NGA West Phase 1 Construction Contract Awarded for $770M to McCarthy Hitt - Next NGA West JV
Contract Overview
Contract Amount: $769,516,017 ($769.5M)
Contractor: Mccarthy Hitt - Next NGA West Joint Venture
Awarding Agency: Department of Defense
Start Date: 2019-03-19
End Date: 2026-01-22
Contract Duration: 2,501 days
Daily Burn Rate: $307.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: N2W NGA FY18 DESIGN AND CONSTRUCTION (PHASE 1)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63106
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $769.5 million to MCCARTHY HITT - NEXT NGA WEST JOINT VENTURE for work described as: N2W NGA FY18 DESIGN AND CONSTRUCTION (PHASE 1) Key points: 1. Significant investment in critical infrastructure for the National Geospatial-Intelligence Agency. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk factors include project duration and potential for cost overruns in large construction projects. 4. The construction sector is subject to economic fluctuations and material cost volatility.
Value Assessment
Rating: good
The contract value of $770M for a multi-year construction project appears within a reasonable range for a project of this scale and complexity, especially considering the specialized nature of NGA facilities. Benchmarking against similar large-scale government construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can drive competitive pricing. The use of a definitive contract with a firm fixed price suggests that the price was determined upfront, though the number of offers received is not specified.
Taxpayer Impact: Taxpayer funds are being used for a critical national security infrastructure project. The firm fixed price aims to control costs, but the large contract value necessitates careful oversight to ensure value for money.
Public Impact
Enhances national security capabilities through upgraded intelligence infrastructure. Supports job creation in the construction sector and related industries in Missouri. Potential for long-term economic benefits in the St. Louis region due to facility presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2019-2026) increases risk of cost escalation and scope creep.
- Firm Fixed Price contracts can shift risk to the contractor, potentially leading to higher initial bids.
- Lack of specific detail on number of bids received limits assessment of competitive intensity.
Positive Signals
- Full and open competition promotes market-driven pricing.
- Firm Fixed Price contract provides cost certainty if managed effectively.
- Investment in critical national security infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Large federal construction projects often involve significant capital investment and are subject to rigorous oversight due to their scale and impact on public funds. Benchmarks for similar projects are highly variable based on location, complexity, and specific requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is a joint venture. There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The definitive contract structure and firm fixed price suggest a degree of upfront planning and cost control. However, the long duration and significant value necessitate robust oversight from the Department of the Army to monitor progress, manage risks, and ensure compliance with contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration increases risk.
- Firm Fixed Price can lead to higher initial bids.
- Potential for unforeseen site conditions in large construction.
- Lack of small business participation noted.
- Limited data on competitive intensity.
Tags
commercial-and-institutional-building-co, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $769.5 million to MCCARTHY HITT - NEXT NGA WEST JOINT VENTURE. N2W NGA FY18 DESIGN AND CONSTRUCTION (PHASE 1)
Who is the contractor on this award?
The obligated recipient is MCCARTHY HITT - NEXT NGA WEST JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $769.5 million.
What is the period of performance?
Start: 2019-03-19. End: 2026-01-22.
What was the total number of bids received under the full and open competition, and how did the winning bid compare to the government's estimate?
The provided data does not specify the number of bids received or the government's estimate for this contract. Knowing these details would allow for a more thorough assessment of the competitive landscape and whether the awarded price represents strong value for the government. Without this information, it's difficult to definitively gauge the effectiveness of the price discovery process.
What are the specific risk mitigation strategies in place to address potential cost overruns or delays given the project's long duration and firm fixed price structure?
While a firm fixed price contract aims to cap costs, the long duration (2019-2026) inherently carries risks of unforeseen issues, material price fluctuations, and labor challenges. Effective risk mitigation would involve detailed contingency planning, regular progress reviews, strong contract administration by the Department of the Army, and clear protocols for managing change orders or unforeseen site conditions.
How will the effectiveness of this new NGA facility be measured post-construction to ensure it meets operational requirements and justifies the significant investment?
The effectiveness of the N2W facility will likely be measured through a combination of factors including operational readiness, mission accomplishment metrics, system integration success, and user satisfaction surveys post-occupancy. Performance standards and key performance indicators (KPIs) should be established during the design and construction phases and tracked throughout the project lifecycle to ensure the facility meets its intended purpose.
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: TWO STEP
Solicitation ID: W912DQ17R7000
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1341 N ROCK HILL RD, SAINT LOUIS, MO, 63124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $779,549,575
Exercised Options: $769,516,017
Current Obligation: $769,516,017
Actual Outlays: $-6,815,289
Subaward Activity
Number of Subawards: 121
Total Subaward Amount: $1,187,431,753
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-19
Current End Date: 2026-01-22
Potential End Date: 2026-01-22 00:00:00
Last Modified: 2026-01-23
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