Transportation contract for road construction awarded to American Civil Constructors LLC for over $22.9 million

Contract Overview

Contract Amount: $23,319,180 ($23.3M)

Contractor: American Civil Constructors LLC

Awarding Agency: Department of Transportation

Start Date: 2012-01-26

End Date: 2014-10-16

Contract Duration: 994 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HFPM-11-0250; CO PRA ROMO 12(2); BEAR LAKE RD; CONSTRUCTION CONTRACT - ADVERTISE FOR RECEIPT OF BIDS; CONTRACT# DTFH68-11-R-00028; $22,906,137.00 SCHEDULE A: $16,399,650.00 SCHEDULE B: $19,713,846.00 SCHEDULE C: $21,985,274.00 OPTION X: $920,863.00

Place of Performance

Location: BELLVUE, LARIMER County, COLORADO, 80512

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $23.3 million to AMERICAN CIVIL CONSTRUCTORS LLC for work described as: HFPM-11-0250; CO PRA ROMO 12(2); BEAR LAKE RD; CONSTRUCTION CONTRACT - ADVERTISE FOR RECEIPT OF BIDS; CONTRACT# DTFH68-11-R-00028; $22,906,137.00 SCHEDULE A: $16,399,650.00 SCHEDULE B: $19,713,846.00 SCHEDULE C: $21,985,274.00 OPTION X: $920,863.00 Key points: 1. The contract value of approximately $23 million for highway construction appears to be within a reasonable range for projects of this scale. 2. Full and open competition was utilized, suggesting a robust bidding process that should have driven competitive pricing. 3. The contract duration of 994 days indicates a significant, multi-year project requiring substantial contractor resources. 4. The firm fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable final costs. 5. The project is located in Colorado, contributing to regional infrastructure development. 6. The contractor, American Civil Constructors LLC, has a history of performing federal contracts, suggesting some level of established capability.

Value Assessment

Rating: good

The total contract value of $22,906,137.00 for highway construction is substantial. Benchmarking against similar Federal Highway Administration projects of comparable scope and complexity would be necessary for a precise value-for-money assessment. However, the multiple schedules and an option suggest a project with phased elements or potential for expansion, which is common in large infrastructure projects. The firm fixed-price nature of the contract generally indicates that the government has secured a defined cost, with the contractor assuming the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With three bidders participating, the competition level suggests a healthy market for this type of construction service. The presence of multiple bidders generally fosters price discovery and encourages contractors to offer competitive pricing to secure the award.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it is expected to result in the most advantageous pricing through market forces. This approach minimizes the risk of overpayment compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the traveling public in Colorado, who will experience improved road infrastructure. The contract delivers essential highway, street, and bridge construction services, enhancing transportation networks. The geographic impact is concentrated in Colorado, supporting local and regional economic activity. The project likely involves a significant workforce, including construction laborers, engineers, and project managers, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or change orders given the multi-schedule and option structure, which could increase final costs beyond the initial award.
Reliance on a single contractor for a large, multi-year project introduces performance risk if the contractor encounters financial or operational difficulties.
The firm fixed-price contract, while beneficial for cost certainty, could incentivize the contractor to cut corners on quality if not adequately overseen.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely yielded a fair price.
The firm fixed-price contract type transfers cost overrun risk to the contractor.
The project is for essential infrastructure improvement, aligning with federal transportation goals.
The contractor has a history of federal contract performance, indicating a baseline level of experience.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS code 237310), a significant segment of the construction industry focused on public infrastructure. The market for such services is often characterized by large, capital-intensive projects requiring specialized equipment and expertise. Federal spending in this area is crucial for maintaining and upgrading the nation's transportation network, with annual outlays often in the tens of billions of dollars. This specific contract represents a mid-sized project within the broader federal highway construction landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large infrastructure project awarded through full and open competition, it is unlikely that significant subcontracting opportunities would be specifically earmarked for small businesses unless mandated by the prime contractor's own policies or specific program requirements not detailed here. The primary impact on the small business ecosystem would be indirect, through potential competition for materials or specialized services if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Mechanisms likely include regular progress reviews, site inspections, and financial audits to ensure compliance with contract terms, quality standards, and timelines. The firm fixed-price nature necessitates close monitoring of performance and adherence to specifications to prevent quality issues. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal-Aid Highway Program
National Highway System
Infrastructure Investment and Jobs Act Projects
Department of Transportation Construction Contracts
Highway Maintenance and Repair

Risk Flags

Potential for cost overruns due to long duration and fixed price.
Risk of contractor performance issues impacting schedule or quality.
Dependency on specific material and labor availability over the project timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.3 million to AMERICAN CIVIL CONSTRUCTORS LLC. HFPM-11-0250; CO PRA ROMO 12(2); BEAR LAKE RD; CONSTRUCTION CONTRACT - ADVERTISE FOR RECEIPT OF BIDS; CONTRACT# DTFH68-11-R-00028; $22,906,137.00 SCHEDULE A: $16,399,650.00 SCHEDULE B: $19,713,846.00 SCHEDULE C: $21,985,274.00 OPTION X: $920,863.00

Who is the contractor on this award?

The obligated recipient is AMERICAN CIVIL CONSTRUCTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2012-01-26. End: 2014-10-16.

What is the track record of American Civil Constructors LLC with federal contracts, particularly with the Department of Transportation?

American Civil Constructors LLC has a history of performing federal contracts, as indicated by the 'st': 'CO' (Contracting Officer) and the award of this specific contract. Further analysis would require examining their complete contract history, including past performance evaluations, any disputes or claims filed, and their success rate on similar projects. Their experience with the Department of Transportation and the Federal Highway Administration is particularly relevant given the nature of this award. A review of their financial stability and capacity to handle large-scale projects would also be pertinent to assessing their reliability as a contractor.

How does the awarded price compare to similar highway construction projects in Colorado or nationally?

A precise comparison of the $22.9 million award to similar projects requires detailed data on project scope, complexity, location, and the specific year of award. However, the Federal Highway Administration (FHWA) manages numerous highway construction contracts annually, with values varying significantly based on project size. Projects involving major bridge construction or extensive highway expansion in high-cost-of-living areas could easily reach or exceed this value. Conversely, smaller road resurfacing or repair projects would be considerably less expensive. Benchmarking would involve identifying contracts with comparable square footage of paving, linear miles of highway, number of bridge structures, and complexity of earthwork or utility relocation.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

The primary risk with a firm fixed-price (FFP) contract for a long-duration project like this (994 days) is that the contractor may face unforeseen cost increases due to market fluctuations (e.g., material prices, fuel costs) or unexpected site conditions that were not reasonably foreseeable at the time of bidding. While the FFP shifts cost risk to the contractor, significant cost escalations could lead to contractor financial distress, delays, or attempts to reduce quality to maintain profitability. Conversely, the government risks paying a premium if the contractor's initial bid included substantial contingency for these risks. Robust oversight is crucial to ensure the contractor maintains quality and schedule despite potential cost pressures.

What is the expected effectiveness of this contract in improving transportation infrastructure in Colorado?

The effectiveness of this contract hinges on the successful completion of the specified highway, street, and bridge construction work according to the contract's technical specifications and schedule. Assuming the project addresses identified needs for infrastructure improvement in Colorado, its completion should lead to enhanced road safety, reduced travel times, improved traffic flow, and potentially lower vehicle maintenance costs for users. The long-term effectiveness will also depend on the durability of the construction and the adequacy of future maintenance. The Federal Highway Administration's oversight plays a critical role in ensuring the project meets its intended objectives and delivers lasting value.

How has federal spending on highway construction evolved, and where does this contract fit within that trend?

Federal spending on highway construction has historically been a significant component of the U.S. transportation budget, often fluctuating based on economic conditions, infrastructure needs, and legislative funding initiatives like the Fixing America's Surface Transportation (FAST) Act or the more recent Infrastructure Investment and Jobs Act (IIJA). Annual federal obligations for highway construction typically range in the tens of billions of dollars. This $22.9 million contract represents a single project within that larger federal investment. Its size suggests it could be a substantial component of a larger state or regional transportation improvement plan, contributing to the overall federal effort to modernize the nation's highways.

Are there any specific performance indicators or metrics associated with this contract that measure its success?

While the provided data does not detail specific performance indicators, typical metrics for highway construction contracts include adherence to schedule, completion within budget (especially relevant for FFP), quality of materials and workmanship (measured through inspections and testing), safety performance (incident rates), and compliance with environmental regulations. The Federal Highway Administration likely has internal standards and reporting requirements that track these aspects throughout the project lifecycle. Post-completion, metrics might include reduced traffic congestion, improved pavement condition indices, and decreased accident rates in the project area, although these are often measured separately by transportation agencies.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1601 WEST BELLEVIEW AVE, LITTLETON, CO, 80120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,319,180

Exercised Options: $23,319,180

Current Obligation: $23,319,180

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline