Alaska road project awarded to Southeast Road Builders for $17.5M, completed on time

Contract Overview

Contract Amount: $17,503,526 ($17.5M)

Contractor: Southeast Road Builders, Inc

Awarding Agency: Department of Transportation

Start Date: 2006-05-18

End Date: 2007-12-06

Contract Duration: 567 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AK PFH 44-1(2) COFFMAN COVER ROAD, PHASE II

Place of Performance

Location: COFFMAN COVE, PRINCE OF WALES-HYDER County, ALASKA, 99918

State: Alaska Government Spending

Plain-Language Summary

Department of Transportation obligated $17.5 million to SOUTHEAST ROAD BUILDERS, INC for work described as: AK PFH 44-1(2) COFFMAN COVER ROAD, PHASE II Key points: 1. Project delivered within the estimated duration, indicating effective project management. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type likely mitigated cost overrun risks for the government. 4. The award amount was within the expected range for similar infrastructure projects. 5. Focus on highway construction aligns with critical transportation infrastructure needs. 6. The project's completion suggests a positive outcome for the awarded contractor.

Value Assessment

Rating: good

The contract value of $17.5 million for highway construction appears reasonable when benchmarked against similar federal projects of comparable scope and complexity. The firm fixed-price structure generally leads to predictable costs for the government, assuming the scope was well-defined. Without specific cost breakdowns or detailed performance metrics, a precise value-for-money assessment is challenging, but the on-time completion suggests efficient resource utilization.

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 two bidders suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, two offers are sufficient to establish a competitive baseline and ensure the government receives a fair price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors must offer competitive pricing to win contracts, potentially leading to cost savings.

Public Impact

Residents and businesses in Alaska benefit from improved transportation infrastructure. The project delivered essential highway construction services, enhancing connectivity. The geographic impact is localized to Alaska, specifically the area covered by Coffman Cover Road. The construction activities likely supported local employment in the region during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project definition was not robust, though fixed-price mitigates financial risk.
Dependence on a single contractor for this specific project phase could pose a risk if performance issues arise.

Positive Signals

Successful completion within the scheduled timeframe is a strong positive signal.
The firm fixed-price contract type indicates a commitment to cost control.
Award through full and open competition suggests a fair and transparent procurement process.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the nation's infrastructure. Spending in this sector is often driven by federal and state initiatives aimed at maintaining and upgrading transportation networks. Comparable projects can range from millions to billions of dollars depending on scale, complexity, and location. This specific project represents a moderate investment within the broader context of federal highway spending.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engaged small businesses as subcontractors. Further investigation into subcontracting reports would be needed for a definitive assessment.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Highway Administration (FHWA) and the Department of Transportation (DOT). Mechanisms likely included regular progress reviews, site inspections, and adherence to contract specifications. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within budget. Transparency is generally maintained through contract award databases and public reporting.

Related Government Programs

Federal Highway Administration Programs
National Highway System
State and Local Transportation Infrastructure Projects

Risk Flags

Potential for limited competition if barriers to entry are high in this specific construction niche.
Geographic remoteness of Alaska could introduce logistical challenges and associated cost risks, though mitigated by FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.5 million to SOUTHEAST ROAD BUILDERS, INC. AK PFH 44-1(2) COFFMAN COVER ROAD, PHASE II

Who is the contractor on this award?

The obligated recipient is SOUTHEAST ROAD BUILDERS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2006-05-18. End: 2007-12-06.

What was the specific scope of work for the Coffman Cover Road, Phase II project?

The Coffman Cover Road, Phase II project, awarded to Southeast Road Builders, Inc. for approximately $17.5 million, focused on highway construction. While the provided data does not detail the exact scope, projects of this nature typically involve road surface improvements, grading, drainage, and potentially bridge or culvert work within a defined segment of Coffman Cover Road in Alaska. The 'Phase II' designation suggests it was part of a larger, multi-stage infrastructure development effort. The firm fixed-price contract type implies that the scope was clearly defined prior to bidding to ensure cost certainty for the government.

How does the award amount of $17.5 million compare to similar highway construction projects in Alaska or the broader federal highway program?

The $17.5 million award for Coffman Cover Road, Phase II, represents a significant but not exceptionally large investment for a specific highway construction phase. Federal Highway Administration (FHWA) projects vary widely in cost, with major interstate or bridge projects often costing hundreds of millions or even billions. However, for specific road segment improvements or phases of larger projects in less densely populated or geographically challenging areas like Alaska, $17.5 million is a plausible figure. Benchmarking against similar 'Phase II' or specific improvement contracts within the FHWA's portfolio would provide a more precise comparison, but the amount appears within a reasonable range for substantial infrastructure work.

What were the primary risks associated with this contract, and how were they mitigated?

Primary risks for a highway construction project of this magnitude include potential cost overruns due to unforeseen site conditions (e.g., geological issues, weather delays), scope creep, and contractor performance issues. This contract utilized a Firm Fixed Price (FFP) structure, which is a key mitigation strategy against cost overruns, placing the financial risk primarily on the contractor. The contract's duration of 567 days (approximately 1.5 years) and its completion within that timeframe suggest that schedule risks were managed effectively. The award through full and open competition with two bidders also suggests a level of due diligence in selecting a capable contractor, mitigating performance risks.

What is the significance of the contract being 'Firm Fixed Price' (FFP)?

A Firm Fixed Price (FFP) contract signifies that the contractor agrees to a set price for the defined scope of work, regardless of the actual costs incurred. This structure is highly advantageous for the government as it provides maximum cost certainty and predictability. The financial risk shifts significantly to the contractor; they bear the burden of any cost overruns. Conversely, if the contractor can complete the work under budget, they retain the savings, creating an incentive for efficiency. For taxpayers, FFP contracts are generally preferred for well-defined projects like this highway construction, as they minimize the risk of unexpected increases in public expenditure.

What does the fact that only two bids were received imply about the competition?

Receiving two bids for this contract, awarded under full and open competition, suggests a moderate level of competition. While more bids could potentially lead to lower prices, two offers are generally considered sufficient to establish a competitive range and prevent a situation where the government is negotiating with a single source. The quality and competitiveness of those two bids would be crucial. If both were strong and well-priced, the government likely secured fair value. However, a lower number of bidders could sometimes indicate barriers to entry, limited market capacity for specific expertise, or a lack of outreach, which might warrant further examination in other contexts.

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

Solicitation Procedures: SEALED BID

Solicitation ID: DTFH7006C00002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: MILE POST 4/5 HINES HWY, HAINES, AK, 00

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,503,526

Exercised Options: $17,503,526

Current Obligation: $17,503,526

Contract Characteristics

Cost or Pricing Data: NO

Timeline