GSA's $78M Nakamura Courthouse renovation contract awarded to M. A. Mortenson Company under full and open competition
Contract Overview
Contract Amount: $78,239,460 ($78.2M)
Contractor: M. a. Mortenson Company
Awarding Agency: General Services Administration
Start Date: 2005-12-05
End Date: 2012-04-13
Contract Duration: 2,321 days
Daily Burn Rate: $33.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PERFORM SERVICES AS CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR RENOVATION OF NAKAMURA COURTHOUSE PROJECT.
Place of Performance
Location: SEATTLE, KING County, WASHINGTON, 98101
Plain-Language Summary
General Services Administration obligated $78.2 million to M. A. MORTENSON COMPANY for work described as: PERFORM SERVICES AS CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR RENOVATION OF NAKAMURA COURTHOUSE PROJECT. Key points: 1. The contract value of $78.2 million represents a significant investment in federal courthouse infrastructure. 2. Awarded under full and open competition, suggesting a robust market response and potential for competitive pricing. 3. The duration of 2321 days (over 6 years) indicates a large-scale, complex renovation project. 4. The firm-fixed-price contract type shifts significant risk to the contractor, M. A. Mortenson Company. 5. The project falls under the Public Buildings Service, responsible for federal building management. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.
Value Assessment
Rating: good
The contract value of $78.2 million for a courthouse renovation is substantial. Without specific benchmarks for similar courthouse renovations of this scale and complexity, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government secured a defined cost, with the contractor bearing cost overruns. The duration of over six years implies a comprehensive scope of work, which, if executed efficiently, could represent good value.
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 offers. The presence of 4 bidders (no) suggests a healthy level of competition for this project. This competitive environment is generally expected to drive down prices and encourage innovation from the participating firms.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for the construction services, reducing the likelihood of overpayment for the courthouse renovation.
Public Impact
The primary beneficiaries are the judicial system and federal employees who will utilize the renovated Nakamura Courthouse. The project delivers essential construction management and construction services for a critical federal facility. The geographic impact is localized to the area where the Nakamura Courthouse is situated, likely benefiting the local economy through job creation and material sourcing. Workforce implications include employment opportunities for construction workers, project managers, engineers, and support staff during the extensive renovation period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 6 years) can increase the risk of cost escalation or scope creep if not managed tightly.
- Firm-fixed-price contracts, while shifting risk, can sometimes lead to contractors cutting corners on quality if not adequately overseen.
- The specific nature of courthouse renovations can involve unique security and operational requirements that add complexity.
Positive Signals
- Awarded under full and open competition, indicating a competitive marketplace for this type of service.
- The firm-fixed-price contract type provides cost certainty for the government.
- The contractor, M. A. Mortenson Company, is a large, established firm likely possessing the resources and experience for such a project.
Sector Analysis
The construction industry, particularly the segment focused on institutional and commercial building construction (NAICS 236220), is characterized by large projects requiring significant capital and expertise. Federal courthouse construction and renovation represent a specialized niche within this sector, often involving stringent security, accessibility, and durability requirements. The market size for federal construction is substantial, with agencies like the General Services Administration (GSA) being major clients. Benchmarks for similar large-scale public building renovations would typically consider factors like square footage, complexity of systems (HVAC, electrical, security), and historical cost data for comparable projects.
Small Business Impact
This contract was not set aside for small businesses (ss: false, sb: false). The firm-fixed-price nature and the scale of the project suggest it is likely beyond the capacity of most small businesses to undertake independently. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. However, the prime contractor may engage small businesses for specialized services or material supply.
Oversight & Accountability
Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. Mechanisms likely include regular progress reports, site inspections, and performance reviews. Accountability is enforced through the firm-fixed-price contract terms, which penalize deviations from the agreed-upon scope and cost. Transparency is generally facilitated through contract award databases and public reporting, though detailed project-specific oversight activities may not be fully public.
Related Government Programs
- Federal Courthouse Construction
- Public Building Renovations
- General Services Administration Contracts
- Construction Management Services
Risk Flags
- Long project duration
- Firm-fixed-price risk
- Potential for cost escalation (contractor risk)
- Need for sustained oversight
Tags
construction, general-services-administration, public-buildings-service, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, courthouse-renovation, washington, large-project
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $78.2 million to M. A. MORTENSON COMPANY. PERFORM SERVICES AS CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR RENOVATION OF NAKAMURA COURTHOUSE PROJECT.
Who is the contractor on this award?
The obligated recipient is M. A. MORTENSON COMPANY.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $78.2 million.
What is the period of performance?
Start: 2005-12-05. End: 2012-04-13.
What is the track record of M. A. Mortenson Company with the General Services Administration?
M. A. Mortenson Company has a significant history of contracting with the federal government, including the General Services Administration (GSA). While this specific contract for the Nakamura Courthouse renovation is a large award, Mortenson has experience with various federal construction projects. Analyzing their past performance on similar GSA contracts, particularly those involving renovations or new construction of public facilities, would provide insight into their reliability, adherence to schedule, and cost control. Reviewing past performance evaluations and any documented disputes or contract modifications would offer a more comprehensive picture of their track record with the agency.
How does the awarded amount compare to similar federal courthouse renovation projects?
Comparing the $78.2 million award for the Nakamura Courthouse renovation requires access to a database of similar federal courthouse projects, including their scope, size, location, and final cost. Without such a benchmark, it's difficult to definitively state if this represents excellent or fair value. Factors like the age and condition of the original courthouse, the extent of the planned renovations (e.g., structural, MEP systems, security upgrades, interior finishes), and regional construction cost indices would influence the expected price. A preliminary assessment suggests it's a substantial investment, typical for large-scale public infrastructure projects.
What are the primary risks associated with a firm-fixed-price contract for a multi-year renovation?
The primary risks with a firm-fixed-price (FFP) contract for a multi-year renovation like the Nakamura Courthouse project lie in potential cost overruns for the contractor and potential quality compromises if not managed diligently. For the contractor, unforeseen site conditions, material price escalations, labor shortages, or design changes not covered by contract modifications can lead to significant financial losses. For the government, the risk is that the contractor, under pressure to maintain profitability, might cut corners on materials, workmanship, or safety protocols. Robust government oversight, clear contract terms, and proactive risk management by both parties are crucial to mitigate these risks.
How effective are GSA's oversight mechanisms for large construction projects?
GSA generally employs a range of oversight mechanisms for large construction projects, including regular site inspections, progress meetings, review of contractor submittals, and performance evaluations. The effectiveness can vary depending on the specific project team, the clarity of the contract requirements, and the resources allocated for oversight. For a project of this magnitude and duration, GSA would likely have dedicated project managers and technical experts overseeing the work. The firm-fixed-price nature of this contract implies a strong emphasis on ensuring the contractor meets the defined scope and quality standards within the agreed budget. Inspector General reports can also provide insights into oversight effectiveness.
What is the historical spending trend for federal courthouse construction and renovation?
Historical spending on federal courthouse construction and renovation by agencies like the GSA has generally fluctuated based on infrastructure needs, budget appropriations, and national priorities. There have been periods of significant investment in new courthouses and major renovations, particularly following security enhancements mandated after events like 9/11. Analyzing historical data would likely show a trend of increasing construction costs over time due to inflation, material costs, and evolving building standards. Understanding these trends helps contextualize the $78.2 million award for the Nakamura Courthouse project as part of a broader federal commitment to maintaining its judicial facilities.
What are the implications of the 2321-day duration on project management and cost?
A duration of 2321 days, approximately 6.3 years, for the Nakamura Courthouse renovation signifies a highly complex and extensive project. This long timeframe increases the potential for various risks, including inflation impacting material and labor costs (though mitigated by FFP), potential for contractor performance degradation over time, and the need for sustained government oversight. Project management requires meticulous phasing, coordination of numerous trades, and adaptation to potential unforeseen issues. From a cost perspective, while the FFP aims for certainty, the extended period necessitates careful budgeting for government project management staff and potential contingency planning for scope adjustments or unforeseen critical needs that may arise over such a long duration.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,239,460
Exercised Options: $78,239,460
Current Obligation: $78,239,460
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2005-12-05
Current End Date: 2012-04-13
Potential End Date: 2012-04-13 00:00:00
Last Modified: 2012-04-13
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