DOT awards $12.5M highway construction contract to ELTE INC, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $12,554,584 ($12.6M)

Contractor: Elte Inc

Awarding Agency: Department of Transportation

Start Date: 2002-06-24

End Date: 2005-10-27

Contract Duration: 1,221 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: TILLAMOOK, TILLAMOOK County, OREGON, 97141

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $12.6 million to ELTE INC for work described as: Key points: 1. Contract awarded under firm fixed-price terms, indicating predictable costs for the government. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. With 11 bids received, the competition level appears robust, potentially driving favorable pricing. 4. The contract duration of 1221 days suggests a significant, long-term infrastructure project. 5. ELTE INC secured this award, contributing to the broader landscape of federal highway construction. 6. The contract falls under the 'Highway, Street, and Bridge Construction' category, a critical infrastructure sector.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for cost control. While specific per-unit costs are not provided, the presence of 11 bids suggests that pricing was likely competitive. Benchmarking against similar highway construction contracts would provide further insight into whether the awarded amount represents good value for the scope of work. The duration of the contract also implies a substantial project, making the total award amount a key figure for evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, meaning all responsible sources were permitted to submit bids. The receipt of 11 bids indicates a healthy level of interest and participation from the market. This broad competition is generally expected to lead to more competitive pricing and a wider selection of qualified contractors, ultimately benefiting the government.

Taxpayer Impact: A high number of bidders in a full and open competition typically translates to better price discovery and potentially lower costs for taxpayers, as contractors vie to offer the most attractive terms.

Public Impact

The primary beneficiaries are the taxpayers who will see improvements in highway infrastructure. Services delivered include highway, street, and bridge construction, vital for transportation networks. The geographic impact is focused on Oregon, where the construction work will take place. The contract implies job creation and economic activity within the construction sector in Oregon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in a fixed-price contract, though risk is primarily on the contractor.
Ensuring the quality of work meets federal standards throughout the 1221-day duration.
Managing the logistical complexities of a large-scale construction project over an extended period.

Positive Signals

Firm fixed-price contract provides cost certainty for the awarding agency.
Robust competition with 11 bids suggests a well-contested award.
The contract aligns with the Federal Highway Administration's mission to improve national highways.

Sector Analysis

The highway, street, and bridge construction sector is a significant part of the U.S. infrastructure landscape, heavily influenced by federal funding and oversight. This contract, valued at $12.5 million, falls within the typical range for mid-sized to large federal construction projects. The Federal Highway Administration (FHWA) is a major player in this sector, awarding numerous contracts annually to maintain and improve the nation's roadways. Comparable spending benchmarks would involve looking at other FHWA contracts for similar types of construction in the Pacific Northwest region.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside. Therefore, there is no direct indication of a small business set-aside for the prime contract. However, the prime contractor, ELTE INC, may be required to subcontract portions of the work, potentially providing opportunities for small businesses. Further analysis would be needed to determine if subcontracting plans include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Highway Administration Construction Contracts
Department of Transportation Infrastructure Projects
Highway, Street, and Bridge Construction Awards
Firm Fixed Price Construction Contracts

Risk Flags

Contract Duration
Fixed-Price Risk
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.6 million to ELTE INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ELTE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2002-06-24. End: 2005-10-27.

What is ELTE INC's track record with federal construction contracts?

ELTE INC has been awarded federal contracts, with this specific award totaling $12,554,584.34. The contract type is 'FIRM FIXED PRICE' and it was competed under 'FULL AND OPEN COMPETITION'. The contract duration was 1221 days, spanning from June 24, 2002, to October 27, 2005. The awarding agency was the Department of Transportation, specifically the Federal Highway Administration. Further investigation into ELTE INC's contract history, including past performance reviews, any disputes or claims, and the types of projects they have completed for the federal government, would provide a more comprehensive understanding of their track record. Examining data beyond this single award is crucial for a complete assessment.

How does the $12.5 million award compare to similar highway construction contracts?

The $12.5 million award for highway, street, and bridge construction is a substantial figure, indicative of a significant infrastructure project. To benchmark this value, one would compare it to other Federal Highway Administration (FHWA) contracts awarded within a similar timeframe (2002-2005) for projects of comparable scope and complexity, particularly in the Pacific Northwest region. Factors such as the specific type of construction (e.g., new highway vs. bridge repair), project duration, and geographic location influence cost. Without detailed project specifications and regional cost indices from that period, a precise comparison is difficult, but the number of bidders (11) suggests competitive pricing was sought.

What are the primary risks associated with this firm fixed-price contract?

The primary risk in a firm fixed-price (FFP) contract generally lies with the contractor, ELTE INC, rather than the government. If the contractor's costs exceed the agreed-upon price due to unforeseen circumstances, material price increases, or inefficient execution, their profit margin will be reduced, or they may incur a loss. For the government, the main risks include the possibility that the contractor may cut corners on quality to maintain profitability, or that the initial price might have been set too high if competition was not sufficiently robust. However, with 11 bids received, the risk of an inflated price is somewhat mitigated. The long duration (1221 days) also introduces risks related to potential scope creep or the need for contract modifications if requirements change.

How effective is the Federal Highway Administration in managing construction contracts of this magnitude?

The Federal Highway Administration (FHWA) has extensive experience managing large-scale construction contracts, as it is central to its mission of maintaining and improving the nation's highway system. The use of 'full and open competition' and the receipt of 11 bids for this $12.5 million contract suggest a structured and competitive procurement process. The firm fixed-price contract type aims to provide cost certainty. Effectiveness can be further assessed by examining project completion records, adherence to timelines and budgets for similar FHWA projects, and any documented performance issues or successes. The agency's established oversight mechanisms and technical expertise are designed to ensure project success.

What are the historical spending patterns for highway construction by the Department of Transportation?

The Department of Transportation, primarily through the Federal Highway Administration (FHWA), consistently allocates significant funding towards highway, street, and bridge construction. Historical spending patterns show a continuous investment in maintaining and expanding the nation's transportation infrastructure. This $12.5 million contract awarded in 2002 is one of many such awards made annually. Trends in federal highway spending are influenced by factors such as infrastructure needs, economic conditions, and federal appropriations cycles. Examining multi-year spending data would reveal fluctuations and priorities within the DOT's construction 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

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 21995A SANDLAKE RD, CLOVERDALE, OR, 01

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,554,584

Exercised Options: $12,554,584

Current Obligation: $12,554,584

Timeline