DoD Awards $20.5M for Pre-Construction Services to M. A. Mortenson Company
Contract Overview
Contract Amount: $20,536,336 ($20.5M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2008-08-07
End Date: 2010-06-07
Contract Duration: 669 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PRE-CONSTRUCTION SERVICES
Place of Performance
Location: FORT RILEY, GEARY County, KANSAS, 66442
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to M. A. MORTENSON COMPANY for work described as: PRE-CONSTRUCTION SERVICES Key points: 1. Contract awarded to M. A. Mortenson Company for pre-construction services. 2. The contract value is $20.5 million, with a duration of 669 days. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The project falls under the Industrial Building Construction sector.
Value Assessment
Rating: good
The contract value of $20.5 million for pre-construction services appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects suggests this is within expected cost ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. This method allows all qualified contractors to bid, driving down costs.
Taxpayer Impact: The competitive nature of the award is expected to result in efficient use of taxpayer funds for these essential pre-construction services.
Public Impact
Supports military infrastructure development through essential pre-construction planning. Engages a private sector firm for specialized construction management expertise. Contributes to the local economy in Kansas through project execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if initial estimates are inaccurate.
- Delays in construction timeline could impact project completion.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor selected.
- Clear project scope for pre-construction services.
Sector Analysis
This contract falls within the Industrial Building Construction sector, which is critical for government infrastructure projects. Spending in this sector can vary significantly based on defense needs and economic conditions.
Small Business Impact
While the prime contractor is M. A. Mortenson Company, the data does not specify any subcontracting goals or achievements for small businesses on this particular award. Further investigation may be needed to assess small business participation.
Oversight & Accountability
The award was made under full and open competition, suggesting a structured procurement process. Oversight will be crucial to ensure adherence to the contract terms and budget throughout the pre-construction phase.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting subsequent construction.
- Accuracy of initial cost estimates is critical.
- Contract duration is substantial, requiring sustained oversight.
- Lack of explicit small business participation data.
Tags
industrial-building-construction, department-of-defense, ks, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to M. A. MORTENSON COMPANY. PRE-CONSTRUCTION SERVICES
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 $20.5 million.
What is the period of performance?
Start: 2008-08-07. End: 2010-06-07.
What specific pre-construction activities are included in this contract, and how do they contribute to overall project value?
The contract likely encompasses detailed planning, design review, cost estimation, scheduling, and risk assessment for a larger industrial building project. These activities are crucial for identifying potential issues early, optimizing design for cost-effectiveness, and establishing a realistic budget and timeline, thereby maximizing the value of the subsequent construction phase and minimizing costly changes later on.
What are the primary risks associated with this pre-construction services contract, and how are they being mitigated?
Key risks include inaccurate cost or schedule estimations, scope creep, and potential contractor performance issues. Mitigation strategies likely involve rigorous review of contractor proposals, clear contract language defining deliverables and performance metrics, and ongoing government oversight to monitor progress and address any deviations promptly. The firm-fixed-price nature also shifts some cost risk to the contractor.
How effective is the full and open competition method in ensuring cost-effectiveness for specialized pre-construction services like these?
Full and open competition is generally effective in driving cost-effectiveness by allowing multiple qualified firms to bid, fostering a competitive environment that can lead to lower prices. For specialized services, it ensures the government can access a wider pool of talent and expertise, increasing the likelihood of selecting a contractor that offers both technical capability and competitive pricing, ultimately benefiting taxpayer investment.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DQ07R0038
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M. a. Mortenson Companies, Inc. (UEI: 130731797)
Address: 700 MEADOW LN N, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,536,336
Exercised Options: $20,536,336
Current Obligation: $20,536,336
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-08-07
Current End Date: 2010-06-07
Potential End Date: 2010-06-07 00:00:00
Last Modified: 2010-10-12
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