DoD's $110.8M GBSD Software Sustainment contract awarded to M. A. Mortenson Company for construction services
Contract Overview
Contract Amount: $110,853,571 ($110.9M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2022-07-15
End Date: 2026-02-20
Contract Duration: 1,316 days
Daily Burn Rate: $84.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GROUND BASED STRATEGIC DEFENSE (GBSD) SOFTWARE SUSTAINMENT CENTER (SSC), HILL AFB
Place of Performance
Location: LAYTON, DAVIS County, UTAH, 84040
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $110.9 million to M. A. MORTENSON COMPANY for work described as: GROUND BASED STRATEGIC DEFENSE (GBSD) SOFTWARE SUSTAINMENT CENTER (SSC), HILL AFB Key points: 1. Contract awarded for construction services related to the Ground Based Strategic Defense (GBSD) Software Sustainment Center. 2. M. A. Mortenson Company secured the definitive contract valued at over $110 million. 3. The contract has a duration of 1316 days, extending into February 2026. 4. This award falls under the Commercial and Institutional Building Construction NAICS code. 5. The contract was awarded through full and open competition, indicating a competitive bidding process. 6. The contract type is Firm Fixed Price, which sets a ceiling on the total cost. 7. The project is located in Utah, specifically at Hill AFB.
Value Assessment
Rating: fair
Benchmarking the value of this specific construction contract is challenging without detailed cost breakdowns and scope of work. However, the $110.8 million award for a software sustainment center's physical infrastructure suggests a significant investment. Comparing it to similar large-scale construction projects for defense facilities would provide better context on whether the pricing is competitive. The firm fixed-price nature offers cost certainty but requires careful initial estimation to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. With 6 bidders identified, this indicates a healthy level of competition for this significant construction project. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by driving down costs through market forces. A robust bidding process helps prevent overpayment and encourages contractors to offer their best value.
Public Impact
The primary beneficiaries are the Department of Defense and the personnel operating the GBSD system, ensuring the sustainment of critical software infrastructure. The contract delivers essential construction services for a new Software Sustainment Center at Hill Air Force Base. The geographic impact is concentrated in Utah, supporting local construction industry jobs and economic activity. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the building process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm fixed-price contract does not adequately account for all construction complexities.
- Risk of schedule delays impacting the operational readiness of the GBSD software sustainment capabilities.
- Dependence on M. A. Mortenson Company's performance for timely and quality construction delivery.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market for this type of construction.
- Firm Fixed Price contract type provides cost certainty for the government.
- Significant investment in critical defense infrastructure demonstrates commitment to GBSD program.
Sector Analysis
This contract falls within the broader construction sector, specifically focusing on commercial and institutional buildings. The market for defense facility construction is substantial, driven by the need for secure, specialized infrastructure. This project contributes to the modernization of critical defense systems, aligning with government priorities for maintaining strategic capabilities. Comparable spending benchmarks would involve analyzing other large-scale military construction projects.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-asides. However, the prime contractor, M. A. Mortenson Company, may engage small businesses as subcontractors based on their own procurement strategies, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command at Hill AFB. Accountability measures are embedded within the firm fixed-price contract terms, requiring adherence to specifications and delivery schedules. Transparency is facilitated through contract award announcements and public databases, though detailed project oversight specifics are typically internal.
Related Government Programs
- Ground Based Strategic Defense (GBSD)
- Air Force Materiel Command (AFMC)
- Hill Air Force Base Construction Projects
- Department of Defense Facilities Modernization
Risk Flags
- Construction project timeline risk
- Potential for cost overruns in fixed-price contracts
- Dependence on contractor performance for critical infrastructure
Tags
defense, construction, hill-afb, utah, definitive-contract, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, ground-based-strategic-defense, software-sustainment, m-a-mortenson-company, department-of-the-army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.9 million to M. A. MORTENSON COMPANY. GROUND BASED STRATEGIC DEFENSE (GBSD) SOFTWARE SUSTAINMENT CENTER (SSC), HILL AFB
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 $110.9 million.
What is the period of performance?
Start: 2022-07-15. End: 2026-02-20.
What is the track record of M. A. Mortenson Company with large-scale government construction contracts, particularly for defense facilities?
M. A. Mortenson Company has a significant history of undertaking large-scale construction projects, including those for government and defense clients. While specific details on their defense facility track record require deeper investigation into past performance databases and contract awards, their ability to win a $110.8 million definitive contract through full and open competition suggests a demonstrated capability. Analyzing their past performance on similar projects, including adherence to budget, schedule, and quality standards, would provide a clearer picture of their reliability for this GBSD Software Sustainment Center project. Their experience in commercial and institutional building construction, as indicated by the NAICS code, is a foundational element for such endeavors.
How does the $110.8 million cost compare to similar construction projects for defense software sustainment centers?
Directly comparing the $110.8 million cost to similar defense software sustainment center construction projects is challenging without access to a comprehensive database of such specialized facilities and their associated construction costs. The unique requirements for security, infrastructure, and technological integration in a software sustainment center can lead to significant cost variations. However, this figure represents a substantial investment, suggesting a project of considerable scale and complexity. Benchmarking against other large military construction projects, even if not specifically for software sustainment, could offer a general sense of the magnitude of the award relative to the defense construction market.
What are the primary risk indicators associated with this firm fixed-price construction contract?
The primary risk indicators for this firm fixed-price contract revolve around the potential for scope creep, unforeseen site conditions, and material cost fluctuations. While the fixed price offers cost certainty, it places the burden of managing these risks on the contractor, M. A. Mortenson Company. If the initial estimates do not fully account for all construction complexities or if unexpected issues arise during the build, the contractor may face financial strain, potentially impacting quality or schedule. Conversely, if the contractor has overestimated, the government might be paying a premium. Close monitoring of progress, adherence to specifications, and proactive issue resolution are crucial to mitigate these risks.
How effective is the 'full and open competition' strategy in ensuring value for money for this specific defense construction contract?
The 'full and open competition' strategy is generally considered effective in ensuring value for money by fostering a competitive environment where multiple contractors vie for the award. For this $110.8 million GBSD Software Sustainment Center construction contract, having 6 bidders suggests that the market was sufficiently engaged. This competition should drive down prices and encourage contractors to offer their best technical solutions and pricing. The effectiveness is further realized if the evaluation criteria prioritize not just cost but also technical merit and past performance, ensuring that the lowest bid is also the best value for the government and, by extension, the taxpayer.
What are the historical spending patterns for software sustainment infrastructure within the Department of Defense?
Historical spending patterns for software sustainment infrastructure within the Department of Defense are complex and often integrated into broader program budgets rather than being a distinct, easily isolatable category. Investments in sustainment typically include not only physical infrastructure like the Software Sustainment Center being built but also software licenses, maintenance contracts, personnel, and upgrades. Over recent years, there has been a recognized trend towards modernizing legacy systems and investing in robust sustainment capabilities to ensure the long-term operational readiness of critical defense assets like the GBSD. Specific dollar amounts for 'software sustainment infrastructure' are difficult to aggregate without detailed programmatic analysis across various defense branches and systems.
What is the significance of the 1316-day contract duration for the GBSD Software Sustainment Center project?
The 1316-day duration, approximately 3.6 years, for the GBSD Software Sustainment Center construction project is significant as it indicates a substantial and complex undertaking. Such a long timeline suggests that the project involves extensive planning, design, procurement, and phased construction activities. It allows for meticulous execution of specialized requirements inherent in defense infrastructure. This duration also implies a sustained commitment of resources and a long-term focus on establishing a critical capability for the GBSD program. Managing such a lengthy project requires robust contract administration and consistent oversight to maintain momentum and control costs effectively.
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: W9123821R0001
Offers Received: 6
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: $145,404,960
Exercised Options: $125,633,960
Current Obligation: $110,853,571
Actual Outlays: $-26,912,991
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $41,017,321
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-15
Current End Date: 2026-02-20
Potential End Date: 2026-02-20 00:00:00
Last Modified: 2025-12-19
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