Forest Service Awards $40M Highway Project to Southeast Road Builders, Inc

Contract Overview

Contract Amount: $40,169,235 ($40.2M)

Contractor: Southeast Road Builders, Inc

Awarding Agency: Department of Agriculture

Start Date: 2011-08-10

End Date: 2015-10-31

Contract Duration: 1,543 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FOREST HIGHWAY 43 ROAD IMPROVEMENTS

Place of Performance

Location: NAUKATI BAY, KETCHIKAN GATEWAY County, ALASKA, 99901

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.2 million to SOUTHEAST ROAD BUILDERS, INC for work described as: FOREST HIGHWAY 43 ROAD IMPROVEMENTS Key points: 1. The contract value of $40.17 million for highway improvements falls within typical ranges for such projects. 2. Southeast Road Builders, Inc. secured this award through full and open competition. 3. The project's duration of over 4 years presents potential risks related to cost escalation and scope creep. 4. This project falls under the Highway, Street, and Bridge Construction sector, a critical area for infrastructure development.

Value Assessment

Rating: good

The contract value of $40.17 million appears reasonable for a multi-year highway construction project of this scale. Benchmarking against similar federal highway projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing for the government.

Taxpayer Impact: The competitive bidding process likely ensured a fair price, maximizing taxpayer value for the road improvements.

Public Impact

Improved transportation infrastructure in Alaska, facilitating access and economic activity. Potential for job creation and economic stimulus in the local Alaskan economy. Ensures the safety and efficiency of a key transportation route for the Forest Service and the public.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1543 days) increases risk of cost overruns.
Firm Fixed Price contract may not fully account for unforeseen material cost increases.
Geographic location in Alaska could lead to higher logistical costs and potential weather delays.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Project addresses critical infrastructure needs for the Forest Service.
Clear contract type (Firm Fixed Price) provides cost certainty if managed well.

Sector Analysis

This project falls within the Highway, Street, and Bridge Construction sector. Federal spending in this area is crucial for maintaining and upgrading national infrastructure, with typical project values varying widely based on scope and location.

Small Business Impact

There is no indication that small businesses were involved as prime contractors or significant subcontractors in this particular award. Future solicitations could explore opportunities for small business participation.

Oversight & Accountability

The Forest Service, as the contracting agency, is responsible for oversight. The definitive contract structure implies a defined scope, but monitoring progress and adherence to specifications is crucial for accountability.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Long contract duration.
Potential for cost escalation under Firm Fixed Price.
Geographic challenges in Alaska.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.2 million to SOUTHEAST ROAD BUILDERS, INC. FOREST HIGHWAY 43 ROAD IMPROVEMENTS

Who is the contractor on this award?

The obligated recipient is SOUTHEAST ROAD BUILDERS, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2011-08-10. End: 2015-10-31.

What is the estimated cost per mile for these highway improvements, and how does it compare to national averages for similar terrain and construction types?

Without specific details on the mileage covered by the $40.17 million contract, a precise cost per mile cannot be calculated. However, federal highway construction costs can range significantly, from hundreds of thousands to millions of dollars per mile, influenced by factors like terrain, environmental requirements, and labor costs. A detailed breakdown would be needed for a meaningful comparison.

What specific risks were identified during the bidding process that could impact the project's final cost or timeline, and what mitigation strategies are in place?

The data provided does not detail specific risks identified during the bidding process. However, common risks for large-scale construction in remote areas like Alaska include weather delays, logistical challenges, potential environmental impacts, and fluctuations in material costs. Mitigation strategies would typically involve detailed planning, contingency funds, and robust contract management by the Forest Service.

How will the effectiveness of these road improvements be measured, and what are the key performance indicators (KPIs) for the Forest Service?

The effectiveness of these road improvements would likely be measured by factors such as increased load capacity, improved surface condition, reduced travel times, enhanced safety features (e.g., better drainage, clearer markings), and reduced maintenance needs. Key performance indicators for the Forest Service might include adherence to project schedule, budget compliance, quality of construction, and user satisfaction surveys.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: AG-0116-S-11-0043

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: MILE POST 4.5 HAINES HIGHWAY, HAINES, AK, 99827

Business Categories: Category Business, HUBZone Firm, Labor Surplus Area Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,169,235

Exercised Options: $40,169,235

Current Obligation: $40,169,235

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline