DOT awards $25M for Beartooth Highway construction, a significant investment in Wyoming's infrastructure

Contract Overview

Contract Amount: $25,045,320 ($25.0M)

Contractor: Missouri River Contractors, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-02-28

End Date: 2023-07-31

Contract Duration: 1,249 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WY TIG US212(9) BEARTOOTH HIGHWAY CONSTRUCTION CONTRACT FOR THE BEARTOOTH HIGHWAY TIGER PROJECT

Place of Performance

Location: CODY, PARK County, WYOMING, 82414

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $25.0 million to MISSOURI RIVER CONTRACTORS, LLC for work described as: WY TIG US212(9) BEARTOOTH HIGHWAY CONSTRUCTION CONTRACT FOR THE BEARTOOTH HIGHWAY TIGER PROJECT Key points: 1. The contract value represents a substantial commitment to improving critical transportation infrastructure. 2. Competition dynamics for this project are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and duration. 4. Performance context is provided by comparing to similar infrastructure projects. 5. The project's sector positioning highlights its role in national transportation networks. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of approximately $25 million for the Beartooth Highway construction appears reasonable for a project of this scale and complexity. Benchmarking against similar large-scale highway and bridge construction projects in the US suggests that costs can vary significantly based on location, scope, and specific engineering requirements. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the firm-fixed-price nature of the contract provides cost certainty for the Federal Highway Administration. The duration of the contract (1249 days) also needs to be considered in the overall cost analysis.

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. The presence of 3 bidders suggests a moderate level of competition for this significant infrastructure project. A higher number of bidders typically leads to more competitive pricing, but the specific nature of large-scale construction projects can sometimes limit the pool of qualified and interested firms. The competition level here likely contributed to achieving a fair market price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value. The 3 bids received suggest a reasonable market response, likely preventing excessive costs.

Public Impact

The primary beneficiaries are the users of the Beartooth Highway, including tourists and commercial vehicles, who will experience improved safety and accessibility. The project delivers essential construction services to upgrade and maintain a vital piece of national infrastructure. The geographic impact is concentrated in Wyoming, specifically along the Beartooth Highway corridor, enhancing regional connectivity. Workforce implications include job creation for construction workers, engineers, and related support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over three years (1249 days) could introduce risks related to material cost fluctuations and labor availability.
Large-scale construction projects are inherently susceptible to unforeseen site conditions or environmental challenges that may impact timelines and costs.
Reliance on a single contractor for the entire project scope could concentrate risk if performance issues arise.

Positive Signals

The firm-fixed-price contract type shifts cost overrun risk to the contractor, providing budget certainty for the government.
Awarding under full and open competition suggests a robust bidding process that likely selected a qualified contractor.
The project addresses a critical infrastructure need, indicating strong alignment with public service goals.

Sector Analysis

The highway, street, and bridge construction sector is a cornerstone of national infrastructure development, encompassing a wide range of projects from local road repairs to major interstate expansions. This contract falls within the broader civil engineering and construction market, which is characterized by large project values, specialized labor, and significant capital investment. Comparable spending benchmarks for similar highway projects can range from tens of millions to hundreds of millions of dollars, depending on the scale, complexity, and location. The Federal Highway Administration consistently invests billions annually in such projects to maintain and improve the nation's transportation network.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. The data provided does not specify subcontracting goals for small businesses. For large infrastructure projects of this nature, prime contractors often engage various subcontractors, which can present opportunities for small businesses. However, without explicit set-aside requirements or detailed subcontracting plans, the direct impact on the small business ecosystem is not quantifiable from this data alone.

Oversight & Accountability

Oversight for this contract is likely managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. The FHWA typically employs project managers and contracting officers to monitor progress, ensure compliance with contract terms, and manage payments. Inspector General (IG) jurisdiction would fall under the Department of Transportation's Office of Inspector General, which conducts audits and investigations into potential fraud, waste, and abuse within the department's programs and contracts. Transparency is generally maintained through contract award databases and public reporting requirements for federal spending.

Related Government Programs

TIGER Grants (Transportation Investment Generating Economic Recovery)
Federal Highway Administration Construction Programs
National Highway System Projects
Infrastructure Investment and Jobs Act Programs

Risk Flags

Potential for cost overruns due to long project duration and material price volatility.
Risk of delays due to challenging mountainous terrain and weather conditions.
Contractor performance risk on a large-scale, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.0 million to MISSOURI RIVER CONTRACTORS, LLC. WY TIG US212(9) BEARTOOTH HIGHWAY CONSTRUCTION CONTRACT FOR THE BEARTOOTH HIGHWAY TIGER PROJECT

Who is the contractor on this award?

The obligated recipient is MISSOURI RIVER CONTRACTORS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2020-02-28. End: 2023-07-31.

What is the track record of Missouri River Contractors, LLC with federal contracts, particularly with the Department of Transportation?

Information regarding Missouri River Contractors, LLC's specific track record with federal contracts, especially with the Department of Transportation, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance ratings, contract history, types of awards (e.g., construction, services), and any reported issues or successes. Understanding their experience with similar-sized infrastructure projects and their performance on previous DOT contracts would be crucial for assessing their capability and reliability for the Beartooth Highway project.

How does the awarded amount compare to the initial estimated cost or budget for the Beartooth Highway TIGER Project?

The provided data indicates the final awarded amount for the Beartooth Highway construction contract is $25,045,319.62. However, it does not include information about the initial estimated cost or the appropriated budget for this specific TIGER project. To assess value for money, it would be essential to compare the awarded amount against the government's pre-solicitation estimate and the bids received from other competitors. A significant difference between the estimate and the award, or between the winning bid and other bids, could signal issues with cost estimation or market competition.

What are the key performance indicators (KPIs) and milestones defined in the contract for monitoring progress and success?

The provided data does not specify the key performance indicators (KPIs) or milestones established within the contract for the Beartooth Highway construction. Typically, large infrastructure contracts include detailed schedules, quality control requirements, safety protocols, and specific deliverables tied to payment schedules. Monitoring progress would involve regular site inspections, progress reports from the contractor, and reviews by the contracting officer's representative (COR). Success would be measured against the timely completion of specified construction phases, adherence to quality standards, and overall project safety.

What is the historical spending pattern for the Beartooth Highway project or similar TIGER grant-funded infrastructure projects?

The data indicates this contract is associated with the 'BEARTOOTH HIGHWAY TIGER PROJECT' and was awarded in February 2020, with an end date in July 2023. TIGER grants (now known as BUILD grants) are discretionary grants awarded by the Department of Transportation for multimodal transportation projects. Historical spending on the Beartooth Highway itself would depend on previous maintenance or improvement projects. For TIGER/BUILD grants, annual federal outlays can vary significantly based on the number and size of projects funded each fiscal year. Analyzing past TIGER grant solicitations and awards would reveal trends in project types, funding levels, and geographic distribution.

Are there any specific environmental or geological risks associated with the Beartooth Highway construction that were addressed in the contract?

The Beartooth Highway is known for its challenging mountainous terrain and variable weather conditions, which inherently present environmental and geological risks. While the provided data does not detail these risks, large construction contracts for such projects typically include provisions for environmental impact assessments, mitigation strategies, and contingency plans for unforeseen geological conditions (e.g., landslides, unstable soil). The contract's specifications would likely outline requirements for erosion control, wildlife protection, and adherence to environmental regulations. The firm-fixed-price nature suggests these risks were factored into the contractor's bid.

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: 6982AF19B000008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3384 HWY 12 E, HELENA, MT, 59601

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,045,320

Exercised Options: $25,045,320

Current Obligation: $25,045,320

Actual Outlays: $25,045,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline