Transportation contract for highway construction awarded to Kirkland Construction for over $17.2 million

Contract Overview

Contract Amount: $17,292,284 ($17.3M)

Contractor: Kirkland Construction, L.l.l.p.

Awarding Agency: Department of Transportation

Start Date: 2007-09-06

End Date: 2010-09-08

Contract Duration: 1,098 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRADING, DRAINAGE, ANCHOR BLOCK, GROUND ANCHORS, PAVING, EROSION CONTROL AND OTHER WORK.

Place of Performance

Location: CHRISTIANSTED, ST. CROIX County, VIRGIN ISLANDS OF THE U.S., 00820

Plain-Language Summary

Department of Transportation obligated $17.3 million to KIRKLAND CONSTRUCTION, L.L.L.P. for work described as: GRADING, DRAINAGE, ANCHOR BLOCK, GROUND ANCHORS, PAVING, EROSION CONTROL AND OTHER WORK. 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 1098 days indicates a significant, long-term project. 4. Awarded under full and open competition, implying a broad search for bidders. 5. Project located in the U.S. Virgin Islands, potentially indicating specific regional needs. 6. The contract was awarded by the Federal Highway Administration, a key agency within the Department of Transportation.

Value Assessment

Rating: fair

The contract value of $17.29 million for highway construction over nearly three years appears within a reasonable range for a project of this scope and duration. However, without specific details on the scope of work (e.g., miles of road, type of work), a precise value-for-money assessment is challenging. Benchmarking against similar projects in the region or for the Federal Highway Administration would provide better context for pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of 5 bids suggests a reasonable level of interest and competition for this project.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the use of public funds.

Public Impact

Benefits the Department of Transportation and the Federal Highway Administration by facilitating infrastructure improvements. Services delivered include grading, drainage, paving, and erosion control, crucial for maintaining and upgrading transportation networks. Geographic impact is concentrated in the U.S. Virgin Islands, addressing specific regional infrastructure needs. Workforce implications include employment opportunities for construction workers and related trades in the project area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen site conditions or material price fluctuations over the 1098-day duration.
Geographic isolation of the U.S. Virgin Islands could lead to increased logistical costs and potential delays in material delivery or specialized equipment.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
Full and open competition suggests a robust bidding process, likely resulting in a competitive price.
Awarded by the Federal Highway Administration, an agency with significant expertise in managing large-scale transportation projects.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader construction industry. This sector is characterized by large-scale projects requiring significant capital investment and specialized labor. The Federal Highway Administration is a major procurer in this space, funding numerous projects nationwide to maintain and improve the nation's transportation infrastructure. Comparable spending benchmarks would typically involve analyzing the cost per mile or per square foot for similar construction projects, adjusted for regional economic factors and project 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 scale of the project, it is possible that larger firms may engage small businesses for specialized tasks, but this is not explicitly stated. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration, a division of the Department of Transportation. Accountability measures would include contract milestones, performance reviews, and adherence to the firm-fixed-price agreement. Transparency is generally maintained through contract award databases and public reporting, although specific project details might be limited.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
Department of Transportation Infrastructure Grants
National Highway System Construction and Maintenance

Risk Flags

Geographic isolation may increase logistical costs and project timelines.
Potential for weather-related delays in the U.S. Virgin Islands.
Firm-fixed-price contracts can be challenging if scope creep occurs or unforeseen conditions arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.3 million to KIRKLAND CONSTRUCTION, L.L.L.P.. GRADING, DRAINAGE, ANCHOR BLOCK, GROUND ANCHORS, PAVING, EROSION CONTROL AND OTHER WORK.

Who is the contractor on this award?

The obligated recipient is KIRKLAND CONSTRUCTION, L.L.L.P..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2007-09-06. End: 2010-09-08.

What specific types of grading, drainage, and paving work were included in this contract?

The provided data indicates the general scope includes grading, drainage, anchor blocks, ground anchors, paving, and erosion control. However, the precise specifications, quantities, and locations for each of these tasks are not detailed in the summary data. A full review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the granular details of the work required. This would typically include the linear feet of paving, cubic yards of earth moved for grading, types of drainage systems installed, and specific erosion control measures mandated. Without this detailed SOW, it's difficult to fully assess the scope and value.

How does the awarded amount of $17.29 million compare to similar highway construction projects managed by the FHWA in recent years?

Benchmarking this $17.29 million contract requires comparing it to similar projects undertaken by the Federal Highway Administration (FHWA) or other agencies for comparable work. Factors such as project size (e.g., miles of road, number of bridges), complexity (e.g., urban vs. rural, terrain challenges), and geographic location significantly influence costs. For instance, a highway expansion project in a densely populated urban area with complex utility relocation would likely cost more per mile than a rural resurfacing project. The U.S. Virgin Islands location might also introduce higher costs due to logistics and material transport. A detailed comparison would involve analyzing cost-per-mile or cost-per-lane-mile data from similar FHWA projects, adjusted for inflation and regional economic differences.

What were the key performance indicators (KPIs) or metrics used to evaluate Kirkland Construction's performance on this contract?

While the summary data does not specify the exact Key Performance Indicators (KPIs) for this contract, typical metrics for highway construction projects managed by the FHWA include adherence to schedule, quality of work (meeting specified standards and tolerances), safety compliance (incident rates), budget management (staying within the firm-fixed-price), and successful completion of contract milestones. Performance evaluations often involve site inspections, progress reports, and potentially post-completion reviews. The contract's duration of 1098 days suggests that performance would be monitored through various phases of the project, with potential for penalties or incentives tied to meeting specific deliverables and quality standards.

What is the historical spending pattern of the Department of Transportation and the Federal Highway Administration on highway construction contracts of this magnitude?

The Department of Transportation (DOT) and its Federal Highway Administration (FHWA) are consistently among the largest federal spenders on infrastructure, particularly highway construction. Annual federal outlays for highway and street construction typically run into the tens of billions of dollars. Contracts of this magnitude ($17.29 million) are common for significant road, bridge, or interchange projects. Historical data would show a pattern of regular procurement for such projects, often funded through federal-aid highway programs. Analyzing past DOT/FHWA budgets and contract awards would reveal trends in spending, project types, and average contract values, indicating that this contract aligns with established procurement practices for major infrastructure development.

Were there any significant risks identified during the bidding process or contract execution for this project?

The provided data does not explicitly detail risks identified during the bidding or execution phases. However, common risks in large-scale highway construction projects include unforeseen subsurface conditions (e.g., rock, groundwater), extreme weather events impacting schedules, material price volatility, labor shortages, and potential environmental compliance issues. Given the project's location in the U.S. Virgin Islands, logistical challenges related to material sourcing and transportation, as well as potential impacts from hurricanes or tropical storms, could be considered significant risks. The firm-fixed-price nature of the contract shifts some of the financial risk of cost overruns to the contractor, provided the scope is well-defined.

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: DTFH7107B00024

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 MAIN ST, RYE, CO, 03

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,292,284

Exercised Options: $17,292,284

Current Obligation: $17,292,284

Timeline