a favorable price.
- Fixed-price contract offers cost predictability.
- Clear project scope for industrial building construction.
Sector Analysis
This contract falls within the Industrial Building Construction sector, which is a significant part of the government's infrastructure spending. Benchmarks for such projects vary widely based on size, complexity, and location, but $21.4M is a substantial award.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to M. A. Mortenson Company, a large business. There is no indication of small business subcontracting participation in this specific award data.
Oversight & Accountability
The award was made by the Department of the Navy, a major component of the DoD. Standard oversight processes for construction contracts would apply, including monitoring progress, quality, and adherence to the contract terms.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep or unforeseen construction challenges.
- Contractor's past performance record should be reviewed for quality and timeliness.
- Long duration of the contract increases risk exposure.
- Lack of specific details on the building's function limits full value assessment.
Tags
industrial-building-construction, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to M. A. MORTENSON COMPANY. FUND ACRN AA
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 Navy).
What is the total obligated amount?
The obligated amount is $21.4 million.
What is the period of performance?
Start: 2007-04-04. End: 2009-04-01.
What specific industrial building was constructed and what is its operational importance to the Navy?
The specific industrial building constructed is identified by NAICS code 236210, which pertains to Industrial Building Construction. Without further details, its exact function and operational importance to the Department of the Navy remain unspecified. Understanding the building's purpose, such as a manufacturing facility, maintenance depot, or research laboratory, would clarify its strategic value and justify the $21.4M investment.
Were there any performance issues or contract modifications during the 728-day duration that impacted the final cost or delivery?
The provided data does not detail any performance issues or contract modifications. A fixed-price contract aims to minimize cost changes, but unforeseen circumstances can lead to modifications. Further review of contract performance reports and modification history would be necessary to assess if the initial $21.4M award remained the final cost and if the project was completed on schedule.
How does the $21.4M award compare to similar industrial building construction projects awarded by the DoD or other federal agencies?
Comparing the $21.4M award requires a detailed analysis of similar projects based on size, scope, location, and complexity. While $21.4M is a significant sum, it could represent a fair market price for a large-scale industrial facility. Benchmarking against comparable construction contracts would provide a clearer picture of whether this award represents excellent value or if there might be opportunities for cost savings in future procurements.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M. a. Mortenson Companies, Inc. (UEI: 130731797)
Address: 700 MEADOW LANE NORTH, MINNEAPOLIS, MN, 55422
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,439,636
Exercised Options: $21,439,636
Current Obligation: $21,439,636
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247201D0077
IDV Type: IDC
Timeline
Start Date: 2007-04-04
Current End Date: 2009-04-01
Potential End Date: 2009-04-01 00:00:00
Last Modified: 2021-08-04
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