Transportation contract awarded to JAL CONSTRUCTION, INC. for $5.88M to build historic Columbia River Highway State Trail

Contract Overview

Contract Amount: $5,883,242 ($5.9M)

Contractor: JAL Construction, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-11-04

End Date: 2026-12-31

Contract Duration: 422 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FUNDS CONSTRUCTION CONTRACT OR FLAP DOT CRGNSA 100(9), HISTORIC COLUMBIA RIVER HIGHWAY STATE TRAIL, PERHAM CREEK TO MITCHELL POINT. WORK INCLUDES CLEARING, EXCAVATION, GRADING, WALLS, BRIDGE, DRAINAGE, AND PAVING.

Place of Performance

Location: HOOD RIVER, HOOD RIVER County, OREGON, 97031

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $5.9 million to JAL CONSTRUCTION, INC. for work described as: FUNDS CONSTRUCTION CONTRACT OR FLAP DOT CRGNSA 100(9), HISTORIC COLUMBIA RIVER HIGHWAY STATE TRAIL, PERHAM CREEK TO MITCHELL POINT. WORK INCLUDES CLEARING, EXCAVATION, GRADING, WALLS, BRIDGE, DRAINAGE, AND PAVING. Key points: 1. Contract value of $5.88M for trail construction, including clearing, excavation, grading, walls, bridge, drainage, and paving. 2. Awarded under a definitive contract type with a firm fixed price, indicating clear cost expectations. 3. Competition was 'Full and Open Competition After Exclusion of Sources' with 7 bidders, suggesting a competitive process. 4. Project duration is 422 days, aligning with typical infrastructure development timelines. 5. The contract is for highway, street, and bridge construction, a common category for federal infrastructure spending. 6. Located in Oregon, this project aims to enhance recreational access and preserve historical significance.

Value Assessment

Rating: good

The contract value of $5.88M appears reasonable for a multi-faceted trail construction project of this scope. Benchmarking against similar federal highway and bridge construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has secured predictable costs, though the final cost will depend on the contractor's efficiency. The bid-ask ratio, if available, would further illuminate pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the process was competitive, certain sources were initially excluded. With 7 bidders, the competition level appears healthy, suggesting that multiple firms were interested and capable of undertaking the project. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging the selection of the most capable and cost-effective contractor.

Public Impact

Benefits recreational users by providing access to the historic Columbia River Highway State Trail. Services delivered include construction of trail infrastructure, including a bridge and paving. Geographic impact is concentrated in Oregon, specifically along the Columbia River. Workforce implications include job creation for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex infrastructure projects, requiring diligent oversight.
Weather-related delays in Oregon could impact project timeline and costs.
Ensuring compliance with environmental regulations during construction is critical.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Healthy competition with 7 bidders suggests a robust market response.
Project aims to enhance a historic and recreational asset, offering public benefit.

Sector Analysis

The contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of federal infrastructure spending. This sector is characterized by large-scale projects requiring specialized engineering and construction capabilities. Federal Highway Administration contracts often support state and local initiatives to improve transportation networks and public access. Comparable spending benchmarks would involve analyzing the cost per mile or per unit of infrastructure built in similar terrain and environmental conditions.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a firm fixed-price contract awarded through full and open competition, the primary focus is on selecting the best overall value. Further analysis would be needed to determine if JAL CONSTRUCTION, INC. has a history of subcontracting with small businesses or if there are opportunities for small business participation in this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration, a division of the Department of Transportation. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Construction Projects
National Park Service Trail Development
State and Local Infrastructure Grants
Recreational Trail Program

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Environmental compliance during construction requires careful management.
Weather-related delays are a common risk in outdoor construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.9 million to JAL CONSTRUCTION, INC.. FUNDS CONSTRUCTION CONTRACT OR FLAP DOT CRGNSA 100(9), HISTORIC COLUMBIA RIVER HIGHWAY STATE TRAIL, PERHAM CREEK TO MITCHELL POINT. WORK INCLUDES CLEARING, EXCAVATION, GRADING, WALLS, BRIDGE, DRAINAGE, AND PAVING.

Who is the contractor on this award?

The obligated recipient is JAL 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 $5.9 million.

What is the period of performance?

Start: 2025-11-04. End: 2026-12-31.

What is JAL CONSTRUCTION, INC.'s track record with federal contracts, particularly in highway and trail construction?

A review of federal contract databases would be necessary to fully assess JAL CONSTRUCTION, INC.'s track record. Key metrics to examine would include the number of previous federal awards, their value, the types of projects undertaken (e.g., highway, bridge, trail, general construction), and performance ratings if available. Understanding their history with similar firm fixed-price contracts and their success in meeting deadlines and budget constraints would provide valuable insight into their capability to execute this specific project. Any past performance issues or disputes could indicate potential risks.

How does the $5.88M contract value compare to similar trail construction projects funded by the Federal Highway Administration?

To benchmark the $5.88M contract value, one would compare it to similar Federal Highway Administration (FHWA) or state transportation department projects involving trail construction, bridge building, and site preparation. Factors such as project length, complexity (e.g., terrain, environmental considerations), and the scope of work (clearing, grading, paving, bridge construction) are crucial for a fair comparison. If data indicates that similar projects of comparable scale and complexity have been awarded for significantly less or more, it would suggest whether this contract represents a strong or weak value. The firm fixed-price nature suggests cost certainty, but the initial award amount is the primary point of comparison.

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

Primary risks for this contract include potential environmental challenges during construction (e.g., soil stability, water management), weather-related delays common in Oregon, and the possibility of unforeseen site conditions impacting costs or schedule, despite the firm fixed-price structure. Mitigation strategies likely involve detailed site assessments prior to award, robust environmental compliance plans, contingency planning for weather, and clear change order processes. The competitive bidding process itself helps mitigate risks by selecting a contractor with demonstrated experience and a competitive bid, implying they have adequately accounted for potential challenges in their pricing.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for taxpayer dollars in this context?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad competition with specific project needs. By excluding certain sources, the agency might be targeting specific capabilities or ensuring compliance with particular regulations. With 7 bidders, the competition appears robust, suggesting that the exclusion did not unduly limit the pool of qualified contractors. This level of competition generally drives down prices and encourages efficiency, leading to good value for taxpayers. However, the rationale for excluding specific sources would need to be examined to ensure it was justified and did not inadvertently reduce competition or increase costs.

What is the historical spending pattern for the Federal Highway Administration on similar trail and recreational infrastructure projects?

Analyzing historical spending patterns for the Federal Highway Administration (FHWA) on trail and recreational infrastructure projects would reveal trends in investment, average project costs, and the types of projects prioritized. This contract, valued at $5.88M, can be compared against the typical range of funding for similar initiatives. Understanding whether this represents a significant investment or a routine project within the FHWA's portfolio provides context. It also helps in assessing if spending in this area has been consistent, increasing, or decreasing over time, and how this specific award aligns with those broader trends.

What are the potential long-term economic and social impacts of developing the Historic Columbia River Highway State Trail?

The development of the Historic Columbia River Highway State Trail is expected to yield significant long-term economic and social benefits. Economically, it can boost tourism, creating jobs in hospitality, retail, and recreation sectors, and potentially increasing property values in surrounding areas. Socially, it enhances public access to natural and historical resources, promotes healthy lifestyles through outdoor recreation, and preserves a significant piece of Oregon's heritage. The trail can serve as a valuable community asset, fostering a sense of place and improving the quality of life for residents and visitors alike.

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: 69056725B000012

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 123 NE 4TH ST, BEND, OR, 97701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,883,242

Exercised Options: $5,883,242

Current Obligation: $5,883,242

Actual Outlays: $518,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline