Department of Defense awards $73.4M construction contract for secure intelligence facility in Virginia
Contract Overview
Contract Amount: $73,395,609 ($73.4M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2021-04-30
End Date: 2025-04-04
Contract Duration: 1,435 days
Daily Burn Rate: $51.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NATIONAL GROUND INTELLIGENCE CENTER RIVANNA STATIN SECURE OPERATIONS ADMINISTRATION FACILITY, CHARLOTTESVILLE, VIRGINIA CONSTRUCTION
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $73.4 million to M. A. MORTENSON COMPANY for work described as: NATIONAL GROUND INTELLIGENCE CENTER RIVANNA STATIN SECURE OPERATIONS ADMINISTRATION FACILITY, CHARLOTTESVILLE, VIRGINIA CONSTRUCTION Key points: 1. The contract value represents a significant investment in secure infrastructure for national intelligence. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. The fixed-price contract type aims to mitigate cost overruns, but requires careful monitoring. 4. The project's duration of over three years suggests complex construction requirements and potential for schedule risks. 5. The facility's location in Virginia places it within a region with substantial federal and defense sector activity.
Value Assessment
Rating: good
The contract value of $73.4 million for a secure intelligence facility appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar secure facility construction projects would provide a more precise assessment of value for money. The firm fixed-price structure suggests an expectation of cost control by the contractor, but the total value warrants scrutiny for potential cost efficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bidders suggests a competitive environment, which generally benefits price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.
Taxpayer Impact: Full and open competition for this substantial contract is positive for taxpayers, as it increases the likelihood of receiving competitive pricing and encourages contractors to offer their best value propositions.
Public Impact
The primary beneficiaries are the National Ground Intelligence Center (NGIC) and its personnel, who will gain a modern, secure operational facility. The project will deliver a secure operations administration facility, enhancing the NGIC's capabilities. The geographic impact is concentrated in Charlottesville, Virginia, potentially creating local employment opportunities during the construction phase. The construction workforce will see implications, with demand for skilled labor in the Charlottesville area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns despite fixed-price contract if scope changes significantly.
- Schedule delays due to the complexity of secure facility construction and potential unforeseen site conditions.
- Ensuring the contractor's adherence to stringent security and construction standards for a sensitive facility.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm fixed-price contract type helps to control costs and provides budget certainty.
- The contractor, M. A. Mortenson Company, likely has experience with large-scale construction projects.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for a specialized government facility. The market for secure government construction is a niche but significant segment, often characterized by high barriers to entry due to security clearances and specialized expertise. Comparable spending benchmarks would involve looking at other large-scale, secure facility constructions for intelligence or defense agencies.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside component (ss: false, sb: false). This suggests the primary focus was on securing the best overall bid from qualified large contractors. There may be opportunities for small businesses to participate as subcontractors to M. A. Mortenson Company, but this contract does not directly prioritize small business prime contracting.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to terms. The firm fixed-price nature provides a degree of accountability for the contractor regarding cost. Transparency will depend on the agency's public reporting practices and any Inspector General involvement if issues arise.
Related Government Programs
- National Intelligence Programs
- Military Construction
- Department of Defense Facilities
- Intelligence Community Infrastructure
Risk Flags
- Potential for scope creep impacting fixed-price contract.
- Schedule adherence for complex construction projects.
- Ensuring compliance with stringent security and construction standards.
Tags
construction, department-of-defense, department-of-the-army, virginia, charlottesville, definitive-contract, firm-fixed-price, full-and-open-competition, intelligence-facility, national-ground-intelligence-center, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.4 million to M. A. MORTENSON COMPANY. NATIONAL GROUND INTELLIGENCE CENTER RIVANNA STATIN SECURE OPERATIONS ADMINISTRATION FACILITY, CHARLOTTESVILLE, VIRGINIA CONSTRUCTION
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 Army).
What is the total obligated amount?
The obligated amount is $73.4 million.
What is the period of performance?
Start: 2021-04-30. End: 2025-04-04.
What is the track record of M. A. Mortenson Company in constructing similar secure government facilities?
M. A. Mortenson Company is a large, well-established construction firm with a significant portfolio of complex projects, including those for government and defense clients. While specific details on their experience with highly secure intelligence facilities would require deeper investigation, their general capabilities in large-scale commercial and institutional construction suggest they possess the necessary expertise. Reviewing past performance evaluations and project histories for similar contracts would provide a clearer picture of their reliability and quality in delivering secure infrastructure.
How does the awarded price compare to similar secure intelligence facility construction projects?
Directly comparing the $73.4 million award to similar projects is challenging without access to a comprehensive database of secure intelligence facility construction costs, which are often not publicly detailed due to security concerns. However, for a facility of this nature, involving specialized security features, robust infrastructure, and potentially long construction timelines, the price appears to be within a plausible range for a large-scale government project. Benchmarking against publicly available data for large institutional or high-security building projects, adjusted for inflation and specific requirements, would be necessary for a more precise value assessment.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks include potential schedule delays due to the complexity of secure facility construction, unforeseen site conditions, and the possibility of cost increases if significant scope changes occur, despite the firm fixed-price contract. Mitigation strategies likely involve rigorous project planning, detailed site investigations, strong contract management by the Department of the Army, and clear change order procedures. The contractor's own risk management processes, including contingency planning and quality control, are also critical for mitigating these risks and ensuring successful project completion.
What is the expected impact of this facility on the National Ground Intelligence Center's operational effectiveness?
The construction of a new secure operations administration facility is expected to significantly enhance the National Ground Intelligence Center's (NGIC) operational effectiveness. A modern, purpose-built facility should provide improved security, better integration of systems, enhanced collaboration spaces, and more efficient workflows. This upgrade is crucial for an intelligence agency that handles sensitive data and requires a secure environment to perform its mission effectively, potentially leading to improved intelligence gathering, analysis, and dissemination capabilities.
What has been the historical spending trend for similar intelligence facility construction by the Department of Defense?
Historical spending on intelligence facility construction by the Department of Defense (DoD) has been substantial and often fluctuates based on national security priorities and infrastructure modernization needs. While specific figures for 'secure operations administration facilities' are not readily aggregated, the DoD consistently invests billions annually in military construction and facility upgrades, including those for intelligence agencies. Trends often show increased investment during periods of heightened geopolitical tension or when technological advancements necessitate new or upgraded infrastructure to support evolving intelligence requirements.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9123620R0007
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: $73,395,609
Exercised Options: $73,395,609
Current Obligation: $73,395,609
Actual Outlays: $3,707,217
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $33,640,675
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-30
Current End Date: 2025-04-04
Potential End Date: 2025-04-04 00:00:00
Last Modified: 2025-11-24
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