Department of Defense awards $24.7M contract to M. A. Mortenson Company for construction services
Contract Overview
Contract Amount: $24,659,668 ($24.7M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2005-10-27
End Date: 2007-09-26
Contract Duration: 699 days
Daily Burn Rate: $35.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: GREAT NECK, NASSAU County, NEW YORK, 11024
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to M. A. MORTENSON COMPANY for work described as: Key points: 1. Contract value appears reasonable given the duration and scope of construction services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract awarded to a single entity, M. A. Mortenson Company. 5. Project duration of 699 days indicates a significant construction undertaking. 6. Geographic location in New York may influence labor and material costs.
Value Assessment
Rating: good
The contract value of $24.7 million for a 699-day construction project appears to be within a reasonable range for a project of this scale. Without specific details on the scope of work (e.g., type of facility, square footage, specific renovations), a direct comparison to similar contracts is challenging. However, the firm fixed-price nature of the award suggests that the pricing was assessed as fair and reasonable at the time of award, aiming to provide good value by capping the government's financial exposure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bids received, but the designation suggests a robust competitive environment. This approach is intended to foster price discovery and ensure the government receives the best possible pricing and value by leveraging market forces.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by driving down costs through competitive bidding, leading to more efficient use of public funds.
Public Impact
The Department of the Navy is the primary beneficiary, receiving construction services. The contract supports the development or renovation of facilities critical to naval operations. The project's geographic impact is concentrated in New York. The construction services will likely involve a workforce of skilled tradespeople and laborers in the New York area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work makes it difficult to fully assess value for money.
- No information on the number of bidders received under full and open competition.
Positive Signals
- Firm fixed-price contract type limits the government's financial risk.
- Awarded under full and open competition, suggesting a competitive process.
- Contract awarded to a single entity, implying a clear line of responsibility.
Sector Analysis
This contract falls within the Construction sector, specifically related to government infrastructure and facilities. The construction industry is a significant part of the US economy, with federal contracts forming a notable segment. Benchmarking this contract's value would require comparing it to similar military or public facility construction projects in terms of size, complexity, and location, considering factors like material costs and labor rates prevalent in New York.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of specific subcontracting requirements for small businesses (ss: false). Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless M. A. Mortenson Company voluntarily engages small businesses as subcontractors.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a Department of Defense contract, it likely falls under the purview of the Department of Defense Inspector General for audits and investigations. Transparency is generally maintained through contract award databases, though specific project details and oversight activities may vary.
Related Government Programs
- Department of Defense Construction Contracts
- Naval Facilities Engineering Command Projects
- Federal Building and Infrastructure Projects
Risk Flags
- Lack of detailed scope of work
- Limited information on number of bidders
- Potential for material cost volatility over contract duration
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, new-york, large-contract, infrastructure, m-a-mortenson-company
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to M. A. MORTENSON COMPANY. See the official description on USAspending.
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 $24.7 million.
What is the period of performance?
Start: 2005-10-27. End: 2007-09-26.
What specific construction services were rendered under this contract?
The provided data does not specify the exact nature of the construction services. It is identified as a construction contract awarded by the Department of the Navy to M. A. Mortenson Company. Typically, such contracts could involve new building construction, renovation, repair, or maintenance of military facilities. Without a detailed scope of work or project description, it is impossible to ascertain the precise services delivered. Further investigation into the contract's details, potentially through the Federal Procurement Data System (FPDS) or agency-specific contract archives, would be necessary to understand the specific construction activities undertaken.
How does the contract value of $24.7 million compare to similar construction projects for the Department of the Navy?
Comparing the $24.7 million contract value requires context regarding the project's scope, location, and duration. The contract was for 699 days (approximately 23 months) and awarded under full and open competition. The Department of the Navy undertakes a wide range of construction projects, from small renovations to large-scale base development. A $24.7 million project is a substantial undertaking. To benchmark effectively, one would need to identify comparable projects in terms of facility type (e.g., barracks, hangars, administrative buildings), size (square footage), and complexity, considering regional cost variations. Without this granular data, it's difficult to definitively state if the value is high or low, but it represents a significant investment in infrastructure.
What are the potential risks associated with a firm fixed-price contract for a construction project of this duration?
A firm fixed-price (FFP) contract is generally preferred by the government as it shifts most of the risk to the contractor. For a construction project lasting 699 days, the primary risk for the contractor is underestimating costs, especially concerning labor, materials, and unforeseen site conditions. Fluctuations in material prices over a two-year period can significantly impact profitability. However, the FFP structure protects the government from cost overruns unless there are significant scope changes or contractor-induced issues. The contractor assumes the risk of managing these variables effectively to maintain their profit margin.
What does the 'AW: DO' designation signify for this contract?
The 'AW: DO' designation likely refers to the Awarding Agency or Contracting Office and the Action Obligation. 'DO' typically stands for 'Department of Defense' or a specific sub-agency within it, indicating the entity that officially awarded the contract. The 'Action Obligation' (often represented by 'AO' or similar fields) is the amount of money the government is committed to spending on the contract at the time of award. In this case, 'AW: DO' might mean the contract was awarded by a Department of Defense office, and the associated dollar amount ($24,659,668) is the initial funding obligated. It signifies the government's financial commitment to the contractor.
What is the significance of the contract being awarded in New York (ST: NY, SN: NEW YORK)?
The contract's award location in New York (ST: NY, SN: NEW YORK) has several implications. Firstly, it indicates the physical location where the construction services are to be performed. This means that labor costs, material sourcing, and regulatory compliance will be subject to New York's specific economic conditions and legal framework. Construction labor rates and material availability can vary significantly by region. Furthermore, the presence of a large federal construction project in New York could have a positive economic impact on the local area through job creation and demand for local suppliers and services.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M. a. Mortenson Companies, Inc. (UEI: 130731797)
Address: 700 MEADOW LANE NORTH, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247202D0802
IDV Type: IDC
Timeline
Start Date: 2005-10-27
Current End Date: 2007-09-26
Potential End Date: 2007-09-26 00:00:00
Last Modified: 2009-06-16
More Contracts from M. a. Mortenson Company
- TAS::47 4543::TAS Modernization of the Byron G. Rogers Federal Office Building and the Byron G. Rogers Federal Courthouse Window Replacement in Denver, CO — $160.4M (General Services Administration)
- Construction Contract 2 for the Dept. of State, Foreign Affairs Security Training Center (fastc) in Blackstone, VA. Includes an Indoor Firing Range, Indoor/Outdoor Tactical Range, Tactical Training Building, Office and Classroom Building, Driving Tracks, Mock Urban Driving Track and Mock Embassy — $154.6M (General Services Administration)
- Clin 0001 Base BID Repair EHW 1 Phase 2 NSB Kings BAY GA — $154.6M (Department of Defense)
- Design-Build-Bridging Construction Services for the Modernization of the U.S. National Poultry Research Center (usnprc), Seprl Campus in Athens, GA This IS a Two-Phase Design-Build Acquisition. ONE Solicitation Covers Both Phases. Phase I IS the Pre-Selection Phase in Which the Government Will "shortlist" Maximum of (4) of the Most Highly Qualified Offerors. Only Those Firms Selected in Phase I Will BE Allowed to Continue to the Phase II. Detailed Design Criteria Will Then BE Added by Amendment to the Solicitation to Start the Phase II Stage of the Request for Proposals. Each Firm Selected for Participation in Phase II Will Then Submit a Design-Build Technical Proposal, the Remainder of the Performance Capability Proposal and Price Proposal. Igf::ot::igf — $149.6M (Department of Agriculture)
- Ibct — $141.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)