DHS awards $36.3M for CBP training center construction, with 3 bids received
Contract Overview
Contract Amount: $36,308,811 ($36.3M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Homeland Security
Start Date: 2023-09-08
End Date: 2026-02-19
Contract Duration: 895 days
Daily Burn Rate: $40.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES OF THE INSTITUTE BUILDING AT CBP ADVANCED TRAINING CENTER, HARPERS FERRY, WV
Place of Performance
Location: HARPERS FERRY, JEFFERSON County, WEST VIRGINIA, 25425
Plain-Language Summary
Department of Homeland Security obligated $36.3 million to M. A. MORTENSON COMPANY for work described as: CONSTRUCTION SERVICES OF THE INSTITUTE BUILDING AT CBP ADVANCED TRAINING CENTER, HARPERS FERRY, WV Key points: 1. Contract awarded to M. A. Mortenson Company for construction services. 2. Project aims to enhance training facilities for U.S. Customs and Border Protection. 3. Competition was full and open, indicating broad market engagement. 4. Contract duration is 895 days, spanning from September 2023 to February 2026. 5. The contract type is Firm Fixed Price, providing cost certainty. 6. Location of the project is Harpers Ferry, West Virginia.
Value Assessment
Rating: good
The contract value of $36.3 million for the construction of the Institute Building at the CBP Advanced Training Center appears reasonable given the scope of work. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government. Further analysis of the bid prices relative to the government's estimate would offer deeper insight into the pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with three bids received. This level of competition suggests a healthy market for this type of construction service. The presence of multiple bidders generally leads to more competitive pricing as contractors vie for the award. The government received three distinct proposals, allowing for a comparative evaluation of technical capabilities and pricing.
Taxpayer Impact: The full and open competition with three bidders is beneficial for taxpayers, as it likely drove down the final contract price through competitive bidding, ensuring a better value for the allocated funds.
Public Impact
The primary beneficiaries are U.S. Customs and Border Protection agents and personnel who will receive enhanced training. The project delivers essential construction services for a critical federal training facility. The geographic impact is concentrated in Harpers Ferry, West Virginia, potentially creating local jobs and economic activity. Workforce implications include employment opportunities for construction workers and related trades in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting training schedules.
- Risk of unforeseen site conditions requiring change orders.
- Ensuring compliance with all federal building codes and environmental regulations.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a competitive bidding process.
- Experienced contractor likely selected based on qualifications.
- Project supports critical national security training infrastructure.
Sector Analysis
The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to facility upgrades. This contract falls within the commercial and institutional building construction sub-sector. Federal spending in this area is often driven by the need to maintain, modernize, or expand government facilities to support agency missions. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar government buildings.
Small Business Impact
This contract was not set aside for small businesses and was awarded under full and open competition. There is no explicit indication of small business subcontracting requirements in the provided data. The impact on the small business ecosystem will depend on whether the prime contractor, M. A. Mortenson Company, utilizes small businesses for any subcontracting opportunities during the project's execution.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Homeland Security and U.S. Customs and Border Protection contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is facilitated through federal contract databases where such awards are reported. The Inspector General for DHS may also have jurisdiction for audits and investigations.
Related Government Programs
- Federal Building Construction
- Department of Homeland Security Facilities
- Customs and Border Protection Operations
- Training Facility Construction
- West Virginia Construction Projects
Risk Flags
- Potential for schedule delays
- Risk of unforeseen site conditions
- Compliance with federal regulations
- Supply chain and labor availability
Tags
construction, department-of-homeland-security, u-s-customs-and-border-protection, firm-fixed-price, full-and-open-competition, institutional-building, training-facility, west-virginia, large-contract, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $36.3 million to M. A. MORTENSON COMPANY. CONSTRUCTION SERVICES OF THE INSTITUTE BUILDING AT CBP ADVANCED TRAINING CENTER, HARPERS FERRY, WV
Who is the contractor on this award?
The obligated recipient is M. A. MORTENSON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $36.3 million.
What is the period of performance?
Start: 2023-09-08. End: 2026-02-19.
What is the track record of M. A. Mortenson Company with federal construction contracts, particularly with DHS or CBP?
M. A. Mortenson Company has a significant history of performing federal construction contracts. While specific details for DHS or CBP require deeper database searches, their extensive portfolio typically includes large-scale projects for various federal agencies. Their experience often encompasses complex projects requiring adherence to stringent federal standards and security protocols. Reviewing past performance evaluations and contract completion records for similar projects would provide a clearer picture of their reliability and quality of work. This contract's success will likely depend on their demonstrated ability to manage scope, schedule, and budget effectively, as evidenced by their prior federal engagements.
How does the awarded price of $36.3 million compare to similar federal training facility construction projects?
Benchmarking this $36.3 million contract against similar federal training facility construction projects requires access to a comprehensive database of comparable contracts. Factors such as project size (square footage), complexity, location, and specific functional requirements (e.g., specialized training areas, security features) significantly influence costs. Generally, large institutional buildings can range widely in cost per square foot. Without specific details on the size and scope of the Institute Building, a precise comparison is difficult. However, the firm fixed-price nature and the fact that it was competitively bid suggest the price was deemed fair and reasonable at the time of award, relative to the market conditions and the number of bidders.
What are the primary risk indicators associated with this construction contract?
Key risk indicators for this construction contract include potential for unforeseen site conditions, which are common in ground-up construction and can lead to cost increases or schedule delays, although the firm fixed-price contract aims to mitigate this for the government. Another risk is the contractor's ability to meet the demanding schedule of 895 days, especially given potential supply chain disruptions or labor shortages in the construction industry. Ensuring strict adherence to federal building codes, environmental regulations, and security requirements presents an ongoing compliance risk. Finally, the successful integration of specialized training equipment and systems within the new building structure could pose technical risks if not managed meticulously.
How effective is the firm fixed-price contract type in managing costs for this project?
The firm fixed-price (FFP) contract type is generally considered highly effective for managing costs when the scope of work is well-defined, as is typical for construction projects like this. It shifts the majority of the cost risk to the contractor, M. A. Mortenson Company, who is obligated to complete the work for the agreed-upon price. This provides the government, specifically DHS and CBP, with significant cost certainty and predictability, making budgeting more straightforward. While FFP contracts can sometimes lead to higher initial bid prices to account for contractor risk, the competitive bidding process here, with three offers, should have helped to temper this. The primary challenge with FFP is managing scope creep; any changes to the original requirements must be handled through formal change order processes, which can be costly.
What is the historical spending pattern for construction services by the Department of Homeland Security?
The Department of Homeland Security (DHS) consistently allocates substantial funds towards construction services to maintain and upgrade its vast array of facilities nationwide. Historical spending patterns reveal a significant and often increasing investment in infrastructure, including border facilities, training centers, and administrative buildings. This spending is driven by operational needs, aging infrastructure, and evolving security requirements. Analyzing DHS's annual budget and contract awards data over the past several years would show trends in construction spending, identifying specific agencies within DHS (like CBP) that are major recipients of these funds, and highlighting the types of construction services most frequently procured. This specific contract aligns with DHS's ongoing commitment to modernizing its operational and training infrastructure.
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
Offers Received: 3
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: $36,308,811
Exercised Options: $36,308,811
Current Obligation: $36,308,811
Actual Outlays: $23,654,363
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z04718DMORTSN00
IDV Type: IDC
Timeline
Start Date: 2023-09-08
Current End Date: 2026-02-19
Potential End Date: 2026-02-19 10:41:21
Last Modified: 2025-09-12
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