Interior Department's $120M Visitor Center Renovation Contract Awarded to McCarthy Building Companies

Contract Overview

Contract Amount: $119,618,999 ($119.6M)

Contractor: Mccarthy Building Companies, Inc.

Awarding Agency: Department of the Interior

Start Date: 2015-03-19

End Date: 2018-09-25

Contract Duration: 1,286 days

Daily Burn Rate: $93.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF JEFF 199869 - RENOVATE ARCH VISITOR CENTER, JEFFERSON NATIONAL EXPANSION MEMORIAL (JNEM), ST. LOUIS CITY, MISSOURI POINTS OF CONTACT: CO - JASON LONGSHORE, 303-969-2288 CS - SARAH CLEMMENS, 303-969-2228 COR - NELLIE SPARKS, 303-969-2421

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63102

State: Missouri Government Spending

Plain-Language Summary

Department of the Interior obligated $119.6 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: IGF::OT::IGF JEFF 199869 - RENOVATE ARCH VISITOR CENTER, JEFFERSON NATIONAL EXPANSION MEMORIAL (JNEM), ST. LOUIS CITY, MISSOURI POINTS OF CONTACT: CO - JASON LONGSHORE, 303-969-2288 CS - SARAH CLEMMENS, 303-969-2228 COR - NELLIE SPARKS, 303-969-2421 Key points: 1. The contract represents a significant investment in historical site infrastructure. 2. Analysis of value for money requires benchmarking against similar large-scale construction projects. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. Performance context is crucial, as the duration of the contract (1286 days) indicates a complex, long-term undertaking. 5. Risk indicators may include potential for cost overruns or schedule delays inherent in large construction projects. 6. The sector positioning is within commercial and institutional building construction, a vital segment of the economy.

Value Assessment

Rating: fair

The total award amount of $119,618,998.95 for the renovation of the Jefferson National Expansion Memorial Visitor Center is substantial. Benchmarking this against similar large-scale federal construction projects is necessary to assess value for money. Without specific cost breakdowns for materials, labor, and overhead, a precise value assessment is challenging. However, the fixed-price nature of the contract suggests an attempt to control costs, though the final expenditure indicates a significant investment.

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 a bid. With four bids received, the level of competition appears moderate for a project of this magnitude. A higher number of bidders could potentially lead to more aggressive pricing and better value for the government. The moderate competition level suggests that while multiple firms were interested, the market may not have been saturated with potential offerors.

Taxpayer Impact: The full and open competition process is generally favorable for taxpayers as it aims to secure the best possible price through market forces. Moderate competition, as seen here, still provides a degree of price discovery but might not achieve the absolute lowest price compared to a highly competitive scenario.

Public Impact

The primary beneficiaries are visitors to the Jefferson National Expansion Memorial, who will experience improved facilities. The project delivers essential renovation and modernization services to a significant national landmark. The geographic impact is concentrated in St. Louis City, Missouri, enhancing a key cultural and historical site. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and complexity of historical building renovations.
Risk of unforeseen structural issues or historical preservation challenges impacting budget and timeline.
Dependency on a single prime contractor for a project of this scale carries inherent risks if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust vetting of potential contractors.
Firm Fixed Price contract type helps to mitigate cost overrun risks for the government.
The contract duration of over three years indicates a commitment to thorough and quality execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The market for such construction is substantial, driven by both public and private sector demand for infrastructure development and upgrades. Federal spending in this sector often focuses on maintaining and improving government facilities, historical sites, and public infrastructure. Comparable benchmarks would involve analyzing other large-scale renovation or construction contracts for federal buildings or national parks.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary focus was on securing the best offer from the broader market. The absence of set-asides means that large businesses were likely the primary bidders, and the impact on the small business ecosystem would depend on whether McCarthy Building Companies, Inc. engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Park Service, a division of the Department of the Interior. Mechanisms likely include regular progress reports, site inspections, and contract performance reviews. Accountability measures are embedded in the contract terms, including payment schedules tied to milestones and potential penalties for non-performance. Transparency is generally maintained through federal contract databases, though detailed internal oversight reports may not be publicly accessible.

Related Government Programs

National Park Service Facility Renovations
Historic Preservation Projects
Federal Building Construction
Large-Scale Infrastructure Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting public access and memorial operations.
Complexity of historical preservation requirements.
Contractor performance over an extended duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $119.6 million to MCCARTHY BUILDING COMPANIES, INC.. IGF::OT::IGF JEFF 199869 - RENOVATE ARCH VISITOR CENTER, JEFFERSON NATIONAL EXPANSION MEMORIAL (JNEM), ST. LOUIS CITY, MISSOURI POINTS OF CONTACT: CO - JASON LONGSHORE, 303-969-2288 CS - SARAH CLEMMENS, 303-969-2228 COR - NELLIE SPARKS, 303-969-2421

Who is the contractor on this award?

The obligated recipient is MCCARTHY BUILDING COMPANIES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $119.6 million.

What is the period of performance?

Start: 2015-03-19. End: 2018-09-25.

What is the track record of McCarthy Building Companies, Inc. with federal contracts, particularly in construction and renovation?

McCarthy Building Companies, Inc. has a significant history of federal contracting, particularly within the Department of Defense and other agencies requiring large-scale construction. Their portfolio includes a wide range of projects, from military installations to healthcare facilities and educational institutions. For federal projects, they often engage in complex renovations and new constructions, demonstrating experience with government regulations, security requirements, and project management demands. Their past performance on similar projects, especially those involving historical preservation or complex infrastructure, would be a key indicator of their capability to successfully execute the Jefferson National Expansion Memorial Visitor Center renovation. A review of their federal contract history would reveal on-time and on-budget performance metrics, as well as any past disputes or contract modifications.

How does the awarded amount compare to the estimated cost or initial budget for this renovation project?

The provided data indicates the final award amount was $119,618,998.95. Without access to the initial budget, cost estimates, or pre-award solicitations, it is difficult to definitively compare the awarded amount to the planned expenditure. However, the fact that it was awarded under full and open competition with four bids suggests that the bids received were considered competitive and within a reasonable range of the government's expectations. If the award significantly exceeded initial estimates, it could indicate a need for further justification or potential issues with the bidding process or market conditions. Conversely, if it came in under initial estimates, it would suggest effective competition and contractor efficiency.

What are the primary risk factors associated with a long-duration construction contract for a historical site?

Long-duration construction contracts for historical sites, like the Jefferson National Expansion Memorial Visitor Center renovation, carry several inherent risks. Firstly, unforeseen structural issues or hazardous materials (e.g., asbestos, lead paint) may be discovered during demolition or renovation, leading to scope changes, delays, and increased costs. Secondly, historical preservation requirements can be complex and may necessitate specialized materials or techniques, adding to the expense and timeline. Thirdly, the extended duration increases the risk of market fluctuations in material costs and labor availability. Finally, managing a project over several years requires sustained oversight to ensure quality control and adherence to original specifications, with potential for contractor performance degradation over time.

What is the expected impact of this renovation on visitor access and experience at the memorial?

The renovation of the Visitor Center at the Jefferson National Expansion Memorial is expected to significantly enhance the visitor experience by modernizing facilities, improving accessibility, and potentially updating exhibits or interpretive displays. During the construction period (2015-2018), there may have been temporary disruptions to visitor access or altered pathways around the site. However, the long-term goal is to provide a more comfortable, informative, and engaging environment for millions of visitors annually. Improved amenities, updated safety features, and a more contemporary visitor flow are anticipated outcomes that will contribute to the overall appreciation and understanding of the memorial's historical significance.

How does this contract's value and duration compare to other major construction projects managed by the National Park Service?

The $119.6 million award for the Jefferson National Expansion Memorial Visitor Center renovation is a substantial sum, placing it among the larger construction and renovation projects undertaken by the National Park Service (NPS). NPS manages a diverse portfolio of facilities, from historic buildings and visitor centers to park infrastructure like roads and bridges. Projects of this scale are typically reserved for critical infrastructure upgrades or major renovations of iconic sites. The contract duration of 1286 days (approximately 3.5 years) is also indicative of a complex, multi-faceted project. Compared to smaller maintenance or repair contracts, this project represents a significant capital investment aimed at preserving and enhancing a key national landmark for future generations.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

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

Financial Breakdown

Contract Ceiling: $119,618,999

Exercised Options: $119,618,999

Current Obligation: $119,618,999

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline