Las Vegas Paving Corp. awarded $31M contract for California road reconstruction

Contract Overview

Contract Amount: $30,961,712 ($31.0M)

Contractor: LAS Vegas Paving Corporation

Awarding Agency: Department of Transportation

Start Date: 2022-12-09

End Date: 2024-10-15

Contract Duration: 676 days

Daily Burn Rate: $45.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CA FTNP MOJA 12(1) CIMA ROAD ROAD RECONSTRUCTION CONTRACT

Place of Performance

Location: ESSEX, SAN BERNARDINO County, CALIFORNIA, 92332

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $31.0 million to LAS VEGAS PAVING CORPORATION for work described as: CA FTNP MOJA 12(1) CIMA ROAD ROAD RECONSTRUCTION CONTRACT Key points: 1. Contract value appears reasonable given the scope of major road reconstruction. 2. Full and open competition suggests a competitive bidding environment. 3. Potential for cost overruns exists due to the fixed-price nature and long duration. 4. This contract supports critical infrastructure maintenance in California. 5. The awardee has a significant presence in heavy civil construction. 6. Project duration of over 22 months necessitates careful monitoring.

Value Assessment

Rating: good

The contract value of approximately $31 million for road reconstruction is within a typical range for projects of this scale. Benchmarking against similar highway, street, and bridge construction contracts awarded by the Federal Highway Administration or state DOTs would provide a more precise value-for-money assessment. The firm-fixed-price structure aims to control costs, but the long duration could introduce risks if unforeseen issues arise.

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 three bidders participating, the competition level appears moderate. This suggests that the government likely received competitive pricing, although a higher number of bidders could potentially drive prices down further.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is designed to ensure the government obtains the best possible price for the services rendered.

Public Impact

Residents and businesses in California will benefit from improved road infrastructure. The contract will facilitate smoother and safer transportation of goods and people. The project's geographic impact is focused on the specific reconstruction area within California. Local and regional workforces will likely be engaged for construction and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (676 days) increases the risk of unforeseen cost escalations or delays.
Firm-fixed-price contracts can incentivize contractors to cut corners if not adequately overseen.
Reliance on a single prime contractor for a large project can concentrate risk.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contractor, Las Vegas Paving Corporation, has experience in large-scale civil projects.
The project addresses essential infrastructure needs, contributing to public safety and economic activity.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Spending in this area is driven by federal and state investments in maintaining and upgrading transportation networks. Comparable spending benchmarks would involve analyzing the average cost per mile or per project for similar reconstruction efforts across the country, considering factors like terrain and material costs.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most competitive bid from qualified large contractors. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA) and potentially the Department of Transportation's Office of Inspector General (OIG). The firm-fixed-price contract type provides some cost control, but effective oversight will focus on ensuring adherence to project specifications, timelines, and quality standards throughout the 676-day performance period.

Related Government Programs

Federal-Aid Highway Program
National Highway System
Transportation Infrastructure Investment

Risk Flags

Long contract duration may increase risk of cost escalation or delays.
Firm-fixed-price contracts require diligent oversight to ensure quality.
Potential for traffic disruption during reconstruction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $31.0 million to LAS VEGAS PAVING CORPORATION. CA FTNP MOJA 12(1) CIMA ROAD ROAD RECONSTRUCTION CONTRACT

Who is the contractor on this award?

The obligated recipient is LAS VEGAS PAVING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2022-12-09. End: 2024-10-15.

What is the track record of Las Vegas Paving Corporation on similar federal contracts?

Las Vegas Paving Corporation has a history of performing large-scale civil engineering and construction projects. While specific details on their federal contract performance require deeper database searches, their involvement in significant infrastructure projects suggests they possess the capacity and experience. A review of past federal awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or claims would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor.

How does the awarded amount compare to the estimated cost or bids from other competitors?

The provided data indicates three bidders participated in this full and open competition, with the awarded amount being $30,961,711.66. Without access to the bid proposals of the other two competitors or the government's independent cost estimate, a direct comparison is difficult. However, the fact that it was awarded under full and open competition suggests the price was deemed fair and reasonable relative to the bids received. Further analysis would involve comparing this value to similar road reconstruction projects of comparable scope and complexity.

What are the primary risks associated with this firm-fixed-price contract and its long duration?

The primary risks associated with this firm-fixed-price contract, especially given its 676-day duration, include potential cost overruns due to unforeseen site conditions, material price fluctuations, or labor challenges that are not adequately accounted for in the fixed price. There's also a risk that the contractor might be incentivized to reduce quality to maintain profitability if oversight is insufficient. Conversely, the government benefits from cost certainty, assuming the contractor manages risks effectively. The long duration amplifies these risks, requiring diligent contract management and monitoring.

What is the expected impact of this road reconstruction on traffic and local communities?

This road reconstruction contract is expected to significantly improve the safety, efficiency, and longevity of critical transportation infrastructure in California. While the construction period may cause temporary disruptions to traffic flow, detours, and noise, the long-term benefits include reduced travel times, lower vehicle maintenance costs for users, enhanced safety, and support for local economic activity by ensuring reliable transportation routes. The specific impact will depend on the exact location and the scope of the reconstruction work.

How does this contract fit into the broader federal spending on transportation infrastructure?

This $31 million contract represents a component of the broader federal investment in maintaining and upgrading the nation's transportation infrastructure, primarily managed through programs like the Federal-Aid Highway Program. Such projects are crucial for ensuring the safety and efficiency of commerce and personal travel. Analyzing this contract's value in the context of annual federal outlays for highway construction and repair provides insight into the scale of federal commitment to infrastructure renewal and the allocation of resources across different states and project types.

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

Solicitation Procedures: SEALED BID

Solicitation ID: 6982AF22B000019

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4420 S DECATUR BLVD, LAS VEGAS, NV, 89103

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

Financial Breakdown

Contract Ceiling: $30,961,712

Exercised Options: $30,961,712

Current Obligation: $30,961,712

Actual Outlays: $30,961,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline