Yellowstone Northeast Entrance Road Repairs awarded for $25.2M to Oftedal Construction, Inc. for Phase 1

Contract Overview

Contract Amount: $25,184,950 ($25.2M)

Contractor: Oftedal Construction, Inc.

Awarding Agency: Department of Transportation

Start Date: 2022-07-26

End Date: 2023-10-07

Contract Duration: 438 days

Daily Burn Rate: $57.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE REDETERMINATION

Sector: Construction

Official Description: WY ERFO NP YELL 2022-1(212), YELLOWSTONE NP NORTHEAST ENTRANCE ROAD REPAIRS, PHASE 1

Place of Performance

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

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $25.2 million to OFTEDAL CONSTRUCTION, INC. for work described as: WY ERFO NP YELL 2022-1(212), YELLOWSTONE NP NORTHEAST ENTRANCE ROAD REPAIRS, PHASE 1 Key points: 1. Contract value appears reasonable for extensive road repair work in a national park. 2. Full and open competition suggests a competitive bidding process. 3. Fixed Price Redetermination contract type introduces some cost uncertainty. 4. Project duration of 438 days indicates a significant scope of work. 5. Geographic focus on Wyoming's Yellowstone National Park highlights infrastructure needs in protected areas.

Value Assessment

Rating: good

The contract value of $25.2 million for Phase 1 of the Northeast Entrance Road repairs at Yellowstone National Park seems aligned with the scope of work, which involves significant infrastructure rehabilitation. Benchmarking against similar large-scale road construction projects in challenging environments, particularly within national parks, suggests this pricing is within a reasonable range. The fixed-price redetermination structure, while allowing for adjustments, implies a degree of cost control was anticipated during the negotiation phase.

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. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is expected to drive more favorable pricing and better value for the government. The open nature of the competition suggests that the agency sought the most advantageous offer based on price and other factors.

Taxpayer Impact: A competitive bidding process for infrastructure projects like this helps ensure taxpayer dollars are used efficiently by encouraging contractors to offer their best prices.

Public Impact

Benefits park visitors by improving access and safety to Yellowstone National Park. Services delivered include critical road repairs and infrastructure maintenance. Geographic impact is concentrated in the Northeast entrance area of Yellowstone National Park, Wyoming. Workforce implications include employment for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed Price Redetermination contract type carries inherent cost escalation risks if not closely managed.
The extended duration of the project (438 days) could lead to unforeseen logistical challenges or environmental impacts.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The project addresses critical infrastructure needs within a high-traffic national park, indicating a focus on public safety and accessibility.

Sector Analysis

This contract falls within the construction sector, specifically focusing on highway, street, and bridge construction. The market for such services is substantial, driven by ongoing needs for infrastructure maintenance and upgrades across the country. Projects within national parks often command a premium due to logistical complexities, environmental regulations, and the need for specialized construction techniques. Comparable spending benchmarks would typically involve large federal or state highway projects, adjusted for the unique operating environment of a national park.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Oftedal Construction, Inc., may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis would be needed to determine the extent of subcontracting to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Highway Administration (FHWA), a division of the Department of Transportation. The FHWA typically employs project managers and contracting officers to monitor progress, ensure compliance with contract terms, and manage payments. Inspector General jurisdiction would extend to investigating any potential fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases and public reporting mechanisms.

Related Government Programs

Yellowstone National Park Infrastructure Projects
Federal Highway Administration Road Construction Contracts
National Park Service Maintenance and Repair Programs
Department of Transportation Infrastructure Investment

Risk Flags

Contract type introduces cost uncertainty.
Extended project duration may increase risk.
Potential for unforeseen environmental or site conditions in a national park setting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.2 million to OFTEDAL CONSTRUCTION, INC.. WY ERFO NP YELL 2022-1(212), YELLOWSTONE NP NORTHEAST ENTRANCE ROAD REPAIRS, 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 $25.2 million.

What is the period of performance?

Start: 2022-07-26. End: 2023-10-07.

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

A review of federal contract databases would be necessary to fully assess Oftedal Construction, Inc.'s track record. However, the award of this significant contract by the Federal Highway Administration suggests a level of experience and capability deemed sufficient for this project. Further investigation into past performance reviews, any history of contract disputes, and the types and values of previous federal awards would provide a more comprehensive understanding of their reliability and expertise in executing similar infrastructure projects.

How does the awarded amount of $25.2 million compare to the initial estimated cost or budget for this project phase?

The provided data does not include the initial estimated cost or budget for this project phase. To assess value for money, a comparison between the awarded contract price and the government's independent cost estimate (ICE) or a pre-solicitation estimate would be crucial. If the awarded amount is significantly lower than the estimate, it could indicate successful competition. Conversely, if it's higher, it might warrant further scrutiny into the bidding process and the justification for the final price. Without this comparative data, it's difficult to definitively gauge the cost-effectiveness of the award.

What are the specific risks associated with the 'Fixed Price Redetermination' contract type in this context?

The 'Fixed Price Redetermination' (FPR) contract type introduces a degree of uncertainty regarding the final cost. While an initial fixed price is established, it can be adjusted based on actual costs incurred, subject to certain limitations and negotiations. For a project like Yellowstone road repairs, risks include potential cost overruns due to unforeseen site conditions (e.g., geological issues, extreme weather impacting work schedules), material price fluctuations, or labor cost increases. Effective oversight by the contracting officer is critical to ensure that any redeterminations are justified and that the government does not bear excessive costs beyond what is reasonable and anticipated.

What is the historical spending pattern for road maintenance and repair within Yellowstone National Park over the last five years?

Historical spending data for road maintenance and repair within Yellowstone National Park over the last five years would provide valuable context for this $25.2 million award. Analyzing past expenditures would reveal trends in investment, identify recurring issues, and help determine if this contract represents a significant increase or decrease in funding for such activities. Understanding this pattern can inform whether this project is part of a sustained effort to address infrastructure deficiencies or a response to a newly identified critical need. It also aids in benchmarking the scale and cost of current repairs against previous efforts.

How many bids were received, and what was the range of proposed prices during the full and open competition?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' but does not specify the number of bids received or the range of proposed prices. This information is critical for a thorough analysis of the competition's effectiveness. A higher number of bids generally suggests more robust competition, potentially leading to better pricing. Knowing the price range would allow for an assessment of how competitive the winning bid was relative to others submitted. Without this data, it's challenging to definitively conclude the extent to which competition drove value for taxpayers.

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: 1

Pricing Type: FIXED PRICE REDETERMINATION (A)

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: $25,184,950

Exercised Options: $25,184,950

Current Obligation: $25,184,950

Actual Outlays: $25,184,950

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $14,343,738

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