DoD Awards $78.3M for Utah Strategic Defense Tech Center; Construction to Finish 2026
Contract Overview
Contract Amount: $78,290,115 ($78.3M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2023-07-24
End Date: 2026-10-16
Contract Duration: 1,180 days
Daily Burn Rate: $66.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF A 7,292 SQUARE METER GROUND BASE STRATEGIC DEFENSE TECHNOLOGY AND COLLABORATION CENTER TO PROVIDE A MIX OF SECURE AND UNCLASSIFIED OFFICE, TECHNICAL, AND COLLABORATION AREAS SIZED TO ACCOMMODATE VARIOUS WORKGROUPS AND TEAMS.
Place of Performance
Location: LAYTON, DAVIS County, UTAH, 84041
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $78.3 million to M. A. MORTENSON COMPANY for work described as: CONSTRUCTION OF A 7,292 SQUARE METER GROUND BASE STRATEGIC DEFENSE TECHNOLOGY AND COLLABORATION CENTER TO PROVIDE A MIX OF SECURE AND UNCLASSIFIED OFFICE, TECHNICAL, AND COLLABORATION AREAS SIZED TO ACCOMMODATE VARIOUS WORKGROUPS AND TEAMS. Key points: 1. Significant investment in strategic defense infrastructure. 2. M. A. Mortenson Company secured the contract. 3. Project faces timeline risks due to its scale and complexity. 4. Industrial Building Construction sector sees substantial federal allocation.
Value Assessment
Rating: good
The $78.3 million contract for a 7,292 sqm facility appears reasonable given the scope of a strategic defense technology and collaboration center. Benchmarking against similar large-scale government construction projects would provide a more precise assessment.
Cost Per Unit: $10,737 per square meter
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for a critical defense facility.
Public Impact
Enhances national security capabilities through advanced technology collaboration. Creates jobs in Utah's construction and technology sectors. Supports the Department of the Army's strategic objectives. Potential for long-term economic development in the region.
Waste & Efficiency Indicators
Waste Risk Score: 66 / 10
Warning Flags
- Potential for cost overruns in large-scale construction.
- Delays in project completion impacting strategic readiness.
- Scope creep could increase final costs.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract mitigates some cost risk.
- Strategic importance of the facility.
Sector Analysis
This project falls within the Industrial Building Construction sector, characterized by large capital investments and long project timelines. Federal spending in this area often supports critical infrastructure and national security initiatives.
Small Business Impact
The contract was awarded to M. A. Mortenson Company, a large business. There is no indication of small business subcontracting in the provided data, which could be an area for future analysis.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for oversight. The firm fixed price contract and defined completion date provide clear accountability metrics.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long project duration.
- Potential for scope creep.
- Lack of explicit small business participation noted.
Tags
industrial-building-construction, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.3 million to M. A. MORTENSON COMPANY. CONSTRUCTION OF A 7,292 SQUARE METER GROUND BASE STRATEGIC DEFENSE TECHNOLOGY AND COLLABORATION CENTER TO PROVIDE A MIX OF SECURE AND UNCLASSIFIED OFFICE, TECHNICAL, AND COLLABORATION AREAS SIZED TO ACCOMMODATE VARIOUS WORKGROUPS AND TEAMS.
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 $78.3 million.
What is the period of performance?
Start: 2023-07-24. End: 2026-10-16.
What are the specific technological capabilities this center is intended to house, and how do they align with current defense priorities?
The center is designed for a mix of secure and unclassified office, technical, and collaboration areas to accommodate various workgroups. While the exact technologies are not specified, its 'strategic defense' designation implies support for advanced research, development, and collaborative efforts in areas like cybersecurity, AI, or next-generation weaponry, directly aligning with evolving national defense priorities.
What are the key performance indicators (KPIs) for this project, and how will their achievement be measured to ensure effectiveness?
Key performance indicators likely include adherence to the construction schedule (completion by October 2026), staying within the firm fixed price of $78.3 million, and meeting all specified security and technical requirements for the facility. Effectiveness will be measured post-occupancy by the successful integration of defense teams and the facilitation of collaborative projects, contributing to the Army's strategic goals.
Are there any identified risks related to the specific location in Utah that could impact construction timelines or costs?
The provided data does not specify location-based risks for Utah. However, general construction risks such as weather, supply chain disruptions, labor availability, and unforeseen site conditions are always present. The project's duration of 1180 days suggests these factors have been considered in the planning phase.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9123822R0050
Offers Received: 7
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: $78,290,115
Exercised Options: $78,290,115
Current Obligation: $78,290,115
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-07-24
Current End Date: 2026-10-16
Potential End Date: 2026-10-16 00:00:00
Last Modified: 2026-01-08
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