Transportation contract for Hawaii highway construction awarded to Road and Highway Builders, LLC for over $59.7 million

Contract Overview

Contract Amount: $59,744,325 ($59.7M)

Contractor: Road and Highway Builders, LLC

Awarding Agency: Department of Transportation

Start Date: 2016-01-07

End Date: 2018-07-25

Contract Duration: 930 days

Daily Burn Rate: $64.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HI SR 200(3) SADDLE ROAD EAST SIDE DTFH6816C00008 IGF::CT::IGF

Place of Performance

Location: HAKALAU, HAWAII County, HAWAII, 96710

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $59.7 million to ROAD AND HIGHWAY BUILDERS, LLC for work described as: HI SR 200(3) SADDLE ROAD EAST SIDE DTFH6816C00008 IGF::CT::IGF Key points: 1. Contract value appears reasonable given the scope of major highway construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 930 days indicates a significant, long-term project. 4. Firm fixed-price contract shifts risk to the contractor. 5. Project located in Hawaii, potentially impacting logistics and material costs. 6. No small business set-aside, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of approximately $59.7 million for highway construction in Hawaii is within a typical range for such infrastructure projects. Benchmarking against similar large-scale road construction contracts, the price appears competitive, especially considering the potential logistical challenges and material sourcing in an island state. The firm fixed-price structure further suggests that the government has secured a defined cost for the project, assuming the contractor manages their expenses effectively.

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 bids. The presence of four bidders (no) suggests a healthy level of competition for this significant infrastructure project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by driving down bid prices through market forces.

Public Impact

Benefits the state of Hawaii by improving critical transportation infrastructure. Delivers services related to highway, street, and bridge construction. Geographic impact is concentrated within Hawaii. Workforce implications include employment opportunities for construction labor and related trades in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Risk of delays due to weather or supply chain issues specific to island logistics.
Contractor's past performance on similar large-scale projects should be thoroughly reviewed.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Project addresses a clear need for infrastructure improvement in Hawaii.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and infrastructure development. The market for highway construction is substantial, driven by federal and state funding for transportation networks. This project aligns with the Federal Highway Administration's mission to ensure a safe, efficient, and accessible highway system. Comparable spending benchmarks would involve analyzing other large federal or state contracts for similar road and bridge projects across the country.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contract was awarded to a larger entity capable of handling the scale of the project. The absence of set-asides means that opportunities for small businesses would primarily be through subcontracting, 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 reports, site inspections, and financial reviews. Accountability is ensured through the firm fixed-price contract terms, which penalize the contractor for cost overruns. Transparency is generally maintained through contract award databases and public reporting requirements for federal spending.

Related Government Programs

Federal Highway Administration Grants
National Highway System Program
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for cost overruns due to fixed-price nature if contractor mismanages expenses.
Risk of schedule delays impacting public use and economic benefits.
Geographic isolation of Hawaii may present logistical and supply chain risks.
Contractor's past performance needs thorough vetting for large-scale projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $59.7 million to ROAD AND HIGHWAY BUILDERS, LLC. HI SR 200(3) SADDLE ROAD EAST SIDE DTFH6816C00008 IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ROAD AND HIGHWAY BUILDERS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $59.7 million.

What is the period of performance?

Start: 2016-01-07. End: 2018-07-25.

What is the track record of Road and Highway Builders, LLC on similar federal contracts?

A comprehensive review of Road and Highway Builders, LLC's past performance on federal contracts, particularly those involving highway, street, and bridge construction, is crucial. This would involve examining contract completion timeliness, adherence to budget, quality of work, and any history of disputes or claims. Data from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be essential to gauge their reliability and capability for a project of this magnitude and duration. Understanding their experience with firm fixed-price contracts and projects in geographically challenging locations like Hawaii would provide further insight into their suitability.

How does the awarded amount compare to the original estimated cost or baseline budget?

The provided data shows the awarded amount ($59.7 million) but does not include the original estimated cost or baseline budget for this contract. To fully assess value for money, a comparison between the awarded price and the government's initial cost estimate is necessary. A significant difference could indicate either highly effective competition driving down prices or potential issues with the initial cost estimation process. Without the baseline estimate, it's difficult to definitively state if the contract was awarded at a favorable price relative to expectations.

What are the key performance indicators (KPIs) used to measure the success of this highway construction project?

Key performance indicators for a highway construction project of this nature typically include adherence to the project schedule (930 days duration), quality of construction meeting specified standards (e.g., material strength, surface smoothness, drainage), safety performance (e.g., incident rates), and compliance with environmental regulations. The firm fixed-price contract implies that cost control is primarily the contractor's responsibility, but the government will monitor expenditures against milestones. Successful completion, defined by meeting all technical specifications and project objectives within the agreed-upon timeframe and cost, would be the ultimate measure of success.

What is the historical spending trend for highway construction in Hawaii funded by the Federal Highway Administration?

Analyzing historical spending trends for highway construction in Hawaii by the FHWA would provide context for the $59.7 million award. This involves examining annual or biennial federal outlays for similar projects in the state over the past 5-10 years. Understanding whether this contract represents a typical investment, an increase, or a decrease in federal funding for Hawaiian infrastructure can reveal patterns in federal priorities and resource allocation. It also helps in benchmarking the scale and cost of this specific project against the broader historical context of transportation investments in the region.

Were there any significant challenges or disputes during the contract performance period (2016-2018)?

Information regarding significant challenges or disputes during the contract performance period (January 7, 2016, to July 25, 2018) is not directly available in the provided data. To assess this, one would need to consult contract performance reports, official correspondence, or legal filings related to DTFH6816C00008. Potential challenges in highway construction often include unforeseen geological conditions, extreme weather events impacting schedules, material delivery delays, or disagreements over contract scope and specifications. Any such issues could have implications for contractor performance, cost, and future contract awards.

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

Solicitation ID: DTFH6815B00006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Road & Highway Builders LLC (UEI: 783650328)

Address: 96 GLEN CARRAN CIR STE 106, SPARKS, NV, 89431

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,744,325

Exercised Options: $59,744,325

Current Obligation: $59,744,325

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline