DoD awards $38.8M for medical waste incinerator at Fort Detrick, Maryland

Contract Overview

Contract Amount: $38,831,793 ($38.8M)

Contractor: M. a. Mortenson Company

Awarding Agency: Department of Defense

Start Date: 2024-05-02

End Date: 2027-06-04

Contract Duration: 1,128 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF MEDICAL WASTE INCINERATOR FACILITY, FT DETRICK, MD

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $38.8 million to M. A. MORTENSON COMPANY for work described as: CONSTRUCTION OF MEDICAL WASTE INCINERATOR FACILITY, FT DETRICK, MD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. Project duration of 1128 days indicates a significant, long-term construction effort. 4. The contract is for industrial building construction, specifically a medical waste incinerator. 5. The awardee, M. A. Mortenson Company, will be responsible for delivering this critical facility.

Value Assessment

Rating: good

The contract value of $38.8 million for a medical waste incinerator facility appears reasonable given the scope and duration. Benchmarking against similar large-scale industrial construction projects would provide a more precise value assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government, contributing to good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized construction project. A higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

The facility will support medical waste disposal needs for Fort Detrick and potentially surrounding military installations. Improved medical waste management enhances public health and environmental safety. Construction activities will likely create temporary employment opportunities in the Maryland region. The project ensures compliance with environmental regulations for hazardous waste disposal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for construction delays impacting operational readiness.
  • Ensuring compliance with stringent environmental regulations for incinerator operation.

Positive Signals

  • Award to an experienced contractor with a history of large-scale construction.
  • Firm-fixed-price contract provides cost certainty.
  • Strategic location at Fort Detrick supports existing military operations.

Sector Analysis

The construction sector for specialized industrial facilities, particularly those with environmental and health compliance requirements, is a significant market. This contract fits within the broader defense construction and infrastructure development segment. Comparable spending benchmarks for similar incinerator or waste management facility construction projects would be relevant for a deeper analysis.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the impact on the small business ecosystem will depend on whether the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and engineering divisions, ensuring adherence to project specifications and timelines. Transparency is expected through contract award databases and potential public reporting on project milestones. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Department of Defense Medical Facilities Construction
  • Environmental Remediation Services
  • Industrial Waste Management Infrastructure

Risk Flags

  • Potential for environmental compliance issues during construction and operation.
  • Risk of construction delays impacting facility readiness.
  • Ensuring long-term operational efficiency and maintenance of the incinerator.

Tags

construction, department-of-defense, department-of-the-army, maryland, fort-detrick, definitive-contract, firm-fixed-price, full-and-open-competition, industrial-building-construction, medical-waste-incinerator, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to M. A. MORTENSON COMPANY. CONSTRUCTION OF MEDICAL WASTE INCINERATOR FACILITY, FT DETRICK, MD

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 $38.8 million.

What is the period of performance?

Start: 2024-05-02. End: 2027-06-04.

What is M. A. Mortenson Company's track record with similar Department of Defense construction projects?

M. A. Mortenson Company has a substantial track record with the Department of Defense, having completed numerous large-scale construction projects across various military installations. Their experience often includes complex facilities requiring specialized engineering and adherence to strict security and environmental standards. A review of their past performance on similar projects, such as other waste management facilities or specialized industrial buildings, would indicate their capability to successfully execute this contract. Their history suggests a capacity for managing large budgets and complex schedules, which is crucial for a project of this magnitude and duration.

How does the $38.8 million cost compare to similar medical waste incinerator construction projects?

Benchmarking the $38.8 million cost against similar medical waste incinerator construction projects requires access to a broader dataset of comparable contracts. Factors such as facility size, capacity, specific technological requirements (e.g., emission controls), and geographic location significantly influence project costs. However, for a facility of this nature, awarded under full and open competition, the price appears to be within a reasonable range for a project of this scale and complexity. Further analysis would involve comparing cost per square foot or cost per ton of waste processed against industry averages for specialized industrial construction.

What are the primary risks associated with the construction of a medical waste incinerator facility?

The primary risks associated with constructing a medical waste incinerator facility include potential construction delays due to unforeseen site conditions, labor shortages, or supply chain disruptions. Environmental risks are also significant, requiring strict adherence to regulations regarding emissions, hazardous materials handling, and waste disposal during construction. Furthermore, ensuring the facility meets all operational and safety standards for future use is critical. The firm-fixed-price contract helps mitigate financial risks for the government, but performance risks related to schedule and quality remain.

What is the expected effectiveness of this incinerator in managing medical waste for Fort Detrick?

The effectiveness of the new medical waste incinerator at Fort Detrick will depend on its design capacity, operational efficiency, and integration into the base's waste management protocols. Once operational, it is expected to provide a secure, compliant, and potentially more cost-effective method for disposing of regulated medical waste generated by on-site healthcare facilities. This localized solution can reduce reliance on external disposal services, enhance biosecurity, and ensure timely destruction of infectious materials, thereby improving overall public health and environmental safety for the installation and surrounding community.

What has been the historical spending trend for similar industrial building construction by the Department of the Army?

Historical spending trends for industrial building construction by the Department of the Army typically fluctuate based on modernization needs, infrastructure upgrades, and specific mission requirements. While specific figures for medical waste incinerators are not readily available without deeper analysis, the Army consistently invests in a wide range of construction projects, from barracks and training facilities to specialized operational infrastructure like this incinerator. Analyzing broader categories of 'Industrial Buildings' or 'Construction of Facilities' over the past five to ten years would reveal overall spending patterns, project types, and average contract values, providing context for the current $38.8 million award.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionIndustrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR23R0014

Offers Received: 2

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: $38,831,793

Exercised Options: $38,831,793

Current Obligation: $38,831,793

Actual Outlays: $1,107,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-05-02

Current End Date: 2027-06-04

Potential End Date: 2027-06-04 00:00:00

Last Modified: 2025-10-24

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