DOT Awards $37.7M Highway Contract to H-K Contractors for Wyoming Road Project
Contract Overview
Contract Amount: $37,689,773 ($37.7M)
Contractor: H-K Contractors, Inc.
Awarding Agency: Department of Transportation
Start Date: 2017-04-10
End Date: 2019-07-03
Contract Duration: 814 days
Daily Burn Rate: $46.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Construction
Official Description: IGF::CT::IGF WY PRA YELL 10(19) GRAND LOOP ROAD, NORRIS TO GOLDEN GATE, PHASE 2 COMPLETION CONTRACT
Place of Performance
Location: YELLOWSTONE NATIONAL PARK, PARK County, WYOMING, 82190
State: Wyoming Government Spending
Plain-Language Summary
Department of Transportation obligated $37.7 million to H-K CONTRACTORS, INC. for work described as: IGF::CT::IGF WY PRA YELL 10(19) GRAND LOOP ROAD, NORRIS TO GOLDEN GATE, PHASE 2 COMPLETION CONTRACT Key points: 1. Contract value of $37.7 million for highway construction. 2. Awarded through full and open competition, indicating market availability. 3. Fixed Price with Economic Price Adjustment contract type carries some risk. 4. Project located in Wyoming, part of Federal Highway Administration's infrastructure investment.
Value Assessment
Rating: fair
The contract value of $37.7 million for highway construction appears within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale road construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple capable contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: Taxpayer funds are being used for infrastructure improvement, with competition aiming to ensure efficient use of these funds.
Public Impact
Improved transportation infrastructure in Wyoming, enhancing connectivity and safety. Potential for job creation and economic activity in the local region. Long-term benefits from a completed and modernized roadway.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause can lead to cost overruns if material prices increase significantly.
- Project duration of 814 days presents risks of delays due to weather or unforeseen site conditions.
Positive Signals
- Awarded through full and open competition.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, a significant area of federal spending for infrastructure development. Benchmarks for similar projects vary widely based on location, complexity, and materials.
Small Business Impact
While awarded through full and open competition, there is no specific indication of small business participation in this contract. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Federal Highway Administration is responsible for overseeing this contract. Standard oversight procedures for large construction projects would apply, including monitoring progress, quality, and adherence to contract terms.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Economic Price Adjustment clause introduces cost uncertainty.
- Long project duration (814 days) increases risk of delays and cost overruns.
- Potential for unforeseen site conditions in construction projects.
- Weather-related delays are common in highway construction, especially in Wyoming.
Tags
highway-street-and-bridge-construction, department-of-transportation, wy, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $37.7 million to H-K CONTRACTORS, INC.. IGF::CT::IGF WY PRA YELL 10(19) GRAND LOOP ROAD, NORRIS TO GOLDEN GATE, PHASE 2 COMPLETION CONTRACT
Who is the contractor on this award?
The obligated recipient is H-K CONTRACTORS, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $37.7 million.
What is the period of performance?
Start: 2017-04-10. End: 2019-07-03.
What is the estimated cost per mile for this highway construction project, and how does it compare to national averages?
The provided data does not specify the length of the road project, making a direct cost-per-mile calculation impossible. To assess value, this information would be crucial. Comparing it to national averages for similar highway construction would reveal if the $37.7 million expenditure is cost-effective for the scope of work.
What specific economic factors are covered by the 'Economic Price Adjustment' clause, and what is the potential financial exposure for the government?
The 'Economic Price Adjustment' (EPA) clause typically covers fluctuations in the cost of specific materials (like asphalt, steel, fuel) or labor. The potential financial exposure depends on the specific terms of the EPA, the duration of the contract, and market volatility. Without the contract details, the exact exposure is unknown but represents a risk of increased costs beyond the initial fixed price.
How will the completion of this project impact traffic flow and safety in the specified Wyoming region?
The project aims to improve the 'GRAND LOOP ROAD, NORRIS TO GOLDEN GATE' by completing Phase 2. This suggests an enhancement of existing infrastructure, likely leading to improved traffic flow, reduced congestion, and increased safety for motorists. The specific impacts will be realized upon project completion and integration into the regional transportation network.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: CRH Public Limited Company
Address: 6350 S YELLOWSTONE HWY, IDAHO FALLS, ID, 83402
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,689,773
Exercised Options: $37,689,773
Current Obligation: $37,689,773
Actual Outlays: $6,696,993
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $14,994,220
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFH7014D00004
IDV Type: IDC
Timeline
Start Date: 2017-04-10
Current End Date: 2019-07-03
Potential End Date: 2019-07-03 00:00:00
Last Modified: 2022-04-06
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