DHS Coast Guard awards $38.5M for Houston-Galveston sector building relocation, completed on time
Contract Overview
Contract Amount: $38,553,246 ($38.6M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Homeland Security
Start Date: 2011-06-10
End Date: 2015-11-13
Contract Duration: 1,617 days
Daily Burn Rate: $23.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RELOCATION OF SECTOR BUILDING SECTOR HOUSTON-GALVESTON, HOUSTON, TX
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77029
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $38.6 million to M. A. MORTENSON COMPANY for work described as: RELOCATION OF SECTOR BUILDING SECTOR HOUSTON-GALVESTON, HOUSTON, TX Key points: 1. Contract value of $38.5 million for a significant construction project. 2. Project involved relocation and construction of a sector building. 3. Completed within the allocated timeframe, indicating effective project management. 4. Full and open competition suggests a competitive bidding process. 5. Firm fixed-price contract type likely provided cost certainty. 6. No small business set-aside was utilized for this contract.
Value Assessment
Rating: good
The contract value of $38.5 million for the relocation and construction of a sector building appears reasonable for a project of this scale. Benchmarking against similar large-scale government construction projects would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the contractor assumed most of the cost risk, which can be beneficial for the government in terms of budget predictability. The project's completion within the specified duration is a positive indicator of performance and management.
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 bids. With 5 bidders participating, the competition level was moderate, suggesting a reasonable opportunity for price discovery and potentially competitive pricing. The presence of multiple bidders generally benefits the government by encouraging lower bids and better terms.
Taxpayer Impact: Full and open competition with multiple bidders generally leads to better value for taxpayers by driving down costs through a competitive bidding process.
Public Impact
The U.S. Coast Guard benefits from a new, potentially more efficient sector building. Construction services were delivered in Houston, Texas. The project likely supported local construction jobs and businesses in the Houston area. Improved operational facilities for the Coast Guard in the Houston-Galveston region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if initial estimates were inaccurate, despite fixed-price.
- Construction projects can face unforeseen delays due to weather or site conditions.
- Ensuring compliance with all environmental and building regulations.
Positive Signals
- Project completed within the scheduled duration.
- Firm fixed-price contract provides budget certainty.
- Full and open competition suggests a robust bidding process.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government construction projects, particularly for agencies like the Department of Homeland Security, represent a substantial portion of federal spending in this area. The market for large-scale federal building construction is competitive, with established firms capable of undertaking complex projects. Spending benchmarks for similar facilities would provide further context on the value achieved.
Small Business Impact
This contract did not include a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses. The award to M. A. Mortenson Company, a large prime contractor, suggests that the primary focus was on securing the necessary expertise and capacity for a large-scale construction project. The impact on the small business ecosystem would depend on whether the prime contractor engaged small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office, with potential involvement from the Department of Homeland Security's Office of Inspector General. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. The project's completion within the timeframe suggests effective oversight and performance management.
Related Government Programs
- Department of Homeland Security Facilities Management
- U.S. Coast Guard Infrastructure Projects
- Federal Building Construction Contracts
- Large-Scale Construction Projects
Risk Flags
- Project Duration
- Contract Value
- Competition Level
Tags
construction, department-of-homeland-security, u.s.-coast-guard, firm-fixed-price, full-and-open-competition, delivery-order, texas, commercial-and-institutional-building-construction, large-contract, project-completion
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $38.6 million to M. A. MORTENSON COMPANY. RELOCATION OF SECTOR BUILDING SECTOR HOUSTON-GALVESTON, HOUSTON, TX
Who is the contractor on this award?
The obligated recipient is M. A. MORTENSON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $38.6 million.
What is the period of performance?
Start: 2011-06-10. End: 2015-11-13.
What was the specific scope of work for the relocation and construction of the sector building?
The contract data indicates the project involved the 'RELOCATION OF SECTOR BUILDING SECTOR HOUSTON-GALVESTON, HOUSTON, TX'. While the exact specifications are not detailed in the provided data, this typically encompasses site preparation, demolition of old structures if applicable, construction of a new facility, utility connections, and potentially landscaping and parking. The duration of 1617 days (approximately 4.4 years) suggests a comprehensive build, possibly including design, procurement, and construction phases. The firm fixed-price nature implies the scope was well-defined at the time of award to manage cost risks.
How does the $38.5 million contract value compare to similar federal building construction projects?
Comparing the $38.5 million contract value requires identifying similar projects in terms of size, complexity, and location. Federal building construction costs can vary significantly based on materials, labor rates, and specific functional requirements. For a sector building, which implies operational and administrative space for a specific government function like the Coast Guard, this value could be within the expected range for a medium to large-sized facility. However, without specific benchmarks for comparable Coast Guard or DHS facilities, a precise value-for-money assessment is difficult. Factors like LEED certification requirements or specialized security features could also influence costs.
What were the primary risks associated with this construction contract, and how were they mitigated?
Key risks in large construction projects include cost overruns, schedule delays, unforeseen site conditions, and contractor performance issues. This contract utilized a firm fixed-price (FFP) structure, which shifts the primary cost risk to the contractor, M. A. Mortenson Company. Mitigation for schedule delays and site conditions would have been addressed through detailed project planning, contingency allowances within the schedule, and potentially liquidated damages clauses for late completion. Contractor performance risk is managed through pre-award vetting, oversight during construction, and performance evaluations post-completion. The project's completion within the stated duration suggests these risks were effectively managed.
What is the track record of M. A. Mortenson Company with federal construction contracts?
M. A. Mortenson Company is a well-established construction firm with a significant history of undertaking large-scale projects, including many for federal agencies. While specific details of their past performance on federal contracts are not provided here, their ability to win a $38.5 million full and open competition contract with the U.S. Coast Guard suggests a strong track record and proven capabilities. Companies of this size typically have extensive experience with government contracting regulations, safety standards, and project management requirements. A deeper dive into their past performance ratings and award history would offer more insight.
How did the number of bidders (5) influence the final contract price?
With five bidders participating in the full and open competition, there was a reasonable level of competition, which generally exerts downward pressure on prices. A higher number of bidders typically leads to more aggressive pricing as companies vie for the contract. Conversely, if the scope was highly specialized or the market had few qualified contractors, five bidders might represent a healthy, albeit not saturated, competitive environment. The firm fixed-price nature means the winning bid represented the contractor's best estimate of cost plus profit, influenced by their assessment of the competition and their own capabilities.
What is the significance of the project completion date (November 2015) in relation to the award date (June 2011)?
The project was awarded on June 10, 2011, and completed on November 13, 2015. This timeline spans approximately 4 years and 5 months, or 1617 days as indicated by the duration field. This duration is substantial for a construction project and suggests a complex undertaking, potentially involving significant design, planning, and execution phases, or perhaps phased construction. Completing a project of this magnitude within the planned timeframe is a positive indicator of effective project management, realistic initial planning, and successful execution by M. A. Mortenson Company and the U.S. Coast Guard oversight team.
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: 5
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, 55422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,553,246
Exercised Options: $38,553,246
Current Obligation: $38,553,246
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $5,992,721
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSCG4710D3EFK14
IDV Type: IDC
Timeline
Start Date: 2011-06-10
Current End Date: 2015-11-13
Potential End Date: 2015-11-13 00:00:00
Last Modified: 2019-01-29
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