DOT awards $4.68M contract for Natchez Trace Parkway resurfacing, highlighting firm fixed-price approach

Contract Overview

Contract Amount: $4,683,163 ($4.7M)

Contractor: Yorkshire Industries LLC

Awarding Agency: Department of Transportation

Start Date: 2025-05-07

End Date: 2028-04-30

Contract Duration: 1,089 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: PROJECT TN NP NATR 1H11 1J16 THE PROJECT CONSISTS OF RESURFACING APPROXIMATELY 9.5 MILES OF THE NATCHEZ TRACE PARKWAY FROM MP 354.3 TO 363.7, INCLUDING RAMPS, BRIDGES, AND PARKING AREAS. THE WORK INCLUDES ASPHALT CONCRETE PAVEMENT PATCHING, ASPHALT

Place of Performance

Location: COLLINWOOD, WAYNE County, TENNESSEE, 38450

State: Tennessee Government Spending

Plain-Language Summary

Department of Transportation obligated $4.7 million to YORKSHIRE INDUSTRIES LLC for work described as: PROJECT TN NP NATR 1H11 1J16 THE PROJECT CONSISTS OF RESURFACING APPROXIMATELY 9.5 MILES OF THE NATCHEZ TRACE PARKWAY FROM MP 354.3 TO 363.7, INCLUDING RAMPS, BRIDGES, AND PARKING AREAS. THE WORK INCLUDES ASPHALT CONCRETE PAVEMENT PATCHING, ASPHALT Key points: 1. The contract focuses on essential infrastructure maintenance, ensuring the longevity of a key national parkway. 2. A firm fixed-price contract structure aims to provide cost certainty for the government. 3. The project's scope includes resurfacing a significant 9.5-mile stretch, encompassing bridges and ramps. 4. Competition dynamics will be assessed to understand pricing efficiency for this specific type of construction. 5. Performance will be monitored against the defined scope and timeline to ensure successful project completion. 6. The geographic focus on Tennessee positions this as a regional infrastructure investment.

Value Assessment

Rating: good

The contract value of approximately $4.68 million for resurfacing 9.5 miles of parkway, including bridges and ramps, appears reasonable for highway construction. Benchmarking against similar federal highway resurfacing projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests an effort to control costs, but the final cost will depend on the contractor's efficiency and material price fluctuations.

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 competition was sought, certain sources may have been excluded. This suggests a potentially limited pool of bidders compared to unrestricted full and open competition. The number of bidders (7) is a positive sign, but the exclusion of sources warrants further investigation into the rationale and its potential impact on price discovery.

Taxpayer Impact: A limited competition, even with multiple bidders, may result in less aggressive pricing than a fully open competition, potentially leading to slightly higher costs for taxpayers. However, the presence of 7 bidders suggests some level of market interest and competitive pressure.

Public Impact

Benefits park visitors and recreational users by ensuring safe and well-maintained road surfaces. Supports the National Park Service's mission to preserve and maintain national park resources. Impacts the local and regional economy through construction-related employment and material sourcing. Enhances the scenic beauty and accessibility of the Natchez Trace Parkway in Tennessee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Risk of schedule delays due to weather or material availability, impacting project completion.
Ensuring the quality of resurfacing meets long-term durability standards is crucial.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Defined scope of work for resurfacing a specific section of the parkway.
Award to Yorkshire Industries LLC, whose track record will be further analyzed.
Project duration is clearly defined, allowing for performance monitoring.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Federal spending in this area is crucial for maintaining national infrastructure, including parkways managed by agencies like the Department of Transportation. Comparable spending benchmarks would involve analyzing the cost per mile for similar resurfacing projects on federal lands or highways, considering factors like terrain and complexity.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this larger contract and the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be conducted by the Federal Highway Administration (FHWA) and potentially the National Park Service, given the location of the project. Accountability measures are embedded in the firm fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through federal contract databases, though specific daily oversight activities may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Park Service Infrastructure Projects
Federal Highway Administration Construction Contracts
Appalachian Development Highway System
State Route Pavement Preservation Programs

Risk Flags

Limited competition due to source exclusion.
Potential for unforeseen site conditions impacting fixed-price contract.
Weather-related schedule risks.
Material price volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.7 million to YORKSHIRE INDUSTRIES LLC. PROJECT TN NP NATR 1H11 1J16 THE PROJECT CONSISTS OF RESURFACING APPROXIMATELY 9.5 MILES OF THE NATCHEZ TRACE PARKWAY FROM MP 354.3 TO 363.7, INCLUDING RAMPS, BRIDGES, AND PARKING AREAS. THE WORK INCLUDES ASPHALT CONCRETE PAVEMENT PATCHING, ASPHALT

Who is the contractor on this award?

The obligated recipient is YORKSHIRE INDUSTRIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2025-05-07. End: 2028-04-30.

What is the track record of Yorkshire Industries LLC in completing similar federal highway resurfacing projects on time and within budget?

A review of Yorkshire Industries LLC's past performance on federal contracts, particularly those involving highway resurfacing and parkway maintenance, is essential. Data from the Federal Procurement Data System (FPDS) or similar databases would reveal their history of on-time completion, adherence to budget, and any past performance issues or awards. Understanding their experience with firm fixed-price contracts and projects of similar scale and complexity will provide insight into their capability to execute this Natchez Trace Parkway project successfully. Specific details on past project successes or failures, including any disputes or contract modifications, would further inform the assessment of their reliability and value proposition.

How does the cost per mile for this resurfacing project compare to other federal highway resurfacing contracts awarded in the last three years?

To benchmark the value for money, the cost per mile for this 9.5-mile project ($4.68 million / 9.5 miles ≈ $492,632 per mile) should be compared against similar federal highway resurfacing contracts. Factors such as geographic location, terrain (e.g., mountainous vs. flat), pavement condition, type of asphalt mix, and inclusion of bridge/ramp work significantly influence per-mile costs. A comprehensive analysis would involve querying federal procurement databases for contracts with similar scopes and characteristics, adjusting for regional cost differences and inflation. If this project's cost per mile is significantly higher or lower than comparable projects, it warrants further investigation into the underlying reasons, such as unique project requirements, market conditions, or competitive intensity.

What are the primary risk indicators associated with this specific contract, and how are they being mitigated?

Key risk indicators for this contract include potential for unforeseen subsurface conditions (e.g., unstable soil, underground utilities) that could lead to change orders and cost increases, despite the firm fixed-price structure. Weather-related delays are also a significant risk, particularly in regions prone to inclement weather, which could impact the project schedule. Material price volatility for asphalt and related components presents another risk. Mitigation strategies likely include thorough pre-construction site investigations, robust scheduling with built-in contingencies for weather, and contract clauses that address material price escalation or stabilization. The contractor's experience and financial stability also play a role in mitigating performance risks.

What is the expected impact of this contract on the local workforce and small businesses in Tennessee?

This contract is expected to generate employment opportunities for construction workers, equipment operators, engineers, and project managers in Tennessee. The direct impact will be on the workforce employed by Yorkshire Industries LLC and its potential subcontractors. While this contract was not set aside for small businesses, there may be opportunities for local small businesses to participate as subcontractors for materials supply, specialized services, or equipment rental. The extent of this impact depends on the prime contractor's subcontracting strategy and the availability of qualified small businesses in the project vicinity. The overall economic stimulus from this project will also benefit local economies through spending on goods and services.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method affect the potential for competitive pricing compared to unrestricted full and open competition?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that while the agency intended to compete the requirement broadly, specific sources were deemed ineligible or excluded for documented reasons (e.g., national security, prior performance issues, specific technical requirements). This exclusion, even if justified, inherently limits the pool of potential bidders compared to unrestricted full and open competition. A smaller bidder pool can reduce competitive pressure, potentially leading to higher prices than might be achieved in a market with maximum participation. The fact that seven bids were received suggests a reasonable level of interest, but a thorough review of the exclusion justification is necessary to fully understand its impact on price discovery and taxpayer value.

What are the historical spending patterns for pavement preservation on the Natchez Trace Parkway, and how does this contract align with them?

Analyzing historical spending on pavement preservation for the Natchez Trace Parkway would reveal trends in contract values, frequency of resurfacing projects, and the types of contractors typically awarded work. This information helps contextualize the current $4.68 million contract. If spending has been consistent and this project falls within historical norms for the scope and length of pavement addressed, it suggests a predictable maintenance cycle. Conversely, significant deviations in contract value or frequency might indicate changes in funding priorities, deferred maintenance, or increased repair needs. Understanding these patterns provides insight into the long-term investment strategy for the parkway's infrastructure.

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: SEALED BID

Solicitation ID: 693C7325B000007

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 LEXINGTON AVE, NEW YORK, NY, 10170

Business Categories: Asian Pacific American Owned Business, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,683,163

Exercised Options: $4,683,163

Current Obligation: $4,683,163

Actual Outlays: $4,504,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline