Nearly $173M Contract Awarded for George Washington Memorial Parkway Rehabilitation

Contract Overview

Contract Amount: $173,110,572 ($173.1M)

Contractor: Fort Myer Construction Corp

Awarding Agency: Department of Transportation

Start Date: 2021-12-07

End Date: 2026-12-31

Contract Duration: 1,850 days

Daily Burn Rate: $93.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Construction

Official Description: NORTH SECTION REHABILITATION OF GEORGE WASHINGTON MEMORIAL HIGHWAY- THE PROJECT CONSISTS OF THE RECONSTRUCTION OF APPROXIMATELY 7.5 MILES OF THE NORTHERN SECTION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY (GWMP) BETWEEN SPOUT RUN AND THE I-495/CAPITAL

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $173.1 million to FORT MYER CONSTRUCTION CORP for work described as: NORTH SECTION REHABILITATION OF GEORGE WASHINGTON MEMORIAL HIGHWAY- THE PROJECT CONSISTS OF THE RECONSTRUCTION OF APPROXIMATELY 7.5 MILES OF THE NORTHERN SECTION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY (GWMP) BETWEEN SPOUT RUN AND THE I-495/CAPITAL Key points: 1. Significant investment in critical infrastructure, focusing on a 7.5-mile stretch of the George Washington Memorial Parkway. 2. The contract is a definitive contract with a fixed price and economic price adjustment, indicating potential for cost fluctuations. 3. Awarded to Fort Myer Construction Corp, a contractor with a substantial presence in highway construction. 4. The project duration is 1850 days, suggesting a long-term commitment to infrastructure improvement. 5. The contract's value places it among larger federal construction projects, requiring robust oversight. 6. Competition dynamics are favorable, with a full and open competition process. 7. The project is located in Virginia, impacting regional transportation and potentially local employment.

Value Assessment

Rating: good

The contract value of approximately $173 million for 7.5 miles of highway rehabilitation appears to be within a reasonable range for major infrastructure projects of this nature. Benchmarking against similar large-scale highway reconstruction projects managed by the Federal Highway Administration suggests that the per-mile cost is competitive. The fixed-price with economic price adjustment structure allows for flexibility in managing material cost volatility, which is common in long-term construction. However, ongoing monitoring of the economic price adjustment component will be crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders were likely considered. This competitive process is designed to ensure that the government receives the best value by encouraging a range of proposals and pricing. The specific number of bidders is not provided, but the designation of 'full and open' suggests a robust solicitation process that allowed any qualified contractor to participate.

Taxpayer Impact: A full and open competition generally leads to more competitive pricing, which is beneficial for taxpayers by ensuring that federal funds are used efficiently and effectively.

Public Impact

The primary beneficiaries are users of the George Washington Memorial Parkway, who will experience improved road conditions and safety. The project will deliver reconstruction services for approximately 7.5 miles of a historically significant and heavily trafficked highway. The geographic impact is concentrated in Northern Virginia, specifically along the GWMP corridor. Potential workforce implications include job creation in the construction sector, benefiting skilled laborers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause, requiring diligent oversight of material cost fluctuations.
Long project duration (1850 days) increases exposure to unforeseen environmental or geological challenges.
Reliance on a single prime contractor, Fort Myer Construction Corp, necessitates strong performance monitoring to ensure timely and quality completion.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that likely secured favorable pricing.
The project addresses critical infrastructure needs, enhancing safety and usability of a major national parkway.
The fixed-price component provides a baseline cost certainty, with economic adjustments managed under defined parameters.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the federal construction market. The Federal Highway Administration (FHWA) is a major procurer of such services, focusing on maintaining and improving the nation's road infrastructure. Spending in this sector is often driven by infrastructure investment initiatives and the need to address aging roadways. Comparable projects involve large-scale rehabilitation and reconstruction efforts on major arteries, with contract values often in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Fort Myer Construction Corp, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem will depend on whether Fort Myer Construction Corp actively seeks to engage small businesses for subcontracting opportunities, which is a common practice in large federal construction projects.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. The contract type (definitive contract) and its substantial value suggest that regular progress reports, site inspections, and financial reviews will be standard oversight mechanisms. Accountability will be tied to the contract's performance metrics and delivery schedule. Transparency is generally maintained through contract award databases and public reporting, though specific project-level details may vary.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
National Park Service Infrastructure Maintenance
Department of Transportation Major Construction Contracts
Interstate Highway System Rehabilitation

Risk Flags

Potential for cost escalation due to economic price adjustment clause.
Long project duration increases exposure to unforeseen site conditions and market fluctuations.
Traffic disruption impacts commuters and park visitors.
Environmental compliance during extensive construction activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $173.1 million to FORT MYER CONSTRUCTION CORP. NORTH SECTION REHABILITATION OF GEORGE WASHINGTON MEMORIAL HIGHWAY- THE PROJECT CONSISTS OF THE RECONSTRUCTION OF APPROXIMATELY 7.5 MILES OF THE NORTHERN SECTION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY (GWMP) BETWEEN SPOUT RUN AND THE I-495/CAPITAL

Who is the contractor on this award?

The obligated recipient is FORT MYER 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 $173.1 million.

What is the period of performance?

Start: 2021-12-07. End: 2026-12-31.

What is the track record of Fort Myer Construction Corp with the Federal Highway Administration?

Fort Myer Construction Corp has a significant history of working with the Federal Highway Administration (FHWA) and other transportation agencies. Their portfolio includes numerous large-scale highway, bridge, and infrastructure projects across the Mid-Atlantic region. Past performance reviews and contract histories available through federal procurement databases would provide a more detailed assessment of their on-time delivery, quality of work, and adherence to budget on previous FHWA contracts. Generally, contractors undertaking projects of this magnitude have demonstrated capabilities in managing complex logistics, large workforces, and stringent safety and environmental regulations. A review of their past performance on similar-sized projects would be essential to fully gauge their suitability and reliability for the George Washington Memorial Parkway rehabilitation.

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

The approximate cost per mile for this project is roughly $23 million ($173,110,572 / 7.5 miles). This figure needs to be contextualized by the scope of work, which includes reconstruction, not just resurfacing. Major reconstruction projects involving significant structural work, drainage improvements, and potential utility relocation on complex roadways like the GWMP can range from $15 million to over $50 million per mile, depending on factors like terrain, urban density, and the extent of structural repairs required. Given the GWMP's historical significance and its location, the $23 million per mile figure appears to be within a competitive and reasonable range for a comprehensive reconstruction effort. However, a detailed breakdown of the project's specific components (e.g., pavement depth, bridge work, landscaping) would allow for a more precise comparison.

What are the primary risks associated with a definitive contract with economic price adjustment for a long-duration project?

The primary risks associated with a definitive contract featuring an economic price adjustment (EPA) clause for a long-duration project like the GWMP rehabilitation are related to cost volatility and contractor incentives. While EPAs are designed to protect contractors from unpredictable increases in material and labor costs (e.g., asphalt, steel, fuel), they can lead to higher overall project costs for the government if market prices escalate significantly. For the government, the risk lies in potentially paying more than anticipated if cost indices rise sharply. For the contractor, the risk is mitigated by the EPA, but they still face risks related to project management, unforeseen site conditions, and ensuring timely completion to benefit from the adjusted pricing. Robust government oversight is crucial to monitor the application of EPA indices and ensure they accurately reflect market conditions without undue profit.

What is the expected impact of this project on traffic flow and public access during its 5-year duration?

A project of this scale, rehabilitating 7.5 miles of a major parkway over approximately five years (1850 days), is expected to have a significant impact on traffic flow and public access. While specific traffic management plans are not detailed here, such projects typically involve phased construction, lane closures, detours, and reduced speed limits. Commuters and visitors using the GWMP should anticipate considerable delays, longer travel times, and potential rerouting. The Federal Highway Administration and the National Park Service will likely implement measures to minimize disruption, such as restricting work during peak hours or seasons, providing clear signage, and coordinating with local authorities. Public communication campaigns will be essential to inform users about expected disruptions and alternative routes.

How does the $173 million award compare to historical federal spending on the George Washington Memorial Parkway?

Historical federal spending on the George Washington Memorial Parkway (GWMP) can vary significantly year to year, depending on the scale of maintenance, rehabilitation, or capital improvement projects undertaken. A single award of $173 million represents a substantial investment, likely encompassing a major rehabilitation phase rather than routine annual maintenance. To compare, one would need to examine FHWA or NPS budget allocations and expenditures specifically for the GWMP over several preceding years. If annual spending typically ranges from $5 million to $20 million for maintenance and smaller projects, then this $173 million contract signifies a major capital investment, possibly part of a larger, multi-year initiative to address deferred maintenance or significant upgrades. It suggests a concentrated effort to address the northern section's needs comprehensively.

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: TWO STEP

Solicitation ID: 693C7321R000006

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2237 33RD ST NE, WASHINGTON, DC, 20018

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

Financial Breakdown

Contract Ceiling: $175,268,933

Exercised Options: $173,110,572

Current Obligation: $173,110,572

Actual Outlays: $154,666,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline