Dormitory and Conference Center construction contract awarded to MCTECH CORP. for over $54 million

Contract Overview

Contract Amount: $54,116,377 ($54.1M)

Contractor: Mctech Corp.

Awarding Agency: Department of Defense

Start Date: 2013-11-14

End Date: 2020-10-15

Contract Duration: 2,527 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DORMITORY AND CONFERENCE CENTER, HARPERS FERRY

Place of Performance

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

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.1 million to MCTECH CORP. for work described as: IGF::OT::IGF DORMITORY AND CONFERENCE CENTER, HARPERS FERRY Key points: 1. The contract value of over $54 million represents a significant investment in facility infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The contract duration of approximately 7 years indicates a long-term commitment for facility development. 4. The award was made by the Department of the Army, highlighting defense-related infrastructure needs. 5. The project falls under Commercial and Institutional Building Construction, a key sector for infrastructure development.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar construction projects of this scale. Without specific cost per square foot or per unit metrics, it's difficult to definitively assess value for money. The fixed-price nature of the contract provides some cost certainty, but the overall price relative to market rates for similar facilities is not immediately clear from the provided data.

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. The presence of 13 bidders suggests a healthy level of interest and competition for this project. This broad competition is generally favorable for price discovery and potentially achieving a more competitive price for the government.

Taxpayer Impact: A competitive bidding process for this large construction project likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition award.

Public Impact

Military personnel and potentially civilian staff will benefit from improved dormitory and conference facilities. The contract delivers new construction services for institutional buildings. The project's geographic impact is focused on Harpers Ferry, West Virginia. The construction activities will likely involve a significant workforce, including skilled trades and laborers in the West Virginia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price structure.
Long contract duration could lead to scope creep or changes if project requirements evolve significantly.
Dependence on a single contractor for the full duration of a large project carries inherent performance risks.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a robust selection process.
The contractor, MCTECH CORP., has a contract award history, indicating some level of established performance.
The project is located in West Virginia, potentially supporting local economic development and employment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. This sector encompasses the building of facilities such as dormitories, offices, and public assembly spaces. The market size for such construction is substantial, driven by both public and private sector demand for new infrastructure and facility upgrades. This specific contract represents a notable investment in government-owned facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, MCTECH CORP., would be responsible for managing the overall project, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting office. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work for the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not always be publicly available.

Related Government Programs

Military Construction
Government Facilities
Dormitory Construction
Conference Center Construction
Department of Defense Contracts

Risk Flags

Long contract duration increases risk of scope creep and cost escalation.
Firm fixed-price contracts can incentivize cost-cutting that may impact quality if not closely monitored.
Performance history of the contractor on similar large-scale projects is not detailed.
Specific cost breakdowns and benchmarks for value assessment are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.1 million to MCTECH CORP.. IGF::OT::IGF DORMITORY AND CONFERENCE CENTER, HARPERS FERRY

Who is the contractor on this award?

The obligated recipient is MCTECH CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $54.1 million.

What is the period of performance?

Start: 2013-11-14. End: 2020-10-15.

What is the track record of MCTECH CORP. on similar large-scale construction projects?

Assessing MCTECH CORP.'s track record on similar large-scale construction projects would require a deeper dive into their contract history beyond this single award. Information such as past performance reviews, on-time completion rates, and adherence to budget on previous government contracts would be crucial. Without access to this detailed performance data, it's difficult to gauge their reliability and expertise for a project of this magnitude and duration. Government contract databases and past performance information systems are the primary sources for such an evaluation.

How does the awarded price compare to industry benchmarks for dormitory and conference center construction?

To compare the awarded price of $54,116,376.6 to industry benchmarks, we would need more specific project details, such as the total square footage, number of rooms, amenities, and quality of materials specified. Construction costs can vary significantly based on these factors and geographic location. A common benchmark is cost per square foot. If, for example, this project is for 100,000 square feet, the cost per square foot would be approximately $541. This figure would then need to be compared against recent data for similar institutional construction in West Virginia and nationally. Without these specifics, a precise benchmark comparison is not feasible.

What are the primary risk indicators associated with this firm fixed-price contract?

The primary risk indicator for a firm fixed-price contract, despite its cost certainty for the buyer, is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. For this specific project, risks could include unforeseen site conditions (e.g., soil issues, hazardous materials), labor shortages in West Virginia impacting project timelines, or material price volatility. The long duration (2527 days) also increases the risk of scope creep if requirements are not rigidly managed, potentially leading to disputes or change orders that could negate the fixed-price benefit.

How effective is the full and open competition process in ensuring value for money for this type of construction?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, especially for large construction projects like this dormitory and conference center. By allowing all qualified vendors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The fact that 13 bidders participated suggests robust competition, which increases the likelihood that the government secured a fair market price. However, effectiveness also depends on the clarity of the solicitation documents and the rigor of the evaluation process to ensure the lowest price isn't chosen at the expense of essential quality or capability.

What is the historical spending pattern for dormitory and conference center construction by the Department of the Army?

Analyzing the historical spending patterns for dormitory and conference center construction by the Department of the Army would involve examining contract data over several fiscal years. This would reveal trends in contract values, types of construction, geographic distribution, and the prevalence of different competition levels. Such an analysis could indicate whether this $54 million contract is typical, unusually large, or small compared to historical averages. It could also highlight shifts in the Army's infrastructure investment priorities or its reliance on specific contracting methods for facility development.

What are the potential workforce implications of this contract in West Virginia?

This contract is likely to have significant positive workforce implications for West Virginia. A construction project of this scale, valued at over $54 million and spanning approximately seven years, will require a substantial number of skilled and unskilled laborers. This includes carpenters, electricians, plumbers, masons, heavy equipment operators, and general laborers. The demand generated by this project could lead to job creation, increased employment opportunities, and potentially higher wages in the local construction sector. It may also stimulate demand for related services, such as material suppliers and equipment rental companies.

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: SEALED BID

Solicitation ID: W912DR13B0004

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8100 GRAND AVE, CLEVELAND, OH, 44104

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,116,377

Exercised Options: $54,116,377

Current Obligation: $54,116,377

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline