Transportation contract for Colorado road construction awarded to American Civil Constructors LLC for over $38 million

Contract Overview

Contract Amount: $38,097,177 ($38.1M)

Contractor: American Civil Constructors LLC

Awarding Agency: Department of Transportation

Start Date: 2020-11-12

End Date: 2024-06-19

Contract Duration: 1,315 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CO FLAP US50(1) LITTLE BLUE CREEK CANYON ROAD CONSTRUCTION

Place of Performance

Location: GUNNISON, GUNNISON County, COLORADO, 81230

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $38.1 million to AMERICAN CIVIL CONSTRUCTORS LLC for work described as: CO FLAP US50(1) LITTLE BLUE CREEK CANYON ROAD CONSTRUCTION Key points: 1. Contract value of $38.1 million for highway, street, and bridge construction. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. Duration of 1315 days suggests a significant, long-term infrastructure project. 5. Contractor American Civil Constructors LLC has experience in this sector. 6. Project located in Colorado, impacting local infrastructure and potentially workforce.

Value Assessment

Rating: good

The contract value of $38.1 million for highway construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale road construction projects in Colorado or other states would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, contributing to a more predictable financial outcome.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bidders, the competition level suggests a healthy market for this type of construction service. This level of competition generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives the best value for its investment in infrastructure.

Public Impact

Benefits residents and businesses in Colorado through improved transportation infrastructure. Delivers essential highway, street, and bridge construction services. Geographic impact is concentrated in Colorado, specifically within the Little Blue Creek Canyon area. Potential for local job creation in the construction sector during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant part of the broader construction industry. Federal spending in this area is often driven by the need to maintain and upgrade national transportation networks. Comparable spending benchmarks would involve analyzing other large federal highway projects, considering regional cost variations and project complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration, a division of the Department of Transportation. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting requirements.

Related Government Programs

Risk Flags

Tags

construction, transportation, highway-street-bridge, department-of-transportation, federal-highway-administration, colorado, firm-fixed-price, full-and-open-competition, large-business, definitive-contract, infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $38.1 million to AMERICAN CIVIL CONSTRUCTORS LLC. CO FLAP US50(1) LITTLE BLUE CREEK CANYON ROAD CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is AMERICAN CIVIL CONSTRUCTORS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.1 million.

What is the period of performance?

Start: 2020-11-12. End: 2024-06-19.

What is the track record of American Civil Constructors LLC on similar federal contracts?

American Civil Constructors LLC has a history of performing federal construction contracts, particularly within the Department of Transportation. While specific details on past performance metrics for this exact type of project would require deeper database analysis, their presence as a bidder and eventual awardee in a full and open competition suggests they meet the qualifications and experience required for highway, street, and bridge construction. Reviewing their past performance ratings, any past disputes or contract terminations, and the scale of their previous federal projects would provide a more comprehensive understanding of their reliability and capability for this significant undertaking.

How does the awarded price compare to similar federal highway construction projects?

The awarded price of $38.1 million for the Little Blue Creek Canyon Road construction project needs to be benchmarked against similar federal highway projects in terms of scope, complexity, and geographic location. Factors such as terrain, material costs, labor rates in Colorado, and the specific engineering requirements of the project significantly influence pricing. Without direct comparable data points for projects of identical scale and specifications, a precise value-for-money comparison is challenging. However, the firm fixed-price nature and the presence of five bidders suggest that the price was likely competitive within the market at the time of award.

What are the primary risks associated with this specific construction contract?

The primary risks associated with this construction contract include potential project delays due to unforeseen geological conditions in the canyon, adverse weather impacting work schedules, and fluctuations in material costs (though mitigated by the fixed-price contract). Environmental compliance during construction is another key risk area. The long duration of 1315 days also increases the exposure to these risks over time. Effective risk management by the contractor and diligent oversight by the Federal Highway Administration are crucial to mitigate these potential issues and ensure successful project completion.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined, as is typical for road construction. It shifts the risk of cost overruns to the contractor, American Civil Constructors LLC, who is obligated to complete the work for the agreed-upon price. This provides the Department of Transportation with cost certainty and predictability, preventing unexpected budget increases. However, if unforeseen circumstances necessitate significant changes to the scope, contract modifications could still impact the final cost, though the FFP structure provides a strong baseline for cost control.

What is the historical spending trend for highway construction by the Federal Highway Administration?

The Federal Highway Administration (FHWA) historically allocates substantial funding towards the construction, maintenance, and improvement of the nation's highways, bridges, and tunnels. Annual spending levels can fluctuate based on congressional appropriations, economic conditions, and national infrastructure priorities. The Infrastructure Investment and Jobs Act (IIJA) has significantly boosted federal funding for transportation infrastructure in recent years, likely leading to an increase in contracts like this one. Analyzing FHWA's budget and contract awards over the past decade would reveal trends in investment, with a general emphasis on maintaining and modernizing the National Highway System.

What is the significance of the 'DEFINITIVE CONTRACT' award type in this context?

The 'DEFINITIVE CONTRACT' award type, in this case, signifies a formal, legally binding agreement between the government and American Civil Constructors LLC for the specified road construction services. It represents the finalization of terms and conditions after a procurement process. For a project of this scale and duration, a definitive contract ensures clarity on deliverables, payment schedules, performance expectations, and legal recourse. It is the standard mechanism for formalizing large federal procurement awards, providing a solid foundation for project execution and oversight.

Industry Classification

NAICS: ConstructionHighway, Street, and Bridge ConstructionHighway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 6982AF20B000008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mastec, Inc.

Address: 4901 S WINDERMERE ST, LITTLETON, CO, 80120

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

Financial Breakdown

Contract Ceiling: $38,097,177

Exercised Options: $38,097,177

Current Obligation: $38,097,177

Actual Outlays: $38,097,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2020-11-12

Current End Date: 2024-06-19

Potential End Date: 2024-06-19 00:00:00

Last Modified: 2025-05-19

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