Transportation contract for pavement preservation awarded to Martinez Services, Inc. for over $6.3 million

Contract Overview

Contract Amount: $6,311,395 ($6.3M)

Contractor: Martinez Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-11-14

End Date: 2028-01-31

Contract Duration: 1,173 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: PROJECT NP SER PMS FY24(1): THE PROJECT CONSISTS OF THE PAVEMENT PRESERVATION OF IDENTIFIED ROADWAYS AND PARKING AREAS. THE WORK INCLUDES TYPE 2 MICRO SURFACING, SAMI, THIN LIFT OVERLAY OF ASPHALT CONCRETE PAVEMENT, FULL DEPTH PATCHING, AND OTHER MI

Place of Performance

Location: TITUSVILLE, BREVARD County, FLORIDA, 32796

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $6.3 million to MARTINEZ SERVICES, INC. for work described as: PROJECT NP SER PMS FY24(1): THE PROJECT CONSISTS OF THE PAVEMENT PRESERVATION OF IDENTIFIED ROADWAYS AND PARKING AREAS. THE WORK INCLUDES TYPE 2 MICRO SURFACING, SAMI, THIN LIFT OVERLAY OF ASPHALT CONCRETE PAVEMENT, FULL DEPTH PATCHING, AND OTHER MI Key points: 1. The contract focuses on essential pavement maintenance, including micro-surfacing, asphalt overlay, and patching, crucial for maintaining infrastructure integrity. 2. Awarded through full and open competition, suggesting a competitive bidding process that likely influenced pricing. 3. The definitive contract structure with a firm fixed price provides cost certainty for the government. 4. The project duration of nearly four years indicates a significant, long-term maintenance commitment. 5. The contract is geographically focused on Florida, addressing specific regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $6.3 million for pavement preservation over nearly four years appears reasonable given the scope of work, which includes multiple types of asphalt repair and resurfacing. Benchmarking against similar highway maintenance contracts would provide a more precise value-for-money assessment, but the firm fixed-price nature suggests a degree of cost control. The number of bidders (5) also indicates a healthy level of competition that should have driven a competitive price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple potential bidders were solicited and allowed to compete. With five bidders participating, the competition level appears robust. This suggests that the government received a range of proposals, and the selection process likely favored the most advantageous offer based on price and technical factors, leading to better price discovery.

Taxpayer Impact: A competitive bidding process with multiple bidders generally benefits taxpayers by driving down costs and ensuring the government secures services at a fair market price.

Public Impact

The primary beneficiaries are users of the roadways and parking areas within the specified region of Florida, who will experience improved driving surfaces. Services delivered include critical pavement preservation techniques such as micro-surfacing, asphalt overlay, and patching, extending the lifespan of infrastructure. The geographic impact is concentrated in Florida, addressing specific maintenance needs within the state. While not explicitly stated, such infrastructure projects can indirectly support local employment in construction and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen pavement issues arise beyond the initially identified scope.
Dependence on a single contractor for a multi-year project could lead to performance issues if not closely monitored.
Weather-related delays are a common risk in asphalt paving projects, potentially impacting project timelines and costs.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
The use of multiple pavement preservation techniques suggests a comprehensive approach to infrastructure maintenance.
Awarded through full and open competition with five bidders, indicating a competitive market and likely fair pricing.

Sector Analysis

The Highway, Street, and Bridge Construction sector is a vital part of the U.S. economy, responsible for maintaining and expanding transportation infrastructure. Federal spending in this area is often driven by the need to ensure safe and efficient travel, support commerce, and address aging infrastructure. This contract, focused on pavement preservation, fits within the broader category of infrastructure maintenance and repair, which is a significant component of federal transportation spending. Comparable spending benchmarks would typically be found within the Federal Highway Administration's (FHWA) annual reports or specific state DOT data.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract, as 'sb' is false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited unless Martinez Services, Inc. voluntarily engages small businesses as subcontractors. Further analysis of the subcontracting plan would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Transportation, specifically the Federal Highway Administration, given the nature of the work. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
National Highway System Maintenance
State and Local Pavement Preservation Programs
Infrastructure Investment and Jobs Act Funding

Risk Flags

Potential for weather-related delays impacting schedule.
Risk of unforeseen pavement conditions requiring scope adjustments.
Contractor performance consistency over a multi-year period.
Adequacy of quality assurance and oversight throughout the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.3 million to MARTINEZ SERVICES, INC.. PROJECT NP SER PMS FY24(1): THE PROJECT CONSISTS OF THE PAVEMENT PRESERVATION OF IDENTIFIED ROADWAYS AND PARKING AREAS. THE WORK INCLUDES TYPE 2 MICRO SURFACING, SAMI, THIN LIFT OVERLAY OF ASPHALT CONCRETE PAVEMENT, FULL DEPTH PATCHING, AND OTHER MI

Who is the contractor on this award?

The obligated recipient is MARTINEZ SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2024-11-14. End: 2028-01-31.

What is the track record of Martinez Services, Inc. in performing similar pavement preservation contracts for the federal government?

A review of federal contract databases (like SAM.gov or FPDS) would be necessary to ascertain Martinez Services, Inc.'s track record. Specifically, one would look for past performance evaluations on similar projects, contract history with the Department of Transportation or other federal agencies, and any instances of contract disputes or terminations. A strong history of successful project completion, on-time delivery, and adherence to quality standards would indicate a lower performance risk. Conversely, a history of issues could signal potential challenges in executing this current contract effectively. Without specific historical data, it's difficult to definitively assess their reliability for this project.

How does the awarded price compare to industry benchmarks for micro-surfacing, asphalt overlay, and patching services in Florida?

To benchmark the value, one would need to compare the unit prices within this contract (if available) against prevailing market rates for similar services in Florida. This involves researching cost data from industry associations, construction cost indexes, and potentially analyzing publicly available data from other state or local government contracts for comparable work. Factors such as the specific type of asphalt mix, the thickness of the overlay, the complexity of patching, and the geographic location within Florida can influence pricing. The firm fixed-price nature of this contract suggests the government aimed for cost certainty, but a detailed benchmark analysis is required to confirm if the price represents good value for money compared to market alternatives.

What are the primary risks associated with a multi-year pavement preservation contract of this nature?

Key risks include potential scope creep if unforeseen subsurface issues or pavement degradation beyond the initial assessment are discovered, which could lead to change orders and increased costs. Contractor performance is another risk; a multi-year commitment requires sustained quality and efficiency, and any decline could impact infrastructure longevity. Weather-related delays are inherent in asphalt work, potentially pushing completion dates and impacting budget utilization. Furthermore, material price fluctuations, although mitigated by a fixed-price contract, could strain the contractor if not adequately factored in. Finally, ensuring consistent oversight and quality control over an extended period presents an ongoing management challenge for the contracting agency.

How effective are pavement preservation strategies like micro-surfacing and thin lift overlays in extending the life of roadways?

Pavement preservation techniques such as micro-surfacing and thin lift overlays are generally considered highly effective when applied appropriately and at the right time in a pavement's lifecycle. Micro-surfacing, for instance, is a cost-effective method for addressing surface distresses like ravelling and minor cracking, preventing further deterioration and extending pavement life by several years. Thin lift overlays can seal the surface, protect against moisture intrusion, and improve ride quality. These methods are proactive, aiming to maintain pavements in good condition rather than waiting for significant failures that require more expensive reconstruction. Their effectiveness is maximized when used as part of a comprehensive pavement management system that includes regular inspections and timely interventions.

What has been the historical federal spending trend for pavement preservation contracts in Florida over the last five fiscal years?

Analyzing historical spending trends would require accessing federal procurement data, such as from the Federal Procurement Data System (FPDS) or SAM.gov. One would filter for contracts awarded by agencies like the Department of Transportation (and its sub-agencies like FHWA) to contractors performing pavement preservation work within Florida. Examining the total dollar amounts awarded annually for similar services over the past five fiscal years would reveal any upward or downward trends. This analysis could indicate whether federal investment in pavement maintenance in Florida is increasing, decreasing, or remaining stable, and how this specific contract aligns with those patterns.

What are the implications of using a definitive contract for this type of service compared to other contract types?

A definitive contract, in this context, likely refers to a contract that establishes all terms and conditions upfront, including scope, price, and delivery schedule, as opposed to an indefinite-delivery indefinite-quantity (IDIQ) contract. For a project with a clearly defined scope like pavement preservation of identified roadways, a definitive contract provides significant advantages. It offers greater cost certainty for the government, as the total price is fixed. It also simplifies administration compared to managing task orders under an IDIQ. However, it offers less flexibility if the scope needs to change significantly, potentially requiring contract modifications. The firm fixed-price (FFP) nature further reinforces cost control, placing the risk of cost overruns on the contractor.

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: 693C7325B000001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 PARNELL ST STE E, MERRITT ISLAND, FL, 32953

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

Financial Breakdown

Contract Ceiling: $6,311,395

Exercised Options: $6,311,395

Current Obligation: $6,311,395

Actual Outlays: $3,180,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline