Department of Transportation awards $28.6M contract for Foothills Parkway infrastructure, with 1 bidder

Contract Overview

Contract Amount: $28,567,648 ($28.6M)

Contractor: Estes Bros. Const. Inc.

Awarding Agency: Department of Transportation

Start Date: 2022-01-26

End Date: 2024-06-13

Contract Duration: 869 days

Daily Burn Rate: $32.9K/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: PROJECT NP-FOOT 8G16, 8H10: THE WORK INCLUDES FULL DEPTH RECLAMATION OF FOOTHILLS PARKWAY SECTIONS 8G AND 8H MAINLINE, PARKING AREAS, AND PULL-OFFS; ESTABLISHING ROADSIDE DITCHES AND RECONDITIONING PAVED WATERWAYS; REPLACING SIGNS AND PAVEMENT MARKI

Place of Performance

Location: ALCOA, BLOUNT County, TENNESSEE, 37701

State: Tennessee Government Spending

Plain-Language Summary

Department of Transportation obligated $28.6 million to ESTES BROS. CONST. INC. for work described as: PROJECT NP-FOOT 8G16, 8H10: THE WORK INCLUDES FULL DEPTH RECLAMATION OF FOOTHILLS PARKWAY SECTIONS 8G AND 8H MAINLINE, PARKING AREAS, AND PULL-OFFS; ESTABLISHING ROADSIDE DITCHES AND RECONDITIONING PAVED WATERWAYS; REPLACING SIGNS AND PAVEMENT MARKI Key points: 1. Contract focuses on critical infrastructure upgrades for Foothills Parkway sections. 2. The project involves full depth reclamation, paving, and signage replacement. 3. A single bidder participated in the procurement process. 4. The contract is a firm-fixed-price definitive contract. 5. Work is concentrated in Tennessee, impacting local infrastructure. 6. The duration of the contract is approximately 869 days.

Value Assessment

Rating: fair

The contract value of $28.6 million for highway construction appears within a reasonable range for a project of this scope, involving full depth reclamation and paving. However, without specific benchmarks for similar large-scale parkway rehabilitation projects in Tennessee or comparable regions, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the limited competition raises questions about whether the government secured the most competitive pricing possible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically implies that while the competition was intended to be open, specific sources were excluded, or there was a justification for limiting the pool. The data indicates only one bidder, Estes Bros. Const. Inc., participated. This limited competition could suggest potential barriers to entry for other firms or a lack of market interest, which may impact price negotiation.

Taxpayer Impact: With only one bidder, taxpayers may not have benefited from the competitive pressure that typically drives down prices. The government may have had less leverage to negotiate a lower cost, potentially leading to a higher overall expenditure than if multiple bids had been received.

Public Impact

Benefits park visitors and local residents through improved road safety and accessibility. Delivers essential road maintenance and infrastructure upgrades for a significant national parkway. Geographic impact is concentrated in Tennessee, specifically along Foothills Parkway. Supports the construction workforce through employment opportunities during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than achievable in a more robust bidding environment.
The 'Exclusion of Sources' clause warrants further investigation into the reasons for limiting the bidder pool.
Lack of multiple bids could indicate potential market concentration or challenges for other contractors to meet requirements.

Positive Signals

The firm-fixed-price contract provides cost predictability for the government.
The project addresses necessary infrastructure maintenance, ensuring the longevity of the parkway.
The contractor, Estes Bros. Const. Inc., is undertaking a significant infrastructure project.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the construction industry. Federal spending in this area is crucial for maintaining and upgrading national transportation infrastructure. Comparable spending benchmarks for similar parkway rehabilitation projects can vary widely based on project complexity, location, and specific requirements. The $28.6 million award is substantial, reflecting the scale of the full depth reclamation and associated work.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contractor is likely a larger entity, and the impact on the small business ecosystem would depend on whether they engage small businesses for specialized services or materials, which is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) within the Department of Transportation. Accountability measures are embedded in the firm-fixed-price contract terms, requiring completion of specified work. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
National Park Service Infrastructure Maintenance
Appalachian Development Highway System Projects

Risk Flags

Limited competition (1 bidder)
Potential for uncompetitive pricing due to limited bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $28.6 million to ESTES BROS. CONST. INC.. PROJECT NP-FOOT 8G16, 8H10: THE WORK INCLUDES FULL DEPTH RECLAMATION OF FOOTHILLS PARKWAY SECTIONS 8G AND 8H MAINLINE, PARKING AREAS, AND PULL-OFFS; ESTABLISHING ROADSIDE DITCHES AND RECONDITIONING PAVED WATERWAYS; REPLACING SIGNS AND PAVEMENT MARKI

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 $28.6 million.

What is the period of performance?

Start: 2022-01-26. End: 2024-06-13.

What is the typical cost range for full depth reclamation projects of similar scale on national parkways?

Determining a precise 'typical' cost range for full depth reclamation (FDR) projects on national parkways is complex due to significant variability in project specifics. Factors such as the length and width of the roadway, the type and depth of existing pavement, soil conditions, environmental considerations, and the specific requirements for new pavement structure all heavily influence costs. For a project involving extensive reclamation and paving over approximately 869 days, a $28.6 million award suggests a substantial undertaking. Generally, FDR costs can range from $50 to $200 per square yard, but this is a very broad estimate. Larger, more complex projects on parkways, which often have stricter aesthetic and environmental requirements, can push costs higher. Without detailed engineering reports and scope comparisons, it's difficult to benchmark this specific contract precisely against a 'typical' range, but the scale of the work suggests a significant investment.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' (FACCES) indicates a procurement process that aimed for broad competition but ultimately excluded certain potential offerors. This exclusion could be based on various factors, such as specific technical capabilities, past performance requirements, or national security considerations, which were deemed necessary for this particular project. While the intent is to ensure fair competition among eligible sources, the fact that only one bid was received suggests that the exclusion criteria may have significantly narrowed the field, or that other potential bidders were unable or unwilling to participate. This situation warrants scrutiny to ensure that the exclusion criteria were justified and did not unduly restrict competition, potentially impacting the final price and value obtained for the government.

How does the firm-fixed-price contract type affect risk and cost for this project?

A firm-fixed-price (FFP) contract is generally advantageous for the government when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the risk for cost overruns. This provides the government with cost certainty, as the price is fixed regardless of the contractor's actual costs. For this $28.6 million Foothills Parkway project, the FFP structure means the Department of Transportation knows the maximum expenditure. However, it also means that if the contractor encounters unforeseen difficulties that increase their costs, they must absorb them, which could potentially lead them to build higher contingencies into their initial bid price. Conversely, if the contractor is highly efficient, they retain any cost savings, which is a key incentive for performance under this contract type.

What is the track record of Estes Bros. Const. Inc. in federal highway construction?

Estes Bros. Const. Inc. has a track record of performing federal highway construction projects. As the sole bidder on this $28.6 million contract for the Foothills Parkway, their ability to undertake large-scale infrastructure work is implied. A deeper analysis of their past performance would involve reviewing their contract history, including the types and values of previous federal awards, their on-time and on-budget completion rates, and any documented instances of performance issues or disputes. Federal procurement data systems often contain performance ratings and award histories that can provide further insight into their reliability and expertise in managing complex construction projects similar to this one. Without access to that detailed historical data, it's difficult to provide a comprehensive assessment of their track record beyond their capacity to bid on and win this significant contract.

What are the potential long-term benefits of this infrastructure investment?

The long-term benefits of this $28.6 million infrastructure investment in the Foothills Parkway are multifaceted. Primarily, it ensures the continued safety and usability of a key transportation corridor, reducing the risk of accidents and closures due to deteriorating road conditions. The full depth reclamation and repaving will extend the lifespan of the roadway, minimizing the need for frequent, costly repairs in the future. Improved infrastructure can also enhance tourism and economic activity in the surrounding region by making the parkway more accessible and appealing to visitors. Furthermore, by investing in durable infrastructure, the government is preserving a valuable public asset for future generations, ensuring its continued service for recreational and transportation purposes.

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: 693C7322R000001

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: $28,567,648

Exercised Options: $28,567,648

Current Obligation: $28,567,648

Actual Outlays: $28,567,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline