Steve Manning Construction awarded $58.2M contract for Oregon East Rim Drive rehabilitation

Contract Overview

Contract Amount: $58,172,609 ($58.2M)

Contractor: Steve Manning Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2023-05-12

End Date: 2026-10-01

Contract Duration: 1,238 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OR NPS CRLA 13(1), REHABILITATE EAST RIM DRIVE

Place of Performance

Location: KLAMATH FALLS, KLAMATH County, OREGON, 97603

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $58.2 million to STEVE MANNING CONSTRUCTION INC for work described as: OR NPS CRLA 13(1), REHABILITATE EAST RIM DRIVE Key points: 1. Contract value represents a significant investment in regional infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this project. 3. Contract duration of over 3 years indicates a complex and lengthy undertaking. 4. Project scope focuses on essential road maintenance and improvement. 5. Firm Fixed Price contract type offers cost certainty for the government. 6. Awarded by the Federal Highway Administration, aligning with national transportation goals.

Value Assessment

Rating: good

The contract value of $58.2 million for the rehabilitation of East Rim Drive appears reasonable given the project's scope and duration. Benchmarking against similar highway construction projects of comparable size and complexity would provide a more precise assessment of value for money. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, suggesting a well-defined project scope.

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. With three bidders participating, the competition level suggests a healthy market interest in this type of infrastructure work. This level of competition is generally conducive to achieving competitive pricing and ensuring that the government receives a fair market value for the services rendered.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it drives down costs through competitive pressure, ensuring that public funds are used efficiently for infrastructure improvements.

Public Impact

Residents and businesses in Oregon will benefit from improved road infrastructure and potentially reduced travel times. The project will deliver essential rehabilitation services for a key transportation artery. Geographic impact is concentrated in Oregon, specifically related to the East Rim Drive area. The construction activities will likely create temporary employment opportunities within the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting project timeline and public inconvenience.
Unforeseen geological or environmental conditions could increase costs or extend duration.
Coordination with local authorities and stakeholders is crucial for smooth execution.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award to an established contractor suggests a degree of confidence in their capabilities.
Full and open competition indicates a robust bidding process.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader construction industry. This sector is characterized by large-scale projects requiring specialized equipment and expertise. Spending in this area is often driven by government infrastructure initiatives and the need to maintain and upgrade existing transportation networks. Comparable spending benchmarks would typically be assessed against other federal or state highway projects of similar scale and complexity.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Steve Manning Construction Inc., is not explicitly identified as a small business in the provided data, there is potential for subcontracting opportunities. The extent to which small businesses will be involved will depend on the prime contractor's subcontracting plan and the availability of qualified small business subcontractors for specialized tasks within the project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. The FHWA typically employs contract officers and project managers to monitor progress, ensure compliance with contract terms, and verify the quality of work. Transparency is generally maintained through contract award databases and public reporting of federal spending. Inspector General jurisdiction may apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway System Construction
National Highway Performance Program
Surface Transportation Block Grants
Highway Infrastructure Projects

Risk Flags

Potential for cost overruns if unforeseen conditions arise, despite fixed-price contract.
Risk of project delays due to weather, labor, or supply chain issues.
Ensuring adequate traffic management and public safety during extensive construction.
Environmental compliance and permitting challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $58.2 million to STEVE MANNING CONSTRUCTION INC. OR NPS CRLA 13(1), REHABILITATE EAST RIM DRIVE

Who is the contractor on this award?

The obligated recipient is STEVE MANNING 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 $58.2 million.

What is the period of performance?

Start: 2023-05-12. End: 2026-10-01.

What is the track record of Steve Manning Construction Inc. on similar federal contracts?

A comprehensive review of Steve Manning Construction Inc.'s track record on similar federal contracts would require accessing detailed contract performance databases. Typically, agencies assess past performance based on factors such as on-time delivery, quality of work, adherence to budget, and overall customer satisfaction. For this specific contract, the Federal Highway Administration would have likely reviewed the contractor's past performance during the source selection process. Without access to specific performance reports or ratings, it is difficult to definitively assess their historical success on comparable projects. However, being awarded a contract of this magnitude suggests a level of demonstrated capability and reliability.

How does the awarded amount compare to the estimated cost or independent government cost estimate?

The provided data does not include the estimated cost or an independent government cost estimate for this contract. To assess value for money, this information would be crucial. A comparison between the awarded amount ($58.2 million) and the government's estimate would reveal whether the contract was awarded significantly above, below, or at the anticipated cost. If the awarded amount is substantially lower than the estimate, it could indicate strong competition or potentially aggressive bidding. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive bidding environment. Further analysis would require obtaining the pre-award estimate.

What are the primary risks associated with this highway rehabilitation project?

The primary risks associated with this highway rehabilitation project include potential construction delays due to unforeseen site conditions (e.g., subsurface utilities, soil instability, archaeological discoveries), adverse weather impacting work schedules, and fluctuations in material costs, although the firm fixed-price contract aims to mitigate the latter. Labor shortages or disputes could also pose a risk. Furthermore, managing traffic flow and ensuring public safety during construction are critical operational risks. Environmental compliance and permitting issues can also introduce delays or necessitate design modifications. The long duration of the contract (over 3 years) inherently increases the exposure to these various risks.

How effective is the Federal Highway Administration in overseeing large-scale construction contracts?

The Federal Highway Administration (FHWA) generally has robust oversight mechanisms for large-scale construction contracts, leveraging experienced project engineers and contract specialists. Their oversight typically includes regular site inspections, progress reviews, quality assurance testing, and financial audits to ensure compliance with contract specifications, safety standards, and environmental regulations. The agency utilizes various tools and processes, including performance metrics and risk management plans, to monitor project execution. While specific effectiveness can vary by project and individual oversight teams, the FHWA's established procedures are designed to promote accountability and successful project delivery, though challenges can arise with complex or long-duration projects.

What has been the historical spending trend for highway construction by the Federal Highway Administration?

Historical spending trends for highway construction by the Federal Highway Administration (FHWA) are generally tied to federal transportation funding authorizations, such as the Fixing America's Surface Transportation (FAST) Act and its predecessors. Spending typically fluctuates based on legislative appropriations, economic conditions, and national infrastructure priorities. The FHWA disburses funds to states for projects on the federal-aid highway system. Over the past decade, federal investment in highway infrastructure has remained a significant component of the federal budget, often seeing increases during periods of focus on economic stimulus or infrastructure renewal. Specific annual outlays can be found in DOT's budget documents and reports from Congressional Budget Office.

Are there specific performance metrics or KPIs defined for this contract?

The provided data does not specify the exact performance metrics or Key Performance Indicators (KPIs) for this contract. However, for highway construction projects of this nature, typical KPIs would likely include adherence to the project schedule (e.g., milestones met on time), quality of workmanship (e.g., compliance with material specifications and engineering standards), safety performance (e.g., incident rates), and budget management (though less critical for the government with a firm fixed-price contract, it's relevant for the contractor's performance). The Federal Highway Administration would establish these metrics in the contract's Statement of Work and monitor the contractor's performance against them throughout the project lifecycle.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 69056722R000013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5211 CHURN CREEK RD, REDDING, CA, 96002

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,105,907

Exercised Options: $58,172,609

Current Obligation: $58,172,609

Actual Outlays: $39,297,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline