GSA awards $5M construction contract to MAC Construction for Rapid City facility, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $4,998,461 ($5.0M)

Contractor: MAC Construction Company, Incorporated

Awarding Agency: General Services Administration

Start Date: 2025-03-04

End Date: 2026-10-06

Contract Duration: 581 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: USMS RAPID CITY TI CONSTRUCTION PROJECT - ANDREW BOGUE FOB/CH 515 NINTH STREET RAPID CITY SOUTH DAKOTA 57701 2440

Place of Performance

Location: RAPID CITY, PENNINGTON County, SOUTH DAKOTA, 57701

State: South Dakota Government Spending

Plain-Language Summary

General Services Administration obligated $5.0 million to MAC CONSTRUCTION COMPANY, INCORPORATED for work described as: USMS RAPID CITY TI CONSTRUCTION PROJECT - ANDREW BOGUE FOB/CH 515 NINTH STREET RAPID CITY SOUTH DAKOTA 57701 2440 Key points: 1. The contract's firm fixed-price structure aims to control costs for the government. 2. MAC Construction Company, Inc. secured this award through a competitive process. 3. The project duration of 581 days suggests a significant construction undertaking. 4. The award is for construction services at the Andrew Bogue Federal Office Building. 5. This contract falls under the General Services Administration's Public Buildings Service. 6. The North American Industry Classification System (NAICS) code 236220 indicates commercial building construction.

Value Assessment

Rating: good

The contract value of approximately $5 million for a federal building construction project appears reasonable given the scope and duration. Benchmarking against similar GSA construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, suggesting a well-defined scope of work.

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 broad solicitation process. While the exact number of bidders is not specified, this competition type generally aims to maximize the pool of potential offerors. This approach is expected to foster price discovery and potentially lead to more competitive pricing for the government.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a wider range of offers, potentially leading to a more cost-effective outcome for this significant construction project.

Public Impact

The primary beneficiaries are federal agencies requiring space within the Andrew Bogue Federal Office Building in Rapid City, South Dakota. The project will deliver construction and renovation services to modernize or expand federal facilities. The geographic impact is localized to Rapid City, South Dakota, supporting federal operations in the region. The contract is expected to create or sustain jobs in the construction sector within South Dakota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Ensuring adherence to federal building codes and accessibility standards.
Managing the impact of construction on ongoing federal operations at the facility.

Positive Signals

Firm fixed-price contract provides cost certainty.
Competitive award process likely secured favorable pricing.
Experienced contractor in commercial and institutional building construction.
Project supports modernization of federal infrastructure.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. The General Services Administration (GSA) is a major procurer of such services for federal facilities nationwide. Spending in this sector is influenced by federal infrastructure needs, economic conditions, and government modernization initiatives. Comparable spending benchmarks would typically be found in GSA's historical contract data for similar building projects.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary competition was not targeted towards small businesses. However, the prime contractor, MAC Construction Company, Inc., may engage small businesses as subcontractors to fulfill portions of the work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration's Public Buildings Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified construction services. Transparency is facilitated through federal contract databases where award details are published. The Inspector General of the GSA may have jurisdiction for audits and investigations if any irregularities arise.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Projects
Commercial and Institutional Building Construction Contracts
Firm Fixed-Price Construction Awards

Risk Flags

Potential for schedule delays
Contractor performance risk
Unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.0 million to MAC CONSTRUCTION COMPANY, INCORPORATED. USMS RAPID CITY TI CONSTRUCTION PROJECT - ANDREW BOGUE FOB/CH 515 NINTH STREET RAPID CITY SOUTH DAKOTA 57701 2440

Who is the contractor on this award?

The obligated recipient is MAC CONSTRUCTION COMPANY, INCORPORATED.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2025-03-04. End: 2026-10-06.

What is the track record of MAC Construction Company, Inc. with federal contracts, particularly with the GSA?

MAC Construction Company, Inc. has a history of performing construction services. A detailed review of their federal contract history, accessible through resources like the Federal Procurement Data System (FPDS) or USAspending.gov, would reveal the number and value of previous awards, agencies served, and performance ratings. Specific attention should be paid to their experience with projects of similar size and complexity, especially those managed by the GSA, to assess their capacity and reliability for the USMS RAPID CITY TI CONSTRUCTION PROJECT.

How does the awarded price of $4,998,461.44 compare to similar GSA construction projects in South Dakota or the surrounding region?

Benchmarking this contract's value requires comparing it to similar firm fixed-price construction projects awarded by the GSA's Public Buildings Service for facilities of comparable size and scope in South Dakota or adjacent states. Factors such as square footage, type of construction (new build vs. renovation), and specific building systems (HVAC, electrical, plumbing) influence cost. Without access to a detailed database of comparable projects and their specific metrics, a precise comparison is difficult. However, the value appears within a typical range for substantial commercial building construction.

What are the primary risk indicators associated with this specific construction contract?

Key risk indicators for this contract include the inherent risks of construction projects, such as potential for unforeseen site conditions, weather delays impacting the 581-day schedule, and the contractor's ability to manage subcontractors effectively. Given it's a firm fixed-price contract, the risk of cost overruns is primarily on the contractor, but scope creep or change orders could introduce risk for the government if not managed tightly. The contractor's past performance on similar federal projects, if available, would be a crucial indicator of their risk profile.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers on this project?

This competition method aims to maximize the number of potential bidders while allowing for specific exclusions if justified (though no specific exclusions are detailed here). For taxpayers, this method is generally effective as it promotes a wider field of competition, driving down prices through market forces. The 'after exclusion of sources' phrasing might imply a prior limited solicitation or a specific justification for excluding certain types of contractors, which warrants further investigation to ensure no potential value was lost. However, assuming a robust competition occurred, it should yield competitive pricing.

What is the historical spending pattern for construction projects at the Andrew Bogue Federal Office Building or similar GSA facilities?

Analyzing historical spending patterns for the Andrew Bogue Federal Office Building and comparable GSA facilities would provide context for the current $5 million award. This involves examining past contracts for construction, maintenance, and renovation at these sites. Trends in contract values, types of services procured, and the number of bidders over time can reveal patterns of investment, potential cost escalations, or shifts in procurement strategies. Such analysis helps determine if the current award is consistent with historical investment levels or represents a significant deviation.

What are the implications of the 581-day duration on the overall cost and project management?

A duration of 581 days (approximately 1.6 years) for a $5 million construction project suggests a moderately complex undertaking, potentially involving significant structural work, interior fit-outs, or system upgrades. Longer durations can increase indirect costs for both the contractor and the government (e.g., project oversight, temporary facilities). Effective project management is crucial to mitigate risks associated with extended timelines, such as inflation impacting material costs or potential disruptions to ongoing building operations. The firm fixed-price nature means the contractor bears the risk of cost increases due to extended duration, provided the schedule is met.

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: 47PJ0025R0012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4440 UNIVERSAL DR, RAPID CITY, SD, 57702

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

Financial Breakdown

Contract Ceiling: $4,998,461

Exercised Options: $4,998,461

Current Obligation: $4,998,461

Actual Outlays: $836,113

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline