DOT awarded $24.7M for Arizona highway construction, with FNF Construction Inc. securing the deal

Contract Overview

Contract Amount: $24,687,884 ($24.7M)

Contractor: FNF Construction, Inc

Awarding Agency: Department of Transportation

Start Date: 2016-01-11

End Date: 2018-06-30

Contract Duration: 901 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF AZ FLAP 89(1) FLAGSTAFF - VISTA OVERLOOK DTFH68-15-B-00009 3R AND 4R WORK

Place of Performance

Location: SEDONA, COCONINO County, ARIZONA, 86336

State: Arizona Government Spending

Plain-Language Summary

Department of Transportation obligated $24.7 million to FNF CONSTRUCTION, INC for work described as: IGF::CT::IGF AZ FLAP 89(1) FLAGSTAFF - VISTA OVERLOOK DTFH68-15-B-00009 3R AND 4R WORK Key points: 1. The contract represents a significant investment in Arizona's transportation infrastructure. 2. FNF Construction, Inc. was selected through a full and open competition process. 3. The firm-fixed-price contract type suggests a clear scope and predictable costs. 4. The duration of the contract (901 days) indicates a substantial project. 5. The award was made by the Federal Highway Administration, a key agency within DOT. 6. The project falls under the Highway, Street, and Bridge Construction sector.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without detailed project specifications and comparable bids. However, the award amount of approximately $24.7 million for a multi-year highway construction project in Arizona appears within a reasonable range for such infrastructure work. The firm-fixed-price structure generally indicates that the contractor assumed the risk for cost overruns, which can be a positive sign for value if the project is completed within budget. Further analysis would require comparing the per-mile or per-lane-mile cost against similar projects in the region and nationally.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders (no) suggests a healthy level of competition for this significant infrastructure project. A competitive bidding process is generally expected to drive down prices and ensure that the government receives the best value for its investment. The fact that multiple firms vied for the contract indicates market interest and potential for price discovery.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

The primary beneficiaries are the residents and businesses of Arizona who will experience improved transportation infrastructure. The project delivers essential highway, street, and bridge construction services. The geographic impact is concentrated in Arizona (AZ), specifically within the state. The contract supports jobs in the construction sector, including skilled labor and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by firm-fixed-price.
Ensuring timely completion within the 901-day duration is crucial for public benefit.
Monitoring the quality of construction to meet federal and state standards.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Significant investment in critical transportation infrastructure for Arizona.

Sector Analysis

The Highway, Street, and Bridge Construction sector is a vital part of the U.S. economy, responsible for maintaining and expanding the nation's transportation network. Federal spending in this area is often driven by infrastructure initiatives and economic stimulus programs. This contract, valued at approximately $24.7 million, fits within the typical range for significant state-level highway projects. Comparable spending benchmarks would involve looking at other large-scale road and bridge projects awarded by the Federal Highway Administration or state Departments of Transportation across the country.

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 specifically tied to small business set-asides for this particular award. The primary contractor, FNF Construction, Inc., would determine its own subcontracting strategy, which may or may not involve small businesses. The absence of a set-aside means that larger firms were eligible and likely competed, potentially impacting the opportunities for smaller entities on this specific project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Highway Administration. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Highway Administration Programs
National Highway System
State and Local Transportation Infrastructure Projects
Department of Transportation Construction Contracts

Risk Flags

Potential for schedule delays due to unforeseen site conditions.
Ensuring adherence to stringent quality and safety standards in construction.
Monitoring contractor performance throughout the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.7 million to FNF CONSTRUCTION, INC. IGF::CT::IGF AZ FLAP 89(1) FLAGSTAFF - VISTA OVERLOOK DTFH68-15-B-00009 3R AND 4R WORK

Who is the contractor on this award?

The obligated recipient is FNF 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 $24.7 million.

What is the period of performance?

Start: 2016-01-11. End: 2018-06-30.

What is the track record of FNF Construction, Inc. with federal contracts, particularly with the Department of Transportation?

A comprehensive review of FNF Construction, Inc.'s track record with federal contracts, especially those administered by the Department of Transportation (DOT) and the Federal Highway Administration (FHWA), would involve examining past performance evaluations, any history of contract disputes or terminations, and the types and values of previous awards. While this specific award of approximately $24.7 million is substantial, understanding their broader federal contracting history provides context on their experience and reliability. Data from contract databases like SAM.gov or FPDS can reveal patterns in their performance, on-time delivery rates, and adherence to contract specifications. A positive history suggests a lower risk for this current project, while a history marked by issues might warrant closer scrutiny of their project management capabilities and financial stability.

How does the awarded amount compare to similar highway construction projects in Arizona or the surrounding region?

To benchmark the value of this $24.7 million contract, a comparative analysis of similar highway construction projects in Arizona and the surrounding region is necessary. This would involve identifying projects of comparable scope (e.g., miles of highway, number of bridges, complexity of terrain) awarded within a similar timeframe. Key metrics for comparison include cost per mile, cost per lane-mile, or cost per bridge replaced. Factors such as material costs, labor rates, and environmental regulations specific to the region can influence project costs. If this contract's cost per unit is significantly higher than comparable projects, it could indicate potential issues with pricing or scope creep. Conversely, a cost that aligns with or is lower than benchmarks suggests good value for taxpayer money.

What are the primary risks associated with this specific highway construction contract, and how are they being managed?

The primary risks associated with this highway construction contract include potential delays due to unforeseen geological conditions, adverse weather impacting the 901-day schedule, fluctuations in material costs (though mitigated by the firm-fixed-price structure), and ensuring the quality of workmanship meets federal and state standards. The firm-fixed-price (pt: FIRM FIXED PRICE) nature of the contract shifts much of the cost overrun risk to the contractor, FNF Construction, Inc. Management of these risks is typically handled through detailed project planning, regular site inspections, adherence to strict quality control protocols, and contingency planning for weather delays. The Federal Highway Administration's oversight is crucial in monitoring progress and ensuring compliance with contract terms to mitigate these risks effectively.

What is the historical spending pattern for highway construction by the Federal Highway Administration in Arizona?

Analyzing the historical spending patterns of the Federal Highway Administration (FHWA) in Arizona for highway construction provides context for the $24.7 million award to FNF Construction, Inc. This involves examining FHWA's budget allocations and contract awards in Arizona over the past several fiscal years. Key questions include whether spending has been consistent, increasing, or decreasing, and what types of projects (e.g., new construction, repairs, bridge work) have received the most funding. Understanding these trends can reveal priorities, potential funding cycles, and the typical scale of projects awarded. For instance, if this $24.7 million contract is significantly larger or smaller than average, it might indicate a shift in FHWA's investment strategy in Arizona or a particularly large-scale infrastructure initiative.

How does the competition level (4 bidders) for this contract influence the final price and overall value for taxpayers?

The competition level of 4 bidders for this highway construction contract is a positive indicator for taxpayers. A higher number of bidders generally leads to more competitive pricing as firms vie to win the contract by offering their best terms. This process helps ensure that the government is not overpaying and is receiving a fair market price for the services rendered. In this case, with 4 firms submitting proposals, it suggests that the market for this type of construction in Arizona is sufficiently robust to attract multiple interested parties. This level of competition increases the likelihood that the awarded price reflects efficient project execution and reasonable profit margins, thereby maximizing the value of taxpayer investment.

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: DTFH6816B00002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: FNF Construction Inc

Address: 115 S 48TH ST, TEMPE, AZ, 85281

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

Financial Breakdown

Contract Ceiling: $24,687,884

Exercised Options: $24,687,884

Current Obligation: $24,687,884

Actual Outlays: $-126,418

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline