DoD Awards $154.5M for Kings Bay Repair Phase 2, Awarded to M. A. Mortenson Company

Contract Overview

Contract Amount: $154,554,192 ($154.6M)

Contractor: M. a. Mortenson Company

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2024-09-16

Contract Duration: 2,182 days

Daily Burn Rate: $70.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CLIN 0001 BASE BID REPAIR EHW 1 PHASE 2 NSB KINGS BAY GA

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $154.6 million to M. A. MORTENSON COMPANY for work described as: IGF::OT::IGF CLIN 0001 BASE BID REPAIR EHW 1 PHASE 2 NSB KINGS BAY GA Key points: 1. The contract is for repair work at NSB Kings Bay, GA. 2. M. A. Mortenson Company, the sole awardee, has a significant contract value. 3. The contract duration is substantial at 2182 days. 4. This falls under heavy and civil engineering construction.

Value Assessment

Rating: fair

The contract value of $154.5M for a 2182-day duration suggests a significant project. Benchmarking against similar large-scale civil engineering projects would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The significant contract value means taxpayer funds are being allocated for critical infrastructure repair, with the expectation of competitive pricing driving efficiency.

Public Impact

Ensures continued operational readiness at Naval Submarine Base Kings Bay. Supports critical infrastructure maintenance and repair services. Provides employment opportunities within the construction sector in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which involves large-scale infrastructure projects. Spending benchmarks in this sector are highly project-specific, but the value indicates a major undertaking.

Small Business Impact

The contract data indicates that small businesses were not directly awarded this prime contract, as it was awarded to M. A. Mortenson Company. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Navy. Oversight will be crucial to ensure adherence to the firm fixed price, manage the long duration, and verify project completion according to specifications.

Related Government Programs

Risk Flags

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, ga, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $154.6 million to M. A. MORTENSON COMPANY. IGF::OT::IGF CLIN 0001 BASE BID REPAIR EHW 1 PHASE 2 NSB KINGS BAY GA

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 $154.6 million.

What is the period of performance?

Start: 2018-09-26. End: 2024-09-16.

What is the breakdown of the $154.5M contract value across the 2182-day period, and how does it compare to industry standards for similar repair and construction projects?

A detailed breakdown of the contract value is not provided in the data. However, the total value of $154.5M over approximately six years suggests an average annual expenditure of roughly $25.75M. This figure needs to be benchmarked against similar large-scale civil engineering and repair projects within the Department of Defense and the broader construction industry to assess its reasonableness and value for taxpayer money.

Given the long duration of the contract (2182 days), what mechanisms are in place to mitigate risks associated with potential cost overruns, material price fluctuations, and labor availability?

As a Firm Fixed Price (FFP) contract, the primary responsibility for managing cost overruns and price fluctuations typically lies with the contractor, M. A. Mortenson Company. However, the long duration necessitates robust government oversight to monitor performance, ensure efficient resource utilization, and potentially incorporate contract clauses for unforeseen circumstances or significant market shifts, though FFP aims to limit such adjustments.

How effectively did the 'full and open competition' process ensure competitive pricing and identify the best value solution for this critical repair project at NSB Kings Bay?

The 'full and open competition' method is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should lead to better pricing and innovative solutions. To assess effectiveness, one would need to examine the number of bids received, the range of proposed prices, and the evaluation criteria used by the Department of the Navy to determine if the selected contractor, M. A. Mortenson Company, truly represented the best value considering both cost and technical merit.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945018R0905

Offers Received: 2

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: $154,554,192

Exercised Options: $154,554,192

Current Obligation: $154,554,192

Actual Outlays: $3,224,995

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $92,358,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-09-26

Current End Date: 2024-09-16

Potential End Date: 2024-09-16 00:00:00

Last Modified: 2025-10-14

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