DoD's $355M SBIRS Operations Facility contract awarded to M.A. Mortenson Company for Buckley AFB construction
Contract Overview
Contract Amount: $35,540,531 ($35.5M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2018-12-17
End Date: 2022-07-01
Contract Duration: 1,292 days
Daily Burn Rate: $27.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONSTRUCTION OF THE SBIRS OPERATIONS FACILITY (SOF), BUCKLEY AFB, CO
Place of Performance
Location: AURORA, ADAMS County, COLORADO, 80011
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $35.5 million to M. A. MORTENSON COMPANY for work described as: IGF::OT::IGF CONSTRUCTION OF THE SBIRS OPERATIONS FACILITY (SOF), BUCKLEY AFB, CO Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. Construction of the SBIRS Operations Facility at Buckley AFB indicates a significant investment in critical defense infrastructure. 4. The project duration of 1292 days points to a complex and lengthy construction undertaking. 5. The award value of $355.4 million reflects a substantial commitment to this specific facility. 6. The contractor, M.A. Mortenson Company, has experience in large-scale construction projects.
Value Assessment
Rating: good
The contract value of $355.4 million for the construction of a specialized operations facility appears to be within a reasonable range for a project of this scale and complexity, especially considering it's a firm-fixed-price award. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The absence of detailed cost breakdowns makes a granular comparison difficult, but the competitive award process suggests that pricing was scrutinized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with six bidders participating. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders indicates a healthy market for this type of specialized construction service.
Taxpayer Impact: The full and open competition process likely resulted in a more cost-effective outcome for taxpayers by driving down prices through competitive bidding.
Public Impact
The primary beneficiaries are the U.S. Air Force and the intelligence community, who will utilize the SBIRS Operations Facility. The facility will support the Space-Based Infrared System (SBIRS), crucial for missile warning and defense. The project's geographic impact is localized to Buckley Air Force Base in Colorado. The construction phase will likely create numerous jobs in the construction sector in the Colorado region. The completed facility will enhance national security capabilities related to space-based surveillance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
- Delays in construction could impact the operational readiness of the SBIRS program.
- Ensuring the specialized technical requirements of an operations facility are met to exacting standards.
Positive Signals
- Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
- Full and open competition with six bidders suggests a robust and competitive bidding environment.
- Award to an experienced contractor like M.A. Mortenson Company increases the likelihood of successful project completion.
- The project addresses a critical national security need for the SBIRS program.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale government facilities, particularly those with specialized requirements like defense operations centers, is significant. This project represents a substantial investment in critical defense infrastructure, aligning with broader government spending trends in national security and facility modernization. Comparable projects often involve extensive site preparation, specialized HVAC, power, and security systems.
Small Business Impact
The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the prime contractor is not identified as a small business. There is no explicit information on subcontracting plans for small businesses. Further review would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.
Oversight & Accountability
Oversight for this Department of Defense construction project would typically involve the contracting officer's representative (COR), quality assurance personnel, and potentially the Department of the Army's Inspector General or a designated oversight body. Transparency is generally maintained through contract award databases and public reporting, though specific construction progress details may be less public. Accountability rests with the contractor to deliver the facility according to specifications and schedule.
Related Government Programs
- SBIRS Program
- Military Construction Projects
- Defense Infrastructure
- Buckley Air Force Base Facilities
Risk Flags
- Potential for construction delays impacting operational readiness.
- Ensuring specialized technical requirements are met.
- Risk of unforeseen site conditions impacting budget and schedule.
Tags
construction, defense, department-of-defense, buckley-afb, colorado, firm-fixed-price, definitive-contract, full-and-open-competition, large-contract, national-security, operations-facility, m-a-mortenson-company
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.5 million to M. A. MORTENSON COMPANY. IGF::OT::IGF CONSTRUCTION OF THE SBIRS OPERATIONS FACILITY (SOF), BUCKLEY AFB, CO
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 $35.5 million.
What is the period of performance?
Start: 2018-12-17. End: 2022-07-01.
What is the track record of M.A. Mortenson Company on similar large-scale government construction projects?
M.A. Mortenson Company has a significant track record in constructing large-scale facilities, including those for government and defense clients. They have been involved in numerous projects such as research laboratories, healthcare facilities, and educational institutions, often with complex technical requirements. Their experience with firm-fixed-price contracts and adherence to stringent government standards suggests a capability to manage projects of this magnitude. A detailed review of their past performance, including any past performance issues or commendations on similar defense-related construction contracts, would provide further insight into their reliability for the SBIRS Operations Facility project.
How does the awarded value compare to similar military operations facility constructions?
Directly comparing the $355.4 million award for the SBIRS Operations Facility is challenging without specific details on the facility's size, scope, and technical complexity. However, large-scale military construction projects, especially those involving specialized operational capabilities, can range from tens of millions to hundreds of millions of dollars. Factors such as location, security requirements, environmental controls, and integration of advanced systems significantly influence cost. The firm-fixed-price nature of this contract suggests that the contractor assumed the risk for cost overruns, which is a common pricing strategy for projects with well-defined scopes. Benchmarking against other recent operations center constructions within the DoD would be necessary for a precise comparison.
What are the primary risks associated with the construction of this specialized facility?
The primary risks associated with constructing a specialized facility like the SBIRS Operations Facility include potential construction delays due to unforeseen site conditions or weather, integration challenges with highly technical SBIRS equipment, and ensuring stringent security and environmental compliance. Given the firm-fixed-price contract, the contractor bears the financial risk of cost overruns, but delays could still impact program timelines. Ensuring the quality of specialized construction elements, such as advanced power, cooling, and data infrastructure, is critical. The remote location or specific site characteristics at Buckley AFB could also present logistical challenges. Effective project management, robust oversight, and clear communication channels are essential to mitigate these risks.
How effective is the firm-fixed-price contract type in managing costs for this project?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For the SBIRS Operations Facility construction, an FFP contract shifts the primary cost risk to the contractor, M.A. Mortenson Company. This incentivizes the contractor to control costs and complete the project within budget. However, if unforeseen issues arise that significantly deviate from the original scope, contract modifications could still lead to increased costs, though these are typically managed through strict change order processes. The success of the FFP in cost management hinges on the thoroughness of the initial scope definition and the contractor's ability to execute efficiently.
What is the historical spending trend for similar defense infrastructure projects at Buckley AFB?
Analyzing historical spending trends for similar defense infrastructure projects at Buckley AFB would require access to detailed contract databases and budget information specific to the installation. Generally, military bases undergo periodic upgrades and expansions, involving construction of new facilities, renovation of existing ones, and infrastructure improvements. Spending patterns are influenced by evolving military requirements, technological advancements, and congressional appropriations. Projects like the SBIRS Operations Facility represent significant capital investments driven by strategic defense needs. Without specific data on past Buckley AFB construction contracts, it's difficult to establish a precise historical spending trend, but such projects are typically multi-year, high-value undertakings.
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: W9128F18R0004
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: $36,041,531
Exercised Options: $35,540,531
Current Obligation: $35,540,531
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-17
Current End Date: 2022-07-01
Potential End Date: 2022-07-01 00:00:00
Last Modified: 2022-08-26
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