Army's $88M Fort Lewis construction contract awarded to M.A. Mortenson Company in 2008

Contract Overview

Contract Amount: $88,047,616 ($88.0M)

Contractor: M. a. Mortenson Company

Awarding Agency: Department of Defense

Start Date: 2008-08-20

End Date: 2014-06-19

Contract Duration: 2,129 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY08 ARMY GROWTH COMPLEX (BRIGADE/BATTALION/COF/TEMF), FORT LEWIS, WASHINGTON - PN 68842 & PN 68845

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $88.0 million to M. A. MORTENSON COMPANY for work described as: FY08 ARMY GROWTH COMPLEX (BRIGADE/BATTALION/COF/TEMF), FORT LEWIS, WASHINGTON - PN 68842 & PN 68845 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 2000 days indicates a long-term construction project. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The project is located at Fort Lewis, Washington, a significant Army installation. 5. The contract was awarded by the Department of the Army, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The raw award amount of over $88 million for a large construction project at a major military installation is substantial. However, without details on the scope of work (e.g., specific buildings, square footage, complexity), it's difficult to assess if the pricing was competitive or represented good value for money. The firm fixed-price nature implies cost certainty, which is a positive aspect for government budgeting.

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 a bid. The data shows there were 2 bids received (no: 2). A low number of bids can sometimes suggest limited market interest or potential barriers to entry, which could impact price discovery. However, without knowing the total number of solicitations or potential bidders, it's hard to definitively assess the level of competition.

Taxpayer Impact: A full and open competition, even with a limited number of bids, generally provides taxpayers with a better opportunity for competitive pricing compared to sole-source or limited solicitations. This process aims to ensure the government receives the best possible price through market forces.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Lewis, Washington, who will utilize the new or improved facilities. The contract delivers construction services for military facilities, likely supporting brigade, battalion, or company-level operations. The geographic impact is concentrated in Washington state, specifically at Fort Lewis. The project likely involved a significant construction workforce, including skilled trades and laborers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is a significant part of the broader construction industry, encompassing the building of non-residential structures. Federal construction spending, particularly for military installations, represents a substantial portion of this market. Comparable benchmarks would involve other large-scale military construction projects awarded by the Department of Defense, considering factors like project type, location, and economic conditions at the time of award.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside for this contract. There is no information provided regarding subcontracting plans or actual subcontracting to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is not discernible from the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and engineering commands, with potential involvement from the Department of Defense Inspector General for audits and investigations. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would include performance monitoring, adherence to contract terms, and quality control during construction.

Related Government Programs

Risk Flags

Tags

construction, department-of-defense, department-of-the-army, fort-lewis, washington, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, large-contract, military-construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.0 million to M. A. MORTENSON COMPANY. FY08 ARMY GROWTH COMPLEX (BRIGADE/BATTALION/COF/TEMF), FORT LEWIS, WASHINGTON - PN 68842 & PN 68845

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 $88.0 million.

What is the period of performance?

Start: 2008-08-20. End: 2014-06-19.

What specific types of buildings or facilities were constructed or renovated under this contract?

The provided data indicates the contract was for 'FY08 ARMY GROWTH COMPLEX (BRIGADE/BATTALION/COF/TEMF), FORT LEWIS, WASHINGTON'. This suggests the construction or renovation of facilities to support Army growth at the brigade, battalion, or company level. This could include barracks, administrative buildings, training facilities, maintenance shops, or other operational infrastructure. However, the exact nature and scope of the 'complex' are not detailed in the provided data points, making it difficult to specify the precise types of buildings.

How does the per-square-foot cost of this project compare to similar military construction projects awarded around the same time?

Direct comparison of per-square-foot cost is not possible with the given data, as the total square footage of the constructed complex is not provided. To perform such a comparison, one would need the total square footage built or renovated, the detailed cost breakdown, and data on similar projects awarded by the Department of the Army or other branches of the DoD during FY2008-2014. Factors like building type (e.g., barracks vs. specialized training facility), material costs, and labor rates in the specific geographic region would also need to be considered for an accurate benchmark.

What was the track record of M. A. Mortenson Company with the Department of Defense prior to this award?

Information on M. A. Mortenson Company's specific track record with the Department of Defense prior to August 2008 is not included in the provided data points. A comprehensive assessment would require reviewing their contract history with the DoD, including past performance evaluations, any disputes or claims filed, and the types and values of previous contracts. This information is typically available through federal procurement databases and could reveal patterns of successful project completion or potential areas of concern.

Were there any significant cost overruns or delays experienced during the execution of this contract?

The provided data indicates the contract was awarded on August 20, 2008, and had an end date of June 19, 2014, with a duration of 2129 days. This duration is substantial. While the contract type is Firm Fixed Price, which aims to control costs, long-duration projects are susceptible to unforeseen issues. Without specific performance reports, audit findings, or contract modification details, it is not possible to determine if there were significant cost overruns or delays beyond the initial scope and timeline.

What is the historical spending trend for similar construction projects at Fort Lewis or within the Department of the Army?

The provided data focuses on a single contract award. To analyze historical spending trends for similar construction projects at Fort Lewis or within the Department of the Army, one would need access to aggregated spending data over multiple fiscal years. This would involve querying databases for contracts categorized under military construction, facility upgrades, or specific building types within the Army and at that installation. Analyzing such trends would reveal patterns in investment, identify periods of increased or decreased spending, and potentially highlight shifts in construction priorities or budget allocations.

How did the two bids received compare in terms of price and technical approach?

The provided data only states that the contract was awarded under full and open competition and that 2 bids were received (no: 2). It does not include details about the specific pricing or technical proposals submitted by the bidders. To understand how the bids compared, one would need access to the source selection decision document or bid abstracts, which would typically detail the evaluation criteria, the scores or rankings of each bidder, and the rationale for selecting M. A. Mortenson Company as the awardee. This information is often considered sensitive procurement data.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

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 LN N, MINNEAPOLIS, MN, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $88,047,616

Exercised Options: $88,047,616

Current Obligation: $88,047,616

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ07D0053

IDV Type: IDC

Timeline

Start Date: 2008-08-20

Current End Date: 2014-06-19

Potential End Date: 2014-06-19 00:00:00

Last Modified: 2014-06-19

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