DOT Awards $19.4M Highway Project to H-K Contractors in Wyoming

Contract Overview

Contract Amount: $19,369,576 ($19.4M)

Contractor: H-K Contractors, Inc.

Awarding Agency: Department of Transportation

Start Date: 2012-06-04

End Date: 2013-10-24

Contract Duration: 507 days

Daily Burn Rate: $38.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Construction

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS WY PRA YELL 10(16) GRAND LOOP ROAD, CANYON TO TOWER, PHASE 2

Place of Performance

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

State: Wyoming Government Spending

Plain-Language Summary

Department of Transportation obligated $19.4 million to H-K CONTRACTORS, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTIONS WY PRA YELL 10(16) GRAND LOOP ROAD, CANYON TO TOWER, PHASE 2 Key points: 1. Project focuses on critical highway functions in Wyoming. 2. H-K Contractors, Inc. secured the award. 3. Competition was full and open, suggesting market price discovery. 4. The sector is Highway, Street, and Bridge Construction.

Value Assessment

Rating: good

The award amount of $19.4M for a 507-day project appears reasonable for highway construction. Benchmarking against similar federal highway projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayer funds are utilized for essential infrastructure improvements, with competition aiming for cost-effectiveness.

Public Impact

Enhances critical transportation infrastructure in Wyoming. Supports economic activity through construction jobs. Improves road safety and efficiency for users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant area of federal spending for infrastructure maintenance and development. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Future analysis should explore opportunities for small business participation in such projects.

Oversight & Accountability

The Federal Highway Administration is responsible for overseeing this project. Standard oversight procedures for construction contracts are expected to be in place.

Related Government Programs

Risk Flags

Tags

highway-street-and-bridge-construction, department-of-transportation, wy, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19.4 million to H-K CONTRACTORS, INC.. IGF::CT::IGF CRITICAL FUNCTIONS WY PRA YELL 10(16) GRAND LOOP ROAD, CANYON TO TOWER, PHASE 2

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 $19.4 million.

What is the period of performance?

Start: 2012-06-04. End: 2013-10-24.

What is the potential impact of the economic price adjustment clause on the final cost?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specific economic factors, such as labor or material costs. While intended to protect contractors from unforeseen market changes, it introduces uncertainty regarding the final expenditure. The actual impact depends on the volatility of the indexed costs during the project's 507-day duration and the specific terms of the EPA.

How does the fixed-price contract type with EPA balance cost certainty for the government against contractor risk?

A fixed-price contract aims for cost certainty, but the inclusion of an Economic Price Adjustment (EPA) shifts some risk back to the government. The base price is fixed, but the EPA allows for upward (and sometimes downward) adjustments based on specified economic indices. This structure attempts to balance the government's desire for a predictable initial cost with the contractor's need to be protected against significant, uncontrollable cost escalations.

What specific 'critical functions' are being addressed by this highway project?

The provided data does not specify the exact 'critical functions' being addressed. Typically, in highway construction, critical functions relate to maintaining structural integrity, ensuring traffic flow, enhancing safety features (like lighting or guardrails), or improving accessibility. Further details from the contract's statement of work would be necessary to identify the precise critical functions targeted by this Phase 2 project.

Industry Classification

NAICS: ConstructionHighway, Street, and Bridge ConstructionHighway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: DTFH70-11-R-00016

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $19,369,576

Exercised Options: $19,369,576

Current Obligation: $19,369,576

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $9,233,921

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFH7007D00007

IDV Type: IDC

Timeline

Start Date: 2012-06-04

Current End Date: 2013-10-24

Potential End Date: 2013-10-24 00:00:00

Last Modified: 2014-08-13

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