Department of Transportation awards $38.4M for Hawaii highway construction, with $29.1M obligated

Contract Overview

Contract Amount: $34,024,865 ($34.0M)

Contractor: Goodfellow Bros, LLC

Awarding Agency: Department of Transportation

Start Date: 2012-09-05

End Date: 2013-08-03

Contract Duration: 332 days

Daily Burn Rate: $102.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF HFPM-12-0152;HI A-AD 6(7); SADDLE ROAD-WEST SIDE; CONSTRUCTION;$36,435,885.70 SOLICITATION NUMBER: DTFH-12-B-00004 SCHEDULE A: $29,119,640.00 OPTION X: $9,244,500.00 INCLUDING INCENTIVES TOTAL: $38,364,140.00 EXPEND FUNDS IN THE FOLLOWING ORDER OF PRECEDENCE

Place of Performance

Location: HILO, HAWAII County, HAWAII, 96720, UNITED STATES OF AMERICA

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $34.0 million to GOODFELLOW BROS, LLC for work described as: IGF::CT::IGF HFPM-12-0152;HI A-AD 6(7); SADDLE ROAD-WEST SIDE; CONSTRUCTION;$36,435,885.70 SOLICITATION NUMBER: DTFH-12-B-00004 SCHEDULE A: $29,119,640.00 OPTION X: $9,244,500.00 INCLUDING INCENTIVES TOTAL: $38,364,140.00 EXPEND FUNDS IN THE FOLLOWING ORDER OF PRECEDENCE Key points: 1. Contract awarded to Goodfellow Bros, LLC for highway, street, and bridge construction. 2. The contract has a base value of $29.1M with options and incentives bringing the total to $38.4M. 3. This contract was awarded under full and open competition. 4. The duration of the contract was approximately 11 months. 5. The contract type is Firm Fixed Price, indicating a defined scope and cost. 6. The project is located in Hawaii, specifically on Saddle Road-West Side.

Value Assessment

Rating: good

The total contract value of $38.4M for highway construction in Hawaii appears reasonable given the scope. While specific per-unit cost benchmarks are not provided in the data, the base award of $29.1M for a project of this nature suggests a competitive bidding process likely influenced pricing. Further analysis would require detailed project specifications and comparable project costs within the region.

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 a bid. The data shows 4 bids were received, suggesting a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and achieving value for the government.

Taxpayer Impact: A competitive bidding process for this highway construction project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the users of Hawaii's road infrastructure, particularly on Saddle Road-West Side. The contract delivers essential construction services for highways, streets, and bridges. The geographic impact is localized to Hawaii. The project supports the construction workforce in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating broad market participation.
Firm Fixed Price contract type can provide cost certainty.
Project located in Hawaii, potentially supporting local economic development.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant part of the broader construction industry. Federal spending in this area supports national infrastructure development and maintenance. Comparable spending benchmarks would typically involve analyzing other federal highway projects of similar scale and complexity, both geographically and across different agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Goodfellow Bros, LLC, may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Accountability measures are inherent in the Firm Fixed Price contract type, which defines scope and cost. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Projects
Department of Transportation Construction Contracts
Highway Infrastructure Improvement Programs

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of schedule delays due to weather or logistical challenges in Hawaii.
Contractor performance and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $34.0 million to GOODFELLOW BROS, LLC. IGF::CT::IGF HFPM-12-0152;HI A-AD 6(7); SADDLE ROAD-WEST SIDE; CONSTRUCTION;$36,435,885.70 SOLICITATION NUMBER: DTFH-12-B-00004 SCHEDULE A: $29,119,640.00 OPTION X: $9,244,500.00 INCLUDING INCENTIVES TOTAL: $38,364,140.00 EXPEND FUNDS IN THE FOLLOWING ORDER OF PRECEDENCE

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 $34.0 million.

What is the period of performance?

Start: 2012-09-05. End: 2013-08-03.

What is the track record of Goodfellow Bros, LLC with federal contracts?

The provided data identifies Goodfellow Bros, LLC as the contractor for this specific Department of Transportation project. To assess their broader track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review their history of awarded contracts, performance ratings, and any past performance issues or awards. This would provide insight into their experience with similar projects, their ability to meet deadlines and budgets, and their overall reliability as a federal contractor. Without access to this broader historical data, a comprehensive assessment of their track record is not possible based solely on this single contract award.

How does the awarded price compare to similar highway construction projects?

A direct comparison of the awarded price of $38.4 million for this Hawaii highway project to similar federal contracts requires access to a database of comparable projects. Key comparison factors would include project scope (e.g., miles of road, type of construction, complexity of bridges), geographic location (as construction costs vary significantly by region), and the year of award (to account for inflation). The data indicates this was a full and open competition with 4 bids, suggesting the price was likely competitive. However, without specific data on similar projects' costs per mile or per bridge, a definitive value-for-money assessment relative to the market is challenging.

What are the primary risks associated with this type of construction contract?

Risks associated with this Firm Fixed Price highway construction contract include potential cost overruns if unforeseen site conditions arise (e.g., unexpected geological issues, environmental hazards) that were not adequately accounted for in the initial bid. Schedule delays are another significant risk, which could stem from weather, labor shortages, material availability, or permitting issues. Contractor performance risk is also present, where the contractor may not meet quality standards or project timelines. For the government, the primary risk is paying a fixed price for a project that may encounter significant unforeseen challenges, potentially leading to disputes or the need for contract modifications. The location in Hawaii could also introduce logistical challenges and higher material costs.

How effective is the Federal Highway Administration in managing construction contracts?

The Federal Highway Administration (FHWA) generally has a strong track record in managing large-scale infrastructure projects. Their effectiveness is often measured by the successful completion of projects on time and within budget, adherence to safety and environmental standards, and the overall improvement of the nation's highway system. The FHWA utilizes various contract types, including Firm Fixed Price, to manage risk and ensure cost control. Oversight mechanisms, including project monitoring, quality assurance, and audits, are standard practice. While specific performance metrics for the FHWA's contract management are not detailed in this data, their long-standing role in federal infrastructure suggests a high degree of established processes and expertise.

What are the historical spending patterns for highway construction by the Department of Transportation?

Historical spending patterns for highway construction by the Department of Transportation (DOT) are substantial and fluctuate based on federal infrastructure initiatives, economic conditions, and appropriations. The DOT, primarily through the Federal Highway Administration (FHWA), allocates billions annually towards highway and bridge construction, repair, and maintenance. Spending is influenced by legislation like the Fixing America's Surface Transportation (FAST) Act and its successors, which authorize significant funding. Analyzing historical data would reveal trends in contract awards by type, region, and contractor, as well as the average cost of projects over time. This specific $38.4 million contract represents a single data point within that larger spending landscape.

What is the typical duration for a highway construction project of this magnitude?

The typical duration for a highway construction project of this magnitude, valued at approximately $38.4 million, can vary significantly based on the specific scope of work, geographic location, and complexity. This particular contract had a duration of 332 days (approximately 11 months). Projects involving new highway construction, major bridge work, or extensive repairs often take longer, potentially spanning multiple years. Factors such as weather, environmental reviews, land acquisition, and the number of work crews can influence the timeline. An 11-month duration for a project of this value suggests a focused scope of work, possibly involving specific segments of road or bridge repair rather than a complete new build.

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: SEALED BID

Offers Received: 4

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: $34,024,865

Exercised Options: $34,024,865

Current Obligation: $34,024,865

Contract Characteristics

Cost or Pricing Data: NO

Timeline