DOT awards $26.8M for Oregon highway construction, with 4 bidders competing

Contract Overview

Contract Amount: $26,827,548 ($26.8M)

Contractor: Rocky Mountain Construction LLC

Awarding Agency: Department of Transportation

Start Date: 2022-10-31

End Date: 2025-10-15

Contract Duration: 1,080 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OR DOT 140(1), OR 140 - KLAMATH COUNTY BOAT MARINA TO LAKESHORE DRIVE

Place of Performance

Location: KLAMATH FALLS, KLAMATH County, OREGON, 97603

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $26.8 million to ROCKY MOUNTAIN CONSTRUCTION LLC for work described as: OR DOT 140(1), OR 140 - KLAMATH COUNTY BOAT MARINA TO LAKESHORE DRIVE Key points: 1. Contract value appears reasonable given the scope of highway construction. 2. Full and open competition suggests a healthy market for this type of work. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of 3 years is typical for infrastructure development. 5. Contractor has experience in highway construction, but specific performance data is limited. 6. Geographic focus on Oregon indicates regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $26.8 million for highway construction in Oregon seems aligned with industry benchmarks for similar projects. While specific cost breakdowns are not provided, the firm fixed-price nature of the award suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government. Benchmarking against other Federal Highway Administration projects of similar scope and complexity would provide a more precise value-for-money assessment, but initial indications suggest a fair price was negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Federal Highway Administration actively solicited bids from all responsible sources. With four bidders participating, there was a reasonable level of competition, which typically drives down prices and encourages innovation. The presence of multiple bidders suggests that the market is capable of supporting this type of infrastructure project and that the government had a good selection of qualified contractors.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by fostering a competitive environment that leads to better pricing and service quality.

Public Impact

Residents and businesses in Klamath County, Oregon, will benefit from improved transportation infrastructure. The project will enhance connectivity by upgrading roads from the marina to Lakeshore Drive. Improved road conditions can lead to reduced travel times and increased economic activity in the region. Construction activities may create temporary employment opportunities for the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on contractor's past performance on similar federal contracts.
Potential for construction delays impacting project completion and public access.
Scope of work might be subject to change orders, potentially increasing final cost.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive bidding process leading to fair pricing.
Contract awarded to a company with experience in highway construction.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Federal spending in this area is crucial for maintaining and upgrading national transportation networks. The market for such services is generally competitive, with numerous firms capable of undertaking large-scale infrastructure projects. The $26.8 million award is a substantial but not extraordinary amount for a project of this nature, fitting within typical federal infrastructure investment scales.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the primary contractor is Rocky Mountain Construction LLC, there is no explicit information regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if small businesses will have opportunities to participate in the subcontracting portion of this project.

Oversight & Accountability

The Federal Highway Administration, as the awarding agency, is responsible for overseeing this contract. Oversight mechanisms likely include regular progress reviews, site inspections, and adherence to contract specifications. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through public contract databases, though detailed performance metrics may not always be publicly accessible.

Related Government Programs

Federal Highway Administration Construction Contracts
Oregon Department of Transportation Projects
Infrastructure Improvement Programs
Road and Bridge Construction

Risk Flags

Limited public data on contractor's past performance.
Potential for scope creep or change orders impacting final cost.
Geographic concentration of spending.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $26.8 million to ROCKY MOUNTAIN CONSTRUCTION LLC. OR DOT 140(1), OR 140 - KLAMATH COUNTY BOAT MARINA TO LAKESHORE DRIVE

Who is the contractor on this award?

The obligated recipient is ROCKY MOUNTAIN CONSTRUCTION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2022-10-31. End: 2025-10-15.

What is the track record of Rocky Mountain Construction LLC on federal contracts, particularly for highway construction?

Information regarding Rocky Mountain Construction LLC's specific track record on federal contracts is limited in the provided data. While the company is identified as the contractor for this $26.8 million project and its NAICS code (237310) indicates experience in Highway, Street, and Bridge Construction, detailed performance history, past contract values, and client feedback from federal agencies are not readily available. A deeper dive into federal procurement databases like SAM.gov or FPDS-NG would be necessary to assess their past performance, identify any potential issues or commendations on previous federal projects, and understand their experience with similar-sized or complex infrastructure undertakings. This would help in evaluating their capability and reliability for the current project.

How does the per-mile cost of this project compare to similar federal highway construction projects?

To compare the per-mile cost, we would need the total mileage of the road segment being improved. The provided data specifies the project scope as 'OR DOT 140(1), OR 140 - KLAMATH COUNTY BOAT MARINA TO LAKESHORE DRIVE' but does not quantify the length in miles. Assuming this is a significant stretch of road, the total contract value of $26.8 million would need to be divided by the project's mileage. Federal Highway Administration data often shows per-mile costs ranging widely based on terrain, complexity (e.g., bridges, tunnels), and location. Without the mileage, a direct per-mile cost comparison is impossible. However, for context, major highway projects can range from $5 million to over $20 million per mile, with urban or complex projects often at the higher end.

What are the primary risks associated with this firm fixed-price contract, and how are they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed estimates. However, the government's mitigation lies in the detailed contract specifications and rigorous oversight. For this project, the Federal Highway Administration (FHWA) will likely conduct regular inspections and performance reviews to ensure work meets quality standards and adheres to the defined scope. The contractor, Rocky Mountain Construction LLC, bears the financial risk of cost overruns, incentivizing efficient project management. Potential risks also include contractor default or delays, which are typically addressed through contract clauses allowing for termination or liquidated damages, and performance bonds.

What is the historical spending pattern for highway construction in Oregon by the Federal Highway Administration?

Analyzing historical spending patterns for highway construction in Oregon by the FHWA requires access to comprehensive federal procurement data over several fiscal years. This specific contract of $26.8 million represents a single investment. To understand the pattern, one would need to aggregate data on all similar contracts awarded by the FHWA in Oregon, noting the total annual or biannual spending, the types of projects funded (e.g., new construction, repairs, bridge work), and the average contract values. This would reveal trends in federal investment in Oregon's transportation infrastructure, identify peak spending periods, and highlight the typical scale of projects undertaken. Without this broader dataset, it's difficult to place this single contract within a larger historical context.

How does the number of bidders (4) on this contract compare to the average for similar federal highway construction projects?

The presence of four bidders on this $26.8 million highway construction contract is a positive indicator of competition. For large federal infrastructure projects, the number of bidders can vary significantly based on project complexity, geographic location, and market conditions. Generally, four bidders suggest a healthy level of interest and capability within the market for this type of work. Projects with fewer than three bidders might raise concerns about market saturation or barriers to entry, potentially leading to higher prices. Conversely, an exceptionally high number of bidders could indicate a less specialized project or intense competition driving down profit margins. Four bidders typically strikes a good balance, ensuring competitive pricing without overwhelming the selection process.

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: 69056722B000005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rocky Mountain Construction, LLC

Address: 4815 TINGLEY LN STE A, KLAMATH FALLS, OR, 97603

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,827,548

Exercised Options: $26,827,548

Current Obligation: $26,827,548

Actual Outlays: $23,874,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline