Transportation Department awards $13.6M contract for North Carolina bridge rehabilitation, with 3 bidders competing

Contract Overview

Contract Amount: $13,648,375 ($13.6M)

Contractor: Kovilic Construction CO Inc

Awarding Agency: Department of Transportation

Start Date: 2023-08-31

End Date: 2027-12-31

Contract Duration: 1,583 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NC NP BLRI 2A16 THE PROJECT CONSISTS OF THE REHABILITATION OF BIG PINE CREEK BRIDGE #6, BIG PINE CREEK BRIDGE #3, AND BRUSH CREEK BRIDGE #1 BETWEEN MM 223.00 AND MM 228.00. THE WORK INCLUDES REHABILITATION OF THE SUBSTRUCTURE AND SUPERSTRUC

Place of Performance

Location: SPARTA, ALLEGHANY County, NORTH CAROLINA, 28675

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $13.6 million to KOVILIC CONSTRUCTION CO INC for work described as: PROJECT NC NP BLRI 2A16 THE PROJECT CONSISTS OF THE REHABILITATION OF BIG PINE CREEK BRIDGE #6, BIG PINE CREEK BRIDGE #3, AND BRUSH CREEK BRIDGE #1 BETWEEN MM 223.00 AND MM 228.00. THE WORK INCLUDES REHABILITATION OF THE SUBSTRUCTURE AND SUPERSTRUC Key points: 1. Contract focuses on essential infrastructure repair, enhancing public safety and transportation efficiency. 2. Competition level suggests a healthy market for bridge construction services in the region. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Project duration of over four years indicates a significant scope of work. 5. Geographic focus on North Carolina highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $13.6 million for bridge rehabilitation appears reasonable given the scope of work involving three separate bridges and extensive substructure and superstructure repairs. Benchmarking against similar highway and bridge construction projects in North Carolina would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for controlling costs on projects with well-defined requirements.

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 that while the initial solicitation may have had some exclusions, the final award was made through a competitive process. With three bidders participating, there was a moderate level of competition, suggesting that multiple firms were interested and capable of performing the work. This level of competition is generally sufficient to drive competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by encouraging contractors to offer their best prices.

Public Impact

Residents and businesses in North Carolina will benefit from improved and safer transportation infrastructure. The project will deliver rehabilitation services for three critical bridges, ensuring their structural integrity. The geographic impact is concentrated along the specified corridor in North Carolina, facilitating smoother travel. The project is expected to create or sustain jobs in the construction sector within North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of rehabilitating multiple structures.
Ensuring consistent quality control across all three bridge rehabilitation sites will be crucial.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competitive bidding process likely resulted in a fair market price.
Project addresses critical infrastructure needs, enhancing public safety.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a vital part of the broader construction industry. This sector is characterized by significant government investment in public infrastructure. The market size for such projects is substantial, driven by the ongoing need to maintain and upgrade aging transportation networks across the country. This specific contract aligns with federal efforts to invest in and improve national transportation systems.

Small Business Impact

The contract details do not indicate a specific small business set-aside. However, the prime contractor, KOVILIC CONSTRUCTION CO INC, may engage small businesses as subcontractors to fulfill portions of the work. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration, a division of the Department of Transportation. Accountability measures are embedded in the contract through performance requirements and payment schedules tied to milestones. Transparency is generally maintained through federal contract databases, though specific project-level reporting details may vary.

Related Government Programs

Federal-Aid Highway Program
National Highway System
Bridge Repair and Rehabilitation Programs

Risk Flags

Potential for schedule delays due to multi-year duration.
Risk of unforeseen site conditions impacting cost and schedule.
Need for robust quality assurance over extended project timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.6 million to KOVILIC CONSTRUCTION CO INC. PROJECT NC NP BLRI 2A16 THE PROJECT CONSISTS OF THE REHABILITATION OF BIG PINE CREEK BRIDGE #6, BIG PINE CREEK BRIDGE #3, AND BRUSH CREEK BRIDGE #1 BETWEEN MM 223.00 AND MM 228.00. THE WORK INCLUDES REHABILITATION OF THE SUBSTRUCTURE AND SUPERSTRUC

Who is the contractor on this award?

The obligated recipient is KOVILIC CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2023-08-31. End: 2027-12-31.

What is the historical spending pattern for bridge rehabilitation projects by the Department of Transportation in North Carolina?

Analyzing historical spending for bridge rehabilitation in North Carolina by the Department of Transportation requires access to detailed historical contract data. Generally, federal and state transportation agencies allocate significant portions of their budgets to maintaining and upgrading aging bridge infrastructure. Spending patterns are influenced by factors such as the age of the bridge inventory, federal funding allocations (e.g., through the Bipartisan Infrastructure Law), and specific regional needs. Projects like the Big Pine Creek and Brush Creek bridges are typical of the ongoing maintenance required. Without specific historical data for this agency and region, it's difficult to provide precise figures, but such spending is a consistent and substantial part of transportation budgets.

How does the per-unit cost of this bridge rehabilitation compare to similar projects nationwide?

A precise per-unit cost comparison for this $13.6 million contract is challenging without breaking down the costs by bridge and specific rehabilitation tasks (e.g., substructure vs. superstructure work per linear foot or square foot). However, the total value suggests a significant undertaking. National benchmarks for bridge rehabilitation vary widely based on location, bridge type, size, and the extent of work required. Factors like material costs, labor rates, and site accessibility heavily influence per-unit costs. Given the firm-fixed-price nature, the contractor has presumably factored these variables into their bid. A detailed cost breakdown would be necessary for a robust comparison against national averages or similar projects.

What are the primary risks associated with a multi-year bridge rehabilitation contract of this magnitude?

The primary risks associated with a multi-year bridge rehabilitation contract of this magnitude include potential cost overruns due to unforeseen site conditions (e.g., unexpected geological issues, environmental discoveries), material price escalations over the contract duration, and labor shortages or increased wage demands. Schedule delays are also a significant risk, stemming from weather disruptions, permitting issues, or contractor performance problems. Furthermore, ensuring consistent quality control across multiple structures and phases of work over an extended period requires diligent oversight. The firm-fixed-price contract helps mitigate cost overruns for the government, but delays can still impact project completion and associated benefits.

What is the track record of KOVILIC CONSTRUCTION CO INC on similar federal infrastructure projects?

Assessing the track record of KOVILIC CONSTRUCTION CO INC requires reviewing their past performance on federal contracts, particularly those involving highway, street, and bridge construction. Information on contract history, including performance ratings, past disputes, and on-time completion rates, is typically available through federal procurement databases like SAM.gov or through agency-specific performance management systems. A review would focus on their experience with projects of similar scale, complexity, and duration. Positive performance indicators would include successful completion of comparable bridge rehabilitation projects, adherence to schedules and budgets, and positive client feedback from agencies like the Department of Transportation.

How effective are the 'full and open competition after exclusion of sources' contract types in achieving competitive pricing?

The 'full and open competition after exclusion of sources' (FOUC AES) contract type aims to balance the benefits of full and open competition with specific, justified exclusions. Its effectiveness in achieving competitive pricing depends heavily on the nature and scope of the exclusions. If exclusions are minimal and well-justified (e.g., based on specific technical requirements or national security), it can still foster robust competition among a qualified pool of bidders, leading to competitive pricing. However, if the exclusions significantly limit the number of potential bidders, the competition may be less intense, potentially resulting in higher prices than true full and open competition. The presence of three bidders in this case suggests a reasonable level of competition was maintained.

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: 693C7323B000013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3721 CARNATION ST, FRANKLIN PARK, IL, 60131

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

Financial Breakdown

Contract Ceiling: $13,648,375

Exercised Options: $13,648,375

Current Obligation: $13,648,375

Actual Outlays: $10,129,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline