Over $107 million awarded for Blue Ridge Parkway reconstruction, with completion expected in 2027

Contract Overview

Contract Amount: $107,397,748 ($107.4M)

Contractor: Maymead Inc

Awarding Agency: Department of Transportation

Start Date: 2022-03-30

End Date: 2027-09-30

Contract Duration: 2,010 days

Daily Burn Rate: $53.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NP-BLRI 2B13, 2H17, ETC: THE PROJECT CONSISTS OF THE RECONSTRUCTION AND REHABILITATION OF THE BLUE RIDGE PARKWAY IN NORTH CAROLINA FROM MILEPOST 229.6 TO MP 305.1, INCLUDING OVERLOOKS, PARKING AREAS AND RAMPS. WORK ALSO INCLUDES DRAINAGE ASS

Place of Performance

Location: GLADE VALLEY, ALLEGHANY County, NORTH CAROLINA, 28627

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $107.4 million to MAYMEAD INC for work described as: PROJECT NP-BLRI 2B13, 2H17, ETC: THE PROJECT CONSISTS OF THE RECONSTRUCTION AND REHABILITATION OF THE BLUE RIDGE PARKWAY IN NORTH CAROLINA FROM MILEPOST 229.6 TO MP 305.1, INCLUDING OVERLOOKS, PARKING AREAS AND RAMPS. WORK ALSO INCLUDES DRAINAGE ASS Key points: 1. Significant investment in critical infrastructure for a major national parkway. 2. Long-term project spanning multiple years, indicating complex rehabilitation needs. 3. Firm fixed-price contract suggests cost certainty for the government. 4. Full and open competition aims for competitive pricing. 5. Project scope includes extensive reconstruction and rehabilitation of roadway and associated facilities. 6. Geographic focus on North Carolina highlights regional infrastructure priorities.

Value Assessment

Rating: good

The contract value of over $107 million for the Blue Ridge Parkway reconstruction is substantial, reflecting the extensive scope of work. Benchmarking this against similar large-scale highway and bridge construction projects indicates a reasonable investment for the rehabilitation of over 75 miles of a major national parkway, including overlooks and parking areas. The firm fixed-price nature of the contract provides cost predictability, which is a positive indicator for value, assuming the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and encourage the most advantageous offers for the government. The number of bidders is not specified, but the chosen procurement method is generally favorable for achieving competitive pricing and selecting qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the extensive reconstruction work, preventing potential overpayment and ensuring a robust selection of capable firms.

Public Impact

Enhances visitor experience and safety along the scenic Blue Ridge Parkway. Preserves and improves access to a significant national recreational resource. Supports tourism and economic activity in North Carolina. Potential for job creation in the construction sector within North Carolina. Improves the longevity and structural integrity of a vital transportation and cultural asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the multi-year duration and extensive rehabilitation needs.
Ensuring contractor adherence to environmental regulations during extensive construction activities.
Managing potential disruptions to park visitors and local communities throughout the project lifecycle.

Positive Signals

Firm fixed-price contract provides cost control and predictability.
Full and open competition likely secured competitive pricing.
Long-term investment in a high-profile national parkway demonstrates commitment to infrastructure.
Project scope addresses critical rehabilitation needs for safety and longevity.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the construction industry. The Federal Highway Administration (FHWA) is a major player in funding and overseeing such projects across the nation. The scale of this project, exceeding $100 million, places it among larger infrastructure undertakings, requiring specialized expertise in civil engineering and large-scale project management. Comparable spending benchmarks for similar parkway or highway rehabilitation projects of this length and complexity would typically be in the tens to hundreds of millions of dollars.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Maymead Inc., the potential for small business participation would likely be through subcontracting opportunities. The scale and nature of the work may lend themselves to specialized subcontractors, but without explicit set-aside goals or reporting, the direct impact on the small business ecosystem is not immediately clear. Further analysis of subcontracting plans would be needed to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this project is likely managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Given the contract's value and duration, regular progress reports, site inspections, and financial reviews are expected. Transparency would be facilitated through public contract databases and potentially through reporting on the project's progress on official government or parkway websites. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Park Service Infrastructure Projects
Federal Highway Administration Construction Contracts
Appalachian Development Highway System
State Highway and Bridge Construction (North Carolina)

Risk Flags

Long project duration increases risk of cost escalation and delays.
Environmental sensitivities in a national park setting require careful management.
Potential for visitor disruption and impact on tourism.
Scope definition and management critical for firm fixed-price contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $107.4 million to MAYMEAD INC. PROJECT NP-BLRI 2B13, 2H17, ETC: THE PROJECT CONSISTS OF THE RECONSTRUCTION AND REHABILITATION OF THE BLUE RIDGE PARKWAY IN NORTH CAROLINA FROM MILEPOST 229.6 TO MP 305.1, INCLUDING OVERLOOKS, PARKING AREAS AND RAMPS. WORK ALSO INCLUDES DRAINAGE ASS

Who is the contractor on this award?

The obligated recipient is MAYMEAD INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $107.4 million.

What is the period of performance?

Start: 2022-03-30. End: 2027-09-30.

What is the track record of Maymead Inc. on similar federal infrastructure projects?

Maymead Inc. has a history of performing construction work, including highway, street, and bridge projects. Their federal contract history, accessible through public databases, would reveal their experience with projects of similar scale and complexity, particularly those involving extensive rehabilitation and reconstruction. Analyzing past performance, including on-time completion rates, adherence to budget, and any documented issues or disputes on prior government contracts, would provide insight into their capability to successfully execute the Blue Ridge Parkway project. Specific details on their experience with national park infrastructure or scenic byway projects would be particularly relevant for assessing their suitability.

How does the cost per mile for this project compare to other major highway rehabilitation efforts?

The total contract value is approximately $107.4 million for roughly 75.5 miles of roadway (milepost 229.6 to 305.1). This equates to roughly $1.42 million per mile. Benchmarking this figure against other large-scale federal or state highway rehabilitation projects is crucial. Factors such as terrain (mountainous for the Blue Ridge Parkway), the extent of structural work (reconstruction vs. resurfacing), inclusion of ancillary facilities (overlooks, parking), and specific environmental mitigation requirements can significantly influence cost per mile. A detailed comparison with projects of similar scope and complexity would determine if this cost is within the expected range or if it warrants further investigation for potential inefficiencies or exceptional value.

What are the primary risks associated with a multi-year reconstruction project on a national parkway?

Key risks for a multi-year reconstruction project on a national parkway include environmental challenges, such as protecting sensitive ecosystems and managing runoff during construction. Weather-related delays are also a significant risk, especially in mountainous regions like the Blue Ridge Parkway, which can experience harsh winters and heavy precipitation. Operational risks involve managing public access and minimizing disruption to park visitors, potentially impacting tourism revenue. Furthermore, the long duration increases the risk of material cost escalation, labor shortages, and potential scope creep if unforeseen issues arise during the extensive rehabilitation. Ensuring robust project management and contingency planning is vital to mitigate these risks.

What is the expected impact of this reconstruction on the Blue Ridge Parkway's structural integrity and visitor safety?

The reconstruction and rehabilitation of over 75 miles of the Blue Ridge Parkway are expected to significantly enhance both structural integrity and visitor safety. This work will address aging infrastructure, including pavement, drainage systems, bridges, and overlooks, thereby reducing the risk of failures and accidents. Improved pavement will provide a smoother, safer driving surface, while upgraded drainage will prevent erosion and structural damage. Rehabilitation of overlooks and parking areas will ensure they are safe and accessible for visitors. Ultimately, this investment aims to preserve the parkway's historic character while modernizing it to meet current safety standards and ensure its long-term viability as a major tourist destination.

How has federal spending on Blue Ridge Parkway maintenance and improvement trended over the last decade?

Analyzing federal spending trends for the Blue Ridge Parkway over the last decade would provide context for the current $107 million award. This would involve examining historical contract data for repairs, maintenance, and capital improvement projects specifically attributed to the parkway. A trend of underfunding might suggest that this current award represents a necessary catch-up investment to address deferred maintenance. Conversely, a pattern of consistent, significant investment might indicate a proactive approach to infrastructure management. Understanding historical spending levels and the types of projects funded previously is crucial for assessing the adequacy and strategic alignment of the current large-scale reconstruction effort.

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: 693C7322B000004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1995 ROAN CREEK RD, MOUNTAIN CITY, TN, 37683

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

Financial Breakdown

Contract Ceiling: $145,412,703

Exercised Options: $107,397,748

Current Obligation: $107,397,748

Actual Outlays: $78,933,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline