Tidewater Contractors awarded $7.5M for highway construction in Oregon, utilizing full and open competition

Contract Overview

Contract Amount: $7,488,230 ($7.5M)

Contractor: Tidewater Contractors, Inc

Awarding Agency: Department of Transportation

Start Date: 2024-07-23

End Date: 2026-07-20

Contract Duration: 727 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES CONSISTS OF PAVING, CHIPSEAL, PATCHING, GRADING, AND BRIDGRAIL.

Place of Performance

Location: BROOKINGS, CURRY County, OREGON, 97415

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $7.5 million to TIDEWATER CONTRACTORS, INC for work described as: CONSTRUCTION SERVICES CONSISTS OF PAVING, CHIPSEAL, PATCHING, GRADING, AND BRIDGRAIL. Key points: 1. Contract focuses on essential road maintenance and repair services. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Definitive contract type indicates a framework for multiple orders over its duration. 4. Firm fixed price structure provides cost certainty for the government. 5. The contract duration of 727 days allows for phased execution of work. 6. Geographic focus on Oregon aligns with regional transportation needs.

Value Assessment

Rating: good

The contract value of $7.5 million for highway construction services, including paving, chip seal, patching, grading, and bridgail, appears reasonable given the scope. While specific benchmarking data is not provided, the firm fixed price nature of the contract helps control costs. The competition level, as detailed below, is also a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that all responsible sources were permitted to submit a bid. The specific exclusion of sources might warrant further investigation, but the 'full and open' designation generally implies a robust competitive process. The number of bidders is not specified, but the method suggests an effort to maximize competition.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it is expected to drive down prices through market forces and encourage a wider range of contractors to participate, potentially leading to better value.

Public Impact

Benefits residents and businesses in Oregon through improved road infrastructure. Services include critical maintenance like paving, patching, and grading. Geographic impact is concentrated within Oregon, supporting regional transportation networks. Workforce implications include employment opportunities for construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure no viable small businesses were unfairly excluded.
Lack of specific details on the number of bidders limits a full assessment of competitive intensity.

Positive Signals

The 'full and open' competition designation is a strong positive signal for taxpayer value.
Firm fixed price contract type provides cost predictability.
The contract addresses essential highway maintenance, ensuring public safety and utility.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Spending in this area is driven by federal and state initiatives to maintain and upgrade transportation infrastructure. Comparable spending benchmarks would typically involve analyzing other Federal Highway Administration contracts for similar services in different regions or over different time periods.

Small Business Impact

The contract data indicates that small business participation (ss and sb fields) is marked as false. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses detailed in this summary. Further review of the contract documents would be needed to confirm the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would likely fall under the Federal Highway Administration (FHWA), a division of the Department of Transportation. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance monitoring details are not provided here.

Related Government Programs

Federal Highway Administration Grants
State Highway Improvement Programs
National Highway System Construction

Risk Flags

Potential for scope creep in definitive contracts.
Need for clear justification of 'exclusion of sources' in competition.
Risk of delays due to weather or site conditions in construction.
Ensuring consistent quality over a multi-year contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.5 million to TIDEWATER CONTRACTORS, INC. CONSTRUCTION SERVICES CONSISTS OF PAVING, CHIPSEAL, PATCHING, GRADING, AND BRIDGRAIL.

Who is the contractor on this award?

The obligated recipient is TIDEWATER 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 $7.5 million.

What is the period of performance?

Start: 2024-07-23. End: 2026-07-20.

What is the track record of Tidewater Contractors, Inc. with federal contracts, particularly with the Department of Transportation?

A review of federal contract databases would be necessary to fully assess Tidewater Contractors, Inc.'s track record. This would involve examining past performance on similar highway construction projects, including adherence to schedules, budget performance, and quality of work. Understanding their history with the Department of Transportation and the Federal Highway Administration specifically would provide insight into their reliability and capability for executing this current contract. Any past performance issues, disputes, or contract terminations would be significant risk indicators.

How does the $7.5 million contract value compare to similar highway construction projects awarded by the FHWA in Oregon?

Benchmarking this $7.5 million contract against similar projects requires access to a broader dataset of FHWA awards for highway construction services in Oregon. Factors such as project scope (paving, patching, grading, bridgail), contract duration (727 days), and specific geographic locations within Oregon would need to be matched. Without this comparative data, it is difficult to definitively state whether the price is high or low. However, the firm fixed price and full and open competition suggest an effort to achieve competitive pricing.

What are the specific risks associated with a definitive contract for highway construction services?

Definitive contracts, often used for indefinite-delivery/indefinite-quantity (IDIQ) vehicles or task orders, carry risks related to scope definition and cost management over time. For this specific contract, the primary risks include potential cost overruns if the scope of work expands beyond initial estimates, delays in project completion due to unforeseen site conditions or weather, and ensuring consistent quality across multiple phases or task orders. The firm fixed price mitigates some cost risk, but careful management of task orders and change requests is crucial.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring optimal value for taxpayers in highway construction?

This procurement method aims to maximize competition while allowing for specific exclusions, which can be effective if justified. 'Full and Open' competition generally leads to better price discovery and value for taxpayers by encouraging multiple bidders. The 'after exclusion of sources' aspect requires careful scrutiny; if the exclusions are well-reasoned (e.g., based on specific technical capabilities or past performance), it can still yield good value. However, if exclusions are arbitrary, they could limit competition and potentially increase costs for taxpayers. The ultimate effectiveness depends on the justification for exclusions and the resulting number and quality of bids received.

What is the historical spending pattern for highway construction services by the Federal Highway Administration in Oregon?

Analyzing historical spending patterns for highway construction by the FHWA in Oregon would involve reviewing contract awards over several fiscal years. This would reveal trends in contract values, types of services procured (paving, repair, new construction), and the primary contractors awarded work. Understanding these patterns can help identify periods of high or low investment, potential market saturation, or shifts in procurement strategies. It would also provide context for the current $7.5 million award, indicating whether it represents a typical, increased, or decreased level of federal investment in Oregon's highway infrastructure.

What are the implications of the 727-day duration for the execution and oversight of this highway construction contract?

A duration of 727 days (approximately two years) for a highway construction contract suggests a project with a substantial scope or one that may involve phased work, potentially across different seasons or locations within Oregon. This extended timeline allows for more detailed planning and execution but also increases the potential for risks such as material price fluctuations, labor availability issues, and the need for sustained oversight. Effective project management and regular performance reviews will be critical to ensure timely completion and adherence to quality standards throughout the contract's life.

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: 69056721B000014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16156 HIGHWAY 101 S, BROOKINGS, OR, 97415

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: $7,488,230

Exercised Options: $7,488,230

Current Obligation: $7,488,230

Actual Outlays: $6,726,409

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $611,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline