Transportation contract awarded to Steve Manning Construction Inc. for $31.3M for highway construction in California

Contract Overview

Contract Amount: $31,293,341 ($31.3M)

Contractor: Steve Manning Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2021-12-14

End Date: 2023-08-18

Contract Duration: 612 days

Daily Burn Rate: $51.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CA FTNP VOSE 15(2) GLACIER POINT ROAD

Place of Performance

Location: YOSEMITE NATIONAL PARK, MARIPOSA County, CALIFORNIA, 95389

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $31.3 million to STEVE MANNING CONSTRUCTION INC for work described as: CA FTNP VOSE 15(2) GLACIER POINT ROAD Key points: 1. Contract value of $31.3M for highway construction services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Contract duration of 612 days. 5. The contractor, Steve Manning Construction Inc., is based in California. 6. The Federal Highway Administration is the awarding agency. 7. The contract falls under the Highway, Street, and Bridge Construction NAICS code.

Value Assessment

Rating: good

The contract value of $31.3M for highway construction appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure projects managed by the Federal Highway Administration would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, assuming the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders, as indicated by the data, suggests a healthy level of competition for this project. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

The primary beneficiaries are the traveling public in California who will benefit from improved highway infrastructure. The contract delivers services related to highway, street, and bridge construction. The geographic impact is concentrated in California, specifically within the area covered by the project. The contract supports jobs in the construction sector, including skilled labor and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements are not clearly defined, leading to cost increases.
Dependence on a single contractor for the duration of the project could pose risks if performance issues arise.
Weather or unforeseen site conditions could impact project timelines and potentially costs, despite the fixed-price nature.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the government.
Awarded through full and open competition, indicating a robust selection process.
The contractor is an established entity with experience in construction projects.
The project addresses critical infrastructure needs, contributing to public safety and economic activity.

Sector Analysis

The highway, street, and bridge construction sector is a significant part of the U.S. infrastructure market, heavily influenced by federal funding and state-level project management. This contract, valued at $31.3M, represents a substantial investment within this sector. Comparable spending benchmarks for similar large-scale road construction projects managed by the Federal Highway Administration would typically range from tens to hundreds of millions of dollars, depending on project complexity and scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated by a small business set-aside. The primary contractor, Steve Manning Construction Inc., will likely manage the project, and their decisions on subcontracting will determine the extent of small business involvement, if any.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) through contract officers and project managers. Accountability measures would include adherence to contract terms, performance milestones, and quality standards. Transparency is generally maintained through contract award databases and public reporting, though specific project details might be limited. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway System
National Highway Performance Program
Infrastructure Investment and Jobs Act

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of project delays due to unforeseen site conditions or weather.
Contractor performance issues could impact project timeline and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $31.3 million to STEVE MANNING CONSTRUCTION INC. CA FTNP VOSE 15(2) GLACIER POINT ROAD

Who is the contractor on this award?

The obligated recipient is STEVE MANNING CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2021-12-14. End: 2023-08-18.

What is the track record of Steve Manning Construction Inc. on federal contracts?

Information regarding the specific track record of Steve Manning Construction Inc. on federal contracts is not directly provided in the abbreviated data. However, the award of a $31.3M definitive contract by the Federal Highway Administration suggests a level of capability and experience deemed sufficient for this project. To fully assess their track record, a review of their past performance ratings on federal contracts, any history of disputes or claims, and the successful completion of similar-sized projects would be necessary. This would involve consulting federal procurement databases and agency performance reviews.

How does the awarded amount compare to similar highway construction projects?

The awarded amount of $31.3M for highway construction in California is substantial and falls within the typical range for significant infrastructure projects. Without specific details on the project's scope (e.g., miles of road, complexity of bridges, specific upgrades), a precise comparison is difficult. However, large-scale highway and bridge construction contracts managed by the Federal Highway Administration can range from tens of millions to hundreds of millions of dollars. Factors such as location, material costs, labor rates, and the extent of engineering required heavily influence project costs. This contract's value suggests a project of considerable scale and importance within the California transportation network.

What are the primary risks associated with this firm fixed-price contract?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, risks can still emerge. For the government, the primary risk is that the contractor may have underestimated the costs or encountered unforeseen difficulties, potentially leading to pressure for change orders or claims if the scope is not rigidly managed. Conversely, if the contractor significantly overestimates costs, the government may be paying a premium. For the contractor, the risk lies in absorbing unexpected cost increases due to factors like material price volatility, labor shortages, or unforeseen site conditions, which could erode profit margins. Effective project management and clear scope definition are crucial to mitigating these risks for both parties.

How effective is full and open competition in ensuring value for taxpayer money in large construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in large construction contracts. By allowing all qualified contractors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as seen with 4 bidders in this case, increases the likelihood that the government will receive competitive pricing. This process also promotes transparency and reduces the risk of favoritability or collusion. While the initial administrative effort to manage a competitive process is higher, the long-term benefits in terms of cost savings and quality are typically substantial.

What is the historical spending trend for highway construction contracts by the Federal Highway Administration?

Historical spending trends for highway construction contracts by the Federal Highway Administration (FHWA) generally show significant and consistent investment, driven by the nation's ongoing need for infrastructure maintenance and development. Annual federal outlays for highway construction fluctuate based on economic conditions, congressional appropriations, and the passage of major infrastructure legislation. For instance, periods following significant infrastructure bills often see an increase in contract awards. The FHWA's spending is a critical component of the overall U.S. transportation budget, supporting thousands of projects annually across the country. Detailed historical data would reveal trends in contract values, types of projects funded, and regional distribution of spending.

What are the implications of the contract duration (612 days) on project management and cost?

A contract duration of 612 days (approximately 20 months) for a $31.3M highway construction project indicates a significant undertaking. This duration allows for substantial work to be completed, including potential phases like design finalization, environmental reviews, procurement of materials, and the actual construction. From a cost perspective, a longer duration can sometimes lead to increased indirect costs for both the contractor (e.g., project management staff, equipment rental) and the government (e.g., oversight personnel). However, it also provides more time to manage complexities, mitigate risks associated with weather or unforeseen conditions, and potentially achieve a higher quality outcome. Effective scheduling and milestone management are critical to ensuring the project stays on track and within budget over this extended period.

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: 6982AF21B000032

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5211 CHURN CREEK RD, REDDING, CA, 96002

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: $31,293,341

Exercised Options: $31,293,341

Current Obligation: $31,293,341

Actual Outlays: $31,293,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline