Nearly $96M Contract Awarded to M. A. Mortenson for Agricultural Research Technology Center Modernization
Contract Overview
Contract Amount: $95,922,721 ($95.9M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Agriculture
Start Date: 2020-07-16
End Date: 2025-01-10
Contract Duration: 1,639 days
Daily Burn Rate: $58.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MODERNIZATION OF THE AGRICULTURAL RESEARCH TECHNOLOGY CENTER
Place of Performance
Location: SALINAS, MONTEREY County, CALIFORNIA, 93905
Plain-Language Summary
Department of Agriculture obligated $95.9 million to M. A. MORTENSON COMPANY for work described as: MODERNIZATION OF THE AGRICULTURAL RESEARCH TECHNOLOGY CENTER Key points: 1. Contract value of $95.9M for modernization of a key agricultural research facility. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates price certainty for the government. 4. Long performance period of over 4 years for a complex construction project. 5. Project located in California, a significant hub for agricultural research and development. 6. The contractor, M. A. Mortenson Company, has a substantial presence in large-scale construction projects.
Value Assessment
Rating: good
The contract value of approximately $95.9 million for the modernization of the Agricultural Research Technology Center appears reasonable given the scope of a large-scale construction project. Benchmarking against similar large institutional building projects, the cost per square foot would need to be assessed, but the overall price reflects the complexity and duration. The firm fixed-price nature of the contract helps manage cost overruns, providing a degree of predictability for the government's investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this significant construction project. While more bidders could potentially drive prices lower, two bids often indicate sufficient market interest and a reasonable opportunity for price discovery.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple firms to compete, potentially leading to more competitive pricing and better value for the government's investment.
Public Impact
Benefits agricultural scientists and researchers by providing a modernized, state-of-the-art facility. Enhances the capacity for agricultural innovation and technological advancement. The project is located in California, supporting the state's prominent agricultural sector. Likely to create construction jobs and stimulate local economic activity during the project's duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting research timelines.
- Risk of unforeseen site conditions requiring change orders.
- Ensuring compliance with environmental and safety regulations during construction.
Positive Signals
- Firm fixed-price contract limits cost escalation risks.
- Experienced contractor selected through competitive bidding.
- Modernization aims to improve long-term operational efficiency and research capabilities.
Sector Analysis
The construction sector for institutional and research facilities is a significant market. This contract falls within the broader commercial and institutional building construction category. The Agricultural Research Service's investment in modernizing its facilities is crucial for maintaining its leadership in agricultural science and technology. Comparable projects often involve substantial capital outlays for specialized infrastructure, and the $95.9M figure is in line with large-scale government construction endeavors.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses would likely be through direct subcontracting by the prime contractor, M. A. Mortenson Company. The impact on the small business ecosystem will depend on the prime contractor's subcontracting strategy and the availability of qualified small businesses for specialized construction trades or services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Agricultural Research Service (ARS) within the Department of Agriculture. Contract performance will be monitored through regular progress reports, site inspections, and adherence to the firm fixed-price agreement. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Agricultural Research Service Facilities
- Department of Agriculture Construction Projects
- Federal Research Center Modernization
- Large-Scale Institutional Construction
Risk Flags
- Potential for project delays
- Risk of cost escalation (though mitigated by FFP)
- Contractor performance monitoring required
Tags
construction, department-of-agriculture, agricultural-research-service, california, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, research-facility, infrastructure-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $95.9 million to M. A. MORTENSON COMPANY. MODERNIZATION OF THE AGRICULTURAL RESEARCH TECHNOLOGY CENTER
Who is the contractor on this award?
The obligated recipient is M. A. MORTENSON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Research Service).
What is the total obligated amount?
The obligated amount is $95.9 million.
What is the period of performance?
Start: 2020-07-16. End: 2025-01-10.
What is the track record of M. A. Mortenson Company on similar federal construction projects?
M. A. Mortenson Company has a significant track record in large-scale construction, including federal projects. While specific details on past Agricultural Research Service projects are not immediately available, their portfolio often includes complex institutional, healthcare, and research facilities. A review of their past performance on similar government contracts would involve examining their on-time and on-budget completion rates, any history of disputes or claims, and client satisfaction feedback. Their experience in managing large, multi-year construction endeavors suggests a capacity to handle the scope and complexity of the Agricultural Research Technology Center modernization. Further due diligence would involve cross-referencing their performance data with federal procurement databases and agency performance reviews.
How does the awarded amount compare to the estimated cost or budget for this modernization project?
The provided data indicates an award amount of $95,922,720.70. Without access to the initial project estimate or budget set by the Agricultural Research Service, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with two bidders suggests that the bids received were likely within a range considered acceptable by the agency. If the award significantly exceeded the initial estimate, it could indicate underestimation or scope creep. Conversely, if it came in well under, it might suggest effective competition or a conservative initial estimate. A thorough value assessment would require comparing the award to the agency's internal cost projections and potentially to industry benchmarks for similar facility modernizations.
What are the primary risks associated with a large-scale construction project of this nature?
Large-scale construction projects, such as the modernization of the Agricultural Research Technology Center, inherently carry several risks. Key risks include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact research operations. Cost overruns are another significant risk, although mitigated by the firm fixed-price contract type; however, scope changes or unforeseen complexities can still lead to adjustments. Labor shortages or disputes could also affect project timelines and quality. Furthermore, ensuring compliance with stringent environmental, safety, and building codes adds complexity. The government also faces risks related to contractor performance, including quality of work and adherence to specifications. Effective risk management by both the contractor and the agency is crucial for project success.
What is the expected impact of this modernization on the Agricultural Research Service's research capabilities?
The modernization of the Agricultural Research Technology Center is expected to significantly enhance the Agricultural Research Service's (ARS) research capabilities. Modern facilities typically incorporate advanced laboratory equipment, improved infrastructure for data management and analysis, and more efficient workflows. This upgrade should provide researchers with a state-of-the-art environment conducive to cutting-edge scientific discovery in agriculture. Enhanced facilities can attract top scientific talent, facilitate collaboration, and support a wider range of research projects, from basic science to applied technology development. Ultimately, this investment aims to bolster the ARS's mission to deliver scientific solutions for American agriculture, food, and the environment.
How has federal spending on agricultural research facilities evolved over the past five years?
Federal spending on agricultural research facilities has generally seen consistent investment, reflecting the ongoing importance of agricultural innovation. While specific figures for facility modernization contracts fluctuate annually based on project needs and appropriations, the Department of Agriculture, through agencies like the Agricultural Research Service (ARS), prioritizes maintaining and upgrading its research infrastructure. Over the past five years, there has been a trend towards modernizing older facilities to incorporate new technologies, improve energy efficiency, and enhance research capabilities. This includes investments in laboratories, greenhouses, and specialized equipment. The $95.9M contract for the ARS Technology Center aligns with this pattern of sustained, albeit project-specific, capital investment in research infrastructure to support national agricultural goals.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1232SA19R0033
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M. a. Mortenson Companies, Inc.
Address: 700 MEADOW LN N, MINNEAPOLIS, MN, 55422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $95,922,721
Exercised Options: $95,922,721
Current Obligation: $95,922,721
Actual Outlays: $95,922,721
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-16
Current End Date: 2025-01-10
Potential End Date: 2025-01-10 00:00:00
Last Modified: 2024-12-11
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 Agriculture Contracts
- Usda Enterprise-Scale Fedramp Certified Cloud Hosting Services. Igf::ot::igf — $336.8M (Accenture Federal Services LLC)
- Usda Disc Enterprise Wide Salesforce Software&support Services — $294.8M (Carahsoft Technology Corp)
- Provide Removal of Carcasses AT Premise X Igf::ot::igf Hpai — $292.5M (Clean Harbors Environmental Services Inc)
- Financial Management Modernization Initiative — $291.0M (Accenture LLP)
- Enterprise Application Services — $273.5M (Synergy Business Innovation & Solutions Inc.)