Forest Service awards $3M for Alaska bridge construction, with competition driving value

Contract Overview

Contract Amount: $2,997,294 ($3.0M)

Contractor: Bmgc LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-09-30

End Date: 2026-02-11

Contract Duration: 499 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PALMER CREEK BRIDGES AND AOP

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.0 million to BMGC LLC for work described as: PALMER CREEK BRIDGES AND AOP Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type shifts performance risk to the contractor. 3. Project duration of 499 days indicates a significant construction undertaking. 4. Geographic focus on Alaska may present unique logistical and environmental challenges. 5. The contract falls within the Highway, Street, and Bridge Construction NAICS code.

Value Assessment

Rating: good

The contract value of $2,997,294 for bridge construction in Alaska appears reasonable given the scope and duration. While specific benchmarks for similar projects in remote Alaskan locations are difficult to ascertain without more granular data, the use of full and open competition suggests that pricing was likely vetted against multiple market participants. The firm fixed-price structure also provides cost certainty for the government, assuming the contractor can manage their own cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had some exclusions, the final award was made after a broad competitive process. The specific number of bidders is not provided, but the 'full and open' nature suggests multiple entities had the opportunity to compete, which generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven price for the construction services.

Public Impact

The primary beneficiaries are the users of the infrastructure in Alaska, who will gain improved or new bridge facilities. The services delivered include the construction and completion of bridges and associated approach/departure work. The geographic impact is concentrated in Alaska (ST: AK, SN: ALASKA), potentially improving regional transportation networks. Workforce implications include job creation for construction workers, engineers, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions in Alaska are not adequately managed by the contractor.
Logistical challenges in remote Alaska could impact project timelines and costs.
Ensuring compliance with environmental regulations specific to Alaskan ecosystems.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market was leveraged for pricing.
The project addresses critical infrastructure needs, enhancing safety and accessibility.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering projects like bridges. The market for bridge construction is influenced by government infrastructure spending, material costs, labor availability, and regional economic conditions. The value of this contract, approximately $3 million, is moderate for a federal infrastructure project, but significant within the context of specialized construction in remote areas like Alaska. Comparable spending benchmarks would typically be assessed against similar projects in terms of scale, complexity, and geographic location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false) and the contractor, BMGC LLC, is not explicitly identified as a small business. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities exists, which could indirectly benefit small businesses in the construction supply chain or specialized trades within Alaska.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Forest Service, a branch of the Department of Agriculture. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified bridges within the agreed-upon cost and timeline. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Highway Administration Bridge Program
Department of Transportation Infrastructure Grants
Army Corps of Engineers Civil Works Projects
National Park Service Construction Contracts

Risk Flags

Potential for cost overruns due to remote location and environmental factors.
Risk of schedule delays caused by weather or logistical challenges in Alaska.
Contractor's past performance history requires further investigation for full risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.0 million to BMGC LLC. PALMER CREEK BRIDGES AND AOP

Who is the contractor on this award?

The obligated recipient is BMGC LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-02-11.

What is the track record of BMGC LLC in completing similar bridge construction projects for the federal government?

Information regarding BMGC LLC's specific track record with federal bridge construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract completion history, and any documented issues or successes on previous federal awards. Without this data, it's difficult to definitively gauge their experience and reliability for this specific project. Federal procurement systems often maintain past performance information that could be consulted for a more thorough analysis.

How does the awarded amount compare to the estimated cost or budget for this bridge construction project?

The provided data does not include the government's estimated cost or budget for the PALMER CREEK BRIDGES AND AOP project. The awarded amount is $2,997,294. To assess value for money, this figure would need to be compared against the initial cost estimates developed by the Forest Service during the planning phase. If the awarded price is significantly below the estimate, it could indicate strong competition or potentially an underestimated scope. Conversely, if it's at or above the estimate, it warrants closer examination of the project's complexity and market conditions.

What are the primary risks associated with constructing bridges in remote Alaskan environments, and how are they mitigated in this contract?

Constructing bridges in remote Alaskan environments presents significant risks including extreme weather conditions, permafrost instability, limited access for materials and personnel, and potential environmental impacts. The firm fixed-price contract structure shifts the financial risk of managing these challenges to the contractor, BMGC LLC. However, the contract's success also depends on the contractor's ability to accurately assess and plan for these risks during the bidding phase. The Forest Service's oversight would focus on ensuring the contractor adheres to project specifications and timelines, and that environmental mitigation measures are implemented effectively.

What is the historical spending pattern for bridge construction by the U.S. Forest Service in Alaska?

Historical spending data for bridge construction by the U.S. Forest Service specifically in Alaska is not provided. Analyzing this would involve examining past contract awards for similar projects within the agency and region over several fiscal years. Such an analysis could reveal trends in project volume, average contract values, and the prevalence of different contracting methods (e.g., full and open vs. sole source). Understanding historical spending provides context for the current $3 million award, helping to determine if it aligns with typical investment levels or represents an anomaly.

What are the performance metrics or key performance indicators (KPIs) used to evaluate the success of this bridge construction contract?

Specific performance metrics or Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. Typically, for construction projects, success is measured against adherence to the project schedule, compliance with quality standards and specifications, completion within the fixed price budget, and safety performance. The Forest Service would likely monitor progress reports, conduct site inspections, and review final deliverables to ensure these aspects are met. Contract close-out documentation would formally assess the contractor's performance.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bmgc LLC

Address: 503 BRIDGE ACCESS RD, KENAI, AK, 99611

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,997,294

Exercised Options: $2,997,294

Current Obligation: $2,997,294

Actual Outlays: $2,997,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1240BJ24D0003

IDV Type: IDC

Timeline