Department of Transportation awards $48.3M contract for challenging Foothills Parkway construction in Tennessee

Contract Overview

Contract Amount: $48,287,038 ($48.3M)

Contractor: THE Lane Construction Corporation

Awarding Agency: Department of Transportation

Start Date: 2010-09-09

End Date: 2020-06-12

Contract Duration: 3,564 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FOOTHILLS PARKWAY PRA-FOOT 8E14, 8E16, 8E18, 8E19, 8E20, 8E22, AND 8E12(1) IS LOCATED IN BLOUNT COUNTY, TENNESSEE, NORTHEAST OF THE CITY OF TOWNSEND. THE PROPOSED PROJECT IS FOR THE DESIGN AND CONSTRUCTION OF A NEW ROAD AND FIVE NEW BRIDGES. ADDITIONAL WORK INCLUDES THE REMOVAL OF EXISTING CURB AND INSTALLATION OF BRIDGE RAIL ON BRIDGES 9 AND 10 AND THE CONSTRUCTION OF STONE MASONRY GUARDWALL BETWEEN BRIDGES 7 AND 8. THE TERRAIN IS MOUNTAINOUS AND EXTREMELY DIFFICULT TO ACCESS WITH ANY VEHICLES.

Place of Performance

Location: GATLINBURG, SEVIER County, TENNESSEE, 37738

State: Tennessee Government Spending

Plain-Language Summary

Department of Transportation obligated $48.3 million to THE LANE CONSTRUCTION CORPORATION for work described as: FOOTHILLS PARKWAY PRA-FOOT 8E14, 8E16, 8E18, 8E19, 8E20, 8E22, AND 8E12(1) IS LOCATED IN BLOUNT COUNTY, TENNESSEE, NORTHEAST OF THE CITY OF TOWNSEND. THE PROPOSED PROJECT IS FOR THE DESIGN AND CONSTRUCTION OF A NEW ROAD AND FIVE NEW BRIDGES. ADDITIONAL WORK INCLUDES THE REMOVAL… Key points: 1. Contract addresses complex mountainous terrain and difficult access for road and bridge construction. 2. Project scope includes design, construction of new road segments, and five new bridges. 3. Significant work involves removal of existing curb, installation of bridge rail, and stone masonry guardwall. 4. The contract was awarded to The Lane Construction Corporation. 5. This project is situated in Blount County, Tennessee, northeast of Townsend. 6. The contract duration spans 3,564 days, indicating a long-term, complex undertaking.

Value Assessment

Rating: fair

The total award amount of $48.3 million for highway, street, and bridge construction appears within a reasonable range for a project of this scale and complexity, especially considering the challenging mountainous terrain and difficult access described. However, without specific benchmarks for similar mountainous terrain projects or detailed cost breakdowns for design versus construction, a precise value-for-money assessment is difficult. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government if managed effectively.

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 had the opportunity to submit proposals. The presence of 2 bidders (no value provided) suggests a moderate level of competition for this project. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and a wider range of technical solutions, potentially leading to cost savings and better project outcomes.

Public Impact

The primary beneficiaries are the residents and visitors of Tennessee who will gain improved transportation infrastructure. The project delivers essential services by constructing new road segments and bridges, enhancing connectivity. The geographic impact is localized to Blount County, Tennessee, specifically along the Foothills Parkway. Workforce implications include job creation for construction workers, engineers, and related support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The mountainous and extremely difficult terrain presents significant logistical and execution risks.
The long contract duration (3,564 days) increases the potential for unforeseen challenges and cost fluctuations over time.
The complexity of constructing five new bridges alongside road segments adds to the project's inherent risks.

Positive Signals

The use of a firm-fixed-price contract shifts cost overrun risk to the contractor.
Awarding under full and open competition suggests a robust process for selecting the most capable bidder.
The project addresses critical infrastructure needs, implying a strong public benefit and strategic importance.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader Construction industry. The market for large infrastructure projects like this is often characterized by a few large, specialized contractors capable of handling complex engineering and logistical challenges. The Department of Transportation frequently awards contracts in this space to maintain and expand the nation's transportation network. Benchmarks for similar large-scale bridge and road construction in challenging terrains would be necessary for a more precise comparison.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor, The Lane Construction Corporation, is a large entity, there may be subcontracting opportunities for small businesses within the project's scope. The extent of small business involvement will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specific tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Mechanisms likely include regular progress reports, site inspections, and quality assurance reviews to ensure compliance with contract specifications and safety standards. The firm-fixed-price nature of the contract implies a focus on adherence to the agreed-upon scope and cost. Transparency is generally maintained through contract award databases and public reporting of federal spending.

Related Government Programs

Appalachian Development Highway System
National Highway System
Federal-Aid Highway Program

Risk Flags

Challenging Terrain
Difficult Access
Long Contract Duration
Multiple Bridge Constructions

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $48.3 million to THE LANE CONSTRUCTION CORPORATION. FOOTHILLS PARKWAY PRA-FOOT 8E14, 8E16, 8E18, 8E19, 8E20, 8E22, AND 8E12(1) IS LOCATED IN BLOUNT COUNTY, TENNESSEE, NORTHEAST OF THE CITY OF TOWNSEND. THE PROPOSED PROJECT IS FOR THE DESIGN AND CONSTRUCTION OF A NEW ROAD AND FIVE NEW BRIDGES. ADDITIONAL WORK INCLUDES THE REMOVAL OF EXISTING CURB AND INSTALLATION OF BRIDGE RAIL ON BRIDGES 9 AND 10 AND THE CONSTRUCTION OF STONE MASONRY GUARDWALL BETWEEN BRIDGES 7 AND 8. THE TERRAIN IS MOUNTAINOUS AND EXTREMELY DIFFICULT TO ACCESS WITH ANY VEHICL

Who is the contractor on this award?

The obligated recipient is THE LANE CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $48.3 million.

What is the period of performance?

Start: 2010-09-09. End: 2020-06-12.

What is the track record of The Lane Construction Corporation on similar large-scale, complex infrastructure projects?

The Lane Construction Corporation has a substantial history of undertaking large and complex infrastructure projects across the United States, including highways, bridges, tunnels, and airports. They have been involved in numerous projects with significant engineering challenges, similar to the mountainous terrain and difficult access described for the Foothills Parkway. Their experience often includes managing large workforces, complex logistics, and adhering to stringent safety and environmental regulations. Reviewing their past performance on projects of comparable scale and technical difficulty, particularly those involving extensive bridge construction or work in challenging geographical areas, would provide insight into their capability to successfully execute this contract. Specific project examples and their outcomes, including any cost or schedule variances, would be crucial for a thorough assessment.

How does the per-mile or per-bridge construction cost compare to national averages for similar projects?

Calculating a precise per-mile or per-bridge cost for comparison is challenging without a detailed breakdown of the $48.3 million award into its constituent parts (e.g., design, road construction, individual bridge costs, site preparation). However, the project involves five new bridges and new road segments in extremely difficult, mountainous terrain. National averages for highway and bridge construction can vary significantly based on location, complexity, and materials. Projects in mountainous regions with difficult access typically incur higher costs due to logistical challenges, specialized equipment needs, and potentially longer construction timelines. If the cost per mile or per bridge significantly exceeds averages for less challenging terrains, it would be expected given the described conditions. A more accurate comparison would require benchmarking against projects with similar topographical and accessibility constraints.

What are the primary risks associated with the 'extremely difficult to access' terrain and how are they being mitigated?

The 'extremely difficult to access' terrain presents several primary risks, including significant logistical challenges for transporting materials, equipment, and personnel; increased safety hazards for workers due to the terrain; potential for environmental impacts requiring careful management; and extended construction timelines leading to potential cost overruns. Mitigation strategies likely involve detailed site-specific planning, the use of specialized access equipment (e.g., helicopters, specialized vehicles), phased construction approaches, robust safety protocols tailored to the environment, and potentially pre-construction environmental impact assessments and mitigation plans. The firm-fixed-price contract structure also incentivizes the contractor to proactively manage these risks to avoid impacting their profit margin. The long duration of the contract suggests that these risks have been factored into the schedule and cost.

What is the historical spending pattern for the Foothills Parkway project or similar National Park Service/Department of Transportation infrastructure projects in Tennessee?

Historical spending data for the Foothills Parkway project specifically would require accessing detailed budget and expenditure records over its development history. The Parkway has been a long-term project with various phases. For similar large-scale infrastructure projects managed by the Department of Transportation (DOT) or related agencies in Tennessee, spending patterns often reflect multi-year commitments, with significant annual outlays during active construction phases. Funding typically comes from federal highway trust funds, supplemented by state contributions. Trends might show increasing costs due to inflation, material prices, and evolving construction standards. Analyzing past DOT contracts in Tennessee for highway and bridge construction could reveal typical award sizes, contract durations, and the prevalence of different contract types, providing context for this $48.3 million award.

How does the 'definitive contract' type influence oversight and flexibility compared to other contract types?

A 'definitive contract' is the final, binding agreement that follows an initial contract vehicle, such as a basic ordering agreement (BOA) or indefinite-delivery indefinite-quantity (IDIQ) contract. In this context, it signifies that the specific scope, terms, and price for the Foothills Parkway project have been finalized and agreed upon. As a firm-fixed-price definitive contract, it offers the government price certainty, as the contractor is obligated to complete the work for the agreed-upon price. Oversight would focus on ensuring the contractor meets the defined scope, quality standards, and schedule. Flexibility for changes is typically limited and would require formal contract modifications (change orders), which can be costly and time-consuming, unlike more flexible contract types like cost-plus contracts where scope adjustments might be managed more readily within a broader budget.

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: TWO STEP

Solicitation ID: DTFH7110R00006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Webuild S.P.A. (UEI: 428160873)

Address: 90 FIELDSTONE CT, CHESHIRE, CT, 06410

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

Financial Breakdown

Contract Ceiling: $48,287,038

Exercised Options: $48,287,038

Current Obligation: $48,287,038

Actual Outlays: $10,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline