Alamo Highway Construction Phase III contract awarded to Meridian Engineering Co. for $19.9M
Contract Overview
Contract Amount: $19,885,168 ($19.9M)
Contractor: Meridian Engineering CO
Awarding Agency: Department of the Interior
Start Date: 2014-08-06
End Date: 2016-12-17
Contract Duration: 864 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF PROJECT N55(3)2&4, ALAMO HIGHWAY CONSTRUCTION - PHASE III
Place of Performance
Location: GALLUP, MCKINLEY County, NEW MEXICO, 87305
Plain-Language Summary
Department of the Interior obligated $19.9 million to MERIDIAN ENGINEERING CO for work described as: IGF::OT::IGF PROJECT N55(3)2&4, ALAMO HIGHWAY CONSTRUCTION - PHASE III Key points: 1. Contract value appears reasonable for highway construction of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Project duration of approximately 2.8 years provides context for the awarded amount. 5. This contract falls within the highway, street, and bridge construction sector. 6. The contract was awarded by the Bureau of Indian Affairs and Bureau of Indian Education.
Value Assessment
Rating: good
The contract value of $19.9 million for highway construction is within a typical range for projects of this nature. Without specific details on the project's scope, length, and complexity, a direct comparison is challenging. However, the fixed-price nature of the contract suggests that the initial pricing was deemed acceptable and aimed to control costs. Benchmarking against similar Bureau of Indian Affairs highway projects would provide a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the number of bidders. The specific reasons for exclusion are not detailed, which could impact the degree of price discovery. With two bidders, the competition level was moderate.
Taxpayer Impact: The exclusion of sources, even if justified, may have limited the potential for the most competitive pricing, potentially impacting taxpayer savings.
Public Impact
Benefits the Bureau of Indian Affairs and Bureau of Indian Education by improving infrastructure. Delivers highway construction services, specifically Phase III of the Alamo Highway. Geographic impact is concentrated in New Mexico. Workforce implications include employment for construction workers and engineers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if excluded sources were significantly more competitive.
- Limited transparency on the rationale for excluding specific sources.
Positive Signals
- Firm fixed-price contract helps control costs.
- Awarded after a competitive process, even with exclusions.
- Project duration is defined, allowing for planning.
Sector Analysis
This contract falls under the construction sector, specifically highway, street, and bridge construction. This is a significant area of federal spending, often driven by infrastructure needs and economic development initiatives. The market for heavy civil construction is competitive, with numerous firms capable of undertaking such projects. Federal spending in this area is crucial for maintaining and upgrading national transportation networks.
Small Business Impact
The provided data indicates that small business participation (sb) was false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, more established firms were likely the primary participants. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Interior's Inspector General. Accountability measures are inherent in the firm fixed-price contract type, which places the financial risk on the contractor. Transparency is partially addressed through the contract award notice, but further details on the bidding process and source exclusions would enhance public understanding.
Related Government Programs
- Federal Highway Administration Programs
- Bureau of Indian Affairs Infrastructure Projects
- Department of Transportation Construction Contracts
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of detailed justification for source exclusion.
- Risk of contractor underestimation in firm fixed-price contracts for long-duration projects.
Tags
construction, highway-street-bridge, department-of-the-interior, bureau-of-indian-affairs, bureau-of-indian-education, new-mexico, firm-fixed-price, definitive-contract, full-and-open-competition-after-exclusion-of-sources, large-business, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $19.9 million to MERIDIAN ENGINEERING CO. IGF::OT::IGF PROJECT N55(3)2&4, ALAMO HIGHWAY CONSTRUCTION - PHASE III
Who is the contractor on this award?
The obligated recipient is MERIDIAN ENGINEERING CO.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 2014-08-06. End: 2016-12-17.
What was the specific rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award?
The provided data does not specify the exact reasons for excluding certain sources. Typically, such exclusions might be based on factors like past performance issues, inability to meet specific technical requirements, or national security concerns. Without this information, it's difficult to fully assess whether the exclusion process was justified and if it potentially limited competition to the detriment of taxpayer value. Further investigation into the contract file or agency justifications would be necessary to understand the specific circumstances.
How does the awarded amount of $19.9 million compare to similar highway construction projects managed by the Bureau of Indian Affairs?
A direct comparison of the $19.9 million award for Alamo Highway Construction - Phase III to similar Bureau of Indian Affairs (BIA) projects requires access to a database of comparable contracts. Factors such as project scope, length of roadway, complexity of terrain, environmental considerations, and specific construction materials significantly influence costs. While $19.9 million is a substantial sum, its value-for-money can only be accurately benchmarked against projects with similar characteristics undertaken by the BIA or other federal agencies in comparable geographic regions. The firm fixed-price nature suggests an initial assessment of cost reasonableness by the agency.
What are the potential risks associated with a firm fixed-price contract for a multi-year highway construction project?
Firm fixed-price (FFP) contracts are designed to provide cost certainty for the buyer. However, for long-duration projects like highway construction, risks can emerge. If the contractor underestimated costs, encountered unforeseen site conditions (e.g., unexpected soil issues, environmental hazards), or experienced significant material price escalations not covered by contract clauses, they bear the brunt of the financial loss. This could lead to contractor financial distress, potential project delays, or even contractor default. Conversely, if the contractor significantly overestimated costs, the government might overpay. Robust initial cost estimation and contingency planning by the agency are crucial to mitigate these risks.
What is the historical spending pattern for highway construction projects managed by the Bureau of Indian Affairs in New Mexico?
Analyzing historical spending patterns for BIA highway construction in New Mexico would require access to historical contract data for the agency and region. This would involve identifying previous contracts for similar infrastructure projects, their award values, durations, and the contractors involved. Trends in spending could reveal whether this $19.9 million contract is an outlier, a continuation of a consistent investment level, or part of an increasing/decreasing trend. Understanding these patterns can inform future budget allocations and identify potential areas for cost savings or efficiency improvements in project planning and execution.
What is the track record of Meridian Engineering Co. in completing federal highway construction contracts?
Information regarding Meridian Engineering Co.'s specific track record on federal highway construction contracts is not provided in the data summary. To assess their reliability and performance, one would need to examine their past federal contract history, including project completion timeliness, adherence to budget, quality of work, and any history of disputes or contract terminations. A review of contract databases and agency performance records would be necessary to evaluate their past performance and assess the risk associated with awarding them this significant contract.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: A14PS00528
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3223 LOS ARBOLES AVE NE, ALBUQUERQUE, NM, 87107
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,885,168
Exercised Options: $19,885,168
Current Obligation: $19,885,168
Actual Outlays: $461,667
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-08-06
Current End Date: 2016-12-17
Potential End Date: 2016-12-17 00:00:00
Last Modified: 2023-05-03
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