Foothills Parkway Rehabilitation Project Awarded for $33.1M, Completing 14.8 Miles of Highway Construction

Contract Overview

Contract Amount: $33,061,231 ($33.1M)

Contractor: Apac-Atlantic Inc

Awarding Agency: Department of Transportation

Start Date: 2017-04-19

End Date: 2020-07-31

Contract Duration: 1,199 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: IGF::OT::IGF PROJECT FOOT 8E21,F9 THE PROJECT CONSISTS OF REHABILITATION AND FINAL SURFACING OF APPROXIMATELY 14.8 MILES OF THE FOOTHILLS PARKWAY FROM THE WEARS VALLEY INTERCHANGE TO THE WALLAND INTERCHANGE, INCLUDING 0.7 MILES OF INTERCHANGE RAMPS, PARKING AREAS, AND SCENIC OVERLOOKS. THE WORK INCLUDES FULL-DEPTH PAVEMENT RECLAMATION WITH CEMENT STABILIZATION OF THE EXISTING AGGREGATE SURFACE, SUPERPAVE ASPHALT CONCRETE PAVEMENT OVERLAY, BRIDGE JOINT AND CONCRETE REPAIRS, BRIDGE DECK OVERLAYS, INSTALLATION OF STONE MASONRY GUARDWALL AND STEEL-BACKED TIMBER GUARDRAIL, DRAINAGE IMPROVEMENTS, AND OTHER MISCELLANEOUS WORK.

Place of Performance

Location: GATLINBURG, SEVIER County, TENNESSEE, 37738

State: Tennessee Government Spending

Plain-Language Summary

Department of Transportation obligated $33.1 million to APAC-ATLANTIC INC for work described as: IGF::OT::IGF PROJECT FOOT 8E21,F9 THE PROJECT CONSISTS OF REHABILITATION AND FINAL SURFACING OF APPROXIMATELY 14.8 MILES OF THE FOOTHILLS PARKWAY FROM THE WEARS VALLEY INTERCHANGE TO THE WALLAND INTERCHANGE, INCLUDING 0.7 MILES OF INTERCHANGE RAMPS, PARKING AREAS, AND SCENIC OVER… Key points: 1. The project involves extensive rehabilitation of 14.8 miles of highway, including paving, bridge repairs, and guardrail installation. 2. Awarded to APAC-ATLANTIC INC, the contract was secured through full and open competition. 3. The fixed-price incentive contract aims to control costs while ensuring quality construction. 4. This project falls within the Highway, Street, and Bridge Construction sector, a significant area of federal infrastructure spending.

Value Assessment

Rating: good

The contract value of $33.1 million for 14.8 miles of highway rehabilitation appears reasonable given the scope of work, which includes full-depth reclamation, paving, bridge repairs, and drainage improvements. Benchmarking against similar large-scale highway construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: The competitive bidding process likely resulted in a fair price for taxpayers, ensuring value for the federal investment in infrastructure.

Public Impact

Improved transportation infrastructure in Tennessee, enhancing safety and travel efficiency. Potential for job creation and economic activity in the region during the construction period. Long-term benefits from a rehabilitated and more durable roadway, reducing future maintenance costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the fixed-price incentive structure if costs exceed targets.
Scope creep could impact the final cost and timeline.
Weather delays or unforeseen site conditions could affect project duration and budget.

Positive Signals

Completion of a significant infrastructure project with broad public benefit.
Use of full and open competition suggests a competitive award.
The project addresses critical rehabilitation needs for a key transportation corridor.

Sector Analysis

This project is within the Highway, Street, and Bridge Construction sector, which is a substantial component of federal infrastructure spending. The $33.1 million award is significant for a single project of this scope.

Small Business Impact

The data does not indicate any specific provisions or participation goals for small businesses in this contract. Further review would be needed to determine if small businesses were involved as subcontractors or prime contractors.

Oversight & Accountability

The Federal Highway Administration, under the Department of Transportation, is responsible for overseeing this project. Standard oversight mechanisms for federal construction contracts would apply to ensure compliance and quality.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for cost overruns due to incentive contract structure.
Complexity of rehabilitation work involving multiple components (paving, bridges, drainage).
Risk of unforeseen site conditions impacting schedule and budget.
Contract duration of 1199 days (approx. 3.3 years) presents extended exposure to market fluctuations and potential delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $33.1 million to APAC-ATLANTIC INC. IGF::OT::IGF PROJECT FOOT 8E21,F9 THE PROJECT CONSISTS OF REHABILITATION AND FINAL SURFACING OF APPROXIMATELY 14.8 MILES OF THE FOOTHILLS PARKWAY FROM THE WEARS VALLEY INTERCHANGE TO THE WALLAND INTERCHANGE, INCLUDING 0.7 MILES OF INTERCHANGE RAMPS, PARKING AREAS, AND SCENIC OVERLOOKS. THE WORK INCLUDES FULL-DEPTH PAVEMENT RECLAMATION WITH CEMENT STABILIZATION OF THE EXISTING AGGREGATE SURFACE, SUPERPAVE ASPHALT CONCRETE PAVEMENT OVERLAY, BRIDGE JOINT AND CONCRETE REPAIRS, BRIDGE DECK OVERLAYS,

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 $33.1 million.

What is the period of performance?

Start: 2017-04-19. End: 2020-07-31.

What is the projected long-term cost savings from this rehabilitation compared to deferred maintenance?

The long-term cost savings from this rehabilitation are expected to be substantial. By addressing full-depth reclamation and overlay, the project extends the pavement's service life significantly, reducing the need for more frequent and costly repairs. Deferred maintenance would likely lead to more extensive structural damage over time, escalating repair costs and potentially requiring complete reconstruction sooner.

What are the specific incentive metrics in the fixed-price incentive contract, and how were they structured?

The provided data indicates a 'Fixed Price Incentive' (FPI) contract type but does not detail the specific incentive metrics or their structure. Typically, FPI contracts include a target cost, target profit, and a price ceiling, with a cost-sharing formula for variances. Understanding these specific metrics is crucial for assessing the contractor's motivation to control costs and the government's risk exposure.

How does the final cost compare to the initial estimated cost, considering the incentive structure?

The data shows the awarded amount ($33,061,230.61) but does not provide an initial estimated cost or details on how the final cost was determined under the incentive structure. To assess value, a comparison between the initial estimate, the target cost, and the final negotiated price, factoring in any cost-sharing adjustments, would be necessary.

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: DTFH7117B00015

Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

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

Address: 4817 RUTLEDGE PIKE, KNOXVILLE, TN, 37914

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $33,061,231

Exercised Options: $33,061,231

Current Obligation: $33,061,231

Actual Outlays: $381,516

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline