Virgin Islands Bridge Project Awarded for $4.77M, Faces Potential Delays with 1408-Day Duration

Contract Overview

Contract Amount: $4,765,496 ($4.8M)

Contractor: Professional Design/Builders, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-05-23

End Date: 2027-03-31

Contract Duration: 1,408 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT VI DPW STX(001): THE PROJECT CONSISTS OF THE INSTALLATION OF TEMPORARY BRIDGES AND STRUCTURAL REPAIRS. THE WORK INCLUDES EMBANKMENT CONSTRUCTION, AGGREGATE BASE, STRUCTURAL REPAIRS, APPROACH WORK, RIPRAP PLACEMENT, GUARDRAIL INSTALLATION, PA

Place of Performance

Location: CHRISTIANSTED, SAINT CROIX County, VIRGIN ISLANDS OF THE U.S., 00820

Plain-Language Summary

Department of Transportation obligated $4.8 million to PROFESSIONAL DESIGN/BUILDERS, INC. for work described as: PROJECT VI DPW STX(001): THE PROJECT CONSISTS OF THE INSTALLATION OF TEMPORARY BRIDGES AND STRUCTURAL REPAIRS. THE WORK INCLUDES EMBANKMENT CONSTRUCTION, AGGREGATE BASE, STRUCTURAL REPAIRS, APPROACH WORK, RIPRAP PLACEMENT, GUARDRAIL INSTALLATION, PA Key points: 1. The project involves temporary bridge installation and structural repairs, including embankment and aggregate base work. 2. Awarded to Professional Design/Builders, Inc. by the Federal Highway Administration. 3. The contract type is Firm Fixed Price, indicating a defined cost for the scope of work. 4. The project duration is substantial at 1408 days, potentially impacting timelines and resource allocation.

Value Assessment

Rating: fair

The contract value of $4.77 million for bridge construction and repairs appears within a reasonable range for such infrastructure projects. However, without specific details on the scope and complexity of the temporary bridges and structural repairs, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where certain sources were excluded. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The use of limited competition could result in a less competitive bidding environment, potentially leading to higher taxpayer costs than if all qualified sources were allowed to bid.

Public Impact

Temporary bridge installations can improve local transportation infrastructure and safety. Structural repairs ensure the longevity and reliability of existing road networks. The extended duration of the project may cause temporary disruptions to local traffic and commerce. Investment in infrastructure can stimulate local economies through job creation and material sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended project duration (1408 days) increases risk of cost overruns and delays.
Limited competition may result in suboptimal pricing.
Potential for unforeseen structural issues during repairs.

Positive Signals

Addresses critical infrastructure needs in the Virgin Islands.
Firm Fixed Price contract provides cost certainty if scope is well-defined.

Sector Analysis

This project falls within the Highway, Street, and Bridge Construction sector. Spending in this sector is crucial for maintaining and upgrading transportation networks, with costs varying significantly based on project scale, location, and complexity.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either 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 responsible for overseeing this project. Oversight will be critical to ensure the project stays on schedule, within budget, and meets quality standards, especially given the long duration.

Related Government Programs

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

Risk Flags

Extended project duration increases risk of cost escalation and delays.
Limited competition may lead to suboptimal pricing.
Potential for unforeseen site conditions or structural issues.
Contractor performance over a long duration is a concern.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.8 million to PROFESSIONAL DESIGN/BUILDERS, INC.. PROJECT VI DPW STX(001): THE PROJECT CONSISTS OF THE INSTALLATION OF TEMPORARY BRIDGES AND STRUCTURAL REPAIRS. THE WORK INCLUDES EMBANKMENT CONSTRUCTION, AGGREGATE BASE, STRUCTURAL REPAIRS, APPROACH WORK, RIPRAP PLACEMENT, GUARDRAIL INSTALLATION, PA

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL DESIGN/BUILDERS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2023-05-23. End: 2027-03-31.

What specific factors led to the exclusion of sources in this 'limited competition' award, and how did this impact the final price?

The exclusion of sources in a limited competition scenario typically stems from specific requirements, such as unique capabilities, past performance on similar projects, or urgent needs that restrict the pool of eligible contractors. This limitation can reduce competitive pressure, potentially leading to a higher price than would be achieved in a fully open market. Understanding the justification for exclusion is key to assessing if the price reflects fair value.

What are the primary risks associated with a 1408-day duration for temporary bridge installation and structural repairs?

A 1408-day duration (nearly four years) for temporary bridge installation and structural repairs presents significant risks. These include potential cost escalations due to inflation over the extended period, increased likelihood of unforeseen site conditions or material degradation, contractor performance degradation, and prolonged disruption to local traffic and commerce. Furthermore, the extended timeline heightens the risk of scope creep or changes in project requirements.

How does the 'Firm Fixed Price' contract type mitigate or exacerbate risks for this specific project?

A Firm Fixed Price (FFP) contract aims to provide cost certainty by fixing the price regardless of the contractor's actual costs. For this project, FFP mitigates the risk of cost overruns for the government if the scope is well-defined and the contractor accurately estimates their costs. However, if unforeseen complexities arise, the contractor may face losses, potentially leading to disputes or attempts to reduce quality, thus shifting risk back to the government in other ways.

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: SEALED BID

Solicitation ID: 693C7323B000007

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4028 ANNA'S RETREAT ST, ST THOMAS, VI, 00802

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

Financial Breakdown

Contract Ceiling: $4,765,496

Exercised Options: $4,765,496

Current Obligation: $4,765,496

Actual Outlays: $4,765,496

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline