DHS awards $88.5M construction contract to MCTECH CORP. for warehouse and leadership academy in West Virginia

Contract Overview

Contract Amount: $88,533,776 ($88.5M)

Contractor: Mctech Corp.

Awarding Agency: Department of Homeland Security

Start Date: 2007-12-25

End Date: 2013-09-30

Contract Duration: 2,106 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT AN INFRASTRUCTURE, WAREHOUSE AND LEADERSHIP ACADEMY

Place of Performance

Location: HARPERS FERRY, JEFFERSON County, WEST VIRGINIA, 25425

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $88.5 million to MCTECH CORP. for work described as: CONSTRUCT AN INFRASTRUCTURE, WAREHOUSE AND LEADERSHIP ACADEMY Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a potentially limited but justified bidding process. 2. The contract's duration of 2106 days (approx. 5.7 years) indicates a long-term infrastructure development project. 3. Awarded as a definitive contract with a firm fixed price, providing cost certainty for the government. 4. The project involves the construction of an infrastructure, warehouse, and leadership academy, indicating a significant investment in facilities. 5. The contract was awarded to a single bidder, MCTECH CORP., which warrants further investigation into the competition dynamics. 6. The base award amount of $42,039 is significantly lower than the total obligated amount, suggesting substantial modifications or task orders.

Value Assessment

Rating: fair

The base award of $42,039 appears to be a placeholder or initial amount, with the total obligated amount reaching $88.5M. Without detailed breakdowns of modifications and task orders, a precise value-for-money assessment is challenging. Benchmarking this specific type of construction project against similar government contracts would require more granular data on scope and location. The significant increase from the base award to the total obligated amount suggests potential scope creep or extensive change orders, which could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or pre-qualification. The fact that only one offer was received suggests that the exclusion of sources may have significantly limited the competitive pool, or that MCTECH CORP. was the sole entity capable of meeting the stringent requirements.

Taxpayer Impact: A limited competition, especially with only one offer, may result in less competitive pricing for taxpayers compared to a broader, more open bidding process. This could lead to higher costs if the single bidder faces no pressure from rivals.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel who will utilize the new warehouse and leadership academy facilities. The services delivered include the construction of essential infrastructure, enhancing operational capabilities and training for CBP. The geographic impact is concentrated in West Virginia, potentially creating local construction jobs and economic activity. Workforce implications include the employment of construction workers during the project's multi-year duration and the long-term operational staff for the completed facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one offer received raises concerns about potential price inflation and lack of robust market testing.
The significant difference between the base award and the total obligated amount necessitates scrutiny of contract modifications and their justification.
The 'exclusion of sources' clause requires careful examination to ensure it was applied appropriately and did not unduly restrict competition.

Positive Signals

The contract utilizes a firm fixed price, which provides cost certainty and protects the government from cost overruns.
The long duration suggests a strategic investment in critical infrastructure for a key agency.
Awarding to a single entity may indicate specialized capabilities required for this unique construction project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for large-scale government construction projects is often characterized by a mix of large prime contractors and specialized subcontractors. Government agencies like DHS often procure such services through competitive bidding processes, with varying levels of competition depending on project complexity and specialized requirements. Benchmarks for similar infrastructure projects would typically consider factors like square footage, materials, and specific facility functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, MCTECH CORP., may engage small businesses as subcontractors for various construction trades and services, which would be determined by their own subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection (CBP) contracting officers and program managers. Transparency is facilitated through contract databases like FPDS. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security Facilities Construction
U.S. Customs and Border Protection Infrastructure Projects
Federal Warehouse Construction Contracts
Leadership Academy Development Projects
General Services Administration (GSA) Construction Contracts

Risk Flags

Limited competition raises concerns about price.
Significant increase from base award to total obligated amount requires scrutiny.
Potential for scope creep due to contract modifications.
Justification for 'exclusion of sources' needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $88.5 million to MCTECH CORP.. CONSTRUCT AN INFRASTRUCTURE, WAREHOUSE AND LEADERSHIP ACADEMY

Who is the contractor on this award?

The obligated recipient is MCTECH CORP..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $88.5 million.

What is the period of performance?

Start: 2007-12-25. End: 2013-09-30.

What is the detailed breakdown of the $88.5M total obligated amount, including the original award and subsequent modifications or task orders?

The provided data shows a base award of $42,039 and a total obligated amount of $88,533,776.25. This significant difference strongly suggests that the contract underwent numerous modifications or was utilized for multiple task orders over its extended period. A detailed analysis would require accessing the contract's modification history to understand the scope, justification, and pricing of each change. Without this, it's impossible to ascertain how the funds were allocated beyond the initial small award, making it difficult to assess the true cost drivers and value proposition of the contract's evolution.

What specific criteria led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award process?

The 'exclusion of sources' clause indicates that the agency identified a need for specific capabilities, technologies, or qualifications that only a subset of potential contractors possessed. This exclusion is typically justified by market research demonstrating that a broader competition would not yield suitable offers or would be unduly costly. For this construction project, exclusions might have been based on specialized construction techniques, experience with similar secure facilities, specific security clearances required for personnel, or unique logistical capabilities needed for the West Virginia location. A thorough review of the pre-award documentation and justification for exclusion would be necessary to confirm the specific reasons.

How does the per-square-foot construction cost of this project compare to similar government or commercial building projects in West Virginia or the surrounding region?

To perform this comparison, we would need the total square footage of the constructed warehouse and leadership academy. Assuming this data were available, we would then divide the total obligated amount ($88.5M) by the square footage to derive a per-square-foot cost. This figure would then be benchmarked against publicly available data for similar construction projects in the region, considering factors like building type (industrial vs. office/training), materials used, and prevailing construction labor and material costs. Without the square footage, a direct cost comparison is not feasible.

What was the track record of MCTECH CORP. with federal contracts prior to and following this award, particularly regarding performance and cost management?

Analyzing MCTECH CORP.'s past performance requires accessing federal procurement databases to review their contract history. Key metrics to examine would include the number and value of previous awards, on-time delivery rates, adherence to budget, and any documented performance issues or disputes. For this specific $88.5M contract, understanding their performance on similar large-scale construction projects would be crucial. A review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their reliability, quality of work, and overall management capabilities, helping to assess the risk associated with awarding them this significant project.

What are the key performance indicators (KPIs) used to measure the success of the warehouse and leadership academy construction, and how was MCTECH CORP. evaluated against them?

The success of this construction project would likely be measured against KPIs related to project completion within the agreed-upon schedule, adherence to the firm fixed price budget, quality of construction meeting specified standards (e.g., building codes, agency requirements), and safety performance on site. The contract would typically outline specific deliverables and acceptance criteria. Performance evaluations, potentially documented in CPARS, would detail how MCTECH CORP. met or exceeded these KPIs. Any deviations from schedule, budget, or quality standards would be critical factors in assessing the contractor's overall performance and the success of the project.

What is the historical spending trend for similar infrastructure and facility construction projects by the Department of Homeland Security or U.S. Customs and Border Protection?

To analyze historical spending trends, one would examine federal procurement data over several fiscal years for contracts categorized under 'Commercial and Institutional Building Construction' (NAICS code 236220) awarded by DHS and CBP. This analysis would reveal the average contract values, the frequency of such awards, and the typical duration of these projects. It would also help identify major contractors in this space and assess whether the $88.5M award to MCTECH CORP. is within the typical range for large-scale infrastructure development or represents a significant outlier. Understanding these trends provides context for the current contract's scale and investment.

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: HSBP1108R1563

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 240 OLIVER STE 2, SAINT ALBANS, WV, 25177

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $88,533,776

Exercised Options: $88,533,776

Current Obligation: $88,533,776

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline