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
- Economic price adjustment clause may increase final cost.
- Project duration of 507 days could be subject to delays.
Positive Signals
- Full and open competition utilized.
- Awarded by Federal Highway Administration, a specialized agency.
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
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Economic Price Adjustment (EPA) clause.
- Project duration of 507 days.
- Potential for unforeseen site conditions.
- Reliance on specific economic indices for EPA.
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: 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: 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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