DOT's $43.9M Maritime Administration contract awarded to McCarthy Building Companies for heavy civil engineering construction

Contract Overview

Contract Amount: $43,924,228 ($43.9M)

Contractor: Mccarthy Building Companies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2012-03-18

End Date: 2014-12-31

Contract Duration: 1,018 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BLF FY13-1 IGF::OT::IGF

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77705

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $43.9 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: BLF FY13-1 IGF::OT::IGF Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of over 3 years indicates a significant project timeline. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Project located in Texas, potentially impacting regional workforce and economy. 6. No small business set-aside noted, suggesting larger prime contractor focus.

Value Assessment

Rating: good

The contract value of $43.9 million for heavy civil engineering construction is within a typical range for projects of this nature. Benchmarking against similar large-scale infrastructure projects managed by the Maritime Administration or other DOT agencies would provide further context. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the project is completed within budget. However, without detailed project specifications and scope, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 6 bidders participating, this suggests a healthy level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, which is beneficial for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that taxpayer funds are used efficiently by leveraging market forces to drive down costs.

Public Impact

The primary beneficiaries are the Maritime Administration and potentially the broader U.S. maritime industry through improved infrastructure. The contract delivers heavy and civil engineering construction services, likely related to port facilities, shipyards, or related infrastructure. The geographic impact is concentrated in Texas (ST: TX), potentially creating local jobs and economic activity. Workforce implications include employment opportunities for skilled construction labor, engineers, and project managers in the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Risk of schedule delays impacting the Maritime Administration's operational timelines.
Ensuring compliance with environmental regulations during extensive construction activities.
Quality control and assurance for complex heavy civil engineering work.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bid process.
Contractor's experience in heavy and civil engineering construction is implied.
Project duration allows for structured planning and execution.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the nation's infrastructure. This sector encompasses a wide range of projects, including transportation, utilities, and industrial facilities. The Maritime Administration's spending in this area is crucial for maintaining and upgrading port facilities and related assets essential for national security and economic competitiveness. Comparable spending benchmarks would involve analyzing other large-scale port development or maritime infrastructure projects funded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false). The prime contractor, McCarthy Building Companies, Inc., is likely a large business. This suggests that subcontracting opportunities may exist for small businesses, but there is no explicit requirement or set-aside mandated at the prime contract level. The impact on the small business ecosystem will depend on the prime contractor's subcontracting plan and outreach efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Maritime Administration. The firm fixed-price nature of the contract simplifies some aspects of financial oversight but requires diligent monitoring of performance and schedule. Accountability measures are embedded in the contract terms, including potential penalties for delays or non-performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be less public.

Related Government Programs

Maritime Administration Infrastructure Projects
Department of Transportation Civil Engineering Contracts
Federal Port Development Programs
Heavy Construction Federal Contracts

Risk Flags

Potential for schedule delays impacting critical maritime operations.
Risk of unforeseen site conditions leading to cost pressures, despite fixed-price.
Ensuring robust quality control for complex civil engineering works.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $43.9 million to MCCARTHY BUILDING COMPANIES, INC.. BLF FY13-1 IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MCCARTHY BUILDING COMPANIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $43.9 million.

What is the period of performance?

Start: 2012-03-18. End: 2014-12-31.

What is the specific nature of the heavy and civil engineering construction being performed under this contract?

The provided data indicates the contract is for 'Other Heavy and Civil Engineering Construction' (NA: 237990) awarded to McCarthy Building Companies, Inc. by the Department of Transportation's Maritime Administration. While the specific project details are not fully elaborated in the abbreviated data, this classification typically includes large-scale projects such as the construction or renovation of ports, docks, piers, shipyards, breakwaters, dredging, and other related maritime infrastructure. The contract duration of over 1000 days (1018 days) suggests a substantial undertaking, likely involving significant earthmoving, concrete work, steel erection, and potentially specialized marine construction techniques. Further details would be found in the contract's Statement of Work (SOW).

How does the awarded amount of $43.9 million compare to similar Maritime Administration construction projects?

Benchmarking the $43.9 million award requires comparing it to similar heavy and civil engineering construction projects undertaken by the Maritime Administration or other federal agencies involved in port and maritime infrastructure. Without access to a database of comparable contracts, a precise comparison is difficult. However, for large-scale port infrastructure projects, this amount is substantial but not extraordinary. Factors influencing cost include project complexity, location, specific requirements (e.g., dredging depth, structural load capacity), and the prevailing market conditions for construction materials and labor at the time of award. A review of historical Maritime Administration contract awards for similar scope and scale would be necessary for a robust comparison.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this firm fixed-price contract?

For a firm fixed-price contract, key performance indicators (KPIs) would likely revolve around adherence to the project schedule, meeting quality standards and specifications outlined in the SOW, and ensuring compliance with safety and environmental regulations. Risk mitigation strategies are primarily the contractor's responsibility due to the fixed-price nature. McCarthy Building Companies, Inc. would be expected to manage risks related to cost overruns, labor availability, material price fluctuations, and unforeseen site conditions through careful planning, robust project management, contingency budgeting, and insurance. The government's oversight role would focus on monitoring progress, ensuring compliance, and verifying that the final deliverable meets all contractual requirements.

What is the historical spending pattern of the Maritime Administration in the heavy and civil engineering construction sector?

Analyzing the historical spending patterns of the Maritime Administration in the heavy and civil engineering construction sector requires access to historical contract data. Generally, federal agencies like the Maritime Administration allocate funds for infrastructure maintenance, upgrades, and new construction to support national maritime goals. Spending in this sector can fluctuate based on infrastructure needs, budget appropriations, and national priorities. Periods of increased investment might coincide with modernization efforts, capacity expansion, or responses to natural disasters impacting port facilities. A detailed analysis would involve examining annual spending trends, the average contract size, and the frequency of awards within this specific construction category over several fiscal years.

What is the track record of McCarthy Building Companies, Inc. with federal contracts, particularly with the Department of Transportation?

McCarthy Building Companies, Inc. is a well-established construction firm with a significant history of undertaking large-scale projects, including many for federal agencies. While the provided data confirms this specific contract with the Department of Transportation's Maritime Administration, a comprehensive assessment of their track record would involve reviewing their performance on other federal contracts. This includes examining past performance evaluations, any history of contract disputes or terminations, and their experience with similar types of heavy and civil engineering projects. Their ability to secure a $43.9 million firm fixed-price contract under full and open competition suggests a strong reputation and demonstrated capability in the federal contracting space.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DTMA-91-R-2011-0003

Offers Received: 6

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,924,228

Exercised Options: $43,924,228

Current Obligation: $43,924,228

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $21,730,938

Contract Characteristics

Cost or Pricing Data: NO

Timeline