Forest Service awards $2.1M for Montana bridge and road repairs to Price Contracting Inc

Contract Overview

Contract Amount: $2,088,217 ($2.1M)

Contractor: Price Contracting Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-03-21

End Date: 2025-09-30

Contract Duration: 558 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ERFO RED LODGE AREA BRIDGE REPLACEMENTS & ROAD REPAIRS WPAP 675015

Place of Performance

Location: BOZEMAN, GALLATIN County, MONTANA, 59715

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.1 million to PRICE CONTRACTING INC for work described as: ERFO RED LODGE AREA BRIDGE REPLACEMENTS & ROAD REPAIRS WPAP 675015 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger agreement, indicating potential for future task orders. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The project is located in Montana, impacting local infrastructure and potentially local employment. 5. The North American Industry Classification System (NAICS) code 237310 points to highway, street, and bridge construction. 6. The contract duration of 558 days suggests a significant scope of work for the awarded amount.

Value Assessment

Rating: good

The contract value of $2,088,217.38 for bridge and road replacements and repairs appears reasonable given the scope. Without specific benchmarks for similar projects in Montana, a direct per-unit cost comparison is difficult. However, the fixed-price structure suggests the government has negotiated a ceiling for the work, providing cost certainty. The award to Price Contracting Inc. through full and open competition implies that the pricing was likely vetted against multiple proposals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'exclusion of sources' phrasing might seem counterintuitive, it typically means that after an initial broad solicitation, certain sources were excluded based on specific criteria, but the competition remained open to all others meeting those criteria. The presence of 3 bids indicates a degree of competition, which is generally favorable for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple offers. The fact that there were multiple bidders suggests that the government received competitive pricing.

Public Impact

Residents and travelers in the ERFO Red Lodge Area of Montana will benefit from improved and safer transportation infrastructure. The contract will deliver essential repairs and replacements for bridges and roads, enhancing public safety and connectivity. The geographic impact is concentrated in the ERFO Red Lodge Area, Montana. The project is expected to create or sustain jobs within the construction sector in Montana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repairs, impacting the final cost despite the fixed-price structure.
Dependence on contractor's ability to manage project timelines effectively to avoid delays and potential cost overruns.
Weather-related delays common in Montana construction could impact project completion and potentially lead to contract modifications.

Positive Signals

Fixed-price contract type limits the government's financial exposure to cost overruns.
Award to an established contractor (implied by winning a bid) suggests a level of experience and capability.
The project addresses critical infrastructure needs, indicating a clear and necessary government objective.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on transportation infrastructure. The market for bridge and road construction is substantial, driven by federal and state funding for infrastructure maintenance and upgrades. Comparable spending benchmarks would typically involve analyzing the cost per mile of road repair or per square foot of bridge deck replacement for similar projects in the region, which requires more granular data.

Small Business Impact

The data provided does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the prime contractor, Price Contracting Inc., may engage small businesses as subcontractors for specialized services or material supply, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Forest Service contracting officer and project managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Highway Administration (FHWA) programs
National Forest System road maintenance
Disaster relief infrastructure funding

Risk Flags

Potential for weather delays impacting project timeline.
Risk of unforeseen site conditions requiring change orders.
Contractor performance and adherence to schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.1 million to PRICE CONTRACTING INC. ERFO RED LODGE AREA BRIDGE REPLACEMENTS & ROAD REPAIRS WPAP 675015

Who is the contractor on this award?

The obligated recipient is PRICE CONTRACTING INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2024-03-21. End: 2025-09-30.

What is the track record of Price Contracting Inc. with federal contracts, particularly with the Department of Agriculture or Forest Service?

A review of federal contract databases would be necessary to fully assess Price Contracting Inc.'s track record. This would involve examining past awards, performance evaluations (if available), and any history of disputes or contract terminations. Without specific data on their past federal performance, it's difficult to definitively gauge their reliability for this project. However, winning a competitive bid suggests they met the qualifications and presented a compelling offer at the time of award. Further investigation into their contract history, especially with similar agencies or project types, would provide a more robust understanding of their capabilities and past performance.

How does the awarded amount compare to the estimated cost or budget for this specific bridge and road repair project?

The provided data indicates the awarded amount is $2,088,217.38. To compare this to the estimated cost or budget, we would need access to the government's initial cost estimates or the project's allocated budget. Typically, agencies develop independent government cost estimates (IGCE) before soliciting bids. If the awarded amount is significantly below the IGCE, it could indicate strong competition or a favorable market. Conversely, if it's close to or exceeds the estimate, it might warrant further scrutiny. Without the agency's internal budget or estimate, this comparison cannot be made.

What are the specific risks associated with the 'ERFO RED LODGE AREA BRIDGE REPLACEMENTS & ROAD REPAIRS' project, and how are they being mitigated?

Specific risks for this project likely include unforeseen subsurface conditions (e.g., unstable soil, underground utilities), adverse weather impacting construction schedules, potential material cost fluctuations, and contractor performance issues. Mitigation strategies typically involve thorough site investigations prior to bidding, contingency planning for weather delays, fixed-price contracts to cap costs, and robust contract oversight by the Forest Service. The 'ERFO' designation might also imply the project is related to emergency or disaster recovery, which could introduce additional risks related to urgency and potentially less detailed initial assessments.

What is the historical spending pattern for bridge and road repairs within the ERFO Red Lodge Area or similar regions managed by the Forest Service?

Analyzing historical spending requires access to detailed procurement data for the specific geographic area and agency. We would need to query databases for contracts awarded by the Forest Service (or other relevant agencies) for 'bridge repair,' 'road construction,' and 'infrastructure maintenance' in Montana, particularly around the Red Lodge area, over several fiscal years. This would reveal trends in contract values, types of services procured, and the number of contractors involved. Without this specific historical data, it's impossible to establish a spending pattern or benchmark current spending against past investments in the region.

How many bids were received, and what does the number of bidders suggest about the level of competition and potential for price optimization?

The data indicates that 3 bids were received for this contract. Receiving 3 bids suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower prices for the government, 3 offers are often considered sufficient to establish a competitive range. This number indicates that multiple firms were interested and capable of performing the work, allowing the Forest Service to select the best value proposal, likely based on a combination of price and technical factors. A very low number of bids (e.g., 1 or 2) might raise concerns about market interest or barriers to entry.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1282B124R0010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1237 HANLAN LN, STEVENSVILLE, MT, 59870

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,088,217

Exercised Options: $2,088,217

Current Obligation: $2,088,217

Actual Outlays: $2,088,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12034319D0028

IDV Type: IDC

Timeline