DOD Awards $151.5M Firm Fixed Price Contract for Building Construction to M. A. Mortenson Company
Contract Overview
Contract Amount: $15,148,875 ($15.1M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2010-04-28
Contract Duration: 575 days
Daily Burn Rate: $26.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BUILDING CONSTRUCTION
Place of Performance
Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $15.1 million to M. A. MORTENSON COMPANY for work described as: BUILDING CONSTRUCTION Key points: 1. The contract value of $151.5 million falls within the typical range for large-scale institutional building projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 575 days (approx. 1.5 years) is standard for complex construction projects. 4. The award to M. A. Mortenson Company, a large business, indicates significant contractor capacity.
Value Assessment
Rating: good
The contract value of $151.5 million is substantial for a single construction project. Benchmarking against similar large-scale institutional building contracts would be necessary for a precise value assessment, but the firm fixed price suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows the government to select the best value offer. The presence of multiple bidders (indicated by 'no': 3) likely contributed to a more favorable price discovery.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes market competition, potentially leading to lower prices and better quality services.
Public Impact
This project will likely result in a new or improved facility for the Department of the Army, enhancing operational capabilities. The construction activities will create jobs and stimulate economic activity in the local Kansas region. Taxpayers benefit from the competitive bidding process, which aims to secure the best value for public funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise in construction, despite the firm fixed price.
- Contractor performance risk, though mitigated by competition and fixed price.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Award to an established large business with proven capacity.
Sector Analysis
The Department of Defense frequently engages in large-scale building construction projects to support military infrastructure. Spending in this sector is driven by modernization needs, operational requirements, and base development, with contract values often in the tens to hundreds of millions of dollars.
Small Business Impact
This contract was awarded to a large business (M. A. Mortenson Company) and there is no indication of small business subcontracting in the provided data. Therefore, the direct impact on small businesses appears limited for this specific prime contract.
Oversight & Accountability
The Department of the Army's contracting office managed this award. Oversight would typically involve construction management, quality assurance, and financial monitoring throughout the project lifecycle to ensure compliance with contract terms and specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost increases due to unforeseen construction issues.
- Contract duration may be subject to delays.
- Lack of explicit small business subcontracting goals.
- Dependence on a single large contractor for project completion.
Tags
commercial-and-institutional-building-co, department-of-defense, ks, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to M. A. MORTENSON COMPANY. BUILDING CONSTRUCTION
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 $15.1 million.
What is the period of performance?
Start: 2008-09-30. End: 2010-04-28.
What specific type of building is being constructed, and how does its functionality align with current Army operational needs?
The provided data classifies this as 'Commercial and Institutional Building Construction' (NAICS 236220) for the Department of the Army. While the exact building type isn't specified, such facilities often serve administrative, training, housing, or support functions. Understanding the specific purpose is crucial to assess if the investment directly supports evolving military requirements and enhances operational effectiveness or readiness.
Given the firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen construction challenges that could impact the final cost to the government?
Although a firm fixed price contract aims to cap costs, robust change order management processes are critical. The government's contracting officer and project managers must meticulously review any proposed changes for necessity and cost impact. Contingency planning and clear contract language regarding unforeseen conditions are essential to prevent scope creep and protect the government from unexpected cost increases beyond the agreed-upon price.
How does the performance history of M. A. Mortenson Company on similar large-scale government construction projects inform the assessment of this contract's effectiveness?
Assessing the effectiveness of this contract relies heavily on the contractor's past performance. A review of M. A. Mortenson Company's track record with the Department of Defense or other federal agencies for similar projects would reveal their ability to deliver on time, within budget, and to specified quality standards. Positive past performance suggests a higher likelihood of successful project completion and thus, effective use of taxpayer funds.
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. (UEI: 130731797)
Address: 700 MEADOW LN N, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,353,875
Exercised Options: $15,148,875
Current Obligation: $15,148,875
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G08D0045
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2010-04-28
Potential End Date: 2010-04-28 00:00:00
Last Modified: 2010-09-21
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