Dormitory construction at USAFA awarded to M. A. Mortenson Company for $67.1M, a firm-fixed-price contract
Contract Overview
Contract Amount: $67,086,390 ($67.1M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2024-04-30
End Date: 2027-07-09
Contract Duration: 1,165 days
Daily Burn Rate: $57.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DB CONSOLIDATE CADET PREP SCHOOL DORMITORY - USAFA
Place of Performance
Location: USAF ACADEMY, EL PASO County, COLORADO, 80840
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $67.1 million to M. A. MORTENSON COMPANY for work described as: DB CONSOLIDATE CADET PREP SCHOOL DORMITORY - USAFA Key points: 1. The contract's firm-fixed-price structure aims to control costs and provide predictability for the government. 2. With 8 bidders, the competition level suggests a healthy market for this type of construction service. 3. The project duration of 1165 days indicates a significant undertaking requiring robust project management. 4. The award is part of the Department of the Army's broader infrastructure improvement initiatives. 5. Construction of institutional buildings is a key sector for federal spending, supporting military readiness and personnel welfare.
Value Assessment
Rating: good
The contract value of $67.1 million for a dormitory at USAFA appears reasonable given the scope of a large construction project. Benchmarking against similar institutional building construction contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government, suggesting a proactive approach to budget management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 8 bids received. This indicates a robust competitive environment, suggesting that the government likely received competitive pricing. The presence of multiple bidders generally leads to better price discovery and ensures that the awardee is selected based on a combination of price and technical merit.
Taxpayer Impact: The high level of competition is beneficial for taxpayers as it likely drove down the final contract price, ensuring efficient use of public funds for this critical infrastructure project.
Public Impact
Cadets at the U.S. Air Force Academy will benefit from improved living quarters, enhancing their quality of life and training environment. The project will deliver a new dormitory facility, contributing to the modernization of the academy's infrastructure. The geographic impact is localized to the U.S. Air Force Academy in Colorado. The construction project will likely create numerous jobs in the local Colorado workforce, including skilled trades and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting cadet housing availability.
- Ensuring adherence to strict quality and safety standards throughout the construction process.
- Managing the logistical challenges of large-scale construction on an active military installation.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Robust competition suggests a well-vetted selection process.
- Experienced contractor likely to manage project effectively.
- Project contributes to essential military infrastructure.
Sector Analysis
The Commercial and Institutional Building Construction sector is a significant component of federal contracting, particularly for agencies like the Department of Defense that require extensive facilities. This contract fits within the broader category of military construction and infrastructure development. Comparable spending benchmarks for similar dormitory or barracks construction projects on military installations would typically range from tens to hundreds of millions of dollars, depending on size, complexity, and location.
Small Business Impact
While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, M. A. Mortenson Company, may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for various construction trades and services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army's contracting and engineering divisions, ensuring compliance with contract terms, specifications, and timelines. Performance monitoring and quality assurance checks will be critical throughout the construction period. Transparency is facilitated through contract award databases, and any significant issues or disputes would be subject to standard government oversight and dispute resolution processes.
Related Government Programs
- Military Construction Program
- Department of Defense Facilities Management
- Air Force Academy Infrastructure Projects
- Dormitory and Barracks Construction
Risk Flags
- Potential for schedule delays
- Ensuring quality of construction
- Managing construction on an active military base
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, institutional-building, military-construction, colorado, large-contract, infrastructure, dormitory
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.1 million to M. A. MORTENSON COMPANY. DB CONSOLIDATE CADET PREP SCHOOL DORMITORY - USAFA
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 $67.1 million.
What is the period of performance?
Start: 2024-04-30. End: 2027-07-09.
What is the track record of M. A. Mortenson Company with the Department of Defense?
M. A. Mortenson Company has a history of working with the Department of Defense on various construction projects. Their experience typically includes large-scale institutional and infrastructure development. Reviewing their past performance ratings, any past performance issues, and the value of previous contracts awarded by the DoD would provide a clearer picture of their reliability and capability for this specific project. Data from contract databases often shows a pattern of successful project completion, though specific details on past issues or commendations would require deeper investigation into individual contract histories.
How does the $67.1 million cost compare to similar dormitory construction projects at other military academies?
Benchmarking the $67.1 million cost against similar dormitory construction projects at other military academies requires access to detailed cost data for comparable projects. Factors such as square footage, number of rooms, amenities, and specific construction challenges (e.g., site conditions, seismic requirements) significantly influence project costs. Generally, large-scale institutional construction on military bases can range widely, but this figure appears within a plausible range for a substantial dormitory facility. A detailed comparison would involve analyzing per-square-foot costs and unit costs (e.g., cost per bed) from recently completed, similar projects, adjusting for inflation and regional cost differences.
What are the primary risks associated with a large-scale construction project of this duration?
The primary risks associated with a 1165-day construction project include potential cost overruns (though mitigated by firm-fixed-price), schedule delays due to unforeseen site conditions, weather, material shortages, labor disputes, or changes in project scope. There are also risks related to quality control, ensuring the final structure meets all specifications and safety standards. Furthermore, managing the logistical complexities of construction on an active military installation, including security protocols and coordination with base operations, presents unique challenges. The firm-fixed-price contract helps manage cost risk, but schedule and performance risks remain significant.
What is the expected impact of this new dormitory on cadet living conditions and academy operations?
The new dormitory is expected to significantly improve cadet living conditions by providing modern, comfortable, and functional accommodations. This can positively impact cadet morale, well-being, and academic performance. Operationally, it may allow for the consolidation of existing facilities, potentially freeing up space for other academy needs or enabling renovations of older buildings. It also ensures the academy can house its projected cadet population effectively, supporting its training and educational mission. The project directly addresses the need for updated infrastructure to support the Air Force's future leaders.
How has federal spending on institutional building construction evolved in recent years?
Federal spending on institutional building construction has generally seen fluctuations driven by military readiness needs, infrastructure modernization priorities, and overall budget allocations. Agencies like the Department of Defense consistently invest in building and renovating facilities to support personnel and operations. Recent years may show increased investment in upgrading aging infrastructure and constructing new facilities to meet evolving requirements. Analyzing historical spending data for the 'Commercial and Institutional Building Construction' (NAICS 236220) category across federal agencies would reveal trends, with specific spikes often correlating with major military construction initiatives or national infrastructure programs.
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: W9128F23R0007
Offers Received: 8
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: $68,614,590
Exercised Options: $67,086,390
Current Obligation: $67,086,390
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-30
Current End Date: 2027-07-09
Potential End Date: 2027-07-09 00:00:00
Last Modified: 2025-09-29
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