Visitor center addition contract awarded to Fager-McGee for over $4.5M, with 3 bidders

Contract Overview

Contract Amount: $4,519,242 ($4.5M)

Contractor: Fager-Mcgee Commercial Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2021-10-01

End Date: 2026-01-05

Contract Duration: 1,557 days

Daily Burn Rate: $2.9K/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: GAOA CRAB ORCHARD NWR - CONSTRUCTION OF VISITOR CENTER ADDITION

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of the Interior obligated $4.5 million to FAGER-MCGEE COMMERCIAL CONSTRUCTION INC for work described as: GAOA CRAB ORCHARD NWR - CONSTRUCTION OF VISITOR CENTER ADDITION Key points: 1. The contract value appears reasonable given the scope of construction for a visitor center addition. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The project duration of over 1500 days indicates a significant construction undertaking. 5. The contract is located in Illinois, potentially impacting local construction employment. 6. The contractor, Fager-McGee, is a commercial and institutional building construction firm.

Value Assessment

Rating: good

The contract value of approximately $4.5 million for a visitor center addition appears to be within a reasonable range for such construction projects. Benchmarking against similar federal building construction contracts would provide a more precise assessment of value for money. The firm fixed-price contract type suggests that the government has secured a predictable cost, with the contractor bearing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded from the outset. With three bidders, the competition level is moderate, suggesting that the exclusion of sources did not unduly limit the bidding pool. This approach can sometimes be used to ensure specific capabilities or to streamline the procurement process, but it warrants scrutiny to ensure fairness and optimal price discovery.

Taxpayer Impact: A moderate level of competition, even with source exclusions, generally benefits taxpayers by encouraging competitive pricing. However, the exclusion of specific sources could potentially limit the most competitive offers if not justified by clear criteria.

Public Impact

The primary beneficiaries are visitors to the Crab Orchard National Wildlife Refuge, who will gain access to an improved facility. The contract delivers construction services for an addition to a visitor center. The geographic impact is localized to Illinois, where the refuge is located. The project will likely have positive implications for the local construction workforce, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires careful review to ensure it was justified and did not unnecessarily limit competition.
The long contract duration (1557 days) could introduce risks related to material cost fluctuations or unforeseen site conditions.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The award to a commercial construction firm suggests alignment with industry standards and practices.
The presence of three bidders indicates a degree of market interest and competition.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is a significant part of the broader construction industry, encompassing a wide range of projects from small renovations to large public facilities. Federal spending in this area often supports infrastructure improvements and public access facilities. Comparable spending benchmarks would typically be derived from data on similar-sized government building projects or private sector commercial construction costs in the region.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'small business set-aside' field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor will likely manage the project with its own resources or select subcontractors without specific set-aside requirements, potentially limiting direct opportunities for small businesses in this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Fish and Wildlife Service, under the Department of the Interior. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through federal contract databases, though detailed project-specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Construction
National Wildlife Refuge Infrastructure
Department of the Interior Capital Projects
Visitor Center Construction

Risk Flags

Competition Method Justification
Long Project Duration Risk
Potential for Cost Overruns (Contractor Risk)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.5 million to FAGER-MCGEE COMMERCIAL CONSTRUCTION INC. GAOA CRAB ORCHARD NWR - CONSTRUCTION OF VISITOR CENTER ADDITION

Who is the contractor on this award?

The obligated recipient is FAGER-MCGEE COMMERCIAL CONSTRUCTION INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-01-05.

What is the track record of Fager-McGee Commercial Construction Inc. with federal contracts?

Information on Fager-McGee Commercial Construction Inc.'s specific track record with federal contracts is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases (like SAM.gov or FPDS) to analyze past performance, contract history, types of projects awarded, and any reported issues or successes. This would help assess their experience and reliability in executing similar federal construction projects, providing context for their ability to successfully complete the visitor center addition.

How does the awarded price compare to similar federal visitor center construction projects?

Without specific data on comparable visitor center construction projects, a direct price comparison is difficult. However, the $4.5 million award for a visitor center addition can be benchmarked against general commercial and institutional building construction costs in Illinois. Factors such as square footage, complexity of design, site preparation needs, and prevailing labor and material costs in the region would influence this comparison. A detailed analysis would involve identifying projects of similar scale and scope within the U.S. Fish and Wildlife Service or other agencies to establish a robust value-for-money assessment.

What are the primary risks associated with this firm fixed-price contract for construction?

The primary risk with a firm fixed-price (FFP) contract, from the government's perspective, is that the contractor bears the risk of cost overruns. However, for the contractor, risks include underestimating costs, encountering unforeseen site conditions, or facing significant increases in material and labor prices over the long project duration (1557 days). If the contractor cannot absorb these increased costs, it could lead to project delays, quality compromises, or even contractor default. The 'after exclusion of sources' competition also introduces a potential risk if it limited the pool of highly competitive bidders.

How effective is the 'Full and Open Competition After Exclusion of Sources' strategy in ensuring value?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring value is contingent on the justification for excluding certain sources. If the exclusions are based on legitimate technical requirements, past performance issues, or specific socio-economic goals that are well-documented, it can still lead to competitive pricing among the remaining eligible bidders. However, if sources are excluded without clear, objective reasons, it could stifle competition, potentially leading to higher prices and reduced value for taxpayers. The presence of three bidders suggests some level of competition was maintained.

What is the historical spending pattern for visitor center construction by the U.S. Fish and Wildlife Service?

Historical spending patterns for visitor center construction by the U.S. Fish and Wildlife Service (USFWS) are not detailed in the provided data. To assess this, one would need to analyze past USFWS capital improvement budgets and contract awards related to visitor facilities over several fiscal years. This analysis would reveal trends in project frequency, average contract values, types of construction utilized, and the typical procurement methods employed. Understanding these patterns provides context for the current $4.5 million contract, indicating whether it aligns with historical investment levels or represents a significant deviation.

What are the potential workforce implications of this construction project in Illinois?

This construction project is likely to have positive workforce implications for the local Illinois economy. It will create demand for skilled labor in various trades, including carpentry, electrical, plumbing, and general construction labor. The duration of the project (over 1500 days) suggests sustained employment opportunities. Additionally, indirect employment may be generated in related sectors such as material supply, equipment rental, and support services. The extent of local hiring will depend on the contractor's policies and the availability of qualified local workers.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140F0821R0011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 347 S WILLIAMS ST, MURPHYSBORO, IL, 62966

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,519,242

Exercised Options: $4,519,242

Current Obligation: $4,519,242

Actual Outlays: $4,517,557

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline