Transportation contract for Fernan Lake Road highway and bridge construction awarded to M.A. Deatley Construction for over $18.3 million

Contract Overview

Contract Amount: $18,324,731 ($18.3M)

Contractor: M.A. Deatley Construction, Inc.

Awarding Agency: Department of Transportation

Start Date: 2008-08-12

End Date: 2010-10-20

Contract Duration: 799 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Construction

Official Description: ID PFH 80-1(1) FERNAN LAKE ROAD HIGHWAY AND BRIDGE CONSTRUCTION

Place of Performance

Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83814

State: Idaho Government Spending

Plain-Language Summary

Department of Transportation obligated $18.3 million to M.A. DEATLEY CONSTRUCTION, INC. for work described as: ID PFH 80-1(1) FERNAN LAKE ROAD HIGHWAY AND BRIDGE CONSTRUCTION Key points: 1. Contract awarded for highway and bridge construction services. 2. The contract duration was 799 days. 3. The contract was awarded under full and open competition. 4. The contract type was fixed price with economic price adjustment. 5. The contract was awarded by the Department of Transportation. 6. The Federal Highway Administration oversaw this project.

Value Assessment

Rating: fair

The contract value of $18.3 million for highway and bridge construction is within a typical range for projects of this nature. Without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. However, the fixed-price with economic price adjustment structure suggests an attempt to manage cost fluctuations while providing a baseline price. Benchmarking against similar-sized bridge and highway projects in Idaho or the surrounding region would be necessary for a more definitive value assessment.

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 a bid. The presence of 5 bidders suggests a reasonably competitive environment for this project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific bid amounts from the other four bidders would be needed to fully assess the competitiveness and whether the winning bid represented the best value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are users of Fernan Lake Road and the surrounding Idaho transportation network, who will experience improved infrastructure. The project delivered essential highway and bridge construction and repair services. The geographic impact is localized to the Fernan Lake Road area in Idaho. The contract supported the construction workforce involved in building and maintaining transportation infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy civil engineering projects like highways and bridges. The market for such infrastructure projects is substantial, driven by federal and state funding for transportation networks. Comparable spending benchmarks would involve analyzing the cost per mile or per bridge for similar projects across the United States, considering regional variations in labor and material costs. The Federal Highway Administration is a major source of funding for such endeavors.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is also not explicitly stated whether M.A. Deatley Construction, Inc. is a small business or if subcontracting opportunities were mandated for small businesses. Further investigation would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Transportation and the Federal Highway Administration, with potential involvement from the agency's Inspector General's office to ensure compliance and prevent fraud. Transparency is generally maintained through contract award databases and public reporting requirements for federal spending. Accountability rests with the contractor to deliver the project according to specifications and with the contracting agency to monitor performance.

Related Government Programs

Risk Flags

Tags

construction, highway, bridge, transportation, department-of-transportation, federal-highway-administration, idaho, full-and-open-competition, fixed-price-economic-price-adjustment, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $18.3 million to M.A. DEATLEY CONSTRUCTION, INC.. ID PFH 80-1(1) FERNAN LAKE ROAD HIGHWAY AND BRIDGE CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is M.A. DEATLEY CONSTRUCTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2008-08-12. End: 2010-10-20.

What was the specific scope of work for the Fernan Lake Road highway and bridge construction project?

The provided data identifies the contract as 'FERNAN LAKE ROAD HIGHWAY AND BRIDGE CONSTRUCTION' (ID PFH 80-1(1) FERNAN LAKE ROAD HIGHWAY AND BRIDGE CONSTRUCTION). While the general nature of the work is clear, specific details such as the length of road to be constructed or repaired, the type and span of the bridge(s), any required earthwork, paving specifications, drainage improvements, or environmental mitigation measures are not included in the summary data. A detailed review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the precise deliverables and technical requirements.

How did M.A. Deatley Construction, Inc.'s bid compare to the other four bidders in terms of price?

The data indicates that M.A. Deatley Construction, Inc. was awarded the contract for $18,324,730.74. However, the bid amounts of the other four competitors are not provided. To assess the competitiveness of the award and whether it represented the best value, a comparison of all submitted bids is crucial. If the winning bid was significantly lower than others, it suggests strong competition. Conversely, if it was the highest or only bid within a certain range, it might indicate less competitive pricing or potential issues with the bidding process. Access to the bid tabulation would be required for this analysis.

What are the potential risks associated with a 'Fixed Price with Economic Price Adjustment' contract type for this project?

A 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract aims to balance cost certainty for the government with protection for the contractor against significant, unforeseen fluctuations in labor and material costs. For a highway and bridge construction project spanning nearly two years (799 days), risks include the potential for substantial increases in the cost of materials like asphalt, concrete, steel, and fuel, which could drive up the final price beyond the initial fixed component. Conversely, if costs decrease, the government might not fully benefit from the fixed-price aspect. Effective management requires robust mechanisms for tracking and justifying price adjustments based on established economic indices to ensure fairness and prevent excessive cost escalation.

What is the historical spending pattern for highway and bridge construction by the Federal Highway Administration in Idaho?

The provided data focuses on a single contract awarded in 2008. To understand historical spending patterns for highway and bridge construction by the Federal Highway Administration (FHWA) in Idaho, a broader dataset encompassing multiple years and contracts would be necessary. This would involve analyzing trends in contract values, the number of contracts awarded, the types of projects undertaken (e.g., new construction vs. repair), and the average contract durations. Such an analysis could reveal whether this $18.3 million contract was typical, large, or small relative to historical FHWA investments in Idaho's transportation infrastructure.

What is the track record of M.A. Deatley Construction, Inc. with federal contracts, particularly with the Department of Transportation?

The data identifies M.A. Deatley Construction, Inc. as the contractor for this specific Department of Transportation project. To assess their track record, one would need to examine their history of federal contract awards, including the value, duration, and performance ratings of past contracts. Information on whether they have successfully completed similar-sized highway and bridge projects, their history of contract modifications, claims, or disputes, and their performance feedback (e.g., Contractor Performance Assessment Reporting System - CPARS) would be highly relevant. A positive track record with the DOT suggests reliability and capability.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: DTFH70-07-B-00016

Offers Received: 5

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

Evaluated Preference: NONE

Contractor Details

Address: 829 EVANS RD, CLARKSTON, WA, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,324,731

Exercised Options: $18,324,731

Current Obligation: $18,324,731

Contract Characteristics

Multi-Year Contract: Yes

Timeline

Start Date: 2008-08-12

Current End Date: 2010-10-20

Potential End Date: 2010-10-20 00:00:00

Last Modified: 2012-12-13

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