VA Awards $58.6M Central Energy Plant Contract to McCarthy Building Companies, Inc

Contract Overview

Contract Amount: $58,590,140 ($58.6M)

Contractor: Mccarthy Building Companies, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-06-29

End Date: 2017-11-29

Contract Duration: 1,979 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CENTRAL ENERGY PLANT

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.6 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: CENTRAL ENERGY PLANT Key points: 1. Contract awarded for a Central Energy Plant project. 2. McCarthy Building Companies, Inc. secured the contract. 3. The Department of Veterans Affairs is the awarding agency. 4. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $58.6 million for a Central Energy Plant appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Improved infrastructure at a VA facility, potentially enhancing operational efficiency. Supports construction jobs and economic activity in Missouri. Ensures a critical utility service for a government facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1979 days (over 5 years) may indicate potential for cost overruns or scope creep.
Lack of specific performance metrics in the provided data makes it difficult to assess project success.
Firm Fixed Price contract can shift risk to the contractor, but requires careful scope definition to avoid disputes.

Positive Signals

Awarded under full and open competition, indicating competitive pricing.
Definitive contract type suggests a clear scope and objective.
Project addresses a critical infrastructure need for the VA.

Sector Analysis

The contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for similar large-scale energy plant construction projects would be relevant for comparison.

Small Business Impact

The data indicates the prime contractor is McCarthy Building Companies, Inc. There is no information provided on subcontracting to small businesses, which is a missed opportunity for analysis.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The definitive contract type and firm fixed price suggest a structured approach, but ongoing monitoring is crucial for project success and cost control.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration may increase risk of cost escalation.
Lack of performance metrics hinders effectiveness assessment.
Potential for scope creep in large construction projects.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.6 million to MCCARTHY BUILDING COMPANIES, INC.. CENTRAL ENERGY PLANT

Who is the contractor on this award?

The obligated recipient is MCCARTHY BUILDING COMPANIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $58.6 million.

What is the period of performance?

Start: 2012-06-29. End: 2017-11-29.

What was the specific scope of work for the Central Energy Plant, and how did it compare to industry standards for similar facilities?

The provided data lacks specific details on the scope of work for the Central Energy Plant. A comprehensive analysis would require reviewing the contract's SOW to understand the exact components, capacity, and technological specifications. Comparing these to industry standards for similar VA or public sector energy plants would reveal if the project was appropriately sized and equipped, impacting its overall value and effectiveness.

What were the key performance indicators (KPIs) established for this contract, and how was the contractor's performance measured against them?

The provided data does not include information on Key Performance Indicators (KPIs) or how the contractor's performance was measured. Effective oversight requires clearly defined KPIs related to project milestones, quality, safety, and adherence to schedule and budget. Without this, assessing the contractor's performance and the overall success of the project in meeting VA needs is challenging.

Were there any significant change orders or contract modifications during the contract period, and what was their impact on the final cost and schedule?

The data does not specify the number or impact of change orders or modifications. Large projects, especially those spanning several years, often encounter unforeseen issues leading to changes. Analyzing these modifications is crucial to understand if they were justified, if they led to cost overruns or schedule delays, and how effectively the VA managed these changes to protect taxpayer interests.

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

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: $58,590,140

Exercised Options: $58,590,140

Current Obligation: $58,590,140

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline