Redding Meadow Road Construction Contract Awarded for $34.8M to Herback General Engineering LLC
Contract Overview
Contract Amount: $34,801,113 ($34.8M)
Contractor: Herback General Engineering LLC
Awarding Agency: Department of Transportation
Start Date: 2023-01-13
End Date: 2025-12-18
Contract Duration: 1,070 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CA FLAP 03S11(1) REDS MEADOW ROAD CONSTRUCTION CONTRACT
Place of Performance
Location: MAMMOTH LAKES, MONO County, CALIFORNIA, 93546
Plain-Language Summary
Department of Transportation obligated $34.8 million to HERBACK GENERAL ENGINEERING LLC for work described as: CA FLAP 03S11(1) REDS MEADOW ROAD CONSTRUCTION CONTRACT Key points: 1. Contract value of $34.8M for highway construction. 2. Awarded via full and open competition. 3. Potential risk associated with firm fixed-price contract in a long-duration project. 4. Sector: Construction (Highway, Street, and Bridge).
Value Assessment
Rating: good
The contract value of $34.8M appears reasonable for a large-scale highway construction project of this duration. Benchmarking against similar Federal Highway Administration projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Improved transportation infrastructure in California. Potential for job creation during the construction period. Impact on local traffic and community during construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1070 days) with a firm fixed-price contract could expose the government to cost overruns if unforeseen issues arise.
- Potential for contractor performance issues impacting schedule or quality.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Clear project scope for highway, street, and bridge construction.
Sector Analysis
This contract falls within the construction sector, specifically highway, street, and bridge construction. Spending in this sector is critical for national infrastructure development and can be subject to fluctuations based on federal and state funding initiatives.
Small Business Impact
While the award went to Herback General Engineering LLC, it's important to assess if any subcontracting opportunities were allocated to small businesses to ensure broad economic participation.
Oversight & Accountability
The Federal Highway Administration's oversight will be crucial to ensure the contractor adheres to the contract terms, manages risks effectively, and delivers the project on time and within budget.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Firm fixed-price contract for a long-duration project.
- Potential for unforeseen site conditions impacting cost and schedule.
- Reliance on contractor's ability to manage complex construction logistics.
- Need for robust government oversight to ensure quality and compliance.
Tags
highway-street-and-bridge-construction, department-of-transportation, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $34.8 million to HERBACK GENERAL ENGINEERING LLC. CA FLAP 03S11(1) REDS MEADOW ROAD CONSTRUCTION CONTRACT
Who is the contractor on this award?
The obligated recipient is HERBACK GENERAL ENGINEERING LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $34.8 million.
What is the period of performance?
Start: 2023-01-13. End: 2025-12-18.
What is the historical cost performance of Herback General Engineering LLC on similar federal contracts?
Analyzing the contractor's past performance on comparable federal projects is essential to gauge their reliability and cost control capabilities. This includes reviewing past contract awards, completion records, and any history of cost overruns or disputes. Such an analysis would provide valuable insight into the likelihood of this current $34.8M contract being completed successfully and within budget.
What are the specific risks associated with the firm fixed-price contract for a 1070-day construction project?
A firm fixed-price contract for a long-duration project like this carries inherent risks for the government. Unforeseen material cost increases, labor shortages, or unexpected site conditions could lead to significant cost overruns if not adequately mitigated through contract clauses or contingency planning. The government may bear the brunt of these unexpected expenses.
How does the $34.8M contract value compare to industry benchmarks for similar highway construction projects in California?
Comparing the $34.8M contract value against industry benchmarks for similar highway construction projects in California is vital for assessing value for money. This involves analyzing cost per mile, cost per square foot of bridge deck, or other relevant metrics. A favorable comparison would indicate competitive pricing, while a higher-than-average cost might warrant further investigation into project specifics or contractor pricing strategies.
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: 6982AF22B000008
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: HZE
Contractor Details
Address: 2531 NOWLIN RD, MINDEN, NV, 89423
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,801,113
Exercised Options: $34,801,113
Current Obligation: $34,801,113
Actual Outlays: $20,487,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-01-13
Current End Date: 2025-12-18
Potential End Date: 2025-12-18 00:00:00
Last Modified: 2025-10-15
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