Puerto Rico Highway Repairs Awarded $7M for Hurricane Damage Under Full and Open Competition

Contract Overview

Contract Amount: $7,005,308 ($7.0M)

Contractor: Nieves & Nieves Engineers & Contractors Inc

Awarding Agency: Department of Transportation

Start Date: 2022-01-30

End Date: 2027-05-31

Contract Duration: 1,947 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT PR ER PRMNT RPR(9) THE PROJECT CONSISTS OF REPAIRING LANDSLIDE AND WASHOUT DAMAGE BY HURRICANES IRMA AND MARIA ON PR-2, PR-119, PR-123, PR-128 AND PR-440. THE WORK INCLUDES EMBANKMENT RESTORATION, GRAVITY RETAINING WALLS, GABION BASKET WAL

Place of Performance

Location: ANGELES, UTUADO County, PUERTO RICO, 00611

Plain-Language Summary

Department of Transportation obligated $7.0 million to NIEVES & NIEVES ENGINEERS & CONTRACTORS INC for work described as: PROJECT PR ER PRMNT RPR(9) THE PROJECT CONSISTS OF REPAIRING LANDSLIDE AND WASHOUT DAMAGE BY HURRICANES IRMA AND MARIA ON PR-2, PR-119, PR-123, PR-128 AND PR-440. THE WORK INCLUDES EMBANKMENT RESTORATION, GRAVITY RETAINING WALLS, GABION BASKET WAL Key points: 1. Significant investment of over $7 million allocated for critical infrastructure repair. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk of cost overruns or delays exists due to the nature of disaster recovery work. 4. Spending falls within the Highway, Street, and Bridge Construction sector.

Value Assessment

Rating: good

The contract value of $7,005,307.72 appears reasonable for extensive highway repair work following hurricane damage. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was intended. This method generally promotes price discovery and fair market value.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure repair, ensuring public safety and restoring vital transportation routes.

Public Impact

Restoration of key transportation routes (PR-2, PR-119, PR-123, PR-128, PR-440) will improve connectivity and economic activity in Puerto Rico. Repairing landslide and washout damage enhances the resilience of critical infrastructure against future weather events. The project directly benefits residents and businesses by ensuring safe and reliable access to essential services and markets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in disaster recovery projects.
Unforeseen geological conditions could impact repair timelines and costs.
Contract duration extends over several years, increasing exposure to economic fluctuations.

Positive Signals

Clear objective to repair hurricane damage.
Use of a firm-fixed-price contract type can help control costs.
Awarded to a specific engineering and contractor firm, suggesting specialized expertise.

Sector Analysis

This project falls under the Highway, Street, and Bridge Construction sector, which is crucial for national and regional transportation networks. Spending benchmarks for similar disaster recovery infrastructure projects would be relevant for comparison.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Federal Highway Administration's oversight is crucial for ensuring the proper execution of repairs and the responsible use of federal funds. Regular progress reports and site inspections are standard oversight mechanisms.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting restoration timelines.
Long contract duration increases exposure to economic volatility.
Complexity of repairing multiple sites across different highways.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.0 million to NIEVES & NIEVES ENGINEERS & CONTRACTORS INC. PROJECT PR ER PRMNT RPR(9) THE PROJECT CONSISTS OF REPAIRING LANDSLIDE AND WASHOUT DAMAGE BY HURRICANES IRMA AND MARIA ON PR-2, PR-119, PR-123, PR-128 AND PR-440. THE WORK INCLUDES EMBANKMENT RESTORATION, GRAVITY RETAINING WALLS, GABION BASKET WAL

Who is the contractor on this award?

The obligated recipient is NIEVES & NIEVES ENGINEERS & CONTRACTORS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2022-01-30. End: 2027-05-31.

What is the estimated cost per mile for the repairs across the various highways?

The total contract value is $7,005,307.72 for repairs across PR-2, PR-119, PR-123, PR-128, and PR-440. The total length of these roads is not specified, making a precise per-mile cost calculation difficult. However, if we assume an average length for these types of roads, the cost per mile could be estimated, but this would require additional data on the specific segments repaired and the extent of damage on each.

What are the primary risks associated with the long contract duration and the nature of disaster recovery?

The primary risks include potential cost escalation due to inflation over the 1947-day duration, unforeseen site conditions requiring additional work or redesign, and potential delays caused by weather or material availability. For disaster recovery, the urgency can sometimes lead to less thorough initial assessments, increasing the likelihood of encountering unexpected issues during the repair process.

How effectively does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method ensure value for taxpayer money in this context?

This method aims to ensure value by allowing all responsible sources to submit offers after an initial exclusion period, theoretically fostering competition. However, the 'exclusion of sources' aspect needs scrutiny to ensure it was justified and did not unduly limit competition. If the exclusion was valid and multiple bids were received, it likely contributed to achieving fair market value for the repairs.

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

Solicitation ID: 693C7322R000006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 129 KM 153 BO MIJAN, LARES, PR, 00669

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

Financial Breakdown

Contract Ceiling: $7,005,308

Exercised Options: $7,005,308

Current Obligation: $7,005,308

Actual Outlays: $6,694,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline