USDA Forest Service Awards $12.5M Petersburg Office Consolidation to MCG Constructors, Inc

Contract Overview

Contract Amount: $12,542,800 ($12.5M)

Contractor: MCG Constructors, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-09-23

End Date: 2026-11-01

Contract Duration: 769 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PETERSBURG OFFICE CONSOLIDATION AND WORK CENTER REPLACEMENT

Place of Performance

Location: PETERSBURG, WRANGELL PETERSBURG County, ALASKA, 99833

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $12.5 million to MCG CONSTRUCTORS, INC. for work described as: PETERSBURG OFFICE CONSOLIDATION AND WORK CENTER REPLACEMENT Key points: 1. Project aims to consolidate and replace the Petersburg Work Center. 2. Contract awarded to MCG Constructors, Inc. under full and open competition. 3. The project is a firm fixed-price contract with a duration of 769 days. 4. This construction project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $12.5M appears reasonable for a commercial building construction project of this scope. Benchmarking against similar federal or private sector projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive bidding process was used. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The firm fixed-price contract structure helps control costs, providing a predictable expense for taxpayers. Competition in bidding further ensures taxpayer funds are used efficiently.

Public Impact

Improved operational efficiency for the Forest Service in Petersburg. Potential for job creation and economic activity in Alaska during construction. Modernized facilities to support critical agency functions in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Dependence on a single contractor for project completion.
Schedule delays due to weather or supply chain issues in Alaska.

Positive Signals

Clear project scope and firm fixed-price contract.
Competitive bidding process likely secured a fair price.
Modernization of essential government infrastructure.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector often involves significant infrastructure upgrades and facility maintenance, with costs varying widely based on project size, location, and complexity.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract (sb: false). Further analysis would be needed to determine if subcontracting opportunities were available to small businesses.

Oversight & Accountability

The use of full and open competition suggests a robust process. However, ongoing oversight by the Department of Agriculture's Forest Service will be crucial to ensure project milestones are met and funds are managed effectively.

Related Government Programs

Commercial and Institutional Building Construction
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for schedule delays due to remote location and weather.
Risk of unforeseen site conditions impacting costs.
Limited small business participation noted.
Dependence on contractor performance for project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12.5 million to MCG CONSTRUCTORS, INC.. PETERSBURG OFFICE CONSOLIDATION AND WORK CENTER REPLACEMENT

Who is the contractor on this award?

The obligated recipient is MCG CONSTRUCTORS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2024-09-23. End: 2026-11-01.

What specific factors contributed to the 'exclusion of sources' in the full and open competition process, and did this exclusion impact the final price?

The exclusion of sources typically occurs when specific capabilities or certifications are required that only a limited number of vendors possess. While this can sometimes reduce competition, the agency likely determined it was necessary for project success. The impact on price depends on how many qualified bidders remained and the competitiveness of their proposals. A thorough review of the solicitation documents would clarify the specific exclusions and their rationale.

What are the primary risks associated with constructing a work center in a remote location like Petersburg, Alaska, and how are they being mitigated?

Key risks include logistical challenges for material delivery, potential weather delays impacting the construction schedule, and the availability of skilled labor. Mitigation strategies often involve detailed logistical planning, incorporating weather contingency days into the schedule, and potentially offering incentives for labor retention. The firm fixed-price nature of the contract places the burden of managing these risks primarily on the contractor.

How will the consolidation and replacement of the work center enhance the operational effectiveness of the Forest Service in the region?

Consolidating operations into a new, modern facility is expected to improve efficiency by centralizing resources and personnel, reducing travel time between dispersed locations. A replacement work center likely incorporates updated technology and safety features, enhancing the ability of Forest Service staff to perform their duties, whether related to resource management, emergency response, or community outreach. This modernization supports better service delivery.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1240BJ24R0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4513 HALIBUT POINT ROAD, SITKA, AK, 99835

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,542,800

Exercised Options: $12,542,800

Current Obligation: $12,542,800

Actual Outlays: $9,565,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline