Department of Defense awards $32.6M contract for Military Brigade HQ construction, highlighting construction sector activity
Contract Overview
Contract Amount: $32,568,509 ($32.6M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2009-08-28
End Date: 2013-09-30
Contract Duration: 1,494 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MILITARY - 47TH BCT BRIGADE-BATTALION HQ
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to M. A. MORTENSON COMPANY for work described as: MILITARY - 47TH BCT BRIGADE-BATTALION HQ Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $32.6 million falls within a typical range for large-scale construction projects. 3. Fixed-price contract type may offer cost certainty for the government, but shifts risk to the contractor. 4. The project duration of approximately 4 years indicates a significant undertaking. 5. Construction and facilities are a substantial area of federal spending, with this contract representing a portion of that. 6. The award to M. A. Mortenson Company suggests a contractor with experience in large-scale projects.
Value Assessment
Rating: good
The contract value of $32.6 million for a Brigade-Battalion HQ construction appears reasonable for a project of this scale and duration. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government sought cost predictability, which is a positive indicator if the final cost aligns with initial estimates. Without specific cost breakdowns or comparisons to industry standards for similar facilities, a definitive value assessment is challenging, but the overall scope suggests a fair market price was likely sought through competition.
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 bids. The presence of 3 bidders suggests a moderate level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions. However, for specialized large-scale construction, three bidders can still represent a healthy competition, ensuring the government receives proposals from qualified firms.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government obtains the best value for its investment.
Public Impact
The primary beneficiaries are the U.S. Army personnel who will utilize the new Brigade-Battalion Headquarters facility. The contract delivers essential infrastructure for military command and control operations. The geographic impact is concentrated in Colorado, where the facility will be constructed. The project will likely create or sustain jobs in the construction sector, including skilled trades and project management roles in the Colorado region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
- Delays in construction could impact military readiness and operational timelines.
- Ensuring compliance with environmental and safety regulations throughout the construction process is critical.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm fixed-price contract provides cost certainty for the government.
- The contractor, M. A. Mortenson Company, likely possesses relevant experience for this type of project.
- The project addresses a critical infrastructure need for the military.
Sector Analysis
The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to facility development. This contract falls under commercial and institutional building construction, a segment that includes government facilities, educational institutions, and healthcare buildings. Federal spending in this area is often driven by modernization needs, new installations, or upgrades to existing infrastructure. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar military or government building constructions.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside language means direct participation by small businesses in the prime contract is unlikely. Further review of subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms, specifications, and timelines. The Department of Defense has robust Inspector General (IG) functions that can investigate fraud, waste, and abuse. Transparency is generally maintained through contract award databases like FPDS, though detailed project progress and financial reports may not always be publicly accessible.
Related Government Programs
- Military Construction
- Department of Defense Facilities
- Army Corps of Engineers Projects
- General Services Administration (GSA) Construction Contracts
Risk Flags
- Potential for schedule delays impacting military readiness.
- Risk of unforeseen site conditions impacting cost and schedule.
- Ensuring contractor financial stability throughout a multi-year project.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, large-contract, military-construction, colorado, brigade-battalion-hq, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to M. A. MORTENSON COMPANY. MILITARY - 47TH BCT BRIGADE-BATTALION HQ
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 $32.6 million.
What is the period of performance?
Start: 2009-08-28. End: 2013-09-30.
What is the track record of M. A. Mortenson Company with the Department of Defense?
M. A. Mortenson Company has a history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio often includes military installations, research facilities, and other government buildings. Reviewing their past performance on similar DoD contracts, including any past performance evaluations or awards, would provide insight into their reliability, quality of work, and ability to manage complex projects within budget and schedule. Specific data on their DoD contract history, including value and type of projects, would be necessary for a comprehensive assessment.
How does the cost per square foot of this facility compare to similar military construction projects?
To compare the cost per square foot, we would need the total square footage of the Brigade-Battalion HQ. Assuming this information were available, we could divide the total contract value ($32.6 million) by the square footage. This figure would then be benchmarked against historical data for similar military construction projects, such as barracks, command centers, or administrative facilities, awarded by the Department of Defense or other federal agencies. Factors like location, specific functional requirements, and material costs can influence per-square-foot pricing, so comparisons should ideally be made with projects of similar complexity and in comparable geographic regions.
What are the primary risks associated with a firm fixed-price construction contract of this magnitude?
The primary risk with a firm fixed-price (FFP) contract of this magnitude is that the contractor bears the brunt of any cost overruns. If M. A. Mortenson Company encounters unexpected site conditions, material price increases, labor shortages, or design issues, their profit margin will be reduced, or they could incur a loss. Conversely, if they manage costs effectively and complete the project under budget, they retain the savings, which is a benefit to them. For the government, the risk is less about cost overruns and more about potential impacts on schedule or quality if the contractor struggles financially or cuts corners to maintain profitability. Robust oversight is crucial to mitigate these risks.
What is the historical spending trend for similar military construction projects by the Department of the Army?
Analyzing historical spending trends for similar military construction projects by the Department of the Army would involve examining contract awards over several fiscal years. This would reveal patterns in project types, average contract values, and the prevalence of different contract types (e.g., FFP, cost-plus). For instance, one might observe an increase in spending on command and control facilities during periods of heightened geopolitical activity or a shift towards sustainable building practices. Understanding these trends provides context for the current $32.6 million award, indicating whether it aligns with historical investment levels or represents a significant deviation.
What are the potential implications of the 3-bidder competition on the final price and quality?
A competition with three bidders suggests a moderate level of market interest and capability for this specific project. While more bidders generally lead to more aggressive pricing and potentially a wider array of solutions, three qualified bidders can still result in a competitive outcome. It indicates that at least three firms were capable and interested in undertaking this significant construction project. The final price is likely to be influenced by the specific capabilities and cost structures of these three companies. The quality aspect depends on the evaluation criteria used during the bidding process; if technical merit and past performance were weighted heavily alongside price, the selected contractor should deliver high quality.
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,568,509
Exercised Options: $32,568,509
Current Obligation: $32,568,509
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912HN08D0035
IDV Type: IDC
Timeline
Start Date: 2009-08-28
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-08-01
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