Wyoming NPS GRTE 2017(1) contract awarded to Oftedal Construction for $16.4M for road construction

Contract Overview

Contract Amount: $16,424,302 ($16.4M)

Contractor: Oftedal Construction, Inc.

Awarding Agency: Department of Transportation

Start Date: 2022-05-10

End Date: 2023-08-28

Contract Duration: 475 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WY NPS GRTE 2017(1), MOOSE WILSON ROAD PHASE 1

Place of Performance

Location: JACKSON, TETON County, WYOMING, 83001

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $16.4 million to OFTEDAL CONSTRUCTION, INC. for work described as: WY NPS GRTE 2017(1), MOOSE WILSON ROAD PHASE 1 Key points: 1. Contract value appears reasonable for a highway construction project of this scope. 2. Full and open competition suggests a healthy market for this type of work. 3. Project duration of 475 days is standard for infrastructure development. 4. Firm fixed-price contract shifts risk to the contractor. 5. Awarded by the Federal Highway Administration, indicating federal investment in state infrastructure. 6. Project is located in Wyoming, potentially benefiting local workforce and economy.

Value Assessment

Rating: good

The contract value of $16.4 million for the WY NPS GRTE 2017(1) project is within a typical range for highway, street, and bridge construction. Benchmarking against similar federal projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed-price contract structure is generally favorable for the government, as it caps costs and incentivizes contractor efficiency. However, without detailed project specifications and cost breakdowns, a definitive value assessment is challenging.

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 a bid. The presence of 2 bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, two competitive bids are sufficient to establish a baseline price and ensure a degree of market responsiveness.

Taxpayer Impact: Full and open competition with multiple bidders generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely residents and travelers in Wyoming who will benefit from improved road infrastructure. The project delivers essential highway, street, and bridge construction services. The geographic impact is concentrated in Wyoming, specifically within the National Park Service Grande Teton area. Workforce implications include job creation for construction workers and related support services in the local Wyoming economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Dependence on contractor's ability to manage project timeline effectively to avoid delays.
Quality of construction must be rigorously monitored to ensure long-term durability and safety.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process was utilized.
Awarded by the Federal Highway Administration, indicating adherence to federal infrastructure standards.
Project contributes to the improvement of national park access and infrastructure.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Federal spending in this area is crucial for maintaining and upgrading national transportation networks. Comparable spending benchmarks would involve analyzing other federal contracts for similar road construction projects, particularly those managed by the Federal Highway Administration or other agencies involved in infrastructure development.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Oftedal Construction, Inc., may engage small businesses as subcontractors, which would contribute to the broader small business ecosystem. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost and schedule. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Construction Projects
National Park Service Infrastructure
Wyoming Transportation Projects
Highway, Street, and Bridge Construction Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting public access and transportation flow.
Contractor performance and quality assurance require diligent oversight.
Dependence on a limited number of bidders may reduce competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.4 million to OFTEDAL CONSTRUCTION, INC.. WY NPS GRTE 2017(1), MOOSE WILSON ROAD PHASE 1

Who is the contractor on this award?

The obligated recipient is OFTEDAL CONSTRUCTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2022-05-10. End: 2023-08-28.

What is the track record of Oftedal Construction, Inc. with federal contracts, particularly with the Federal Highway Administration?

Oftedal Construction, Inc. has a history of federal contract awards, primarily within the Department of Transportation and specifically the Federal Highway Administration. Reviewing their past performance on similar highway and bridge construction projects would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Analyzing past contract modifications, disputes, or terminations could also highlight potential risks associated with this contractor. A deeper dive into their contract history would reveal the volume and value of contracts they have secured, their performance ratings, and any significant issues encountered on previous federal projects.

How does the awarded price of $16.4 million compare to similar highway construction projects in Wyoming or the Mountain West region?

Benchmarking the $16.4 million award against similar highway construction projects in Wyoming and the Mountain West region is crucial for assessing value for money. Factors such as project scope, complexity, terrain, material costs, and labor rates can significantly influence pricing. A comparison with projects of similar mileage, bridge construction elements, or specific engineering challenges would be most relevant. If this contract's price per mile or per square foot of bridge deck is significantly higher or lower than comparable projects, it warrants further investigation into the underlying cost drivers and competitive dynamics.

What are the key performance indicators (KPIs) used to measure the success of this highway construction contract?

Key performance indicators for this highway construction contract would likely include adherence to the project schedule (475 days duration), completion within the firm fixed-price budget of $16.4 million, and meeting all technical specifications and quality standards outlined in the contract. Safety performance, measured by incident rates and compliance with safety regulations, is also a critical KPI. Furthermore, the successful integration of the new or improved road into the existing transportation network and its long-term durability would be considered indicators of overall project success. The Federal Highway Administration would establish specific metrics for monitoring these aspects throughout the project lifecycle.

What is the historical spending pattern for highway construction projects managed by the Federal Highway Administration in Wyoming?

Analyzing historical spending patterns for highway construction projects managed by the Federal Highway Administration (FHWA) in Wyoming can provide context for the $16.4 million award. This would involve examining the total annual or multi-year federal investment in Wyoming's transportation infrastructure, the average contract size, and the types of projects funded. Understanding these trends can help identify whether this contract represents a typical investment or an outlier. It can also reveal the FHWA's priorities and the frequency of major construction initiatives within the state, offering insights into the overall demand and funding landscape for such projects.

What are the potential risks associated with a firm fixed-price contract for a project of this nature and duration?

While firm fixed-price contracts offer cost certainty to the government, they carry inherent risks for the contractor, which can indirectly impact the project. For a highway construction project of this scale and 475-day duration, potential risks include unforeseen geological conditions, extreme weather events, or significant fluctuations in material costs (e.g., asphalt, concrete, steel) that could erode the contractor's profit margin. If the contractor faces significant cost overruns due to these factors, they might seek to cut corners on quality or delay completion, potentially leading to disputes or performance issues. The government's risk is primarily related to the contractor's potential financial instability or inability to perform as agreed, which could necessitate contract termination and re-competition.

How does the competition level (2 bidders) for this contract potentially influence the final price and quality of the work?

A competition level with two bidders suggests a moderate level of market interest. While more bidders generally lead to more aggressive pricing and potentially higher quality due to increased selection options, two bidders can still result in a competitive outcome. The government's ability to secure a fair price and acceptable quality depends on the thoroughness of the solicitation process, the clarity of the requirements, and the capabilities of the two competing firms. If both bidders were highly qualified and submitted competitive proposals, the government likely received a reasonable value. However, a lower number of bidders could indicate barriers to entry, limited market capacity, or a lack of interest from other potential contractors, which might warrant further analysis of the procurement strategy.

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: 69056721R000010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 434 HIGHWAY 59 N # 59N, MILES CITY, MT, 59301

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

Financial Breakdown

Contract Ceiling: $16,424,302

Exercised Options: $16,424,302

Current Obligation: $16,424,302

Actual Outlays: $16,424,302

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $28,132,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 69056719D000003

IDV Type: IDC

Timeline