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
- Economic price adjustment clauses can introduce uncertainty in final costs if not carefully managed.
- The fixed-price nature, even with adjustments, carries some risk for the contractor regarding unforeseen site conditions or material cost spikes.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- The contract was awarded to a single entity, M.A. Deatley Construction, Inc., indicating a clear point of responsibility.
- The project falls under the purview of the Federal Highway Administration, a specialized agency for transportation infrastructure.
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
- Federal Highway System
- National Bridge Inventory
- State Highway Improvement Programs
- Infrastructure Investment and Jobs Act
Risk Flags
- Potential for cost escalation due to economic price adjustment clause.
- Need for detailed review of competition to ensure best value.
- Scope of work details not fully provided in summary data.
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: 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: 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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