Forest Service awards $885K for roadway maintenance across nearly 435 miles in Oregon

Contract Overview

Contract Amount: $88,553 ($88.6K)

Contractor: Hanging Rock Excavation & Construction, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-15

End Date: 2027-07-15

Contract Duration: 456 days

Daily Burn Rate: $194/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UMATILLA NF, ROADWAY SURFACE MAINTENANCE (811) ON AN ESTIMATED 269.7 MILES OF ROAD IN THE SOUTH ZONE, AND 165.6 MILES IN THE NORTH ZONE.

Place of Performance

Location: HEPPNER, MORROW County, OREGON, 97836

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $88,553.3 to HANGING ROCK EXCAVATION & CONSTRUCTION, INC. for work described as: UMATILLA NF, ROADWAY SURFACE MAINTENANCE (811) ON AN ESTIMATED 269.7 MILES OF ROAD IN THE SOUTH ZONE, AND 165.6 MILES IN THE NORTH ZONE. Key points: 1. Contract awarded for essential road maintenance, ensuring access and safety. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Firm Fixed Price contract type helps mitigate cost overrun risks. 4. Contract duration of 456 days allows for phased execution of work. 5. Geographic focus on Umatilla National Forest highlights regional infrastructure needs. 6. Small business participation not explicitly detailed, requiring further review. 7. Performance period extends into mid-2027, indicating a medium-term project.

Value Assessment

Rating: good

The contract value of $885,553.30 for roadway surface maintenance over approximately 435 miles appears reasonable given the scope. While direct comparisons are difficult without specific project details, the price per mile is within a plausible range for such services. The firm fixed-price structure provides cost certainty for the government. Further analysis would involve benchmarking against similar road maintenance contracts in the region and assessing the specific tasks included in the 'surface maintenance' definition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Program), indicating a competitive process for acquisitions below certain thresholds. With 194 bids received, this suggests a robust level of interest and competition. A high number of bidders generally leads to better price discovery and potentially lower prices for the government, as contractors vie for the award. This level of competition is a positive signal for value for money.

Taxpayer Impact: The strong competition among 194 bidders indicates that taxpayer dollars are likely being used efficiently, as contractors were incentivized to offer competitive pricing to secure the contract.

Public Impact

Benefits federal land managers and the public by maintaining critical access routes within the Umatilla National Forest. Services include roadway surface maintenance, crucial for safe and efficient travel. Geographic impact is concentrated in Oregon, specifically within the Umatilla National Forest's South and North Zones. Workforce implications include employment opportunities for construction and maintenance personnel. Ensures continued access for recreational users, timber operations, and emergency services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed breakdown for 'roadway surface maintenance' makes it difficult to assess the value of specific tasks.
Potential for scope creep if 'surface maintenance' is broadly interpreted without clear definitions.
Limited information on small business participation or subcontracting plans.

Positive Signals

High number of bids (194) suggests strong market interest and competitive pricing.
Firm Fixed Price contract type provides cost predictability.
Awarded by the Forest Service, an agency with established procurement processes.
Clear performance period (456 days) allows for structured project execution.

Sector Analysis

This contract falls within the Construction and Engineering services sector, specifically focusing on infrastructure maintenance. The market for road construction and maintenance is substantial, driven by federal, state, and local government needs. The Forest Service, as part of the Department of Agriculture, manages vast land holdings requiring continuous infrastructure upkeep. Comparable spending benchmarks would typically involve analyzing per-mile costs for similar road maintenance projects across different federal agencies and geographic regions.

Small Business Impact

The data indicates the contract was competed under SAP, which is often used for smaller acquisitions, but does not explicitly state if it was a small business set-aside. The fact that 194 bids were received suggests a broad competition that may or may not have included a significant number of small businesses. Further investigation into the bid data and any subcontracting requirements would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Forest Service contracting officer and project managers. The firm fixed-price nature of the award provides a degree of accountability for the contractor to deliver the specified services within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration - Road Maintenance Programs
Bureau of Land Management - Road Maintenance
National Park Service - Infrastructure Maintenance
Department of Agriculture - Forest Management Operations

Risk Flags

Potential for undefined scope in 'roadway surface maintenance'
Risk of unforeseen environmental or geological conditions impacting cost/schedule
Need for clarity on small business participation and subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $88,553.3 to HANGING ROCK EXCAVATION & CONSTRUCTION, INC.. UMATILLA NF, ROADWAY SURFACE MAINTENANCE (811) ON AN ESTIMATED 269.7 MILES OF ROAD IN THE SOUTH ZONE, AND 165.6 MILES IN THE NORTH ZONE.

Who is the contractor on this award?

The obligated recipient is HANGING ROCK EXCAVATION & CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $88,553.3.

What is the period of performance?

Start: 2026-04-15. End: 2027-07-15.

What specific types of roadway surface maintenance are included in this contract?

The provided data describes the contract as being for 'ROADWAY SURFACE MAINTENANCE (811)' on specific mileage within the Umatilla National Forest. However, it does not detail the specific types of maintenance activities covered. This could range from grading, gravel surfacing, pothole repair, culvert cleaning, to more extensive resurfacing. A comprehensive understanding of the scope requires reviewing the detailed Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract. Without this, it's difficult to precisely benchmark the value or assess the contractor's specific deliverables.

How does the awarded price compare to historical spending on similar Forest Service road maintenance contracts?

Direct historical spending comparisons are challenging without access to a detailed database of past Forest Service road maintenance contracts with similar scopes and geographic locations. However, the total award of $885,553.30 for approximately 435 miles suggests a cost per mile of roughly $2,031. This figure needs to be contextualized by the specific type of maintenance performed (e.g., basic grading vs. paving) and the terrain. Analyzing trends in Forest Service road maintenance budgets and contract awards over the past five years could reveal patterns in cost escalation or efficiency gains.

What is the track record of Hanging Rock Excavation & Construction, Inc. with federal contracts, particularly with the Forest Service?

Information on Hanging Rock Excavation & Construction, Inc.'s track record with federal contracts, especially with the Forest Service, is not provided in the summary data. A thorough assessment would involve reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous federal awards, and any history of contract disputes or issues. Understanding their experience with similar road maintenance projects and their performance history is crucial for evaluating the risk associated with this award.

What are the potential risks associated with a firm fixed-price contract for road maintenance in a national forest?

Firm Fixed Price (FFP) contracts offer cost certainty to the government, but can pose risks if the scope of work is not precisely defined or if unforeseen conditions arise. For road maintenance in a national forest, potential risks include weather-related delays impacting the schedule, discovery of unexpected subsurface issues (e.g., unstable soil, buried utilities), or environmental constraints that increase the cost of performing the work. If the contractor underestimated the complexity or cost of the required maintenance, they might cut corners, potentially impacting quality, or seek change orders, which could negate the FFP benefit. Robust oversight and clear SOW are critical to mitigate these risks.

How does the number of bids (194) influence the perceived value for money in this contract?

Receiving 194 bids is a strong indicator of a highly competitive procurement process. In a competitive market, a large number of bidders typically drives down prices as companies strive to win the contract. This suggests that the Forest Service likely received a range of competitive offers, increasing the probability that the awarded price represents good value for the taxpayer. The high number of bids also implies that the contract was not restricted in a way that limited potential offerors, supporting the principle of full and open competition.

What is the significance of the contract being awarded under SAP (Small Acquisition Program)?

The contract being awarded under SAP suggests it falls below certain dollar thresholds that trigger more extensive procurement procedures. SAP contracts are typically streamlined, allowing for quicker award times. While SAP can still be competed fully and openly, it may sometimes be associated with less detailed documentation or fewer formal evaluation steps compared to larger, more complex acquisitions. The high number of bids (194) indicates that even within the SAP framework, significant market interest was generated, which is a positive sign for competition and value.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1240BE26Q0002

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 54695 COOMBS LOOP, LA GRANDE, OR, 97850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $128,511

Exercised Options: $88,553

Current Obligation: $88,553

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline