Yellowstone River Bridge contract awarded to H-K Contractors for over $120M, spanning nearly 4 years

Contract Overview

Contract Amount: $120,228,420 ($120.2M)

Contractor: H-K Contractors, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-01-24

End Date: 2026-11-30

Contract Duration: 1,406 days

Daily Burn Rate: $85.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WY NPS YELL 12(2), YELLOWSTONE RIVER BRIDGE

Place of Performance

Location: CODY, PARK County, WYOMING, 82414

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $120.2 million to H-K CONTRACTORS, INC. for work described as: WY NPS YELL 12(2), YELLOWSTONE RIVER BRIDGE Key points: 1. The contract value of $120.2M for bridge construction suggests a significant investment in critical infrastructure. 2. Full and open competition was utilized, indicating a potentially competitive bidding process for this project. 3. The contract duration of 1406 days (nearly 4 years) points to a complex and lengthy construction undertaking. 4. The award to H-K Contractors, Inc. places them as a key player in this specific infrastructure project. 5. The project's location in Wyoming highlights regional infrastructure development efforts. 6. The firm-fixed-price contract type aims to provide cost certainty for the government.

Value Assessment

Rating: good

The contract value of $120.2 million for a bridge construction project of this scale and duration appears to be within a reasonable range for major infrastructure work. Benchmarking against similar large-scale bridge projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. With 3 bids received, the competition level appears moderate. A higher number of bidders typically correlates with more competitive pricing and a wider range of innovative solutions. The fact that multiple firms submitted proposals indicates interest in this project, but further analysis would be needed to determine if the competition was robust enough to drive optimal pricing and value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The presence of multiple bidders suggests that taxpayer funds are likely being used more efficiently than in a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely users of the Yellowstone River crossing, including commuters, commercial transport, and tourists, who will gain access to a potentially improved or new bridge. The project will deliver essential highway infrastructure construction services, specifically focusing on bridge building. The geographic impact is concentrated in Wyoming, specifically within the Yellowstone River area, supporting regional transportation networks. The project will likely create or sustain jobs in the construction sector, including skilled labor, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental challenges arise during the extended construction period.
Risk of project delays due to weather, material availability, or labor shortages, impacting the delivery timeline.
Ensuring the long-term durability and maintenance cost-effectiveness of the constructed bridge.

Positive Signals

The firm-fixed-price contract structure shifts cost overrun risk to the contractor.
The use of full and open competition suggests a potentially competitive pricing environment.
The project addresses critical infrastructure needs, which can have significant long-term economic benefits.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and bridge construction. The market for large-scale bridge projects is often characterized by a mix of large, established construction firms and specialized engineering companies. Spending in this area is driven by federal and state infrastructure investment programs aimed at maintaining and upgrading the nation's transportation networks. Comparable spending benchmarks would typically be assessed on a per-linear-foot or per-square-foot basis for bridge construction, adjusted for complexity and location.

Small Business Impact

The contract was awarded under full and open competition and the 'small business' flag is set to false, indicating that there was no specific small business set-aside for this particular award. This means that large businesses were eligible to compete and potentially win. There is no explicit information provided regarding subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often utilize small businesses for specialized services or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Mechanisms likely include regular progress reports from the contractor, site inspections, and milestone reviews. Accountability is established through the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Bridge Program
National Highway System
Infrastructure Investment and Jobs Act Projects
Department of Transportation Construction Contracts
Major Infrastructure Projects

Risk Flags

Potential for cost overruns due to extended duration
Risk of schedule delays
Environmental compliance challenges
Quality control over a multi-year project

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $120.2 million to H-K CONTRACTORS, INC.. WY NPS YELL 12(2), YELLOWSTONE RIVER BRIDGE

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 $120.2 million.

What is the period of performance?

Start: 2023-01-24. End: 2026-11-30.

What is H-K Contractors, Inc.'s track record with similar large-scale bridge construction projects for the federal government?

H-K Contractors, Inc. has a history of performing construction work, including projects related to highways and infrastructure. To assess their track record specifically for large-scale bridge construction for the federal government, a review of their past federal contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims would be necessary. Information from federal procurement databases like SAM.gov and FPDS can provide details on their past awards, contract values, and agencies served. A deeper dive would involve examining the complexity and scale of bridges they have previously built to determine if they align with the scope of the Yellowstone River Bridge project.

How does the awarded price of $120.2 million compare to industry benchmarks for bridge construction of this size and complexity?

Benchmarking the $120.2 million award requires comparing it against similar bridge projects in terms of length, width, type (e.g., suspension, beam, arch), geological conditions, and location. Industry cost-estimating guides and databases from organizations like the American Association of State Highway and Transportation Officials (AASHTO) or the Construction Management Association of America (CMAA) can provide unit cost data (e.g., cost per linear foot, cost per square foot, cost per ton of steel). Without specific project details like the bridge's dimensions and engineering complexity, a precise comparison is difficult. However, for a major river bridge, a cost exceeding $100 million is not uncommon, especially considering material costs, labor, engineering, and environmental mitigation.

What are the primary risk indicators associated with this contract, considering its duration and value?

Key risk indicators for this $120.2 million contract, spanning nearly four years, include: 1. **Schedule Risk:** Extended durations increase exposure to potential delays from weather, labor availability, supply chain disruptions, and unforeseen site conditions. 2. **Cost Risk:** While a firm-fixed-price contract shifts cost escalation risk to the contractor, significant unforeseen issues (e.g., unexpected subsurface conditions, environmental discoveries) could still lead to claims or disputes. 3. **Performance Risk:** Ensuring the contractor meets quality standards and specifications over a long construction period requires robust oversight. 4. **Environmental Risk:** Construction near a river can pose environmental risks that require careful management and compliance. 5. **Economic Risk:** Fluctuations in material prices (steel, concrete) over the contract term could impact the contractor's profitability and potentially lead to performance issues if not adequately managed within the fixed price.

How effective is the 'full and open competition' strategy likely to be in ensuring value for taxpayer money on this project?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for taxpayer money, as it allows the widest possible pool of qualified contractors to bid. This increased competition typically drives down prices and encourages innovation. With 3 bids received for this contract, the level of competition was moderate. While this is better than limited or sole-source procurements, a higher number of bids could have potentially yielded even more competitive pricing. The effectiveness also depends on the clarity of the solicitation documents and the evaluation criteria used to select the winning bid, ensuring the best overall value (considering price, technical approach, and past performance) is chosen, not just the lowest price.

What are the historical spending patterns for highway, street, and bridge construction by the Federal Highway Administration?

The Federal Highway Administration (FHWA) is a major component of the Department of Transportation's budget, with significant annual outlays dedicated to highway, street, and bridge construction and maintenance. Historically, federal spending in this category fluctuates based on congressional appropriations, infrastructure initiatives (like the Bipartisan Infrastructure Law), and the condition of the nation's infrastructure. Annual spending can range from tens of billions to over a hundred billion dollars, depending on the fiscal year and legislative priorities. This specific $120.2 million contract represents a single, albeit large, project within the broader context of the FHWA's extensive capital investment programs aimed at improving national transportation infrastructure.

What are the implications of the 'firm fixed price' contract type for government oversight and contractor performance?

A 'firm fixed price' (FFP) contract type is generally preferred by the government when the scope of work is well-defined and risks can be reasonably estimated. For this bridge construction project, the FFP structure means the contractor, H-K Contractors, Inc., is obligated to complete the work for the agreed-upon price of $120.2 million, regardless of their actual costs. This places the primary financial risk on the contractor. Consequently, government oversight focuses heavily on ensuring the contractor adheres strictly to the contract's scope, specifications, and schedule to prevent deviations that could lead to claims for additional costs or delays. Contractor performance is critical, as any inefficiencies or cost overruns directly impact their profit margin, potentially incentivizing them to control costs and maintain schedule.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $120,228,420

Exercised Options: $120,228,420

Current Obligation: $120,228,420

Actual Outlays: $94,234,695

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $82,426,405

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