DHS Coast Guard awards $12.35M contract for Buffalo waterfront improvements to M.A. Mortenson Company
Contract Overview
Contract Amount: $12,354,714 ($12.4M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Homeland Security
Start Date: 2013-12-02
End Date: 2015-12-31
Contract Duration: 759 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P/N 4892100, H. SANDY: WATERFRONT IMPROVEMENTS AT CG SECTOR BUFFALO, NY AC&I: 3409BU IGF::OT::IGF
Place of Performance
Location: BUFFALO, ERIE County, NEW YORK, 14203
State: New York Government Spending
Plain-Language Summary
Department of Homeland Security obligated $12.4 million to M. A. MORTENSON COMPANY for work described as: P/N 4892100, H. SANDY: WATERFRONT IMPROVEMENTS AT CG SECTOR BUFFALO, NY AC&I: 3409BU IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $12.35 million falls within a moderate spending range for infrastructure projects. 3. Fixed-price contract type aims to control costs and transfer risk to the contractor. 4. Project duration of approximately 759 days indicates a significant, multi-year undertaking. 5. The project is located in New York, potentially impacting local employment and businesses. 6. No small business set-aside was utilized, indicating the primary award was not specifically targeted for small businesses.
Value Assessment
Rating: good
The contract value of $12.35 million for waterfront improvements appears reasonable given the scope of AC&I (Acquisition, Construction, and Improvement) work. Benchmarking against similar U.S. Coast Guard or Department of Homeland Security construction projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control when project requirements are well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method typically fosters price discovery and encourages competitive pricing. The Coast Guard's use of this procurement method suggests confidence in obtaining a fair market price through a broad solicitation.
Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better value due to the competitive nature of the bidding process, ensuring that public funds are used efficiently.
Public Impact
The U.S. Coast Guard will benefit from improved waterfront facilities at Sector Buffalo, NY, enhancing operational capabilities. Services delivered include construction and improvements to waterfront infrastructure, crucial for maritime operations. The geographic impact is localized to Buffalo, New York, potentially creating local jobs and economic activity. The project may lead to increased demand for skilled labor in the construction sector within the Buffalo region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise during construction.
- Dependence on contractor's ability to meet project timelines and quality standards.
- Risk of supply chain disruptions affecting material availability and project schedule.
Positive Signals
- Firm fixed-price contract mitigates cost escalation risk for the government.
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- Project aims to improve critical infrastructure, enhancing operational readiness for the Coast Guard.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically related to maritime infrastructure. The U.S. Coast Guard, as part of the Department of Homeland Security, frequently undertakes construction and renovation projects to maintain and upgrade its facilities. Spending in this sector is driven by government needs for operational bases, ports, and related infrastructure, with project costs varying significantly based on scale, location, and complexity.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary contract was competed broadly, and while M.A. Mortenson Company may engage small businesses as subcontractors, it was not a mandated requirement of the prime contract award. The impact on the small business ecosystem would depend on the subcontracting practices of the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office and project managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting, though specific oversight activities and Inspector General involvement would depend on the nature of any issues that arise.
Related Government Programs
- Department of Homeland Security Infrastructure Projects
- U.S. Coast Guard Facility Modernization
- Federal Construction Contracts
- Maritime Infrastructure Development
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays due to weather or supply chain issues.
- Contract performance depends heavily on contractor's execution.
- Environmental compliance during construction requires careful management.
Tags
construction, infrastructure, department-of-homeland-security, u.s.-coast-guard, new-york, full-and-open-competition, firm-fixed-price, large-contract, waterfront-improvements, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $12.4 million to M. A. MORTENSON COMPANY. P/N 4892100, H. SANDY: WATERFRONT IMPROVEMENTS AT CG SECTOR BUFFALO, NY AC&I: 3409BU IGF::OT::IGF
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 $12.4 million.
What is the period of performance?
Start: 2013-12-02. End: 2015-12-31.
What is the track record of M.A. Mortenson Company with the U.S. Coast Guard or Department of Homeland Security?
M.A. Mortenson Company has a history of performing large-scale construction projects. While specific details of their past performance with the U.S. Coast Guard or DHS are not provided in this data snippet, their selection for this contract suggests they met the agency's pre-qualification criteria. A deeper dive into their contract history with these agencies, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment. Generally, large construction firms like Mortenson have experience with federal contracts, but the specific nature and success of those engagements are key to evaluating their reliability for this particular project.
How does the $12.35 million contract value compare to similar waterfront improvement projects by the Coast Guard?
The $12.35 million award for waterfront improvements at CG Sector Buffalo is a significant investment. To benchmark its value, one would compare it to other AC&I (Acquisition, Construction, and Improvement) contracts awarded by the U.S. Coast Guard or similar maritime agencies for projects of comparable scope, such as pier construction, dredging, or facility upgrades at other sectors. Factors like geographic location (labor and material costs), specific technical requirements (e.g., environmental considerations, specialized equipment), and project duration heavily influence cost. Without a detailed comparison set, it's difficult to definitively state if this represents excellent or fair value, but it aligns with the substantial capital required for major infrastructure enhancements.
What are the primary risks associated with this waterfront improvement contract?
Key risks for this waterfront improvement contract include unforeseen subsurface conditions (e.g., soil stability, buried obstructions) which can significantly increase costs and delay schedules. Environmental risks, such as encountering hazardous materials or impacting sensitive marine ecosystems during construction, also pose challenges and may require costly mitigation measures. Furthermore, the performance risk lies with the contractor, M.A. Mortenson Company, ensuring they adhere to quality standards, safety regulations, and the project timeline. Weather-related delays are also a common risk for construction projects, particularly those involving marine environments.
How effective is the firm fixed-price contract type in managing costs for this project?
The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the project scope is well-defined and risks are understood. It shifts the primary cost-control responsibility to the contractor, as they bear the risk of cost overruns. For the Coast Guard, this means the final price is largely predetermined, providing budget certainty. However, if unforeseen issues arise that necessitate significant scope changes, the FFP structure can lead to contract modifications and potentially higher costs than initially anticipated, or conversely, the contractor may cut corners to maintain profitability if not adequately overseen.
What is the historical spending trend for waterfront improvements by the U.S. Coast Guard?
Historical spending on waterfront improvements by the U.S. Coast Guard reflects a consistent need to maintain and upgrade aging infrastructure critical to its operational readiness. While specific aggregate data isn't provided here, the Coast Guard regularly allocates funds for construction, repair, and modernization of its shore facilities, including piers, docks, and support buildings. This spending is often influenced by factors such as the age of existing facilities, evolving mission requirements, and federal infrastructure investment initiatives. The $12.35 million awarded here is one component of a broader, ongoing investment strategy in the Coast Guard's physical assets.
What does the 'Commercial and Institutional Building Construction' (NAICS 236220) classification imply for this contract?
The NAICS code 236220, 'Commercial and Institutional Building Construction,' indicates that the primary nature of the work involves the construction of non-residential buildings. For this contract, it signifies that the waterfront improvements likely include the construction or renovation of associated buildings and structures integral to the Coast Guard sector's operations, beyond just the marine infrastructure itself. This could encompass administrative buildings, maintenance facilities, or operational command centers located at the waterfront site. It places the project within a broad category of general building construction services.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $12,354,714
Exercised Options: $12,354,714
Current Obligation: $12,354,714
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $6,562,091
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: 2013-12-02
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2025-10-14
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