GSA's $26.8M Chicago Federal Building Modernization Contract Awarded to M.A. Mortenson Company
Contract Overview
Contract Amount: $26,876,217 ($26.9M)
Contractor: M. a. Mortenson Company
Awarding Agency: General Services Administration
Start Date: 2009-11-12
End Date: 2015-09-28
Contract Duration: 2,146 days
Daily Burn Rate: $12.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Construction
Official Description: TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE MODERNIZATION OF 10 W. JACKSON, 18 W. JACKSON AND 230 S. STATE STREET FEDERAL BUILDINGS LOCATED IN CHICAGO, IL.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60604
State: Illinois Government Spending
Plain-Language Summary
General Services Administration obligated $26.9 million to M. A. MORTENSON COMPANY for work described as: TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE MODERNIZATION OF 10 W. JACKSON, 18 W. JACKSON AND 230 S. STATE STREET FEDERAL BUILDINGS LOCATED IN CHICAGO, IL. Key points: 1. Contract value of $26.8M for construction management services. 2. Awarded under full and open competition. 3. Potential risks include project duration and fixed-price incentive structure. 4. Sector: Construction, specifically commercial and institutional building construction.
Value Assessment
Rating: good
The contract value of $26.8M appears reasonable for a large-scale federal building modernization project in a major metropolitan area like Chicago. Benchmarking against similar GSA construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for construction services.
Public Impact
Modernization of federal buildings in Chicago enhances public infrastructure. Project completion impacts federal agency operations and public access. Construction activities may cause temporary disruptions in the downtown Chicago area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2146 days) could lead to cost overruns.
- Fixed-price incentive contract type can be complex to manage and may not always yield the best value if not structured carefully.
- Lack of specific small business participation noted (ss: false, sb: false).
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Project aims to modernize critical federal infrastructure.
- Located in a major urban center, potentially benefiting local economy through construction jobs.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. Federal building modernization projects are common and often involve significant investment to update aging infrastructure and improve energy efficiency.
Small Business Impact
The data indicates that neither small business set-aside nor small business participation was explicitly noted for this contract (ss: false, sb: false). Further investigation may be needed to confirm if small businesses were subcontracted.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing federal building projects. Oversight would focus on adherence to contract terms, budget, schedule, and quality of construction.
Related Government Programs
- Commercial and Institutional Building Construction
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Long contract duration.
- Fixed-price incentive contract type.
- No explicit small business participation noted.
- Potential for cost overruns due to project length and complexity.
- Lack of detailed performance data in the provided summary.
Tags
commercial-and-institutional-building-co, general-services-administration, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $26.9 million to M. A. MORTENSON COMPANY. TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE MODERNIZATION OF 10 W. JACKSON, 18 W. JACKSON AND 230 S. STATE STREET FEDERAL BUILDINGS LOCATED IN CHICAGO, IL.
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 $26.9 million.
What is the period of performance?
Start: 2009-11-12. End: 2015-09-28.
What was the final cost compared to the initial award amount, and were there any significant change orders?
The provided data shows an award amount of $26,876,217. Without access to the contract's final delivery or modification history, it's impossible to determine the final cost or the impact of any change orders. Analyzing these details would reveal the contract's true cost performance and the effectiveness of the fixed-price incentive structure in controlling expenses.
How did the actual project duration compare to the planned duration, and what factors contributed to any variances?
The contract had a planned duration of 2146 days (approximately 5.9 years). Understanding the actual completion date is crucial to assess if the project met its timeline. Delays in large construction projects can significantly increase costs due to extended labor, equipment rental, and potential escalation clauses, impacting overall value for taxpayers.
Were there any performance issues or disputes with M.A. Mortenson Company during the contract period?
The provided data does not contain information on performance issues or disputes. A thorough review would involve examining contract performance reports, payment histories, and any formal complaints or litigation. Such information is vital for assessing the contractor's reliability and the overall effectiveness of the GSA's contract management.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $26,876,217
Exercised Options: $26,876,217
Current Obligation: $26,876,217
Parent Contract
Parent Award PIID: GS05P09GBD0033
IDV Type: IDC
Timeline
Start Date: 2009-11-12
Current End Date: 2015-09-28
Potential End Date: 2015-09-28 00:00:00
Last Modified: 2014-11-18
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