DOT awarded $34.2M for Wyoming road construction, highlighting firm fixed-price contract for highway segment

Contract Overview

Contract Amount: $34,243,365 ($34.2M)

Contractor: H-K Contractors, Inc.

Awarding Agency: Department of Transportation

Start Date: 2004-05-26

End Date: 2007-10-15

Contract Duration: 1,237 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WY PRA-YELL 13(3) EAST ENTRANCE ROAD, SEGMENT C

Place of Performance

Location: YELLOWSTONE NATIONAL PARK, PARK County, WYOMING, 82190

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $34.2 million to H-K CONTRACTORS, INC. for work described as: WY PRA-YELL 13(3) EAST ENTRANCE ROAD, SEGMENT C Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Firm fixed-price contract type indicates price certainty for the government. 3. Project duration of 1237 days suggests a significant, long-term infrastructure undertaking. 4. The contract value of $34.2M falls within a typical range for major highway construction projects. 5. Awarded by the Federal Highway Administration, indicating a focus on national transportation infrastructure. 6. The project is located in Wyoming, potentially benefiting the regional economy and workforce.

Value Assessment

Rating: good

The contract value of $34.2 million for highway construction appears reasonable given the project's scope and duration. Without specific benchmarks for this exact type of road segment in Wyoming, a direct per-unit cost comparison is difficult. However, the firm fixed-price nature of the contract suggests the government secured a defined cost upfront, which is a positive indicator of value management. The number of bidders (4) also suggests a healthy level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Four bids were received, indicating a moderate level of competition for this project. While four bidders is generally considered competitive, a higher number could potentially drive prices lower. The open competition process, however, ensures that the government had a range of options to choose from.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that taxpayer funds are used efficiently by selecting the best value offer.

Public Impact

The primary beneficiaries are likely users of the Wyoming transportation network, benefiting from improved road infrastructure. The project delivers essential highway construction services, contributing to the maintenance and upgrade of federal-aid highways. The geographic impact is concentrated in Wyoming, potentially stimulating local economic activity and employment. Workforce implications include job creation for construction workers, engineers, and related support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Risk of delays due to weather or material availability, common in large-scale construction.
Ensuring quality control and adherence to specifications over the project's multi-year duration.

Positive Signals

Firm fixed-price contract provides cost certainty and budget predictability.
Awarded through full and open competition, suggesting a competitive selection process.
The project addresses a clear need for infrastructure improvement in Wyoming.
The contractor, H-K Contractors, Inc., has a track record with federal contracts, implying some level of established capability.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader Construction industry. This sector is characterized by large-scale projects requiring significant capital investment, specialized equipment, and skilled labor. Federal spending in this area is often driven by the need to maintain and upgrade aging infrastructure, improve transportation efficiency, and support economic development. Comparable spending benchmarks would typically involve analyzing the cost per mile or per lane-mile for similar highway projects in different regions.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements indicated in the provided data. The prime contractor, H-K Contractors, Inc., is likely a larger entity capable of managing such a substantial project. The absence of small business set-asides means that opportunities for smaller firms would primarily come 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) contracting officers and project managers. They are responsible for monitoring progress, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, but quality assurance and adherence to specifications remain key oversight areas. Transparency is generally maintained through contract award databases and public reporting of federal spending.

Related Government Programs

Federal Highway Administration Programs
National Highway System Construction
Infrastructure Investment and Jobs Act Projects
State and Local Transportation Grants

Risk Flags

Potential for cost escalation impacting contractor profitability and project continuity.
Risk of project delays due to weather, environmental factors, or unforeseen site conditions.
Ensuring adherence to quality standards and specifications throughout the multi-year project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $34.2 million to H-K CONTRACTORS, INC.. WY PRA-YELL 13(3) EAST ENTRANCE ROAD, SEGMENT C

Who is the contractor on this award?

The obligated recipient is H-K CONTRACTORS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2004-05-26. End: 2007-10-15.

What is the track record of H-K Contractors, Inc. with federal contracts, particularly in highway construction?

H-K Contractors, Inc. has a history of performing work for federal agencies, including contracts related to highway and infrastructure projects. While specific details on their past performance metrics, such as on-time completion rates or cost performance on previous federal jobs, are not provided in this summary, their ability to win and execute a contract of this magnitude ($34.2M) suggests a level of established capability and experience. Further analysis would involve reviewing their contract history for any performance issues, disputes, or awards for exceptional performance. Their involvement in projects like the WY PRA-YELL 13(3) EAST ENTRANCE ROAD, SEGMENT C indicates a capacity to handle complex construction tasks within the federal procurement system.

How does the awarded amount of $34.2 million compare to similar highway construction projects in Wyoming or the Mountain West region?

Comparing the $34.2 million award requires context regarding the specific scope of 'SEGMENT C' of the East Entrance Road. Factors such as the length of the segment, the complexity of the terrain, the number of lanes, required earthwork, paving materials, and any associated structures (bridges, culverts) significantly influence cost. Generally, major highway construction projects can range from tens of millions to hundreds of millions of dollars. For a specific segment, this value appears substantial, suggesting a significant undertaking. Benchmarking would ideally involve analyzing cost per mile or per unit of work (e.g., per cubic yard of excavation, per ton of asphalt) for comparable projects in the region, which is not directly available from the provided data. However, the firm fixed-price nature suggests the government aimed for cost certainty at this level.

What are the primary risks associated with a multi-year, firm fixed-price highway construction contract?

The primary risks for a firm fixed-price contract, especially one spanning over three years (1237 days), include potential cost increases for the contractor due to unforeseen circumstances like material price escalation, labor shortages, or unexpected site conditions. While the fixed price protects the government from direct cost overruns, the contractor might cut corners on quality or scope if costs rise significantly, necessitating robust government oversight. For the government, risks include the contractor's potential financial instability impacting project completion, or the contractor potentially defaulting, leading to delays and re-procurement costs. Weather delays and environmental compliance issues are also inherent risks in large-scale construction projects that can impact schedules and, indirectly, costs.

What is the expected impact of this contract on the local Wyoming economy and workforce?

This $34.2 million contract is expected to have a positive impact on the local Wyoming economy and workforce. The construction activities will directly create jobs for skilled laborers, equipment operators, engineers, project managers, and administrative staff. Indirectly, it will stimulate demand for local suppliers of materials (aggregate, asphalt, concrete), equipment rentals, and services. The improved transportation infrastructure resulting from the project can also enhance economic development in the region by facilitating commerce and tourism. The duration of the project (over three years) suggests sustained economic activity and employment opportunities.

How does the level of competition (4 bidders) influence the value for money achieved in this contract?

Having four bidders for this contract suggests a moderate level of competition, which is generally positive for achieving value for money. Competition incentivizes bidders to offer competitive pricing and demonstrate strong technical capabilities to win the contract. With four offers, the Federal Highway Administration had a reasonable selection pool to evaluate against the stated requirements. While more bidders could potentially lead to even lower prices, four is often considered a sufficient number to prevent a lack of competition from driving up costs significantly. The firm fixed-price structure further ensures that the agreed-upon price is locked in, enhancing budget certainty for the government.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 6350 S. YELLOWSTONE HIGHWAY, IDAHO FALLS, ID, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,243,365

Exercised Options: $34,243,365

Current Obligation: $34,243,365

Timeline