USDA Awards $41.6M Non-Competitive Contract for Ames Modernization Construction

Contract Overview

Contract Amount: $41,596,564 ($41.6M)

Contractor: Mccarthy Building Companies, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2005-07-21

End Date: 2010-01-31

Contract Duration: 1,655 days

Daily Burn Rate: $25.1K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CMC SERVICES FOR CONSTRUCTION OF THE CENTRAL PLANT INFRASTRUCTURE PH 2 AND THE WASTE WATER PRETREATMENT PLANT PROJECTS FOR THE AMES MODERNIZATION

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $41.6 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: CMC SERVICES FOR CONSTRUCTION OF THE CENTRAL PLANT INFRASTRUCTURE PH 2 AND THE WASTE WATER PRETREATMENT PLANT PROJECTS FOR THE AMES MODERNIZATION Key points: 1. Significant investment in critical infrastructure for agricultural research. 2. Lack of competition raises concerns about potential overpricing and value. 3. Long contract duration (over 5 years) may limit flexibility. 4. Construction sector is prone to cost overruns and delays.

Value Assessment

Rating: questionable

The contract value of $41.6 million for construction services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar large-scale infrastructure projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was awarded as a non-competitive delivery order, indicating a sole-source or limited competition scenario. This significantly reduces price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential construction services.

Public Impact

Modernization of agricultural research facilities supports scientific advancement. Construction projects can create local jobs and stimulate economic activity. Potential for cost overruns could divert funds from other research priorities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Long contract duration
Potential for cost overruns in construction

Positive Signals

Supports critical agricultural research infrastructure
Firm Fixed Price contract can offer cost certainty if well-defined

Sector Analysis

The construction sector, particularly for large institutional buildings, is subject to market fluctuations and material costs. Benchmarks for similar projects would be needed for a precise comparison.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight is crucial for non-competitive contracts to ensure the contractor is meeting performance standards and that costs remain within the agreed-upon budget. Regular progress reviews and audits are recommended.

Related Government Programs

Commercial and Institutional Building Construction
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Lack of competition
Potential for cost overruns
Long contract duration
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $41.6 million to MCCARTHY BUILDING COMPANIES, INC.. CMC SERVICES FOR CONSTRUCTION OF THE CENTRAL PLANT INFRASTRUCTURE PH 2 AND THE WASTE WATER PRETREATMENT PLANT PROJECTS FOR THE AMES MODERNIZATION

Who is the contractor on this award?

The obligated recipient is MCCARTHY BUILDING COMPANIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $41.6 million.

What is the period of performance?

Start: 2005-07-21. End: 2010-01-31.

What specific circumstances justified the non-competitive award for this significant construction project?

Justification for a non-competitive award typically involves unique capabilities, urgent needs, or a lack of available sources. Without detailed documentation from the agency, it's impossible to ascertain the precise reasons. This lack of transparency is a concern for ensuring fair and efficient use of taxpayer funds.

How will the agency ensure cost control and prevent overruns on this long-term, sole-source contract?

Effective cost control will rely on robust contract management, including detailed progress monitoring, independent cost reviews, and strict adherence to the firm-fixed-price terms. The agency should establish clear performance metrics and contingency plans to mitigate risks associated with potential scope creep or unforeseen site conditions.

What is the expected impact of this infrastructure upgrade on the efficiency and output of the Ames Modernization research facilities?

The modernization of the central plant and wastewater treatment facilities is expected to improve operational efficiency, reliability, and environmental compliance for the Ames research campus. This upgrade should provide a more stable and advanced platform for ongoing and future agricultural research, potentially leading to enhanced scientific outcomes.

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: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mccarthy Holdings Inc. (UEI: 088711643)

Address: 1341 N ROCK HILL RD, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,596,564

Exercised Options: $41,596,564

Current Obligation: $41,596,564

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: 503K1522700

IDV Type: IDC

Timeline