CA ERFO FS LSPDR 2021-1(1) Contract Awarded for $7.84M to Herback General Engineering LLC

Contract Overview

Contract Amount: $7,843,447 ($7.8M)

Contractor: Herback General Engineering LLC

Awarding Agency: Department of Transportation

Start Date: 2023-06-06

End Date: 2024-08-13

Contract Duration: 434 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION CONTRACT FOR CA ERFO FS LSPDR 2021-1(1) NACIMIENTO-FERGUSSON ROAD

Place of Performance

Location: SANTA MARIA, SANTA BARBARA County, CALIFORNIA, 93454

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $7.8 million to HERBACK GENERAL ENGINEERING LLC for work described as: CONSTRUCTION CONTRACT FOR CA ERFO FS LSPDR 2021-1(1) NACIMIENTO-FERGUSSON ROAD Key points: 1. The contract is for highway construction in California. 2. Herback General Engineering LLC is the sole awardee. 3. The contract type is Firm Fixed Price. 4. The contract duration is 434 days. 5. The award amount is $7,843,447.44.

Value Assessment

Rating: fair

The contract value of $7.84M appears reasonable for a highway construction project of this scope and duration. Benchmarking against similar projects would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competition. This could potentially impact price discovery and lead to higher costs compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this infrastructure project. The limited competition raises questions about whether the best possible price was secured.

Public Impact

This contract supports infrastructure development in California, potentially improving transportation and safety. The project's success relies on timely completion and quality construction by Herback General Engineering LLC. Public access and traffic flow may be impacted during the construction period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Potential for cost overruns if unforeseen issues arise during construction.
Dependence on a single contractor for project completion.

Positive Signals

Addresses critical infrastructure needs in California.
Firm Fixed Price contract provides cost certainty.
Defined project duration and scope.

Sector Analysis

This contract falls within the Construction sector, specifically Highway, Street, and Bridge Construction. Spending in this sector is often driven by infrastructure needs and government funding initiatives.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to assess small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the contractor adheres to the contract terms, manages costs effectively, and completes the project on schedule and to quality standards.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Limited competition
Potential for cost overruns
Contract duration
Dependence on a single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.8 million to HERBACK GENERAL ENGINEERING LLC. CONSTRUCTION CONTRACT FOR CA ERFO FS LSPDR 2021-1(1) NACIMIENTO-FERGUSSON ROAD

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 $7.8 million.

What is the period of performance?

Start: 2023-06-06. End: 2024-08-13.

What specific factors led to the exclusion of sources in the competition process, and how did this impact the final price?

The exclusion of sources suggests specific criteria or circumstances limited the pool of eligible bidders. Understanding these factors is key to assessing if the limited competition was justified and if the resulting price reflects fair market value. Without this information, it's difficult to definitively state if taxpayers received the best possible deal.

What are the potential risks associated with a 434-day construction project, and what mitigation strategies are in place?

Risks include weather delays, material cost fluctuations, unforeseen site conditions, and contractor performance issues. Mitigation strategies might involve contingency planning, robust contract management, performance bonds, and clear communication channels between the agency and the contractor to address issues proactively.

How does the awarded price compare to industry benchmarks for similar highway construction projects of this scale?

A direct comparison to industry benchmarks is essential for a thorough value assessment. Factors like location, specific project requirements (e.g., terrain, materials), and prevailing labor costs influence pricing. Without benchmark data, it's challenging to determine if $7.84M represents an optimal or inflated cost for the services rendered.

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: 6982AF23B000014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $7,843,447

Exercised Options: $7,843,447

Current Obligation: $7,843,447

Actual Outlays: $7,843,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline