Puerto Rico Road Repair Project Awarded $12.1M for Hurricane Damage Repair Under Full and Open Competition

Contract Overview

Contract Amount: $12,060,627 ($12.1M)

Contractor: Ddd-Dvg Joint Venture LLC

Awarding Agency: Department of Transportation

Start Date: 2022-09-16

End Date: 2027-05-31

Contract Duration: 1,718 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT PR ER DOT PRMNT RPR(13): THE PROJECT CONSISTS OF REPAIRING DAMAGE CAUSED BY HURRICANES IRMA AND MARIA ON PR-14, KM 54.3-54.4; PR-722, KM 5.7; PR-796, KM 4.4; PR-179, KM 13.25; AND PR-181, KMS 8.7 AND 46.4. THE WORK INCLUDES EMBANKMENT REC

Place of Performance

Location: AIBONITO, AIBONITO County, PUERTO RICO, 00705

Plain-Language Summary

Department of Transportation obligated $12.1 million to DDD-DVG JOINT VENTURE LLC for work described as: PROJECT PR ER DOT PRMNT RPR(13): THE PROJECT CONSISTS OF REPAIRING DAMAGE CAUSED BY HURRICANES IRMA AND MARIA ON PR-14, KM 54.3-54.4; PR-722, KM 5.7; PR-796, KM 4.4; PR-179, KM 13.25; AND PR-181, KMS 8.7 AND 46.4. THE WORK INCLUDES EMBANKMENT REC Key points: 1. The project addresses critical infrastructure repair needs in Puerto Rico following hurricane damage. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. The sector is Highway, Street, and Bridge Construction, a vital area for economic activity.

Value Assessment

Rating: good

The contract value of $12.1M for extensive road repairs across multiple locations appears reasonable given the scope and the firm fixed-price nature. Benchmarking against similar large-scale infrastructure repair projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement method was 'Full and Open Competition After Exclusion of Sources.' This indicates that while some sources may have been initially excluded, the remaining pool was subject to full and open competition, likely leading to competitive pricing.

Taxpayer Impact: The investment aims to restore essential transportation infrastructure, which is crucial for economic recovery and public safety in Puerto Rico, ultimately benefiting taxpayers through improved connectivity and reduced long-term maintenance costs.

Public Impact

Restores vital transportation links damaged by hurricanes, improving safety and accessibility for residents. Supports economic activity by ensuring reliable routes for commerce and emergency services. Addresses long-term infrastructure resilience in a region prone to natural disasters.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Potential for scope creep if unforeseen damage is discovered.
Contract duration is long (over 4 years), increasing exposure to economic fluctuations.

Positive Signals

Firm Fixed Price contract mitigates cost overrun risk for the government.
Full and open competition suggests potential for good value.
Addresses critical post-disaster infrastructure needs.

Sector Analysis

This project falls within the Highway, Street, and Bridge Construction sector, which is essential for regional connectivity and economic development. Spending in this sector can fluctuate significantly based on infrastructure needs and disaster recovery efforts.

Small Business Impact

The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Federal Highway Administration is the contracting agency, responsible for overseeing the project's execution and ensuring compliance with contract terms. The long duration necessitates ongoing oversight to manage risks and ensure timely completion.

Related Government Programs

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

Risk Flags

Long contract duration increases exposure to economic fluctuations.
Potential for unforeseen conditions in post-hurricane repairs.
Reliance on a single joint venture for a large-scale project.
Geographic concentration of work in Puerto Rico may present logistical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.1 million to DDD-DVG JOINT VENTURE LLC. PROJECT PR ER DOT PRMNT RPR(13): THE PROJECT CONSISTS OF REPAIRING DAMAGE CAUSED BY HURRICANES IRMA AND MARIA ON PR-14, KM 54.3-54.4; PR-722, KM 5.7; PR-796, KM 4.4; PR-179, KM 13.25; AND PR-181, KMS 8.7 AND 46.4. THE WORK INCLUDES EMBANKMENT REC

Who is the contractor on this award?

The obligated recipient is DDD-DVG JOINT VENTURE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2022-09-16. End: 2027-05-31.

What specific criteria led to the exclusion of certain sources before the 'full and open competition' phase?

The exclusion of sources prior to the 'full and open competition' phase typically occurs when specific capabilities, past performance, or unique qualifications are required that only a limited number of contractors possess. This could be due to specialized equipment, technical expertise related to hurricane damage repair, or prior successful experience in the specific geographic region. The rationale for exclusion is usually detailed in the solicitation documents.

How will the long contract duration (over 4 years) impact the government's ability to manage costs and ensure quality?

A long contract duration can increase the risk of cost escalation due to inflation and material price volatility. It also requires sustained oversight to ensure the contractor maintains quality standards throughout the project lifecycle. The government must implement robust contract management processes, including regular performance reviews and potential price adjustment clauses (if applicable and carefully defined) to mitigate these risks and ensure the project remains within budget and meets objectives.

What are the key performance indicators (KPIs) for this project to measure its effectiveness in restoring infrastructure?

Key performance indicators for this project would likely include the timely completion of repairs on all designated road segments, adherence to quality standards for construction materials and workmanship, and the successful restoration of traffic flow and structural integrity. Post-completion assessments of road surface condition, durability, and reduced incident rates related to road defects would also serve as crucial measures of effectiveness.

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: TWO STEP

Solicitation ID: 693C7322R000021

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: PR2 KM 7.4 108 LOS ARCOS BLDG 201, GUAYNABO, PR, 00966

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

Financial Breakdown

Contract Ceiling: $12,060,627

Exercised Options: $12,060,627

Current Obligation: $12,060,627

Actual Outlays: $7,325,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline