Naval Facilities Engineering Command awarded $18.2M for hospital construction, with a 51-month duration
Contract Overview
Contract Amount: $18,215,392 ($18.2M)
Contractor: M a Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2003-07-18
End Date: 2007-12-15
Contract Duration: 1,611 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200310!180321!1700!C2470 !NAVAL FACILITIES ENGINEERING COM!N6247003C3045 !A!N! !N! !20030718!20070628!198621245!008904385!130731797!N!M A MORTENSON COMPANY !910 ELKTON DR !COLORADO SPRIN !CO!80907!57000!710!51!NORFOLK !NORFOLK (CITY) !VIRGINIA !+000017113000!N!N!000000000000!Y141!HOSPITALS & INFIRMARIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.2 million to M A MORTENSON COMPANY for work described as: 200310!180321!1700!C2470 !NAVAL FACILITIES ENGINEERING COM!N6247003C3045 !A!N! !N! !20030718!20070628!198621245!008904385!130731797!N!M A MORTENSON COMPANY !910 ELKTON DR !COLORADO SPRIN !CO!80907!57000!710!51!NORFOLK !NORFO… Key points: 1. Contract value of $18.2 million for hospital construction. 2. Fixed-price contract type suggests cost certainty for the government. 3. Contract duration of 1611 days indicates a significant, long-term project. 4. Awarded by the Department of the Navy, a major defense spender. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded through full and open competition.
Value Assessment
Rating: fair
The contract value of $18.2 million for hospital construction appears reasonable given the project's scope and 1611-day duration. Benchmarking against similar large-scale healthcare construction projects within the Department of Defense or other federal agencies would provide a clearer picture of value for money. Without specific details on the scope of work, it's difficult to definitively assess if the pricing is competitive or if there were opportunities for cost savings.
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 bids. The data shows two bids were received. While two bidders suggest some level of competition, it is on the lower end for a contract of this magnitude. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and ensure the government receives the best value. However, with only two bids, the potential for significant cost savings may have been limited.
Public Impact
Beneficiaries include military personnel and their families requiring healthcare services at the facility. Services delivered include the construction of a hospital or infirmary. Geographic impact is centered in Norfolk, Virginia, a key naval hub. Workforce implications include employment opportunities for construction workers and related trades in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition with only two bids received could potentially lead to higher prices than a more robust bidding process.
- The fixed-price contract type, while offering cost certainty, could expose the contractor to risks if unforeseen issues arise during construction, potentially leading to change orders or disputes.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
- The contract is for a critical infrastructure project (hospital construction), addressing a vital need for the military community.
- The fixed-price nature of the contract provides budget predictability for the government.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The federal government is a significant consumer of construction services, particularly for infrastructure projects supporting military bases, healthcare facilities, and research institutions. Spending in this area is often driven by modernization efforts, capacity expansion, and maintenance of existing facilities. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by the Department of Defense or the General Services Administration for similar types of facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is not discernible from this data alone. Future analysis could explore if the prime contractor has a history of engaging small businesses in their supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Navy and the Naval Facilities Engineering Command. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Military Construction
- Healthcare Facilities Construction
- Department of Defense Construction Contracts
- Naval Facilities Engineering Command Projects
Risk Flags
- Limited competition
- Potential for cost overruns if not managed effectively
Tags
construction, department-of-defense, department-of-the-navy, hospital-construction, fixed-price, full-and-open-competition, virginia, norfolk, large-contract, institutional-building
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.2 million to M A MORTENSON COMPANY. 200310!180321!1700!C2470 !NAVAL FACILITIES ENGINEERING COM!N6247003C3045 !A!N! !N! !20030718!20070628!198621245!008904385!130731797!N!M A MORTENSON COMPANY !910 ELKTON DR !COLORADO SPRIN !CO!80907!57000!710!51!NORFOLK !NORFOLK (CITY) !VIRGINIA !+000017113000!N!N!000000000000!Y141!HOSPITALS & INFIRMARIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !236220!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is M A MORTENSON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.2 million.
What is the period of performance?
Start: 2003-07-18. End: 2007-12-15.
What was the specific scope of work for the hospital construction?
The provided data identifies the contract's purpose as 'HOSPITALS & INFIRMARIES' and the NAICS code as '236220' (Commercial and Institutional Building Construction). However, the specific details of the scope of work, such as the size of the hospital (number of beds, square footage), the types of medical services it was intended to support, or any specialized construction requirements (e.g., advanced medical equipment installation, seismic retrofitting), are not detailed in this dataset. Further investigation into the contract's Statement of Work (SOW) or related documentation would be necessary to understand the full scope.
How does the per-square-foot cost of this hospital construction compare to industry benchmarks?
The provided data does not include the square footage of the constructed hospital, making a direct per-square-foot cost comparison impossible. The total contract value is $18,215,392. To perform such a benchmark, one would need to obtain the total square footage from the contract's technical specifications or related documents. Once the square footage is known, it could be compared to industry averages for hospital construction, which vary significantly based on location, complexity, and level of finish. Without this crucial piece of information, assessing the cost-effectiveness on a per-square-foot basis remains speculative.
What is the track record of M A Mortenson Company in completing similar federal construction projects?
M A Mortenson Company was the prime contractor for this $18.2 million hospital construction contract. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving healthcare facilities or large-scale institutional construction. This would involve reviewing contract databases for project history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of disputes, delays, or cost overruns. A positive history of timely completion, adherence to budget, and quality delivery on similar projects would indicate a lower performance risk for future contracts.
Were there any significant cost overruns or change orders associated with this contract?
The provided data summarizes the initial award amount ($18,215,392) and the contract duration. It does not contain information about modifications, change orders, or the final contract value upon completion. To determine if there were significant cost overruns, one would need to access contract modification history. A substantial increase in the contract value beyond the initial award could indicate cost overruns, scope changes, or unforeseen issues that impacted the project's final cost. Without this modification data, it's impossible to assess cost performance beyond the initial award.
What is the historical spending trend for hospital construction by the Department of the Navy?
The provided data point represents a single contract award. To analyze historical spending trends for hospital construction by the Department of the Navy, a broader dataset encompassing multiple fiscal years and numerous contracts would be required. This would involve querying federal procurement databases for all hospital and infirmary construction contracts awarded by the Navy over a defined period. Analyzing this aggregated data would reveal patterns in spending levels, average contract values, types of facilities procured, and potentially identify periods of increased or decreased investment in healthcare infrastructure.
What were the key performance indicators (KPIs) for this construction project, and were they met?
The provided data does not specify the key performance indicators (KPIs) established for this hospital construction contract. Typically, KPIs for construction projects include adherence to schedule, quality of workmanship, safety compliance, and meeting technical specifications outlined in the contract. Assessing whether these KPIs were met would require access to contract performance reports, inspection records, and final acceptance documentation. Without these performance metrics, it is not possible to evaluate the contractor's success in meeting the project's objectives beyond the basic award information.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 910 ELKTON DR, COLORADO SPRIN, CO, 80907
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-18
Current End Date: 2007-12-15
Potential End Date: 2007-12-15 00:00:00
Last Modified: 2021-07-28
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