DOT awards $32.6M for Mississippi highway repairs, with 3 bidders competing for the 780-day project

Contract Overview

Contract Amount: $32,592,744 ($32.6M)

Contractor: Estes Bros. Const. Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-04-21

End Date: 2027-06-10

Contract Duration: 780 days

Daily Burn Rate: $41.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: NP NATR 3N18, 3H27, ETC - GEOTECHNICAL, PAVEMENT REHABILITATION, AND STRUCTURAL REPAIRS BETWEEN MP 121 AND MP 204 (PHASE 2), PROJECT MS NP NATR 3N18 3H27 ETC, SOLICITATION NUMBER 693C73-25-B-000003, LOCATED IN ATTALA, CHOCTAW, LEAKE, MADISON, AND WEB

Place of Performance

Location: ETHEL, ATTALA County, MISSISSIPPI, 39067

State: Mississippi Government Spending

Plain-Language Summary

Department of Transportation obligated $32.6 million to ESTES BROS. CONST. INC. for work described as: NP NATR 3N18, 3H27, ETC - GEOTECHNICAL, PAVEMENT REHABILITATION, AND STRUCTURAL REPAIRS BETWEEN MP 121 AND MP 204 (PHASE 2), PROJECT MS NP NATR 3N18 3H27 ETC, SOLICITATION NUMBER 693C73-25-B-000003, LOCATED IN ATTALA, CHOCTAW, LEAKE, MADISON, AND WEB Key points: 1. The contract value represents a significant investment in regional infrastructure, focusing on critical road maintenance. 2. Competition dynamics suggest a healthy market for these specialized construction services. 3. The firm-fixed-price structure aims to control costs and provide predictability for the government. 4. Project duration indicates a substantial scope of work, requiring extensive planning and execution. 5. Geographic focus on multiple Mississippi counties highlights the contract's impact on local transportation networks.

Value Assessment

Rating: good

The contract value of $32.6 million for highway, street, and bridge construction appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. The number of bidders (3) suggests a competitive environment, which typically leads to more favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bids were received, suggesting a moderate level of competition for this specific project. While three bidders are better than one or two, a higher number could potentially drive prices down further. The agency's approach to competition appears standard for a project of this nature.

Taxpayer Impact: The full and open competition with three bidders likely resulted in a fair market price for taxpayers, avoiding the potential overpricing associated with sole-source or limited competition awards.

Public Impact

Residents and businesses in Attala, Choctaw, Leake, Madison, and Webster counties in Mississippi will benefit from improved road conditions. The project will deliver essential geotechnical, pavement rehabilitation, and structural repairs to highways. Improved transportation infrastructure can lead to reduced travel times, lower vehicle maintenance costs, and enhanced safety for users. The construction activities will likely create temporary employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the delivery of essential repairs.
Weather-related disruptions could affect project timelines and costs.
Ensuring quality of work across extensive repair zones requires diligent oversight.

Positive Signals

Firm-fixed-price contract helps manage budget certainty.
Full and open competition suggests a competitive bidding process.
Project addresses critical infrastructure needs, enhancing safety and efficiency.

Sector Analysis

The highway, street, and bridge construction sector is a vital component of the U.S. economy, responsible for maintaining and upgrading critical transportation infrastructure. This contract falls within the broader construction industry, specifically focusing on heavy civil engineering projects. Spending in this sector is often driven by federal and state infrastructure initiatives, aiming to improve mobility, safety, and economic development. Comparable spending benchmarks would typically be assessed against the total annual federal outlays for highway construction and maintenance.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The prime contractor, Estes Bros. Const. Inc., is likely a larger entity capable of handling the project's scale. Further analysis would be needed to determine if small businesses will be involved as subcontractors, which is common in large construction projects.

Oversight & Accountability

The Federal Highway Administration (FHWA) within the Department of Transportation is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reports, site inspections, and quality assurance checks to ensure compliance with contract terms and specifications. Accountability measures are embedded in the firm-fixed-price structure and performance requirements. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Federal Highway Administration Grants
National Highway System Program
Infrastructure Investment and Jobs Act Projects
State Transportation Improvement Programs

Risk Flags

Potential for cost overruns if unforeseen site conditions are encountered.
Risk of project delays due to weather or logistical challenges.
Ensuring adequate quality control across a large-scale repair project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $32.6 million to ESTES BROS. CONST. INC.. NP NATR 3N18, 3H27, ETC - GEOTECHNICAL, PAVEMENT REHABILITATION, AND STRUCTURAL REPAIRS BETWEEN MP 121 AND MP 204 (PHASE 2), PROJECT MS NP NATR 3N18 3H27 ETC, SOLICITATION NUMBER 693C73-25-B-000003, LOCATED IN ATTALA, CHOCTAW, LEAKE, MADISON, AND WEB

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 $32.6 million.

What is the period of performance?

Start: 2025-04-21. End: 2027-06-10.

What is the track record of Estes Bros. Const. Inc. on similar federal contracts?

A review of federal contract databases would be necessary to fully assess Estes Bros. Const. Inc.'s track record. This would involve examining past performance on projects of similar size, scope, and complexity, particularly those involving geotechnical, pavement rehabilitation, and structural repairs. Key metrics to evaluate would include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. Understanding their past performance provides insight into their capability to successfully execute the current $32.6 million contract for the Department of Transportation.

How does the awarded price compare to the estimated cost or independent government cost estimate?

The provided data does not include the government's estimated cost or the independent government cost estimate for this project. To assess value for money, this contract's awarded price of $32.6 million should be compared against these benchmarks. If the awarded price is significantly below the estimate, it could indicate aggressive bidding or potential underestimation of work. Conversely, a price close to or exceeding the estimate might suggest a competitive market or a realistic assessment of project costs. Without the estimate, a definitive value comparison is challenging.

What are the primary risks associated with this specific highway repair project?

The primary risks associated with this highway repair project include potential weather-related delays, especially given the project's duration of 780 days, which spans multiple seasons. Unforeseen subsurface conditions (geotechnical issues) could lead to scope changes and cost increases, despite the firm-fixed-price contract. Traffic management during construction is another significant risk, potentially causing disruptions and safety concerns for motorists. Finally, ensuring consistent quality of work across the extensive repair zones (MP 121 to MP 204) requires robust oversight to prevent future structural failures or premature deterioration.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined, as is typical for highway repairs. It shifts the risk of cost overruns to the contractor, Estes Bros. Const. Inc., providing budget certainty for the Department of Transportation. However, if unforeseen issues arise that necessitate significant scope changes (e.g., unexpected geotechnical problems), the FFP structure can sometimes lead to contract modifications and negotiations, potentially increasing the overall cost. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to manage their own costs.

What is the historical spending trend for similar highway repair contracts by the Department of Transportation?

Analyzing historical spending trends for similar highway repair contracts by the Department of Transportation would require access to comprehensive federal procurement data. This analysis would involve identifying contracts with comparable scope (geotechnical, pavement, structural repairs), duration, and geographic focus within Mississippi or similar states. Trends to look for would include average contract values, number of bidders over time, fluctuations in pricing, and the prevalence of different contract types. Such a trend analysis would help determine if the current $32.6 million award is consistent with historical spending patterns or represents an outlier.

What is the potential impact of this contract on the local economy in the affected Mississippi counties?

This $32.6 million contract is expected to have a positive impact on the local economy in Attala, Choctaw, Leake, Madison, and Webster counties. The project will create direct employment opportunities for construction workers, engineers, and project managers. Indirectly, it will benefit local businesses through the supply chain, including material suppliers, equipment rental companies, and service providers. Furthermore, improved road infrastructure can enhance commerce, attract investment, and reduce transportation costs for local businesses and residents, contributing to long-term economic development in the region.

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: SEALED BID

Solicitation ID: 693C7325B000003

Offers Received: 3

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,592,744

Exercised Options: $32,592,744

Current Obligation: $32,592,744

Actual Outlays: $10,092,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline