Keller Army Hospital Clinic Addition Contract Awarded to Morgan Construction for $29.6M
Contract Overview
Contract Amount: $29,590,114 ($29.6M)
Contractor: Morgan Construction Enterprises, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-28
End Date: 2016-09-30
Contract Duration: 1,829 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF THE KELLER ARMY HOSPITAL CLINIC ADDITION.
Place of Performance
Location: WEST POINT, ORANGE County, NEW YORK, 10996
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $29.6 million to MORGAN CONSTRUCTION ENTERPRISES, INC. for work described as: CONSTRUCTION OF THE KELLER ARMY HOSPITAL CLINIC ADDITION. Key points: 1. Contract awarded to Morgan Construction Enterprises, Inc. for $29.6 million. 2. Full and open competition was utilized for this contract. 3. The project involves the construction of an addition to Keller Army Hospital. 4. The contract type is Firm Fixed Price, indicating a defined cost. 5. The duration of the contract was 1829 days.
Value Assessment
Rating: fair
The contract value of $29.6 million for a hospital clinic addition appears within a reasonable range for construction projects of this nature. Benchmarking against similar government construction contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for this necessary facility expansion.
Public Impact
Enhances healthcare infrastructure for military personnel and their families at Keller Army Hospital. Supports the local economy through construction jobs and related services. The project's success contributes to the operational readiness of military medical facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise.
- Contract duration is lengthy, increasing exposure to market fluctuations.
- No explicit mention of small business participation.
Positive Signals
- Full and open competition promotes fairness and potentially better pricing.
- Firm Fixed Price contract provides cost certainty.
- Project addresses a critical healthcare infrastructure need.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. Government construction spending benchmarks vary widely based on project scope, location, and material costs. The $29.6M value is significant for a single clinic addition.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this contract. Further investigation would be needed to determine if any subcontracts were awarded to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for federal construction projects. Monitoring progress and adherence to specifications is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration significantly exceeds typical project timelines.
- Lack of small business participation noted.
- Potential for cost escalation due to long contract term.
- No data on contractor past performance or project success metrics.
Tags
commercial-and-institutional-building-co, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to MORGAN CONSTRUCTION ENTERPRISES, INC.. CONSTRUCTION OF THE KELLER ARMY HOSPITAL CLINIC ADDITION.
Who is the contractor on this award?
The obligated recipient is MORGAN CONSTRUCTION ENTERPRISES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2011-09-28. End: 2016-09-30.
What was the final cost compared to the initial bid and the awarded amount?
The provided data shows the awarded amount as $29.6 million. Without initial bid data or information on change orders, it's impossible to assess if the final cost deviated from the initial estimates or bids. Understanding the bidding landscape and any subsequent modifications would clarify the cost efficiency.
Were there any performance issues or disputes during the contract's execution?
The data does not provide details on contract performance, disputes, or contractor performance ratings. A review of contract close-out documentation or performance reports would be necessary to assess any issues encountered during the construction of the Keller Army Hospital Clinic Addition.
How does the cost per square foot compare to similar hospital construction projects in the region?
To assess the cost-effectiveness, a comparison of the cost per square foot against similar hospital construction projects in New York would be beneficial. This requires obtaining project size data and regional construction cost indices to determine if the $29.6 million expenditure was competitive.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DS11R0013
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 30 COOPER SQUARE FL 10, NEW YORK, NY, 10003
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,590,114
Exercised Options: $29,590,114
Current Obligation: $29,590,114
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-28
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2021-06-04
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