Kilgore Companies awarded $13.4M for Colorado road construction, highlighting firm fixed-price contract

Contract Overview

Contract Amount: $13,431,051 ($13.4M)

Contractor: Kilgore Companies, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-04-25

End Date: 2023-10-22

Contract Duration: 545 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CO FTNP MEVE 100(1) & 101(1) CLIFF PALACE & MESA TOP LOOP ROADS ROAD CONSTRUCTION

Place of Performance

Location: MESA VERDE NATIONAL PARK, MONTEZUMA County, COLORADO, 81330

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $13.4 million to KILGORE COMPANIES, LLC for work described as: CO FTNP MEVE 100(1) & 101(1) CLIFF PALACE & MESA TOP LOOP ROADS ROAD CONSTRUCTION Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. Firm fixed-price contract type indicates price certainty for the government. 3. The contract duration of 545 days suggests a moderately complex project. 4. Awarded by the Federal Highway Administration, indicating a focus on national transportation infrastructure. 5. The project is located in Colorado, impacting regional road networks. 6. The contractor, Kilgore Companies, LLC, has secured this federal award.

Value Assessment

Rating: good

The contract value of $13.4 million for road construction appears reasonable given the scope and duration. Benchmarking against similar highway construction projects awarded by the Federal Highway Administration would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the final value depends on the contractor's efficiency in completing the work within the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bids (no: 2) suggests a moderate level of competition for this specific project. While competition is present, a higher number of bidders typically leads to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and improving the quality of proposals.

Public Impact

The primary beneficiaries are users of Colorado's road network, who will experience improved infrastructure. The contract delivers essential road construction and maintenance services. The geographic impact is concentrated in Colorado, specifically where the 'CLIFF PALACE & MESA TOP LOOP ROADS' are located. Workforce implications include employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Dependence on the contractor's ability to manage project timelines effectively to avoid delays.
Risk of quality issues if oversight is not rigorous throughout the construction process.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding environment.
Awarded by a specialized agency (Federal Highway Administration) implies adherence to industry standards.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader Construction industry. This sector is characterized by significant capital investment, specialized labor, and adherence to stringent safety and environmental regulations. Federal spending in this area supports national transportation infrastructure goals. Comparable spending benchmarks would involve analyzing the average cost per mile or per project for similar road construction initiatives across different regions and agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral unless Kilgore Companies, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) contracting officer and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified work within the agreed budget. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Highway Administration Programs
National Highway System Construction
State and Local Government Transportation Projects
Infrastructure Investment and Jobs Act Funding

Risk Flags

Potential for unforeseen site conditions impacting contractor costs.
Risk of schedule delays affecting project completion.
Need for rigorous quality control to ensure durable construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.4 million to KILGORE COMPANIES, LLC. CO FTNP MEVE 100(1) & 101(1) CLIFF PALACE & MESA TOP LOOP ROADS ROAD CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is KILGORE COMPANIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2022-04-25. End: 2023-10-22.

What is the track record of Kilgore Companies, LLC in performing federal highway construction contracts?

Information regarding Kilgore Companies, LLC's specific track record on federal highway construction contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and value of previous federal awards, and any history of contract disputes or terminations. Understanding their experience with similar project types, complexities, and geographic locations would be crucial for evaluating their capability to successfully execute this $13.4 million contract.

How does the awarded amount compare to similar road construction projects in Colorado or nationally?

Direct comparison of the $13.4 million award requires detailed project specifications (e.g., miles of road, type of work, terrain, materials used) for comparable contracts. However, the Federal Highway Administration (FHWA) manages numerous highway construction projects, and this value appears within a typical range for significant road repair or construction initiatives. Factors like inflation, material costs, labor rates in Colorado, and the specific complexity of the 'CLIFF PALACE & MESA TOP LOOP ROADS' project would influence its cost. A more precise benchmark would involve analyzing cost per mile or cost per square foot for projects with similar characteristics.

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

The primary risks for the government in a firm fixed-price contract are minimal regarding cost overruns, as the price is set. However, risks can shift to the contractor, potentially impacting project execution. If unforeseen site conditions (e.g., unexpected geological issues, environmental hazards) arise, the contractor may incur higher costs than anticipated, potentially leading to pressure to cut corners on quality or safety to maintain profitability. Another risk is schedule delays if the contractor mismanages resources or faces external disruptions, which could impact the usability of the improved roads.

How effective is the Federal Highway Administration in overseeing road construction contracts of this magnitude?

The Federal Highway Administration (FHWA) has extensive experience and established processes for overseeing road construction contracts. Their effectiveness relies on robust project management, diligent site inspections, adherence to quality assurance protocols, and strong contract administration. For a contract of this size ($13.4 million) and duration (545 days), the FHWA would typically assign dedicated project engineers and technical specialists to monitor progress, ensure compliance with specifications, and manage any change orders. The success of the oversight is often reflected in the final project outcome, user satisfaction, and adherence to budget and schedule.

What are the historical spending patterns for highway construction by the Federal Highway Administration in Colorado?

Historical spending patterns for highway construction by the FHWA in Colorado would reveal trends in contract awards, average project values, and the types of construction prioritized. Analyzing data over several fiscal years would show whether spending in this sector has been consistent, increasing, or decreasing. It would also indicate the typical contract vehicles used (e.g., definitive contracts, IDIQs) and the prevalence of full and open competition versus other methods. This context helps in understanding if the current $13.4 million award is an outlier or part of a sustained investment strategy in Colorado's transportation 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

Solicitation Procedures: SEALED BID

Solicitation ID: 6982AF20B000036

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7057 W 2100 S, WEST VALLEY CITY, UT, 84128

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,431,051

Exercised Options: $13,431,051

Current Obligation: $13,431,051

Actual Outlays: $13,431,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline