Hawaii DOT Awards $29.6M for Saddle Road Pavement, Outpacing Original Estimate by $9.1M
Contract Overview
Contract Amount: $29,560,697 ($29.6M)
Contractor: Goodfellow Bros, LLC
Awarding Agency: Department of Transportation
Start Date: 2008-10-24
End Date: 2009-09-11
Contract Duration: 322 days
Daily Burn Rate: $91.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GRADING AND HOT ASPHALTIC CONCRETE PAVEMENT ON 7.3 MILES OF ROADWAY ON HI A-AD 6(5), STATE ROUTE 200, SADDLE ROAD
Place of Performance
Location: HILO, HAWAII County, HAWAII, 96720, UNITED STATES OF AMERICA
State: Hawaii Government Spending
Plain-Language Summary
Department of Transportation obligated $29.6 million to GOODFELLOW BROS, LLC for work described as: GRADING AND HOT ASPHALTIC CONCRETE PAVEMENT ON 7.3 MILES OF ROADWAY ON HI A-AD 6(5), STATE ROUTE 200, SADDLE ROAD Key points: 1. The contract for Saddle Road pavement was awarded to Goodfellow Bros, LLC for $29.6 million. 2. This project was procured through full and open competition, indicating a competitive bidding process. 3. The final award amount significantly exceeded the initial estimate by over $9 million, raising questions about initial cost projections. 4. The sector is Highway, Street, and Bridge Construction, a critical area for infrastructure development.
Value Assessment
Rating: questionable
The final award of $29.6 million was 45% higher than the initial estimate of $20.4 million ($29.6M - $9.1M = $20.5M). This significant overrun suggests potential issues with initial cost estimation or unforeseen project complexities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids. However, the substantial difference between the estimated and awarded cost warrants scrutiny into how price discovery was impacted.
Taxpayer Impact: Taxpayers bore the brunt of the $9.1 million cost overrun, highlighting the need for more accurate initial budgeting in federally funded infrastructure projects.
Public Impact
Improved transportation infrastructure on Saddle Road in Hawaii, enhancing connectivity and safety. Potential for increased economic activity due to better road conditions. The significant cost overrun may impact the scope or number of other planned infrastructure projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overrun
- Estimation Accuracy
Positive Signals
- Competitive Bidding Process
- Infrastructure Improvement
Sector Analysis
This project falls within the Highway, Street, and Bridge Construction sector. Federal spending in this area is crucial for national infrastructure, with typical contract values varying widely based on project scope and location.
Small Business Impact
While the data does not specify small business participation, full and open competition generally allows for broad market access, including opportunities for qualified small businesses to bid.
Oversight & Accountability
The Department of Transportation and the Federal Highway Administration are responsible for oversight. The significant cost overrun suggests a need for enhanced monitoring and accountability in project cost management.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Significant cost overrun compared to initial estimate.
- Potential inaccuracies in initial project budgeting.
- Need for further investigation into cost escalation factors.
- Impact of overrun on other potential infrastructure investments.
Tags
highway-street-and-bridge-construction, department-of-transportation, hi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $29.6 million to GOODFELLOW BROS, LLC. GRADING AND HOT ASPHALTIC CONCRETE PAVEMENT ON 7.3 MILES OF ROADWAY ON HI A-AD 6(5), STATE ROUTE 200, SADDLE ROAD
Who is the contractor on this award?
The obligated recipient is GOODFELLOW BROS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2008-10-24. End: 2009-09-11.
What factors contributed to the $9.1 million cost overrun on the Saddle Road pavement project?
The significant cost overrun could be attributed to several factors, including underestimation of material costs, unexpected geological conditions, changes in project scope during execution, or inadequate initial site assessments. A detailed post-project analysis would be necessary to pinpoint the exact causes and inform future budgeting practices for similar infrastructure endeavors.
How did the full and open competition process influence the final awarded price, despite the cost overrun?
While full and open competition aims to secure the best value through market forces, it doesn't inherently prevent cost overruns from the initial estimate. It suggests that multiple qualified bidders participated, and Goodfellow Bros, LLC was selected as the most advantageous offer. The overrun likely stems from issues in the estimation phase or unforeseen project complexities rather than a lack of competition.
What is the long-term effectiveness of this pavement project in relation to its final cost?
The long-term effectiveness hinges on the durability and utility of the new pavement. If the improved road significantly enhances safety, reduces travel times, and supports economic activity for years to come, it could justify the final cost. However, the substantial initial overrun raises concerns about the efficiency of resource allocation and whether the project delivered optimal value for taxpayer money.
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-00021
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1407 WALLA WALLA AVE, WENATCHEE, WA, 98801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,750,361
Exercised Options: $35,750,361
Current Obligation: $29,560,697
Timeline
Start Date: 2008-10-24
Current End Date: 2009-09-11
Potential End Date: 2009-09-11 00:00:00
Last Modified: 2016-10-14
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