DOT Awards $62.1M Highway Construction Contract to Estes Bros. Const. Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $62,149,395 ($62.1M)

Contractor: Estes Bros. Const. Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-11-06

End Date: 2025-05-21

Contract Duration: 1,657 days

Daily Burn Rate: $37.5K/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: TO SOLICIT PROJECT: NP-NATR 2A18,B7,C6,D11,3A17,B9.

Place of Performance

Location: BOONEVILLE, TIPPAH County, MISSISSIPPI, 38829

State: Mississippi Government Spending

Plain-Language Summary

Department of Transportation obligated $62.1 million to ESTES BROS. CONST. INC. for work described as: TO SOLICIT PROJECT: NP-NATR 2A18,B7,C6,D11,3A17,B9. Key points: 1. Contract awarded for highway, street, and bridge construction. 2. Estes Bros. Const. Inc. is the sole awardee. 3. The contract has a duration of 1657 days. 4. Firm Fixed Price contract type indicates price certainty.

Value Assessment

Rating: good

The award amount of $62.1M for highway construction appears reasonable given the contract duration of over 4.5 years. Benchmarking against similar large-scale infrastructure projects would provide further context.

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,' suggesting a competitive process was initiated but potentially narrowed. The price discovery mechanism is likely robust due to the competitive nature.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for infrastructure development.

Public Impact

Improves transportation infrastructure in Mississippi. Supports economic activity through construction. Ensures public safety through road and bridge maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction projects.
Reliance on a single contractor for a significant duration.

Positive Signals

Clear contract type (Firm Fixed Price) for cost control.
Long-term duration allows for phased development and planning.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical area for public infrastructure. Spending in this sector is often substantial and driven by government investment in transportation networks.

Small Business Impact

The data indicates that small business participation was not a specific requirement or outcome for this particular contract, as the awardee is Estes Bros. Const. Inc. and the 'sb' field is false.

Oversight & Accountability

The Federal Highway Administration, under the Department of Transportation, is responsible for overseeing this contract. Robust oversight is crucial for ensuring project milestones are met and quality standards are maintained.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Contract duration is extensive, increasing risk of unforeseen issues.
Competition method 'After Exclusion of Sources' warrants further scrutiny.
No explicit small business set-aside noted.
Potential for scope creep in large infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $62.1 million to ESTES BROS. CONST. INC.. TO SOLICIT PROJECT: NP-NATR 2A18,B7,C6,D11,3A17,B9.

Who is the contractor on this award?

The obligated recipient is ESTES BROS. CONST. INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $62.1 million.

What is the period of performance?

Start: 2020-11-06. End: 2025-05-21.

What specific infrastructure improvements does this contract entail, and how do they align with regional transportation goals?

The contract is for general highway, street, and bridge construction (NAICS 237310). Specific project details are not provided in the data. Alignment with regional goals would require reviewing the Federal Highway Administration's strategic plans for Mississippi and the specific solicitations under NP-NATR 2A18,B7,C6,D11,3A17,B9.

What were the key factors that led to the exclusion of other sources in the 'Full and Open Competition After Exclusion of Sources' process?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique qualifications are required that only a limited number of contractors possess. The contracting agency would have documented these criteria in the solicitation, justifying why only certain firms were initially considered or why others were eliminated.

How does the firm fixed price structure mitigate risks associated with potential cost overruns in a multi-year construction project?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage expenses efficiently and accurately estimate project costs upfront.

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: TWO STEP

Solicitation ID: 693C7320R000009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 126 SUGAR RUN RD, JONESVILLE, VA, 24263

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

Financial Breakdown

Contract Ceiling: $74,509,384

Exercised Options: $66,061,384

Current Obligation: $62,149,395

Actual Outlays: $62,149,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline