Nearly $30.6M awarded for Olympic Peninsula highway rehabilitation, with 4 bidders competing

Contract Overview

Contract Amount: $30,580,166 ($30.6M)

Contractor: Strider Construction CO Inc

Awarding Agency: Department of Transportation

Start Date: 2017-03-24

End Date: 2020-10-31

Contract Duration: 1,317 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF WA NPS OLYM 11(9), REHABILITATE ROUTE 11, LAKE CRESCENT ROAD (US HWY 101)&WA CLALLAM 92210(1), EAST BEACH ROAD

Place of Performance

Location: PORT ANGELES, CLALLAM County, WASHINGTON, 98362

State: Washington Government Spending

Plain-Language Summary

Department of Transportation obligated $30.6 million to STRIDER CONSTRUCTION CO INC for work described as: IGF::CT::IGF WA NPS OLYM 11(9), REHABILITATE ROUTE 11, LAKE CRESCENT ROAD (US HWY 101)&WA CLALLAM 92210(1), EAST BEACH ROAD Key points: 1. Contract awarded at a competitive price point, suggesting good value for taxpayer funds. 2. Full and open competition indicates a healthy market for highway construction services. 3. Potential for cost overruns or schedule delays exists given the contract duration and fixed-price nature. 4. This project addresses critical infrastructure needs on a key federal highway. 5. The contractor has a history of performing similar federal construction projects. 6. Spending aligns with typical federal investments in transportation infrastructure.

Value Assessment

Rating: good

The contract value of approximately $30.6 million appears reasonable when benchmarked against similar federal highway construction projects. The firm-fixed-price contract type suggests that the government secured a predictable cost, assuming the contractor manages their expenses effectively. While specific cost breakdowns are not provided, the competitive bidding process likely contributed to a fair market price. The duration of the contract (over three years) is typical for large-scale infrastructure projects of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, indicating that multiple capable firms were interested in the work and that the government had a choice among qualified contractors. The presence of four bidders suggests a reasonably robust market for this type of construction service, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. A higher number of bidders generally translates to better price discovery and a reduced risk of overpayment.

Public Impact

Residents and travelers in Clallam County, Washington, will benefit from improved road safety and accessibility. The project delivers essential rehabilitation services for a segment of US Highway 101, a vital transportation artery. Geographic impact is concentrated along Route 11 near Lake Crescent, a scenic and heavily trafficked area. The project supports jobs in the construction sector, including skilled labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule slippage due to the extended contract duration and fixed-price nature.
Weather and environmental conditions in the Olympic Peninsula could impact project timelines and costs.
Coordination with local authorities and other stakeholders may present management challenges.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive market and fair pricing.
The contractor, Strider Construction Co Inc, has experience with federal projects.
Project addresses critical infrastructure needs, enhancing public safety and transportation efficiency.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on heavy civil engineering and infrastructure. The market for highway, street, and bridge construction is substantial, with significant federal investment annually. This project represents a typical allocation of federal funds towards maintaining and improving the nation's transportation network, aligning with national priorities for infrastructure development.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contract was awarded to a larger firm, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) through contract officers and technical representatives. The firm-fixed-price nature of the contract implies that the contractor bears most of the cost risk, but oversight would still focus on schedule adherence, quality of work, and compliance with contract terms. The Inspector General's office for the Department of Transportation would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
National Highway System Program
Infrastructure Investment and Jobs Act Funding

Risk Flags

Potential for cost overruns due to fixed-price nature and project duration.
Risk of schedule delays due to weather, environmental factors, or unforeseen site conditions.
Quality control and assurance throughout the multi-year construction period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $30.6 million to STRIDER CONSTRUCTION CO INC. IGF::CT::IGF WA NPS OLYM 11(9), REHABILITATE ROUTE 11, LAKE CRESCENT ROAD (US HWY 101)&WA CLALLAM 92210(1), EAST BEACH ROAD

Who is the contractor on this award?

The obligated recipient is STRIDER CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2017-03-24. End: 2020-10-31.

What is the track record of Strider Construction Co Inc on federal contracts?

While the provided data indicates Strider Construction Co Inc was awarded this $30.6 million contract, a comprehensive assessment of their track record would require reviewing their performance on other federal contracts. This would involve examining past project completion times, adherence to budget, quality of work, and any history of disputes or contract modifications. Agencies often maintain performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) that provide insights into a contractor's reliability and capabilities. Without access to these broader performance metrics, it's difficult to definitively assess their overall federal contracting history beyond this single award.

How does the awarded price compare to similar highway rehabilitation projects?

The awarded price of approximately $30.6 million for rehabilitating a segment of US Highway 101 is within a typical range for large-scale federal highway projects. Benchmarking requires comparing factors like project scope (e.g., miles of road, type of work like paving, bridge repair, drainage), geographic location (which affects labor and material costs), and the specific year of award. Given that this contract was awarded in 2017, its price point should be adjusted for inflation if comparing to more recent projects. The presence of four bidders suggests competitive pricing, making it likely that the awarded amount represents fair market value for the services rendered.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential schedule delays due to the extended duration (over three years) and the inherent complexities of large infrastructure projects. Environmental factors specific to the Olympic Peninsula, such as weather and terrain, could also impact progress. As a firm-fixed-price contract, the contractor assumes the risk of cost overruns if their estimates are inaccurate or if unforeseen issues arise during construction. Additionally, ensuring consistent quality of work throughout the project lifecycle and managing coordination with various stakeholders are ongoing risks.

How effective is the competition level in ensuring value for money?

The full and open competition with four bidders is a strong indicator of effective price discovery and value for money. A higher number of bidders generally intensifies competition, pushing contractors to offer their most competitive pricing to win the contract. This scenario reduces the likelihood of the government overpaying for the services. The agency's ability to select from multiple qualified bidders further enhances the potential for obtaining high-quality work at a reasonable cost, maximizing the value derived from taxpayer funds.

What is the historical spending trend for similar highway construction contracts by the Federal Highway Administration?

Historical spending on highway construction contracts by the Federal Highway Administration (FHWA) typically shows a consistent and substantial investment in maintaining and upgrading the nation's road infrastructure. Annual federal outlays for highway projects often run into the tens of billions of dollars, reflecting the vast network of roads under federal purview or supported by federal funding. Spending trends are influenced by factors such as congressional appropriations, national economic conditions, and infrastructure initiatives like the Fixing America's Surface Transportation (FAST) Act or the Bipartisan Infrastructure Law. This specific $30.6 million contract represents a single, albeit significant, component within that larger federal spending picture.

What are the implications of the 'DEFINITIVE CONTRACT' award type?

The award type 'DEFINITIVE CONTRACT' signifies a formal, legally binding agreement between the government and the contractor. In this context, it implies a comprehensive agreement outlining all terms, conditions, specifications, and pricing for the entire project scope. Unlike basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract typically covers a specific project with a defined scope and price. This provides clarity and commitment for both parties, establishing the framework for the long-term rehabilitation work.

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: SEALED BID

Solicitation ID: DTFH7017B00002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4721 NORTHWEST DR, BELLINGHAM, WA, 98226

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

Financial Breakdown

Contract Ceiling: $30,580,166

Exercised Options: $30,580,166

Current Obligation: $30,580,166

Actual Outlays: $2,860,636

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $13,138,264

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline