Alaska road reconstruction contract awarded to Glacier Construction Inc. for $22.5M

Contract Overview

Contract Amount: $22,527,341 ($22.5M)

Contractor: Glacier Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2025-03-31

End Date: 2026-11-09

Contract Duration: 588 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FUNDS CONSTRUCTION PROJECT: AK PFH 58(1), NECK LAKE ROAD RECONSTRUCTION: NPOWI HWY. TO MARINE ACCESS FACILITY JCT. WORK INCLUDES EXCAVATION, ROCK BLASTING, EMBANKMENT, GRADING, DRAINAGE, RETAINING WALL, AND GUARDRAIL.

Place of Performance

Location: COFFMAN COVE, PRINCE OF WALES HYDER County, ALASKA, 99918

State: Alaska Government Spending

Plain-Language Summary

Department of Transportation obligated $22.5 million to GLACIER CONSTRUCTION INC for work described as: FUNDS CONSTRUCTION PROJECT: AK PFH 58(1), NECK LAKE ROAD RECONSTRUCTION: NPOWI HWY. TO MARINE ACCESS FACILITY JCT. WORK INCLUDES EXCAVATION, ROCK BLASTING, EMBANKMENT, GRADING, DRAINAGE, RETAINING WALL, AND GUARDRAIL. Key points: 1. Contract addresses critical infrastructure needs for marine access. 2. Project scope includes significant excavation, rock blasting, and structural work. 3. Firm fixed-price contract type aims to control costs. 4. Definitive contract award suggests a well-defined scope of work. 5. Project duration of 588 days indicates a substantial construction timeline. 6. Awarded by the Federal Highway Administration, highlighting federal investment in state infrastructure.

Value Assessment

Rating: good

The contract value of $22.5 million for highway reconstruction appears reasonable given the extensive scope of work, which includes excavation, rock blasting, embankment, grading, drainage, retaining wall construction, and guardrail installation. While specific benchmarks for this exact type of project in Alaska are not readily available, the firm fixed-price nature of the contract provides cost certainty. The number of bidders (3) suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bids received. This indicates a healthy level of market interest and suggests that the bidding process allowed for a broad range of qualified contractors to participate. The presence of multiple bidders generally leads to more competitive pricing as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for public funds by encouraging lower bids and ensuring a fair market price.

Public Impact

Benefits residents and businesses in Alaska by improving access to marine facilities. Enhances transportation infrastructure, potentially supporting economic development. The project is located in Alaska, with specific impact on the area around Neck Lake Road. Likely to create temporary construction jobs within the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays due to Alaska's challenging weather and terrain.
Risk of cost overruns if unforeseen geological conditions are encountered during excavation and blasting.
Ensuring environmental compliance during extensive earthmoving and construction activities.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty for the government.
Award to an established contractor (Glacier Construction Inc.) suggests a degree of reliability.
Project scope clearly defined, reducing ambiguity in execution.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader Construction industry. Federal spending in this area is vital for maintaining and upgrading national transportation networks. Comparable projects often involve significant earthmoving, structural work, and adherence to strict safety and environmental regulations. The market for such large-scale infrastructure projects is competitive, with specialized firms like Glacier Construction Inc. often participating.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Glacier Construction Inc. may utilize small businesses for subcontracting, there is no explicit requirement mentioned in the provided data. Further analysis would be needed to determine the extent of small business participation in this project.

Oversight & Accountability

The Federal Highway Administration (FHWA) is responsible for overseeing this contract. As a definitive contract with a firm fixed-price structure, oversight would likely focus on adherence to project specifications, timelines, and quality standards. The contract's duration and scope suggest regular progress reporting and site inspections would be part of the oversight process. Transparency is generally maintained through public contract databases.

Related Government Programs

Federal Highway Administration Grants
State Infrastructure Projects
Alaska Department of Transportation and Public Facilities
National Highway System Projects

Risk Flags

Geological Risk
Weather Delays
Environmental Compliance
Logistical Challenges in Remote Location

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $22.5 million to GLACIER CONSTRUCTION INC. FUNDS CONSTRUCTION PROJECT: AK PFH 58(1), NECK LAKE ROAD RECONSTRUCTION: NPOWI HWY. TO MARINE ACCESS FACILITY JCT. WORK INCLUDES EXCAVATION, ROCK BLASTING, EMBANKMENT, GRADING, DRAINAGE, RETAINING WALL, AND GUARDRAIL.

Who is the contractor on this award?

The obligated recipient is GLACIER 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 $22.5 million.

What is the period of performance?

Start: 2025-03-31. End: 2026-11-09.

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

Glacier Construction Inc. has a history of working with federal agencies, including the Department of Transportation. While the provided data does not detail their entire contract history, their selection for this significant project suggests they have met the necessary qualifications and performance standards. A deeper dive into federal procurement databases like SAM.gov or FPDS would reveal specific past performance ratings, previous contract values, and any past issues or commendations related to their federal work. Understanding their experience with similar large-scale infrastructure projects, especially in challenging environments like Alaska, is crucial for assessing future performance risk.

How does the awarded amount compare to similar highway reconstruction projects in Alaska or similar geographic regions?

Directly comparing the $22.5 million award to similar projects is challenging without access to a comprehensive database of Alaska-specific highway reconstruction projects with detailed scopes of work. However, the project's complexity, involving extensive excavation, rock blasting, and the construction of retaining walls and drainage systems, suggests a significant undertaking. Factors such as remote location, environmental considerations, and the need for specialized equipment in Alaska can drive up costs compared to projects in more accessible areas. The firm fixed-price nature indicates the government sought to lock in costs, implying a thorough cost estimation process was likely undertaken by both the agency and the bidders.

What are the primary risks associated with this specific construction project, and how are they being mitigated?

The primary risks for this project include potential delays due to Alaska's harsh weather conditions and short construction season, unforeseen geological challenges during excavation and rock blasting (e.g., unstable soil, unexpected rock formations), and environmental compliance issues. Mitigation strategies likely include detailed geotechnical surveys prior to award, phased construction planning to account for weather, robust environmental impact assessments, and contingency planning within the contract. The firm fixed-price structure also incentivizes the contractor to manage these risks effectively to avoid cost overruns.

What is the expected impact of this project on local employment and the regional economy?

This reconstruction project is expected to have a positive short-term impact on local employment by creating numerous temporary jobs in construction, engineering, and related support services. The demand for materials and equipment will also likely benefit local suppliers and businesses. In the longer term, improved road infrastructure, particularly access to marine facilities, can enhance economic activity by facilitating transportation of goods and people, potentially supporting industries like fishing, tourism, or resource development in the region.

What historical spending patterns exist for highway and bridge construction by the Federal Highway Administration in Alaska?

Historical spending patterns for highway and bridge construction by the FHWA in Alaska typically reflect the state's vast size, unique environmental challenges, and critical need for infrastructure connecting remote communities and facilitating resource access. FHWA funding in Alaska often targets projects that improve safety, address deferred maintenance, and enhance connectivity, especially for rural and remote areas. Spending can fluctuate annually based on congressional appropriations, specific program initiatives (like Bipartisan Infrastructure Law funding), and the readiness of projects. Projects involving significant earthmoving, remote access, and specialized construction techniques, like this one, are common and often represent substantial investments.

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: SEALED BID

Solicitation ID: 69056725B000001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 OLD SEWARD HWY STE 101, ANCHORAGE, AK, 99503

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,527,341

Exercised Options: $22,527,341

Current Obligation: $22,527,341

Actual Outlays: $9,524,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline