Coast Guard waterfront facilities repair contract awarded to M. A. Mortenson Company for over $24.7 million
Contract Overview
Contract Amount: $24,745,535 ($24.7M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Homeland Security
Start Date: 2014-08-29
End Date: 2016-12-16
Contract Duration: 840 days
Daily Burn Rate: $29.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF PROJECT #5276537 REPAIR AND REBUILDING OF USCG WATERFRONT FACILITIES AT USCG ACADEMY AND STATION NEW LONDON, NEW LONDON, CT.
Place of Performance
Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320
Plain-Language Summary
Department of Homeland Security obligated $24.7 million to M. A. MORTENSON COMPANY for work described as: IGF::OT::IGF PROJECT #5276537 REPAIR AND REBUILDING OF USCG WATERFRONT FACILITIES AT USCG ACADEMY AND STATION NEW LONDON, NEW LONDON, CT. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 3. The contract duration of 840 days (approximately 2.3 years) suggests a significant scope of work. 4. The project involves repair and rebuilding of waterfront facilities, critical infrastructure for the Coast Guard. 5. The contract was awarded by the Department of Homeland Security to the U.S. Coast Guard. 6. The project is located in New London, Connecticut, impacting local infrastructure and potentially workforce.
Value Assessment
Rating: good
The contract value of $24.7 million for waterfront facility repairs appears reasonable given the scope of rebuilding and repairing critical infrastructure. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to private sector projects of similar scale and complexity, a definitive value assessment is challenging.
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 a bid. The presence of 4 bids (no: 4) suggests a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more competitive pricing, but the specific nature of specialized waterfront construction may limit the pool of qualified contractors. The competition level here likely contributed to price discovery, but further analysis of bid variations would be needed for a definitive conclusion.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The fact that multiple bids were received suggests that taxpayer funds were likely used efficiently, as contractors vied to offer the best value.
Public Impact
The U.S. Coast Guard benefits from the modernization and repair of essential waterfront facilities, enhancing operational capabilities. Services delivered include the repair and rebuilding of critical infrastructure, ensuring the longevity and functionality of Coast Guard assets. The geographic impact is concentrated in New London, Connecticut, potentially creating local employment opportunities during the construction phase. Workforce implications may include job creation for construction workers, engineers, and project managers in the New London area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise during construction, despite the firm-fixed-price contract.
- Ensuring timely completion within the 840-day duration is crucial to avoid operational disruptions for the Coast Guard.
- Quality control and adherence to specifications are paramount for the long-term durability of the repaired facilities.
Positive Signals
- The firm-fixed-price contract shifts cost risk to the contractor, M. A. Mortenson Company.
- Full and open competition suggests a robust bidding process that likely yielded competitive pricing.
- The project addresses critical infrastructure needs for the U.S. Coast Guard, ensuring operational readiness.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. The market for federal construction projects is substantial, with agencies like the Department of Homeland Security frequently undertaking infrastructure upgrades. Comparable spending benchmarks would involve analyzing other large-scale federal facility construction or renovation contracts, particularly those involving specialized maritime or waterfront infrastructure. The size of this contract, over $24.7 million, places it in the mid-to-large category for federal construction awards.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While M. A. Mortenson Company is a large contractor, there may be opportunities for small businesses to participate as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. The Department of Homeland Security's Office of Inspector General (OIG) would have jurisdiction to investigate any allegations of fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project progress and financial reports may not always be publicly accessible.
Related Government Programs
- Department of Defense Military Construction
- General Services Administration Public Buildings Service
- Army Corps of Engineers Civil Works Projects
- Navy Shore Infrastructure Improvements
Risk Flags
- Potential for unforeseen site conditions impacting schedule and cost.
- Risk of weather-related delays affecting project timeline.
- Ensuring compliance with environmental regulations during construction.
- Quality control to ensure long-term durability of repaired facilities.
Tags
construction, department-of-homeland-security, u-s-coast-guard, firm-fixed-price, full-and-open-competition, delivery-order, infrastructure, connecticut, commercial-building-construction, large-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $24.7 million to M. A. MORTENSON COMPANY. IGF::OT::IGF PROJECT #5276537 REPAIR AND REBUILDING OF USCG WATERFRONT FACILITIES AT USCG ACADEMY AND STATION NEW LONDON, NEW LONDON, CT.
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 $24.7 million.
What is the period of performance?
Start: 2014-08-29. End: 2016-12-16.
What is the track record of M. A. Mortenson Company in performing similar federal construction contracts, particularly those involving waterfront facilities?
M. A. Mortenson Company has a significant history of undertaking large-scale construction projects, including those for federal agencies. While specific details on their past performance on U.S. Coast Guard waterfront facilities require deeper database searches, their general experience encompasses complex projects such as military bases, research facilities, and public infrastructure. A review of their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or claims would provide a comprehensive understanding of their reliability and capability for this type of specialized work. Their ability to secure a contract of this magnitude under full and open competition suggests a strong existing track record.
How does the awarded amount of $24.7 million compare to the estimated cost or bids from other competitors for this project?
The awarded amount of $24,745,535 represents the final contract value agreed upon with M. A. Mortenson Company. To assess value, it's crucial to compare this figure against the initial government estimate (if available) and the bids submitted by the other three competitors. If the awarded amount was significantly lower than the estimate and other bids, it suggests favorable price negotiation. Conversely, if it was close to or exceeded the estimate, further scrutiny of the pricing structure and scope might be warranted. Without access to the bid tabulation, it's difficult to definitively state how competitive the final price was relative to other offers.
What are the primary risks associated with the repair and rebuilding of waterfront facilities, and how are they mitigated in this contract?
Key risks in waterfront facility repair include unforeseen subsurface conditions (e.g., soil stability, buried utilities), environmental hazards (e.g., hazardous materials, marine life impacts), weather delays, and the complexity of working in a marine environment. This contract, being a firm-fixed-price (FFP) award, places the primary financial risk of cost overruns due to these factors onto the contractor, M. A. Mortenson Company. Mitigation strategies are embedded in the contract's specifications, requiring detailed site investigations, adherence to environmental regulations, and potentially including provisions for weather-related delays or differing site conditions, though the contractor bears the brunt of cost impacts. Robust project management and quality assurance by the Coast Guard are also critical oversight measures.
What is the historical spending pattern for U.S. Coast Guard waterfront facility maintenance and upgrades, and how does this contract fit within that trend?
Historical spending on U.S. Coast Guard waterfront facilities likely reflects a pattern of ongoing maintenance, periodic upgrades, and occasional major rebuilding projects driven by aging infrastructure, evolving operational needs, and environmental resilience requirements. This $24.7 million contract represents a significant investment, suggesting a major rehabilitation or rebuilding effort rather than routine maintenance. Analyzing past spending trends would reveal whether this level of investment is typical for major facility overhauls or an outlier. Factors such as budget allocations, infrastructure condition assessments, and strategic modernization plans would influence the frequency and scale of such contracts over time.
What specific performance metrics or deliverables are expected from M. A. Mortenson Company under this contract?
While the provided data does not detail specific performance metrics, typical deliverables for a construction contract of this nature would include project milestones, completion of specific repair/rebuilding phases, adherence to safety protocols, submission of progress reports, and final project close-out documentation. Performance would be evaluated against the contract's technical specifications, schedule, and quality standards. The U.S. Coast Guard would monitor progress and ensure compliance, with potential for liquidated damages if milestones are missed or the final product does not meet requirements. The firm-fixed-price nature emphasizes timely and complete delivery within the agreed budget.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M. a. Mortenson Companies, Inc.
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: $24,745,535
Exercised Options: $24,745,535
Current Obligation: $24,745,535
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $18,409,442
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSCG4710D3EFK14
IDV Type: IDC
Timeline
Start Date: 2014-08-29
Current End Date: 2016-12-16
Potential End Date: 2016-12-16 00:00:00
Last Modified: 2025-08-18
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