HHS Awards $167.6M Construction Contract to McCarthy Building Companies for CDC Facilities

Contract Overview

Contract Amount: $167,596,216 ($167.6M)

Contractor: Mccarthy Building Companies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2000-12-11

End Date: 2000-12-11

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $167.6 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: CONSTRUCTION Key points: 1. Significant contract value of $167.6 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract awarded to McCarthy Building Companies, Inc., a major player in the construction sector. 4. The contract falls under the broad Construction sector, impacting public health infrastructure.

Value Assessment

Rating: fair

The contract value is substantial, but without specific project details or comparable contract data, a precise value assessment is difficult. The firm fixed price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified contractors to bid, theoretically driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayer funds are being utilized for construction services. The competitive nature of the award is intended to maximize the value received for these funds.

Public Impact

Investment in public health infrastructure through the Centers for Disease Control and Prevention. Potential for job creation and economic activity in the construction sector within Georgia. Ensures facilities are available for critical public health operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific project scope and deliverables makes it hard to assess true value.
Long-term maintenance and operational costs are not detailed.
Potential for cost overruns if unforeseen issues arise in construction.

Positive Signals

Awarded through full and open competition, promoting fairness.
Firm fixed price contract helps manage budget predictability.
Supports critical public health agency infrastructure.

Sector Analysis

This contract falls within the Construction sector, which is vital for developing and maintaining public infrastructure. Benchmarks for construction contracts vary widely based on project type, location, and complexity.

Small Business Impact

The data indicates this was a full and open competition, which typically allows for participation by small businesses if they meet the qualifications. However, the prime contractor is a large entity, and subcontracting opportunities for small businesses are not specified.

Oversight & Accountability

Oversight would typically be managed by the Department of Health and Human Services and the Centers for Disease Control and Prevention. The firm fixed price contract provides a degree of cost control, but monitoring project execution and quality is crucial for accountability.

Related Government Programs

Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Contract value is substantial, requiring careful monitoring.
Lack of specific project details limits full assessment.
Potential for unforeseen construction issues.
Long-term operational costs not addressed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $167.6 million to MCCARTHY BUILDING COMPANIES, INC.. CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is MCCARTHY BUILDING COMPANIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $167.6 million.

What is the period of performance?

Start: 2000-12-11. End: 2000-12-11.

What specific facilities or infrastructure improvements does this $167.6 million contract cover for the CDC, and how do these align with current public health needs?

The provided data does not specify the exact nature of the construction services. It is a delivery order under a larger contract, likely for facilities maintenance, upgrades, or new construction supporting the Centers for Disease Control and Prevention's operations. Understanding the specific projects would clarify alignment with public health priorities and justify the significant investment.

Given the firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen construction challenges that could impact the final cost to taxpayers?

A firm fixed price contract aims to cap costs, but robust change order processes and clear contract language are essential. The contracting agency (HHS/CDC) would need stringent oversight to approve any modifications and ensure they are justified and within budget. Contingency planning and risk mitigation strategies during the project execution phase are critical.

How does the selection of McCarthy Building Companies, Inc. through full and open competition reflect the agency's strategy for ensuring cost-effectiveness and quality in construction services?

Full and open competition allows multiple bidders to present proposals, theoretically leading to the most competitive pricing and highest quality offerings. The selection of McCarthy Building Companies, Inc. suggests they provided the best value proposition among the competing firms. The agency's strategy relies on this competitive process to drive efficiency and ensure taxpayer funds are used wisely.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1999N00328

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, 63124

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,674,042,883

Exercised Options: $10,674,042,883

Current Obligation: $167,596,216

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200200000058I

IDV Type: IDC

Timeline