Texas pavement preservation contract awarded to Central Southern Construction Corp. for over $10.4 million

Contract Overview

Contract Amount: $10,492,605 ($10.5M)

Contractor: Central Southern Construction Corp.

Awarding Agency: Department of Transportation

Start Date: 2025-12-08

End Date: 2026-09-03

Contract Duration: 269 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FUNDS CONSTRUCTION PROJECT TX NP MULTI PMS(1) ), PAVEMENT PRESERVATION TEXAS. THIS WORK CONSISTS OF CRACK SEALING, PATCHING, APPLICATION OF CHIP SEAL AND MICRO SURFACE TREATMENTS AND PAVEMENT MARKING.

Place of Performance

Location: FRITCH, HUTCHINSON County, TEXAS, 79036

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $10.5 million to CENTRAL SOUTHERN CONSTRUCTION CORP. for work described as: FUNDS CONSTRUCTION PROJECT TX NP MULTI PMS(1) ), PAVEMENT PRESERVATION TEXAS. THIS WORK CONSISTS OF CRACK SEALING, PATCHING, APPLICATION OF CHIP SEAL AND MICRO SURFACE TREATMENTS AND PAVEMENT MARKING. Key points: 1. Contract focuses on essential pavement maintenance, extending the lifespan of Texas roadways. 2. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 3. Full and open competition suggests a competitive bidding environment, likely benefiting price discovery. 4. The contract duration of 269 days indicates a focused scope of work. 5. Awarded by the Federal Highway Administration, aligning with national transportation infrastructure goals. 6. The project's success hinges on the contractor's ability to deliver quality preservation services efficiently.

Value Assessment

Rating: good

The contract value of $10.49 million for pavement preservation services in Texas appears reasonable given the scope of work, which includes crack sealing, patching, chip seal, micro-surface treatments, and pavement marking. Benchmarking against similar highway maintenance contracts across the US suggests that pricing for such services can vary significantly based on geographic location, specific treatments required, and prevailing labor costs. Without detailed cost breakdowns or specific treatment quantities, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 4 bids were received, suggesting a healthy level of competition for this project. A competitive bidding process generally leads to more favorable pricing for the government as contractors vie to win the award by offering their best terms and prices.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs through market forces, ensuring that federal funds are used more efficiently for infrastructure projects.

Public Impact

Residents and commercial entities in Texas will benefit from improved road conditions and potentially reduced vehicle wear and tear. The services delivered include critical pavement preservation techniques to maintain and extend the life of highways. The geographic impact is concentrated within Texas, specifically in the areas covered by the Federal Highway Administration's jurisdiction for this project. The contract supports jobs in the construction sector, particularly in specialized pavement maintenance roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen pavement issues require additional work beyond the initial contract.
Risk of delays due to weather or material availability impacting the project timeline.
Ensuring consistent quality across all pavement treatment applications is crucial for long-term effectiveness.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust bidding process and potentially competitive pricing.
The contractor, Central Southern Construction Corp., has experience in highway construction and maintenance.

Sector Analysis

The highway, street, and bridge construction sector is a significant part of the US economy, driven by federal, state, and local infrastructure spending. Pavement preservation is a critical sub-segment, focused on maintaining existing infrastructure to prevent costly reconstruction. This contract fits within the broader category of transportation infrastructure, with annual federal spending on highway construction and maintenance often in the tens of billions of dollars. Comparable spending benchmarks for similar pavement preservation projects can vary widely based on the specific treatments and geographic region.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized services. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. The FHWA is responsible for ensuring that contract terms are met, quality standards are upheld, and funds are expended appropriately. Accountability measures are typically embedded in the contract through performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight activities may not be publicly available.

Related Government Programs

National Highway System
Federal-Aid Highway Program
Surface Transportation Block Grant Program
Highway Infrastructure Projects

Risk Flags

Potential for weather-related delays
Risk of material price fluctuations
Ensuring consistent application quality
Contractor's capacity to meet schedule

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.5 million to CENTRAL SOUTHERN CONSTRUCTION CORP.. FUNDS CONSTRUCTION PROJECT TX NP MULTI PMS(1) ), PAVEMENT PRESERVATION TEXAS. THIS WORK CONSISTS OF CRACK SEALING, PATCHING, APPLICATION OF CHIP SEAL AND MICRO SURFACE TREATMENTS AND PAVEMENT MARKING.

Who is the contractor on this award?

The obligated recipient is CENTRAL SOUTHERN CONSTRUCTION CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2025-12-08. End: 2026-09-03.

What is the track record of Central Southern Construction Corp. with federal contracts, particularly with the Department of Transportation?

Central Southern Construction Corp. has a history of federal contract awards, primarily with the Department of Transportation. While specific details on past performance metrics, past disputes, or the volume of their federal work require deeper database searches, their selection for this significant pavement preservation project suggests they meet the necessary qualifications and experience requirements set by the Federal Highway Administration. Analyzing their past performance on similar highway construction and maintenance contracts, including on-time delivery and quality of work, would provide further insight into their reliability and capability. Reviewing contract close-out data and any reported performance issues would offer a more comprehensive picture of their federal contracting history.

How does the awarded amount of $10.49 million compare to similar pavement preservation contracts in Texas or the surrounding region?

The awarded amount of $10.49 million for this pavement preservation project in Texas is within a typical range for significant infrastructure maintenance contracts. However, a precise comparison requires detailed analysis of contract scope, specific treatments (e.g., type and quantity of chip seal, micro-surfacing), and the geographic area covered. Pavement preservation costs can fluctuate based on material prices, labor rates, and the complexity of the work. For instance, a contract solely focused on crack sealing might be significantly less expensive than one encompassing a wider array of treatments like those in this award. Benchmarking against other FHWA or Texas Department of Transportation contracts for similar services, adjusted for inflation and regional economic factors, would provide a more accurate assessment of value.

What are the primary risk indicators associated with this type of pavement preservation contract?

Primary risk indicators for this pavement preservation contract include potential weather delays, as outdoor construction is highly susceptible to adverse weather conditions, which can impact project timelines and costs. Material price volatility for asphalt, aggregate, and other components could also pose a risk, although the firm-fixed-price contract shifts some of this risk to the contractor. Performance risk is another key indicator; ensuring the quality and durability of the applied treatments (crack sealing, chip seal, micro-surfacing) is crucial for the long-term effectiveness of the preservation work. Contractor capacity and resource availability to execute the work within the specified timeframe also represent a potential risk. Finally, unforeseen subsurface conditions or existing pavement degradation beyond initial assessments could lead to scope adjustments or disputes.

What is the historical spending pattern for pavement preservation projects by the Federal Highway Administration in Texas?

Historical spending patterns for pavement preservation projects by the Federal Highway Administration (FHWA) in Texas, and nationally, generally show a consistent allocation of funds aimed at maintaining the vast network of federal-aid highways. While specific annual figures for Texas would require detailed data extraction, the FHWA consistently invests billions of dollars nationwide in such maintenance activities. This spending is often driven by formula grants to states and specific program allocations. The trend typically reflects an increasing emphasis on preserving existing infrastructure rather than solely focusing on new construction, driven by lifecycle cost-benefit analyses. Factors like the age of the highway system, traffic volume, and climate conditions in Texas influence the specific allocation and types of preservation treatments funded.

How does the 'full and open competition' award mechanism impact the overall value and efficiency of this contract?

The 'full and open competition' award mechanism is designed to maximize value and efficiency by fostering a competitive environment among potential contractors. By allowing all responsible sources to submit bids, the government increases the likelihood of receiving a wide range of proposals, including those with innovative approaches and competitive pricing. This process encourages contractors to offer their best terms to secure the contract, which typically results in lower costs for the government compared to non-competitive methods. Furthermore, the transparency inherent in full and open competition enhances accountability and reduces the risk of favorit-ism or undue influence. The presence of multiple bidders, as indicated by the 4 bids received, suggests that the market is sufficiently robust to support competitive bidding, thereby enhancing the efficiency and cost-effectiveness of this pavement preservation project.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 69056725R000006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 119 SEWALD ST, JACKSONVILLE, FL, 32204

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

Financial Breakdown

Contract Ceiling: $10,492,605

Exercised Options: $10,492,605

Current Obligation: $10,492,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 69056724D000006

IDV Type: IDC

Timeline