DOT awards $28.97M for Wyoming highway construction, highlighting competitive bidding

Contract Overview

Contract Amount: $28,972,363 ($29.0M)

Contractor: H-K Contractors, Inc.

Awarding Agency: Department of Transportation

Start Date: 2009-05-20

End Date: 2010-10-23

Contract Duration: 521 days

Daily Burn Rate: $55.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WY PRA-YELL 10(15) GRAND LOOP ROAD (MADISON TO NORRIS, SEGMENT B)

Place of Performance

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

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $29.0 million to H-K CONTRACTORS, INC. for work described as: WY PRA-YELL 10(15) GRAND LOOP ROAD (MADISON TO NORRIS, SEGMENT B) Key points: 1. Contract value of $28.97 million for a specific segment of a Wyoming highway. 2. The contract was awarded to H-K CONTRACTORS, INC. under a firm fixed-price agreement. 3. Project duration spans over 500 days, indicating a significant construction undertaking. 4. The work falls under Highway, Street, and Bridge Construction, a critical infrastructure sector. 5. Awarded as a competitive delivery order, suggesting a structured procurement process. 6. The contract was not set aside for small businesses. 7. The project is located in Wyoming, impacting state infrastructure.

Value Assessment

Rating: good

The contract value of $28.97 million for highway construction appears reasonable given the scope of work, which involves a significant segment of a major road. Benchmarking against similar highway construction projects in Wyoming or the broader Federal Highway Administration (FHWA) portfolio would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle, likely allowing for multiple bidders to submit proposals. The term 'full-and-open' competition suggests that all responsible sources were permitted to submit an offer. The presence of competition is generally positive for price discovery and ensures that the government receives offers from various contractors, potentially leading to more favorable pricing and better quality services.

Taxpayer Impact: A competitive bidding process for this highway construction project helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It also encourages contractors to offer their best value propositions to secure the work.

Public Impact

The primary beneficiaries are the residents and travelers of Wyoming who will experience improved road infrastructure. The project delivers essential highway construction services, specifically focusing on segments of Grand Loop Road. The geographic impact is concentrated in Wyoming, specifically between Madison and Norris on Segment B of the Grand Loop Road. The contract supports the construction workforce, likely employing engineers, laborers, and equipment operators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Delays in project completion could impact public access and economic activity in the region.
Ensuring the long-term durability and quality of the construction to avoid premature maintenance needs.

Positive Signals

Competitive bidding process likely secured a fair market price for the construction services.
Firm fixed-price contract shifts cost risk to the contractor, providing budget certainty.
The project addresses critical infrastructure needs, enhancing transportation efficiency and safety.
Award to an established contractor suggests a degree of confidence in their capability.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a vital component of the nation's infrastructure. The market for federal highway construction is substantial, driven by agencies like the Department of Transportation (DOT) and its Federal Highway Administration (FHWA). Spending in this sector is often characterized by large-scale projects, competitive bidding processes, and a focus on long-term asset management. Comparable spending benchmarks would typically involve analyzing the cost per mile or per lane-mile for similar highway projects across different regions and contract types.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This means that the primary award went to a larger firm, H-K CONTRACTORS, INC. The absence of small business set-asides or explicit subcontracting goals suggests that the focus was on securing the best overall bid from any responsible source. The impact on the small business ecosystem is neutral in this instance, as there were no specific provisions to direct work towards 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 from the contractor, site inspections by government engineers, and adherence to contract specifications. Accountability is ensured through the firm fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities are often internal.

Related Government Programs

Federal Highway Administration Construction Projects
Department of Transportation Infrastructure Spending
State Highway Improvement Programs
National Highway System Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of weather-related delays affecting project timeline.
Ensuring long-term durability and quality of construction.
Managing traffic disruptions and impact on local communities.
Fluctuations in material and labor costs over the project duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $29.0 million to H-K CONTRACTORS, INC.. WY PRA-YELL 10(15) GRAND LOOP ROAD (MADISON TO NORRIS, SEGMENT B)

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 $29.0 million.

What is the period of performance?

Start: 2009-05-20. End: 2010-10-23.

What is the track record of H-K CONTRACTORS, INC. with federal contracts, particularly with the Department of Transportation?

H-K CONTRACTORS, INC. has a history of performing work for federal agencies, including the Department of Transportation. Analyzing their past performance on similar highway construction projects would reveal their reliability, quality of work, and adherence to schedules and budgets. A review of their contract history might show a pattern of successful project completion or identify any recurring issues. For instance, examining prior DOT contracts could indicate their experience with firm fixed-price agreements and their ability to manage large-scale infrastructure projects. This information is crucial for assessing the risk associated with the current contract and for understanding their overall capability as a federal contractor.

How does the awarded amount of $28.97 million compare to the estimated cost or similar projects?

The awarded amount of $28.97 million for the WY PRA-YELL 10(15) GRAND LOOP ROAD project needs to be benchmarked against similar highway construction contracts to assess value for money. Factors such as project scope, complexity, location, and market conditions influence costs. Comparing this figure to the average cost per mile or per lane-mile for comparable Federal Highway Administration (FHWA) projects in the region or nationally would provide context. If the contract was awarded significantly below or above the estimated cost or market benchmarks, it could indicate either exceptional negotiation or potential issues with pricing. Without access to the government's independent cost estimate or a database of comparable project costs, a definitive value assessment is limited.

What are the primary risks associated with this highway construction contract?

Key risks for this highway construction contract include potential cost overruns due to unforeseen site conditions (e.g., geological issues, environmental hazards), which can be exacerbated by weather delays, especially in Wyoming's climate. Despite the firm fixed-price structure, scope creep or change orders could increase the total cost if not managed rigorously. Contractor performance risk, including quality of work and adherence to safety standards, is also a concern. Furthermore, the long duration of the project (521 days) increases the exposure to market fluctuations in material costs and labor availability. Finally, the impact of construction on local traffic and businesses presents a risk of public dissatisfaction or economic disruption.

How effective is the competitive delivery order process in ensuring fair pricing for infrastructure projects?

The competitive delivery order process is generally effective in ensuring fair pricing for infrastructure projects by leveraging competition among pre-qualified contractors. By allowing multiple bidders to compete for specific tasks under an established contract vehicle, it promotes price discovery and encourages contractors to offer competitive bids. This method can lead to cost savings compared to sole-source or less competitive procurement methods. However, the effectiveness is contingent on the number and quality of bidders, the clarity of the solicitation, and the fairness of the evaluation criteria. A robust competitive process typically results in prices that reflect market rates and provides taxpayers with better value.

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

Historical spending patterns for highway construction by the Federal Highway Administration (FHWA) in Wyoming typically show consistent investment in maintaining and improving the state's transportation infrastructure. This includes funding for projects on major routes like the Grand Loop Road, as well as other state and federal highways. Spending levels can fluctuate based on federal appropriations, infrastructure initiatives, and the specific needs identified for road repair and upgrades. Analyzing past FHWA expenditures in Wyoming would reveal trends in project types, average contract values, and the frequency of large-scale construction awards, providing context for the current $28.97 million contract.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interstate Concrete and Asphalt Company (UEI: 219509155)

Address: 6350 S YELLOWSTONE HWY, IDAHO FALLS, ID, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,972,363

Exercised Options: $28,972,363

Current Obligation: $28,972,363

Parent Contract

Parent Award PIID: DTFH7007D00007

IDV Type: IDC

Timeline