Transportation contract for road work awarded to APAC-ATLANTIC INC for over $14.5 million

Contract Overview

Contract Amount: $14,566,881 ($14.6M)

Contractor: Apac-Atlantic Inc

Awarding Agency: Department of Transportation

Start Date: 2005-12-14

End Date: 2009-05-22

Contract Duration: 1,255 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: REMOVAL AND REPLACEMENT OF NEWFOUND GAP ROAD

Place of Performance

Location: CHEROKEE, SWAIN County, NORTH CAROLINA, 28719

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $14.6 million to APAC-ATLANTIC INC for work described as: REMOVAL AND REPLACEMENT OF NEWFOUND GAP ROAD Key points: 1. Contract awarded for highway, street, and bridge construction services. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 1255 days indicates a significant, long-term project. 4. Awarded by the Department of Transportation, Federal Highway Administration. 5. Project located in North Carolina, impacting local infrastructure.

Value Assessment

Rating: fair

The contract value of $14.5 million for road construction over approximately 3.5 years appears to be within a reasonable range for a project of this scope. Without specific details on the scope of work (e.g., miles of road, type of repairs), a direct value-for-money assessment is challenging. However, the firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, suggesting a degree of price certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and ensure the government receives the best value. The presence of multiple bidders suggests a healthy market for highway construction services in the region.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, leading to potentially lower prices and higher quality services compared to less competitive award methods.

Public Impact

The primary beneficiaries are likely residents and businesses in North Carolina who will experience improved transportation infrastructure. Services delivered include the removal and replacement of road sections, enhancing safety and efficiency. The geographic impact is localized to the specific area within North Carolina where the 'Newfound Gap Road' is located. Workforce implications include employment opportunities for construction workers, engineers, and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-duration construction projects if not managed tightly.
Reliance on a single contractor for an extended period could lead to complacency if oversight is weak.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Long duration allows for thorough planning and execution of complex roadwork.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the Transportation industry. This sector involves significant public investment aimed at maintaining and upgrading national infrastructure. Spending in this area is often driven by federal and state funding initiatives focused on economic development and public safety. Comparable projects can range from minor repairs to major highway expansions, with costs varying widely based on scale and complexity.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the contract value and scope, it is possible that larger firms were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed for small business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Transportation and the Federal Highway Administration would be responsible for monitoring performance and ensuring compliance with contract terms. Transparency is generally maintained through contract databases, although specific oversight reports or IG involvement would depend on performance issues or audits.

Related Government Programs

Federal Highway System Construction
National Highway Performance Program
Infrastructure Investment and Jobs Act Projects

Risk Flags

Long contract duration may increase risk of unforeseen issues.
Lack of specific performance metrics in summary data hinders detailed oversight assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $14.6 million to APAC-ATLANTIC INC. REMOVAL AND REPLACEMENT OF NEWFOUND GAP ROAD

Who is the contractor on this award?

The obligated recipient is APAC-ATLANTIC INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2005-12-14. End: 2009-05-22.

What was the specific scope of work for the 'Newfound Gap Road' removal and replacement?

The provided data indicates the contract was for 'REMOVAL AND REPLACEMENT OF NEWFOUND GAP ROAD'. However, specific details regarding the extent of the road section, the nature of the removal (e.g., complete reconstruction, resurfacing, structural repairs), and the replacement materials or methods are not detailed in the summary data. This level of detail is crucial for a precise assessment of the project's complexity and the appropriateness of the awarded value. Further documentation, such as the contract statement of work or project specifications, would be necessary to understand the granular requirements and evaluate the contractor's performance against them.

How did APAC-ATLANTIC INC's bid compare to other proposals received under full and open competition?

While the contract was awarded under 'FULL AND OPEN COMPETITION', the provided data does not include information on the number of bids received or the pricing of competing proposals. To assess the competitiveness and value, it would be essential to know how many bids were submitted and the range of proposed prices. A significant difference between the winning bid and other bids could indicate either exceptional value or potential issues with the bidding process or the government's cost estimates. Without this comparative data, it's difficult to definitively state if the $14.5 million award represented the best possible price.

What are the key performance indicators (KPIs) for this highway construction contract?

The summary data does not specify the key performance indicators (KPIs) established for this contract. Typically, for highway construction, KPIs would include adherence to schedule, quality of workmanship (e.g., material standards, finish), safety compliance (e.g., incident rates), and adherence to budget. The firm fixed-price nature suggests that meeting the defined scope within the $14.5 million budget is a primary KPI. The contract duration of 1255 days also implies that timely completion according to project milestones is critical. Monitoring these KPIs would be essential for the Federal Highway Administration to ensure project success.

Has APAC-ATLANTIC INC had other federal contracts, and what is their performance history?

The provided data focuses solely on this specific contract and does not offer insights into APAC-ATLANTIC INC's broader contract history with the federal government. A comprehensive assessment of the contractor's track record would require reviewing their past performance on other federal awards, including any reported issues, awards for excellence, or contract terminations. This information is typically available through federal procurement databases and past performance evaluation systems. Without this broader context, it's challenging to gauge the contractor's reliability and experience beyond this single project.

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

The provided data does not include historical spending trends for similar projects. To establish a benchmark, one would need to analyze past contracts awarded by the Federal Highway Administration (FHWA) for highway removal and replacement projects of comparable size and complexity within North Carolina or similar geographic regions. This analysis would involve looking at contract values, durations, and the scope of work over several fiscal years. Understanding these trends would help determine if the $14.5 million awarded to APAC-ATLANTIC INC is consistent with historical spending patterns or represents an outlier, potentially due to market conditions, project specifics, or inflation.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DTFH7105R00016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interstate Concrete and Asphalt Company (UEI: 219509155)

Address: 226 GILL ST, ALCOA, TN, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,566,881

Exercised Options: $14,566,881

Current Obligation: $14,566,881

Timeline