Army Awards $175.7M Houston Ship Channel Project to McCarthy Building Companies
Contract Overview
Contract Amount: $175,651,977 ($175.7M)
Contractor: Mccarthy Building Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-08
End Date: 2027-11-02
Contract Duration: 1,181 days
Daily Burn Rate: $148.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HOUSTON SHIP CHANNEL IMPROVEMENT PROJECT SEG3, HARRIS COUNTY, TEXAS
Place of Performance
Location: LA PORTE, HARRIS County, TEXAS, 77571
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $175.7 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: HOUSTON SHIP CHANNEL IMPROVEMENT PROJECT SEG3, HARRIS COUNTY, TEXAS Key points: 1. The contract is for the third segment of the Houston Ship Channel Improvement Project. 2. McCarthy Building Companies, Inc. secured the award through full and open competition. 3. The project is managed by the Department of the Army, highlighting significant infrastructure investment. 4. The firm fixed-price contract indicates a clear scope and budget for the construction work.
Value Assessment
Rating: good
The contract value of $175.7 million appears reasonable for a large-scale civil engineering project of this nature. Benchmarking against similar Army Corps of Engineers projects would provide a more precise assessment, but the scale suggests a competitive bid process likely yielded a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting multiple bidders vied for the contract. This method is expected to drive competitive pricing and ensure the government receives the best value.
Taxpayer Impact: Taxpayer funds are being utilized for a critical infrastructure improvement project, aiming to enhance navigation and economic activity in a vital port region.
Public Impact
Enhances national economic competitiveness by improving a major shipping artery. Supports regional job creation through construction and related activities. Contributes to the modernization of critical U.S. infrastructure. Potential for environmental considerations and mitigation strategies during construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large, multi-year construction projects.
- Schedule delays due to unforeseen site conditions or weather.
- Coordination challenges among multiple stakeholders and contractors.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed-price contract provides cost certainty.
- Project addresses a critical national infrastructure need.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on waterway and port improvements. Spending in this sector is often driven by government infrastructure initiatives and economic development goals.
Small Business Impact
While the prime contractor is McCarthy Building Companies, Inc., there is potential for subcontracting opportunities for small businesses in various trades and material supply. The extent of small business participation will depend on the prime contractor's subcontracting plan.
Oversight & Accountability
The Department of the Army, through the Army Corps of Engineers, is responsible for overseeing this project. Standard government oversight mechanisms, including contract monitoring and performance reviews, will be in place to ensure accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays.
- Risk of unforeseen site conditions.
- Environmental impact during construction.
- Coordination complexity in large infrastructure projects.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $175.7 million to MCCARTHY BUILDING COMPANIES, INC.. HOUSTON SHIP CHANNEL IMPROVEMENT PROJECT SEG3, HARRIS COUNTY, TEXAS
Who is the contractor on this award?
The obligated recipient is MCCARTHY BUILDING COMPANIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $175.7 million.
What is the period of performance?
Start: 2024-08-08. End: 2027-11-02.
What are the specific performance metrics and key milestones for this segment of the Houston Ship Channel Improvement Project?
The contract specifies a duration of 1181 days, indicating a multi-year timeline. Key performance metrics would likely include dredging volumes, structural integrity of any new or improved infrastructure, and adherence to environmental regulations. Milestones would be tied to the completion of specific construction phases, such as dredging completion, levee construction, or navigational channel widening.
What are the primary risks associated with the environmental impact of this dredging and construction project?
Major environmental risks include potential disruption to marine ecosystems, sediment contamination and dispersal, and impacts on water quality. Mitigation strategies typically involve rigorous environmental monitoring, containment measures for dredged material, and adherence to strict environmental permits and regulations to minimize harm to aquatic life and habitats.
How does the firm fixed-price contract structure impact the government's exposure to cost fluctuations during project execution?
A firm fixed-price contract shifts most of the cost risk to the contractor. This structure provides the government with significant cost certainty, as the price is set upfront. The contractor is responsible for managing costs to remain profitable, incentivizing efficiency. However, it may lead to higher initial bid prices to account for contractor risk.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912HY24R0008
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12851 MANCHESTER RD, SAINT LOUIS, MO, 63131
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $181,604,796
Exercised Options: $175,651,977
Current Obligation: $175,651,977
Actual Outlays: $32,021,158
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $93,497,234
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-08
Current End Date: 2027-11-02
Potential End Date: 2027-11-02 00:00:00
Last Modified: 2025-10-30
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