DOT awards $9.1M for Tanana River recreation access, a definitive contract for highway construction

Contract Overview

Contract Amount: $9,120,688 ($9.1M)

Contractor: Doyon Management Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-03-27

End Date: 2024-10-12

Contract Duration: 565 days

Daily Burn Rate: $16.1K/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: AK FNSB TANANA(1), TANANA RIVER RECREATION ACCESS IMPROVEMENTS: THE PROJECT IS LOCATED IMMEDIATELY SOUTH OF FAIRBANKS IN FAIRBANKS NORTH STAR BOROUGH, ALASKA.

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99701

State: Alaska Government Spending

Plain-Language Summary

Department of Transportation obligated $9.1 million to DOYON MANAGEMENT SERVICES, LLC for work described as: AK FNSB TANANA(1), TANANA RIVER RECREATION ACCESS IMPROVEMENTS: THE PROJECT IS LOCATED IMMEDIATELY SOUTH OF FAIRBANKS IN FAIRBANKS NORTH STAR BOROUGH, ALASKA. Key points: 1. Contract value appears reasonable for a highway construction project of this scope. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The definitive contract type indicates a long-term agreement with potential for follow-on work. 4. Project location in Alaska presents unique logistical and environmental considerations. 5. Fixed-price contract type shifts risk to the contractor. 6. The project falls under highway, street, and bridge construction, a common federal spending category.

Value Assessment

Rating: good

The contract value of $9.1 million for highway construction in Alaska seems within a reasonable range for such projects, considering the unique logistical challenges of the region. Benchmarking against similar Federal Highway Administration projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has secured a defined cost, but the final cost could fluctuate based on contractor performance and unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, possibly due to specialized capabilities or prior performance. The number of bidders is not explicitly stated, but the exclusion of sources suggests a potentially smaller pool than a purely open competition.

Taxpayer Impact: This procurement method aims to balance broad competition with the need for specific expertise, potentially leading to a fair price while ensuring project suitability.

Public Impact

Residents and visitors in the Fairbanks North Star Borough, Alaska, will benefit from improved recreation access. The project will deliver infrastructure improvements related to highway, street, and bridge construction. Geographic impact is localized to the Tanana River area south of Fairbanks. Potential for local job creation during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the remote Alaskan location and associated logistical complexities.
Environmental impact assessments and mitigation strategies will be critical for project success.
Ensuring adequate contractor oversight in a remote area can be challenging.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The project addresses a specific need for recreation access improvements.
Awarding to Doyon Management Services, LLC, may leverage local expertise.

Sector Analysis

This contract falls within the construction sector, specifically highway, street, and bridge construction. This is a significant area of federal spending, often managed by agencies like the Department of Transportation through the Federal Highway Administration. Projects in this category can range from minor repairs to major infrastructure overhauls, with costs varying widely based on scale, location, and complexity. Alaska's unique environment often leads to higher per-unit costs for construction compared to the contiguous United States.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Doyon Management Services, LLC, chooses to engage them. Without specific subcontracting plans, the direct benefit to the small business ecosystem from this particular award is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Highway Administration. Accountability measures are inherent in the definitive contract structure and firm fixed-price terms. Transparency is facilitated through federal contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Construction Projects
Alaska Transportation Infrastructure
Recreation Area Development Grants
Department of Transportation Capital Investments

Risk Flags

Remote Location Logistics
Environmental Compliance
Permafrost Conditions
Skilled Labor Availability
Contractor Performance Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.1 million to DOYON MANAGEMENT SERVICES, LLC. AK FNSB TANANA(1), TANANA RIVER RECREATION ACCESS IMPROVEMENTS: THE PROJECT IS LOCATED IMMEDIATELY SOUTH OF FAIRBANKS IN FAIRBANKS NORTH STAR BOROUGH, ALASKA.

Who is the contractor on this award?

The obligated recipient is DOYON MANAGEMENT SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.1 million.

What is the period of performance?

Start: 2023-03-27. End: 2024-10-12.

What is the track record of Doyon Management Services, LLC with federal contracts, particularly in Alaska?

Doyon Management Services, LLC has a history of federal contracting, often within Alaska. Their portfolio typically includes services related to logistics, base operations support, and construction. Specific to the Federal Highway Administration, their experience would need to be reviewed to assess their capability in managing highway, street, and bridge construction projects of this magnitude. Past performance evaluations and any documented issues on previous contracts would be crucial indicators of their reliability and effectiveness for the Tanana River project. A review of their contract history would reveal the types and values of previous awards, as well as their performance ratings.

How does the $9.1 million cost compare to similar highway construction projects in remote or challenging environments?

Benchmarking the $9.1 million cost requires comparing it to similar highway, street, or bridge construction projects undertaken by the Federal Highway Administration or other agencies in geographically challenging or remote locations, particularly in Alaska. Factors such as terrain, climate, material transport, labor costs, and environmental regulations significantly influence project expenses in such areas. If comparable projects in Alaska or similar Arctic/sub-Arctic regions have similar cost profiles for the scope of work (e.g., access improvements, bridge components), then this contract may represent fair market value. Conversely, if costs are substantially higher than benchmarks for similar work, it could indicate potential inefficiencies or unique project-specific cost drivers that warrant further investigation.

What are the primary risks associated with this specific contract and its execution in Alaska?

The primary risks associated with this contract include logistical challenges inherent in working in remote Alaskan locations, such as the transportation of materials, equipment, and personnel, which can lead to delays and increased costs. Adverse weather conditions, including extreme cold, snow, and permafrost instability, pose significant construction risks, potentially impacting timelines and structural integrity. Environmental considerations, such as protecting sensitive ecosystems and adhering to strict regulations, add complexity. Furthermore, ensuring adequate skilled labor availability in the region and maintaining effective oversight of contractor performance in a remote setting are critical risk factors that could affect project outcomes and budget adherence.

What is the expected effectiveness of the Tanana River Recreation Access Improvements project in achieving its stated goals?

The effectiveness of the Tanana River Recreation Access Improvements project hinges on its ability to demonstrably enhance public access to recreational areas along the Tanana River. Key performance indicators would likely include increased visitor numbers, improved safety for recreational users, and the successful completion of planned infrastructure elements (e.g., trails, access points, parking). The project's design and execution, guided by the Federal Highway Administration's standards and local input, should align with the goal of facilitating greater and safer use of the river's recreational potential. Long-term effectiveness will also depend on ongoing maintenance and the continued demand for these recreational opportunities.

How has federal spending on highway and bridge construction in Alaska trended over the past five years?

Federal spending on highway and bridge construction in Alaska has generally been substantial, driven by the state's vast size, critical infrastructure needs, and unique environmental challenges. While specific year-over-year trends can fluctuate based on appropriations, major project cycles, and economic conditions, the overall federal commitment to Alaskan transportation infrastructure remains consistent. Agencies like the Federal Highway Administration allocate significant funds annually to address repairs, upgrades, and new construction, often prioritizing projects that enhance connectivity, safety, and economic development. Factors such as the availability of federal matching funds, state priorities, and the impact of natural disasters can influence the annual spending levels. Detailed analysis would require examining historical budget allocations and contract awards specifically for Alaska.

What is the significance of the 'definitive contract' award type for this project?

A definitive contract, in this context, is a type of contract that establishes the final terms and conditions for a long-term agreement. Unlike an indefinite-delivery indefinite-quantity (IDIQ) contract, a definitive contract typically outlines specific deliverables, quantities, and prices, although it can still allow for modifications. For this project, it suggests a clear scope of work and a defined period of performance (March 27, 2023, to October 12, 2024). This award type implies that the government has a well-defined need and has negotiated the terms upfront, providing a degree of certainty for both parties regarding the project's execution and cost, while still allowing for flexibility within the established framework.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 69056722B000024

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3450 S 344TH WAY STE 100, FEDERAL WAY, WA, 98001

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,120,688

Exercised Options: $9,120,688

Current Obligation: $9,120,688

Actual Outlays: $8,393,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline