DOT awards $25.8M contract for Wyoming NPS road construction, highlighting infrastructure needs

Contract Overview

Contract Amount: $25,798,083 ($25.8M)

Contractor: H-K Contractors, Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-02-25

End Date: 2021-09-14

Contract Duration: 567 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WY NPS YELL 10(22), CANYON TO TOWER, PHASE 3

Place of Performance

Location: YELLOWSTONE NATIONAL PARK, PARK County, WYOMING, 82190

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $25.8 million to H-K CONTRACTORS, INC. for work described as: WY NPS YELL 10(22), CANYON TO TOWER, PHASE 3 Key points: 1. Contract value of $25.8 million addresses critical infrastructure needs in a national park. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 567 days indicates a significant, multi-phase project. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The project's focus on a national park suggests potential environmental and logistical complexities. 6. Awarded to H-K Contractors, Inc., a company with experience in heavy construction.

Value Assessment

Rating: good

The contract value of $25.8 million for highway construction appears reasonable given the scope of work, which involves significant infrastructure development within a national park. Benchmarking against similar large-scale road construction projects in federal lands or national parks would provide a more precise value assessment. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, though it relies on the contractor's accurate estimation and efficient execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally fosters a competitive environment, potentially leading to better pricing and quality. The presence of two bidders suggests a moderate level of competition for this specific project.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down costs and improving the value received for public funds.

Public Impact

Benefits park visitors by improving access and safety within Yellowstone National Park. Delivers essential road construction and repair services, enhancing the park's infrastructure. Geographic impact is concentrated in Wyoming, specifically within the Yellowstone National Park boundaries. Workforce implications include employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays due to the remote and environmentally sensitive nature of national park work.
Risk of cost overruns if unforeseen site conditions or environmental mitigation requirements arise, despite fixed-price contract.
Dependence on a limited number of bidders could impact long-term competition for similar projects.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Firm fixed-price contract shifts cost risk to the contractor, providing budget certainty.
Project addresses critical infrastructure needs in a high-visibility national park, indicating strategic importance.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the construction industry focused on public infrastructure. Spending in this sector is often driven by government initiatives to maintain and upgrade transportation networks. Comparable spending benchmarks would involve analyzing other large federal highway projects, particularly those within national park systems, to assess cost-effectiveness and project scale.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While H-K Contractors, Inc. may engage small businesses as subcontractors, the primary award was not directed towards small businesses. Further analysis would be needed to determine the extent of small business subcontracting participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) and the National Park Service (NPS). Mechanisms likely include regular progress reports, site inspections, and performance reviews. Accountability is ensured through the contract terms, including adherence to schedule, quality standards, and budget. Transparency is generally maintained through contract award databases and public reporting, though specific project details may be limited.

Related Government Programs

National Park Service Infrastructure Projects
Federal Highway Administration Construction Contracts
Wyoming Transportation Improvement Projects
Public Lands Road Maintenance

Risk Flags

Environmental impact considerations
Potential for construction delays
Logistical challenges in remote areas
Visitor access disruptions during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.8 million to H-K CONTRACTORS, INC.. WY NPS YELL 10(22), CANYON TO TOWER, PHASE 3

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 $25.8 million.

What is the period of performance?

Start: 2020-02-25. End: 2021-09-14.

What is the track record of H-K Contractors, Inc. on similar federal projects?

H-K Contractors, Inc. has a history of performing construction work, including highway and infrastructure projects. To assess their track record specifically for federal contracts, a review of their past performance evaluations, any past performance issues or awards, and the types of federal agencies they have worked with would be necessary. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific contract databases could provide insights into their reliability, quality of work, and adherence to schedules on previous government engagements. Understanding their experience with projects in environmentally sensitive areas or national parks would also be crucial for this specific contract.

How does the awarded amount compare to similar road construction projects in national parks?

Comparing the $25.8 million award to similar projects requires identifying comparable contracts based on scope, location (national park setting), and type of work (road construction/reconstruction). Projects within other national parks managed by the NPS or other federal agencies (like the Forest Service) that involve significant road infrastructure would serve as benchmarks. Factors such as terrain, environmental regulations, access challenges, and the specific materials and engineering required can significantly influence costs. Without a direct comparison dataset, it's difficult to definitively state if this award represents a superior or inferior value, but the scale suggests a substantial undertaking.

What are the primary risks associated with constructing roads in a national park environment?

Constructing roads in a national park environment presents several unique risks. Environmental sensitivity is paramount; work must often adhere to strict regulations to protect wildlife, habitats, and natural resources, potentially leading to delays or increased mitigation costs. Logistical challenges are common due to remote locations, limited access for heavy equipment and materials, and the need to minimize disruption to park visitors and operations. Weather conditions can also be a significant factor, impacting work schedules and safety. Furthermore, the potential for unforeseen geological or archaeological discoveries can necessitate project modifications. These risks, even under a fixed-price contract, can translate to increased contractor effort and potential claims if not adequately managed.

What is the expected impact of this project on park visitor access and experience?

This project is expected to significantly improve park visitor access and experience by rehabilitating and upgrading critical roadways within Yellowstone National Park. The 'Canyon to Tower' phase specifically addresses a key corridor, likely enhancing safety, reducing travel times, and improving the overall quality of the driving experience. While construction activities may cause temporary disruptions, such as lane closures or detours, the long-term outcome should be safer, more reliable, and more aesthetically integrated infrastructure that better serves the millions of visitors who frequent the park annually. Improved road conditions can also lead to reduced vehicle wear and tear and potentially fewer accidents.

How has federal spending on national park infrastructure evolved over recent years?

Federal spending on national park infrastructure has seen fluctuations over recent years, often influenced by legislative priorities and funding allocations. There has been a growing recognition of the deferred maintenance backlog within the National Park System, leading to increased calls for dedicated funding. Initiatives like the Great American Outdoors Act have aimed to provide substantial, long-term funding for infrastructure improvements and maintenance across federal lands, including national parks. Analyzing historical spending data would reveal trends in capital investments versus operational budgets, and the impact of specific funding packages on the pace and scope of infrastructure projects like road construction.

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

Solicitation ID: 69056719R000013

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $25,798,083

Exercised Options: $25,798,083

Current Obligation: $25,798,083

Actual Outlays: $25,798,083

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,524,845

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 69056719D000006

IDV Type: IDC

Timeline