Nearly $19.1M awarded for California highway paving, with 5 bidders competing for the fixed-price contract

Contract Overview

Contract Amount: $19,075,424 ($19.1M)

Contractor: Steve Manning Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2008-05-19

End Date: 2011-10-20

Contract Duration: 1,249 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRADING, PAVING AND ASPHALT SURFACING ON 6.145 KM OF ROADWAY ON CA PFH 114-1(1), HYAMPOM ROAD

Place of Performance

Location: REDDING, SHASTA County, CALIFORNIA, 96002

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $19.1 million to STEVE MANNING CONSTRUCTION INC for work described as: GRADING, PAVING AND ASPHALT SURFACING ON 6.145 KM OF ROADWAY ON CA PFH 114-1(1), HYAMPOM ROAD Key points: 1. The contract awarded represents a significant investment in regional infrastructure, focusing on critical road surfacing. 2. Competition dynamics suggest a healthy market for this type of construction service in California. 3. Performance risks appear manageable given the fixed-price nature of the contract, shifting cost overruns to the contractor. 4. The project's duration of over three years indicates a substantial scope of work. 5. This contract falls within the broader category of highway, street, and bridge construction, a vital sector for economic activity.

Value Assessment

Rating: good

The awarded amount of $19.1 million for 6.145 km of roadway paving appears reasonable for a project of this scale and complexity. Without specific benchmarks for similar projects in California during 2008-2011, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract structure generally promotes cost control by the contractor. The number of bidders (5) suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bidders participating, there was a reasonable level of competition. This suggests that the contracting agency likely received multiple proposals, allowing for comparison and selection of the most advantageous offer based on price and other factors. The presence of multiple bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process for this significant infrastructure project helps ensure that taxpayer funds are used efficiently, securing the best possible price for the road surfacing services.

Public Impact

The primary beneficiaries are the users of CA PFH 114-1(1), Hyampom Road, who will experience improved road conditions and safety. The project delivers essential road maintenance and surfacing services, extending the lifespan of the highway. The geographic impact is localized to the Hyampom Road area in California. Workforce implications include employment opportunities for construction workers, engineers, and related support staff during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays due to unforeseen site conditions or weather impacting the 3-year timeline.
Ensuring consistent quality of asphalt and paving across the 6.145 km stretch.
Managing traffic disruptions effectively during construction phases.

Positive Signals

Firm-fixed-price contract incentivizes contractor efficiency and cost management.
Full and open competition suggests a robust market and potentially competitive pricing.
Awarded by the Department of Transportation, indicating alignment with public infrastructure goals.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the construction industry focused on public infrastructure. The market for such services is often characterized by large, complex projects requiring specialized equipment and expertise. Spending in this sector is driven by government investment in transportation networks. Comparable benchmarks would involve analyzing other large-scale road construction and resurfacing projects awarded by state and federal transportation agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The contractor, Steve Manning Construction Inc., is likely a medium to large-sized firm. Without specific subcontracting plans, the direct impact on the small business ecosystem is unclear, though larger prime contractors may engage small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) and the California Department of Transportation. Mechanisms likely include regular progress reports, site inspections, and adherence to contract specifications. Accountability is ensured through the firm-fixed-price structure, which places financial responsibility on the contractor for cost overruns. Transparency is generally maintained through contract award databases and public reporting of federal spending.

Related Government Programs

Federal Highway Administration Capital Investment Grants
State Transportation Improvement Programs
National Highway System Construction Projects

Risk Flags

Potential for cost overruns if contractor's estimates were inaccurate.
Risk of quality compromise if contractor seeks to reduce costs.
Schedule delays due to weather or unforeseen site conditions.
Ensuring adequate traffic management during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19.1 million to STEVE MANNING CONSTRUCTION INC. GRADING, PAVING AND ASPHALT SURFACING ON 6.145 KM OF ROADWAY ON CA PFH 114-1(1), HYAMPOM 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 $19.1 million.

What is the period of performance?

Start: 2008-05-19. End: 2011-10-20.

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

Information regarding the specific track record of Steve Manning Construction Inc. with federal contracts is not detailed in the provided data. To assess their performance, one would need to examine historical contract awards, performance evaluations (if publicly available), and any past disputes or issues. A review of federal procurement databases like SAM.gov or FPDS could reveal their history of winning and successfully completing government projects, including their performance ratings and any contract modifications or terminations. This would provide insight into their reliability and experience in handling projects of similar scope and complexity.

How does the per-kilometer cost of this project compare to similar federal highway paving projects?

The provided data indicates a total award of $19,075,423.74 for 6.145 km of roadway. This equates to approximately $3.1 million per kilometer. To benchmark this value, a comprehensive analysis of similar Federal Highway Administration (FHWA) or state Department of Transportation projects awarded within the same timeframe (2008-2011) and in comparable geographic regions (considering factors like terrain, labor costs, and material prices) would be necessary. Without such comparative data, it is difficult to definitively state whether this cost is high, low, or average. Factors like the specific type of asphalt, sub-base preparation, and complexity of the location (e.g., mountainous terrain vs. flat land) significantly influence per-kilometer costs.

What are the primary risks associated with a firm-fixed-price contract for highway construction?

The primary risk associated with a firm-fixed-price (FFP) contract for highway construction lies with the contractor. If the contractor underestimates costs, encounters unforeseen site conditions, or experiences material price increases, they bear the financial burden of these overruns. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability, potentially leading to premature road degradation. However, FFP contracts are generally favored for well-defined projects like paving, as they provide cost certainty for the government and incentivize contractor efficiency. Robust government oversight and quality assurance are crucial to mitigate the risk of compromised quality.

How does the duration of this contract (1249 days) align with typical highway paving projects of this size?

A duration of 1249 days, approximately 3.4 years, for 6.145 km of roadway paving seems substantial. Typical highway paving projects can vary significantly based on scope, complexity, and location. Factors such as weather, environmental considerations, the need for phased construction to maintain traffic flow, and the extent of sub-base work can all influence the timeline. While 6.145 km is not an exceptionally long stretch, the duration might suggest that the project involves more than just simple resurfacing, potentially including significant base repair, drainage improvements, or work in challenging conditions. A comparative analysis with similar projects would be needed to confirm if this duration is standard or indicative of additional complexities.

What is the significance of the contract type 'FULL AND OPEN COMPETITION' for taxpayer value?

The 'FULL AND OPEN COMPETITION' contract type is highly significant for taxpayer value. It means that the government solicited bids from all interested and qualified contractors, rather than restricting the pool of potential bidders. This broad solicitation maximizes the number of offers received, fostering a competitive environment. Competition typically drives down prices as contractors vie for the contract by offering their best terms. It also increases the likelihood that the government will receive innovative solutions and high-quality services at the most reasonable cost, ensuring that taxpayer dollars are used efficiently and effectively.

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: DTFH68-08-B-00011

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1137 HARTNELL AVE STE D, REDDING, CA, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,396,078

Exercised Options: $19,396,078

Current Obligation: $19,075,424

Contract Characteristics

Multi-Year Contract: Yes

Timeline