DOT awarded $28.6M for highway construction, with 2 bids received

Contract Overview

Contract Amount: $28,630,395 ($28.6M)

Contractor: Hill Brothers Construction Company, Inc.

Awarding Agency: Department of Transportation

Start Date: 2002-09-15

End Date: 2006-12-23

Contract Duration: 1,560 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: FALKNER, TIPPAH County, MISSISSIPPI, 38629

State: Mississippi Government Spending

Plain-Language Summary

Department of Transportation obligated $28.6 million to HILL BROTHERS CONSTRUCTION COMPANY, INC. for work described as: Key points: 1. Contract value of $28.6 million for highway construction. 2. Awarded by the Department of Transportation (DOT) via the Federal Highway Administration. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Duration of 1560 days suggests a long-term project. 5. Competition was Full and Open, but only 2 bids were submitted. 6. Contractor is Hill Brothers Construction Company, Inc. 7. Project located in Mississippi.

Value Assessment

Rating: fair

The contract value of $28.6 million for highway construction appears to be within a reasonable range for a project of this scale and duration. However, without specific details on the scope of work, it's difficult to benchmark against similar contracts precisely. The firm fixed-price nature provides cost certainty, which is a positive aspect for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open Competition, which is generally the most desirable method for ensuring broad market participation. However, the submission of only two bids suggests that the market for this specific type of highway construction project may be limited, or that other factors may have deterred additional bidders. This level of competition could potentially lead to less aggressive pricing than if more bids were received.

Taxpayer Impact: While full and open competition was utilized, the low number of bidders means taxpayers may not have benefited from the most competitive pricing possible. Further analysis would be needed to determine if the price achieved was optimal.

Public Impact

Benefits the traveling public in Mississippi through improved highway infrastructure. Delivers essential services related to highway, street, and bridge construction. Geographic impact is concentrated within Mississippi. Workforce implications include employment for construction workers and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) could indicate potential for higher costs than a more robust bidding process.
Long contract duration (1560 days) increases the risk of unforeseen cost escalations or scope creep if not managed tightly.

Positive Signals

Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
Full and Open Competition, despite low bidder count, theoretically allows any qualified vendor to participate.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy civil engineering projects like highways, streets, and bridges. The Federal Highway Administration (part of DOT) is a major source of funding for such infrastructure projects across the nation. Spending in this area is critical for national transportation networks and economic activity. Comparable spending benchmarks would typically be found in other large-scale DOT or state-level highway projects.

Small Business Impact

There is no indication that this contract was set aside for small businesses, and the contractor, Hill Brothers Construction Company, Inc., is likely a larger entity given the contract value. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the project. The impact on the broader small business ecosystem is not directly evident from the provided data.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the Federal Highway Administration, a division of the Department of Transportation. Accountability measures are inherent in the Firm Fixed Price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available, though detailed project performance reports may not be readily accessible.

Related Government Programs

Federal Highway Administration Programs
Department of Transportation Infrastructure Projects
Highway, Street, and Bridge Construction Contracts

Risk Flags

Low bidder count in Full and Open Competition
Potential for cost overruns if scope is not well-defined despite FFP

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $28.6 million to HILL BROTHERS CONSTRUCTION COMPANY, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is HILL BROTHERS CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2002-09-15. End: 2006-12-23.

What is the track record of Hill Brothers Construction Company, Inc. with federal contracts?

Hill Brothers Construction Company, Inc. has been awarded federal contracts primarily through the Department of Transportation. The provided data shows this specific contract valued at approximately $28.6 million, awarded in 2002 and ending in 2006. Further investigation into contract databases like FPDS or SAM.gov would be necessary to ascertain the full scope of their federal contracting history, including past performance ratings, any contract disputes, and the types of projects they have undertaken. Understanding their history with similar large-scale infrastructure projects would provide context for their capability and reliability in executing this particular award.

How does the $28.6 million value compare to similar highway construction projects?

Benchmarking the $28.6 million value requires detailed comparison with projects of similar scope, complexity, and geographic location. Highway construction costs can vary significantly based on factors such as the amount of earthmoving, bridge construction involved, materials used, and labor costs in the specific region. While $28.6 million is a substantial sum, it may be considered moderate for a multi-year federal highway project. For a precise comparison, one would need to analyze data from other Federal Highway Administration contracts or state-level DOT projects awarded around the same period (2002-2006) for comparable types of infrastructure work, adjusting for inflation and regional economic differences.

What are the primary risks associated with this Firm Fixed Price contract?

The primary risks associated with this Firm Fixed Price (FFP) contract, despite its cost certainty advantage, revolve around potential scope definition issues and contractor performance. If the initial scope of work is not meticulously defined, the contractor may be incentivized to cut corners on quality to maintain profitability, or conversely, seek change orders if unforeseen complexities arise that were not adequately captured in the original scope. Another risk is contractor default or underperformance, which, while less financially risky for the government than in cost-reimbursement contracts, can still lead to significant project delays and the need for contract termination and re-competition, incurring additional costs and time.

How effective is Full and Open Competition when only two bids are received?

Full and Open Competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that ideally leads to better pricing and innovation. However, when only two bids are received, the effectiveness of this mechanism is diminished. While it still represents a competitive scenario, it offers less price discovery and potentially less pressure on bidders to offer their absolute best pricing compared to a situation with, for example, five or more bids. The limited number of bidders could indicate a specialized market, high barriers to entry, or insufficient outreach. In such cases, the government might not be achieving the full benefits of competition that the 'Full and Open' designation implies.

What is the historical spending pattern for highway construction by the Federal Highway Administration?

The Federal Highway Administration (FHWA) is a major component of the Department of Transportation, consistently allocating significant funds towards the nation's highway infrastructure. Historical spending patterns show a continuous and substantial investment in highway, street, and bridge construction, repair, and maintenance. Funding levels often fluctuate based on congressional appropriations, economic conditions, and national infrastructure priorities. The FHWA's budget typically runs into the tens of billions of dollars annually, supporting a vast array of projects ranging from small local road improvements to massive interstate highway expansions and bridge replacements. This specific $28.6 million contract represents a small fraction of the overall federal investment in highway infrastructure during its award period.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 20831 HIGHWAY 15, FALKNER, MS, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,630,395

Exercised Options: $28,630,395

Current Obligation: $28,630,395

Timeline