DOT Awards $12.45M Firm Fixed Price Contract for Highway Construction to H-K Contractors, Inc
Contract Overview
Contract Amount: $12,449,165 ($12.4M)
Contractor: H-K Contractors, Inc.
Awarding Agency: Department of Transportation
Start Date: 2008-04-02
End Date: 2009-10-30
Contract Duration: 576 days
Daily Burn Rate: $21.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MT PRA GLAC 10(33) GTSR CRYSTAL POINT TO HAYSTACK
Place of Performance
Location: WEST GLACIER, FLATHEAD County, MONTANA, 59936
State: Montana Government Spending
Plain-Language Summary
Department of Transportation obligated $12.4 million to H-K CONTRACTORS, INC. for work described as: MT PRA GLAC 10(33) GTSR CRYSTAL POINT TO HAYSTACK Key points: 1. Contract awarded for highway, street, and bridge construction in Montana. 2. The contract was not competed, raising questions about price discovery. 3. A significant portion of the award value was spent within the period of performance. 4. The sector is dominated by large firms, with limited small business participation. 5. The contract's value is moderate within the highway construction sector.
Value Assessment
Rating: fair
The contract's total award value was $12.45 million. Benchmarking against similar highway construction contracts is difficult without more specific project details and cost breakdowns. The firm fixed price structure suggests a defined scope, but the lack of competition limits price validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices due to a lack of market pressure and potentially less rigorous price negotiation. The absence of competitive bidding limits transparency in price discovery.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying a premium for the construction services, as there was no market-driven incentive for the contractor to offer the lowest possible price.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The contract supports critical infrastructure development in Montana. The absence of competition limits public visibility into the contract's value for money. H-K Contractors, Inc. received a substantial award for services rendered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Awarded for essential infrastructure
- Firm fixed price contract
Sector Analysis
The Highway, Street, and Bridge Construction sector is a significant part of the transportation infrastructure industry. Spending in this sector can vary widely based on government initiatives and project scale. This contract represents a moderate investment within this broad category.
Small Business Impact
The data indicates that this contract was not awarded to a small business. The highway construction sector generally sees a mix of large and small business participation, but larger, more complex projects often favor established, larger firms.
Oversight & Accountability
The lack of competition raises concerns about oversight and accountability. Without a competitive process, it is harder to ensure that the government received the best value and that the contractor's pricing was justified. Further review of the justification for sole-sourcing would be beneficial.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award process
- No clear justification for sole-sourcing provided
Tags
highway-street-and-bridge-construction, department-of-transportation, mt, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $12.4 million to H-K CONTRACTORS, INC.. MT PRA GLAC 10(33) GTSR CRYSTAL POINT TO HAYSTACK
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 $12.4 million.
What is the period of performance?
Start: 2008-04-02. End: 2009-10-30.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source contracts require a detailed justification, such as a unique capability or urgent need. Without this information, it's impossible to assess how the price was determined to be fair and reasonable, increasing the risk of overpayment.
What specific risks were identified or mitigated during the performance of this contract, given its sole-source nature?
The data does not specify any particular risks identified or mitigated during the contract's performance. However, the inherent risks of a sole-source award include potential cost overruns, scope creep, and reduced quality due to a lack of competitive pressure. The government should have robust oversight mechanisms in place to manage these risks.
How effectively did this contract contribute to the Federal Highway Administration's mission, considering the procurement method?
The contract contributed to the Federal Highway Administration's mission by funding necessary highway construction in Montana. However, the sole-source award method raises questions about the overall effectiveness in terms of achieving the best possible value for taxpayer dollars. A competitive process might have yielded similar or better results at a lower cost.
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: NOT COMPETED
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: $12,449,165
Exercised Options: $12,449,165
Current Obligation: $12,449,165
Parent Contract
Parent Award PIID: DTFH7007D00009
IDV Type: IDC
Timeline
Start Date: 2008-04-02
Current End Date: 2009-10-30
Potential End Date: 2009-10-30 00:00:00
Last Modified: 2011-09-22
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