Fort Knox Medical Clinic Replacement Contract Awarded to M. A. Mortenson for $65.9M Under Full and Open Competition
Contract Overview
Contract Amount: $65,892,429 ($65.9M)
Contractor: M. a. Mortenson Company
Awarding Agency: Department of Defense
Start Date: 2017-03-23
End Date: 2023-05-12
Contract Duration: 2,241 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF DESIGN-BUILD OF FORT KNOX MEDICAL CLINIC REPLACEMENT
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40121
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $65.9 million to M. A. MORTENSON COMPANY for work described as: IGF::OT::IGF DESIGN-BUILD OF FORT KNOX MEDICAL CLINIC REPLACEMENT Key points: 1. The contract value of $65.9 million for a medical clinic replacement is substantial, indicating a significant project scope. 2. M. A. Mortenson Company, a large contractor, secured this award, suggesting a competitive landscape for major construction projects. 3. The project carries inherent risks associated with large-scale construction, including potential cost overruns and schedule delays. 4. The sector is Commercial and Institutional Building Construction, a vital area for infrastructure development.
Value Assessment
Rating: good
The contract value of $65.9 million appears reasonable for a large-scale medical clinic replacement project. Benchmarking against similar government construction contracts of this size and complexity would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The use of a definitive contract suggests a well-defined scope and pricing structure.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Improved healthcare facilities for military personnel and their families at Fort Knox. Potential for job creation during the construction phase. Modernization of essential government infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration of 2241 days (over 6 years) is exceptionally long for a single building construction project, raising concerns about potential cost escalation and schedule creep.
- The absence of small business participation (sb: false) is noted, which could be a missed opportunity for economic development.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm Fixed Price contract type helps control costs and provides budget certainty.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Government spending in this sector is crucial for maintaining and upgrading federal facilities, with benchmarks varying widely based on project type, size, and location.
Small Business Impact
The data indicates no specific small business participation in this contract (sb: false). While not always mandatory, encouraging small business involvement can foster economic growth and competition within the construction industry.
Oversight & Accountability
The contract's long duration and significant value warrant close oversight to ensure adherence to schedule, budget, and quality standards. Regular reporting and performance reviews by the Department of the Army are essential.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Exceptionally long contract duration (2241 days).
- Lack of stated small business participation.
- Potential for cost escalation or quality compromise due to long-term fixed price contract.
- Complexity inherent in large-scale medical facility construction.
Tags
commercial-and-institutional-building-co, department-of-defense, ky, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.9 million to M. A. MORTENSON COMPANY. IGF::OT::IGF DESIGN-BUILD OF FORT KNOX MEDICAL CLINIC REPLACEMENT
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 $65.9 million.
What is the period of performance?
Start: 2017-03-23. End: 2023-05-12.
What is the primary driver for the exceptionally long project duration of over six years for this medical clinic replacement?
The extended duration of 2241 days (over six years) for the Fort Knox Medical Clinic replacement is highly unusual for a single building construction project. Potential reasons could include phased construction requirements, complex site preparation, extensive environmental reviews, or integration with other ongoing base development projects. Further investigation into the contract's statement of work and project milestones is needed to understand this anomaly and its potential impact on cost and efficiency.
How does the awarded amount of $65.9 million compare to industry benchmarks for similar medical facility construction projects?
The $65.9 million award for the Fort Knox Medical Clinic replacement requires comparison with specific industry benchmarks for government-funded medical facilities of comparable size and complexity. Factors such as square footage, specialized equipment requirements, and regional construction costs significantly influence pricing. Without detailed project specifications, a precise benchmark is difficult, but the value suggests a substantial and complex undertaking.
What are the potential risks associated with the long contract duration and the firm fixed price structure?
A firm fixed price contract over an extended duration of over six years presents risks of cost escalation for the contractor if material or labor costs increase significantly beyond initial projections. Conversely, the government might face risks if the contractor cuts corners on quality to maintain profitability within the fixed price. The prolonged timeline also increases the likelihood of scope creep or the need for contract modifications, potentially negating some of the initial price certainty.
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: W912QR16R0014
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: $65,946,679
Exercised Options: $65,892,429
Current Obligation: $65,892,429
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $102,035,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-23
Current End Date: 2023-05-12
Potential End Date: 2023-05-12 00:00:00
Last Modified: 2024-07-12
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