Blue Ridge Parkway Bridge Replacement Contract Awarded for $28.7M to Vannoy Structural Joint Venture

Contract Overview

Contract Amount: $28,680,062 ($28.7M)

Contractor: Vannoy Structural Joint Venture

Awarding Agency: Department of Transportation

Start Date: 2022-04-11

End Date: 2027-12-31

Contract Duration: 2,090 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NP-BLRI 2D17 THE PROJECT CONSISTS OF THE REPLACEMENT OF THE LAUREL FORK BRIDGE OF THE BLUE RIDGE PARKWAY LOCATED AT MILEPOST 248.85. THE WORK INCLUDES PRECAST SEGMENTAL CONCRETE, STRUCTURAL CONCRETE, POST-TENSIONING SYSTEM, REINFORCING STEEL

Place of Performance

Location: WEST JEFFERSON, ASHE County, NORTH CAROLINA, 28694

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $28.7 million to VANNOY STRUCTURAL JOINT VENTURE for work described as: PROJECT NP-BLRI 2D17 THE PROJECT CONSISTS OF THE REPLACEMENT OF THE LAUREL FORK BRIDGE OF THE BLUE RIDGE PARKWAY LOCATED AT MILEPOST 248.85. THE WORK INCLUDES PRECAST SEGMENTAL CONCRETE, STRUCTURAL CONCRETE, POST-TENSIONING SYSTEM, REINFORCING STEEL Key points: 1. The contract focuses on replacing the Laurel Fork Bridge, a critical infrastructure component on the Blue Ridge Parkway. 2. The project utilizes precast segmental concrete and structural concrete, indicating a modern construction approach. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract type is a definitive contract with a firm fixed price, providing cost certainty. 5. The project duration is substantial, spanning over 2000 days, highlighting the scale of the undertaking. 6. The geographic location in North Carolina places the project within a region known for its scenic parkways.

Value Assessment

Rating: good

The contract value of approximately $28.7 million for a major bridge replacement appears reasonable given the scope of work, which includes complex elements like precast segmental concrete and post-tensioning. Benchmarking against similar large-scale bridge construction projects managed by the Federal Highway Administration would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no: 2) suggests a moderate level of competition for this specialized infrastructure project. While two bidders are better than one, a higher number could potentially drive prices down further.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible price and quality through a wide range of potential contractors.

Public Impact

The primary beneficiaries are users of the Blue Ridge Parkway, who will benefit from a safer and more durable bridge. The project delivers essential infrastructure repair and replacement services, ensuring the continued accessibility and integrity of the parkway. The geographic impact is localized to milepost 248.85 of the Blue Ridge Parkway in North Carolina. The project will likely involve a significant workforce in the construction sector, including skilled laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting parkway access and tourism.
Complexity of precast segmental concrete construction requires specialized expertise and quality control.
Long project duration increases exposure to potential material cost fluctuations or unforeseen site conditions.

Positive Signals

Firm fixed-price contract provides cost certainty and limits government financial risk.
Full and open competition suggests a robust bidding process to achieve value.
Award to a joint venture may indicate capacity to handle large-scale, complex projects.

Sector Analysis

The construction sector, specifically highway, street, and bridge construction, is a significant area of federal spending. This contract fits within the broader category of transportation infrastructure investment, which is crucial for national connectivity and economic activity. Comparable spending benchmarks for bridge replacements of this scale can vary widely based on location, complexity, and material choices, but projects in the tens of millions are common for major structures.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Further investigation into the contract's subcontracting plan would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA) through the Department of Transportation. The definitive contract structure and firm fixed-price nature imply clear deliverables and payment schedules. Transparency is generally maintained through contract award databases and public reporting, though specific oversight mechanisms like regular site inspections and progress reports are standard for such projects.

Related Government Programs

Federal Highway Administration Bridge Improvement Programs
National Park Service Infrastructure Projects
Blue Ridge Parkway Maintenance and Operations

Risk Flags

Potential for construction delays due to weather or site conditions.
Risk of cost overruns if unforeseen issues arise, despite fixed-price contract.
Ensuring quality and durability of specialized construction techniques (precast segmental, post-tensioning).

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $28.7 million to VANNOY STRUCTURAL JOINT VENTURE. PROJECT NP-BLRI 2D17 THE PROJECT CONSISTS OF THE REPLACEMENT OF THE LAUREL FORK BRIDGE OF THE BLUE RIDGE PARKWAY LOCATED AT MILEPOST 248.85. THE WORK INCLUDES PRECAST SEGMENTAL CONCRETE, STRUCTURAL CONCRETE, POST-TENSIONING SYSTEM, REINFORCING STEEL

Who is the contractor on this award?

The obligated recipient is VANNOY STRUCTURAL JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.7 million.

What is the period of performance?

Start: 2022-04-11. End: 2027-12-31.

What is the track record of Vannoy Structural Joint Venture in completing similar large-scale bridge construction projects?

Vannoy Structural Joint Venture's track record in completing large-scale bridge construction projects is a critical factor in assessing project risk and performance. While the provided data identifies them as the contractor, it does not detail their past performance history. A thorough review would involve examining their portfolio of completed projects, including their size, complexity, adherence to schedule and budget, and any reported issues or disputes. Federal contract databases and industry reports can offer insights into their experience with precast segmental concrete and post-tensioning systems, which are key components of the Laurel Fork Bridge replacement. Understanding their past successes and challenges will help gauge their capability to deliver this project successfully.

How does the awarded amount of $28.7 million compare to the estimated cost or bids from other potential contractors?

The awarded amount of $28.7 million represents the government's final commitment for the Laurel Fork Bridge replacement. To assess value for money, this figure should be compared against the initial cost estimates developed by the Department of Transportation and the bids submitted by other competing firms. The data indicates two bids were received (no: 2). If the awarded amount is significantly lower than the estimate and other bids, it suggests a competitive process yielded favorable pricing. Conversely, if it aligns closely with or exceeds the estimate, further scrutiny of the bidding landscape and project scope may be warranted. Benchmarking against similar bridge projects in terms of cost per linear foot or square foot can also provide external validation of the pricing.

What are the primary risks associated with the use of precast segmental concrete and post-tensioning systems in this project?

The use of precast segmental concrete and post-tensioning systems in the Laurel Fork Bridge replacement introduces specific risks that require careful management. Precast segmental construction involves manufacturing large concrete sections off-site and assembling them in place, which demands high precision in fabrication and erection to ensure proper fit and structural integrity. Post-tensioning, a method of strengthening concrete, requires specialized knowledge and equipment to apply the correct tensioning forces accurately. Risks include potential defects in the precast segments, issues with segment alignment during erection, and improper application of post-tensioning, which could compromise the bridge's long-term durability and safety. Rigorous quality control, experienced personnel, and detailed inspection protocols are essential to mitigate these risks.

What is the expected impact of this contract on the local economy in North Carolina, particularly in the region of the Blue Ridge Parkway?

This contract is expected to have a positive impact on the local economy in North Carolina, particularly in the region surrounding the Blue Ridge Parkway. The $28.7 million investment will create jobs in the construction sector, including roles for skilled laborers, engineers, project managers, and support staff. Local businesses may also benefit from increased demand for materials, equipment rental, and services. Furthermore, the successful completion of the bridge replacement will ensure the continued accessibility and appeal of the Blue Ridge Parkway, supporting tourism and related economic activities in the area. The project's duration of over five years suggests a sustained economic stimulus.

How does the firm fixed-price contract type influence the government's financial exposure and the contractor's incentive to control costs?

A firm fixed-price (FFP) contract type is designed to provide the government with cost certainty and transfer most of the financial risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and to avoid cost overruns, as any excess costs would reduce their profit margin. For the government, this means the total expenditure is known upfront, simplifying budget planning and reducing the risk of unexpected cost increases. However, it also means that if the contractor is exceptionally efficient and completes the project under budget, they retain the savings, which could represent a missed opportunity for the government to secure a lower price if the initial estimate was too high.

What is the significance of the Blue Ridge Parkway's location (milepost 248.85) in terms of accessibility and potential construction challenges?

The Blue Ridge Parkway's location at milepost 248.85 is significant for several reasons, impacting both accessibility and construction challenges. This specific location is within a mountainous region, which can present logistical hurdles for transporting large construction materials and equipment. Access to the site might be limited, potentially requiring temporary road construction or specialized transport methods. Furthermore, the environmental sensitivity of a parkway setting necessitates careful planning to minimize disruption to the natural landscape and wildlife. Construction activities may also be subject to seasonal weather limitations, such as winter closures or periods of heavy rain, which can extend the project timeline and increase costs. The scenic nature of the parkway also means that aesthetic considerations might play a role in the construction and final appearance of the bridge.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 693C7322R000008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1608 US HIGHWAY 221 N, JEFFERSON, NC, 28640

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,680,062

Exercised Options: $28,680,062

Current Obligation: $28,680,062

Actual Outlays: $27,802,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline