DOT awards $29.7M for North Carolina highway reclamation and paving, with 2 bids received

Contract Overview

Contract Amount: $29,698,622 ($29.7M)

Contractor: Bryant's Land and Development Industries, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-05-25

End Date: 2028-05-31

Contract Duration: 1,833 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NP-GRSM 10N(3), 19(1), 107(1): SCHEDULE A - LAKEVIEW DRIVE EAST (SWAIN COUNTY, NC). WORK INCLUDES PERFORMING FULL DEPTH RECLAMATION WITH CEMENT STABILIZATION AND CONSTRUCTING ASPHALT CONCRETE PAVEMENT OF 6.41 MILES OF LAKEVIEW DRIVE EAST AN

Place of Performance

Location: ALMOND, SWAIN County, NORTH CAROLINA, 28702

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $29.7 million to BRYANT'S LAND AND DEVELOPMENT INDUSTRIES, INC. for work described as: PROJECT NP-GRSM 10N(3), 19(1), 107(1): SCHEDULE A - LAKEVIEW DRIVE EAST (SWAIN COUNTY, NC). WORK INCLUDES PERFORMING FULL DEPTH RECLAMATION WITH CEMENT STABILIZATION AND CONSTRUCTING ASPHALT CONCRETE PAVEMENT OF 6.41 MILES OF LAKEVIEW DRIVE EAST AN Key points: 1. Value for money appears reasonable given the scope of extensive road reclamation and paving. 2. Competition dynamics suggest a moderate level of interest with two bids submitted. 3. Risk indicators are low, with a firm-fixed-price contract and a clear scope of work. 4. Performance context involves significant infrastructure work on a major state route. 5. Sector positioning is within highway construction, a critical component of transportation infrastructure.

Value Assessment

Rating: good

The contract value of approximately $29.7 million for 6.41 miles of full-depth reclamation and asphalt paving is within a reasonable range for such extensive infrastructure work. Benchmarking against similar projects would require more granular data on specific reclamation techniques and material costs, but the overall price appears competitive for the scope. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the intent was open competition, specific circumstances led to excluding some potential bidders. Only two bids were received, which is a moderate level of competition. This suggests that while the opportunity was advertised, the specific requirements or pre-qualification criteria may have limited the pool of interested and capable contractors.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most aggressive pricing that could have resulted from broader competition. However, the presence of two bids still provides a basis for price comparison and negotiation.

Public Impact

Residents and businesses in Swain County, North Carolina, will benefit from improved road conditions and reduced travel times. The project delivers essential highway maintenance and construction services, enhancing the state's transportation network. Geographic impact is concentrated in Swain County, North Carolina, along Lakeview Drive East. Workforce implications include job creation for construction workers, engineers, and support staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a more robust bidding process.
Potential for scope creep if unforeseen issues arise during the reclamation process.
Dependence on a single contractor for a significant infrastructure project.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Clear definition of work scope for reclamation and paving.
Contract awarded to a company with experience in land and development industries.

Sector Analysis

This contract falls within the highway, street, and bridge construction sector, a vital part of the broader construction and transportation industries. The market for such projects is driven by government infrastructure spending, with significant investments allocated annually for road maintenance and upgrades. Comparable spending benchmarks would typically be analyzed on a per-mile or per-lane-mile basis, factoring in the complexity of the work.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor, Bryant's Land and Development Industries, Inc., may be a small business itself, there is no explicit requirement for subcontracting to small businesses mandated in the provided data. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Highway Administration. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Programs
National Highway System
Surface Transportation Block Grants
Infrastructure Investment and Jobs Act

Risk Flags

Limited competition
Potential for cost overruns if scope is not well-defined
Weather-related delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $29.7 million to BRYANT'S LAND AND DEVELOPMENT INDUSTRIES, INC.. PROJECT NP-GRSM 10N(3), 19(1), 107(1): SCHEDULE A - LAKEVIEW DRIVE EAST (SWAIN COUNTY, NC). WORK INCLUDES PERFORMING FULL DEPTH RECLAMATION WITH CEMENT STABILIZATION AND CONSTRUCTING ASPHALT CONCRETE PAVEMENT OF 6.41 MILES OF LAKEVIEW DRIVE EAST AN

Who is the contractor on this award?

The obligated recipient is BRYANT'S LAND AND DEVELOPMENT INDUSTRIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2023-05-25. End: 2028-05-31.

What is the track record of Bryant's Land and Development Industries, Inc. with federal contracts?

Information on the track record of Bryant's Land and Development Industries, Inc. with federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar projects, including adherence to schedules, quality of work, and any history of disputes or contract modifications. Federal procurement databases would be the primary source for this information, allowing for an analysis of their experience with the government and their capacity to handle projects of this scale and complexity. Without this historical data, it is difficult to fully gauge their reliability and past performance.

How does the cost per mile for this project compare to national averages for similar highway construction?

The project covers 6.41 miles at a cost of approximately $29.7 million, equating to roughly $4.63 million per mile. National averages for highway construction can vary significantly based on factors like terrain, complexity of work (e.g., full-depth reclamation vs. simple resurfacing), material costs, and labor rates. While $4.63 million per mile for full-depth reclamation and paving is substantial, it may be within the expected range for such intensive work, especially in specific geographic areas or challenging conditions. A precise comparison would necessitate detailed cost breakdowns and benchmarking against projects with identical scopes in comparable regions.

What are the primary risks associated with full-depth reclamation and asphalt paving projects of this magnitude?

Primary risks for a project of this magnitude include unforeseen subsurface conditions (e.g., unexpected soil types, utilities, or geological issues) that could increase costs or delay the schedule. Weather can also be a significant risk, impacting the ability to perform reclamation and paving operations effectively and on time. Material price fluctuations for cement, asphalt, and aggregate could affect project costs if not adequately managed within the contract's terms. Contractor performance, including quality control and adherence to safety standards, is another key risk area. Finally, environmental compliance and permitting can introduce complexities and potential delays.

How effective are firm-fixed-price contracts in managing costs for large infrastructure projects like this one?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs on large infrastructure projects when the scope of work is well-defined and risks are understood. They shift the primary cost risk to the contractor, incentivizing them to control expenses and work efficiently to maximize profit. This provides budget certainty for the government. However, if the scope is not precisely defined or unforeseen issues arise, contractors may seek change orders, potentially increasing the total cost. The success of an FFP contract hinges on thorough pre-award planning, clear specifications, and robust contract administration to prevent scope creep and ensure quality.

What is the historical spending trend for highway construction by the Department of Transportation in North Carolina?

Analyzing the historical spending trend for highway construction by the Department of Transportation in North Carolina would require access to multi-year budget and contract award data. Generally, federal and state transportation agencies allocate significant portions of their budgets to maintaining and upgrading the highway infrastructure. Spending levels can fluctuate based on economic conditions, federal funding initiatives (like infrastructure bills), and the prioritization of specific projects. North Carolina, like many states, has ongoing needs for road improvements due to population growth, increased traffic volume, and aging infrastructure, suggesting a consistent, albeit variable, level of spending in this sector.

What are the implications of 'Full and Open Competition After Exclusion of Sources' on overall government procurement efficiency?

The 'Full and Open Competition After Exclusion of Sources' (FOCAES) procedure is a specific contracting method that allows agencies to exclude certain sources from a competitive procurement after initially intending full and open competition. This is typically used when only a limited number of responsible sources can meet the specific requirements, or when it is otherwise not practicable to include all potential sources. While it aims for competition among a select group, it can reduce the overall number of bidders compared to true full and open competition. This might impact price discovery and potentially lead to higher costs for taxpayers if the excluded sources could have offered more competitive pricing. Its efficiency depends on the justification for excluding sources and whether the remaining competition is sufficient.

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: 693C7323R000019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 159 DEPOT ST, BURNSVILLE, NC, 28714

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,698,622

Exercised Options: $29,698,622

Current Obligation: $29,698,622

Actual Outlays: $26,558,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline