FEMA Awards $43.1M for Virginia Building Construction to M. A. Mortenson Company
Contract Overview
Contract Amount: $43,149,546 ($43.1M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Homeland Security
Start Date: 2011-05-05
End Date: 2014-05-30
Contract Duration: 1,121 days
Daily Burn Rate: $38.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF BUILDING
Place of Performance
Location: BLUEMONT, CLARKE County, VIRGINIA, 20135
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $43.1 million to M. A. MORTENSON COMPANY for work described as: CONSTRUCTION OF BUILDING Key points: 1. The contract value of $43.1 million for building construction falls within typical ranges for large-scale projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project's duration of 1121 days indicates a significant undertaking with potential for cost fluctuations. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.
Value Assessment
Rating: good
The contract value of $43.1 million appears reasonable for a large construction project of this nature. Benchmarking against similar government building construction contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure suggests a pre-established framework for pricing.
Taxpayer Impact: The competitive bidding process is expected to have resulted in a fair price, maximizing taxpayer value for the construction services.
Public Impact
This project contributes to the Department of Homeland Security's infrastructure, supporting its operational capabilities. The construction will likely create jobs in the Virginia region, providing an economic boost. The completed building will serve a specific government function, impacting public services or agency operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to long project duration.
- Dependence on a single contractor (M. A. Mortenson Company) for the duration of the delivery order.
- Scope creep could increase the final cost beyond initial estimates.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm fixed price contract type helps control costs.
- Multiple delivery orders (6) suggest potential for phased execution and managed spending.
Sector Analysis
The Commercial and Institutional Building Construction sector is a significant area of federal spending, with costs varying widely based on project scope, location, and complexity. This $43.1 million award is substantial for a single building project.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Federal Emergency Management Agency (FEMA) is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reviews, would be in place to ensure quality and adherence to schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Long project duration increases risk of cost escalation.
- Potential for unforeseen site conditions in construction.
- Dependence on a single prime contractor for a multi-year project.
- Lack of specific detail on building's purpose limits full impact assessment.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $43.1 million to M. A. MORTENSON COMPANY. CONSTRUCTION OF BUILDING
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 (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $43.1 million.
What is the period of performance?
Start: 2011-05-05. End: 2014-05-30.
What specific building functions will this construction support for FEMA?
The provided data does not specify the exact function of the building. However, as it falls under the Department of Homeland Security and FEMA, it likely supports emergency management operations, disaster response coordination, or administrative functions critical to the agency's mission. Further details on the building's purpose would clarify its strategic importance.
Are there any identified risks associated with the long duration of this construction project?
A project duration of 1121 days (over 3 years) presents inherent risks, including potential for material cost escalation, labor market fluctuations, and unforeseen site conditions. Weather delays and changes in regulatory requirements can also impact timelines and budgets. Effective project management and contingency planning are crucial to mitigate these risks.
How does the final cost compare to the initial bid or estimated cost for this construction project?
The data provides the awarded amount ($43,149,546) but does not include the initial bid or estimated cost. Without this baseline, a direct comparison to assess cost efficiency is not possible. Analyzing the bidding process and any subsequent change orders would be necessary to evaluate the final cost's alignment with expectations.
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: 6
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
Financial Breakdown
Contract Ceiling: $43,149,546
Exercised Options: $43,149,546
Current Obligation: $43,149,546
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $14,530,641
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSCG4709D3EFK21
IDV Type: IDC
Timeline
Start Date: 2011-05-05
Current End Date: 2014-05-30
Potential End Date: 2014-05-30 00:00:00
Last Modified: 2017-08-15
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