DOT Awards $6.6M for Salt Creek Trail Construction to MWC Group, Inc

Contract Overview

Contract Amount: $6,649,128 ($6.6M)

Contractor: MWC Group, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-11-08

End Date: 2025-10-06

Contract Duration: 332 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CA ERFO NP DEVA 2022-1(2) SALT CREEK INTERPRETIVE TRAIL

Place of Performance

Location: DEATH VALLEY, INYO County, CALIFORNIA, 92328

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $6.6 million to MWC GROUP, INC. for work described as: CA ERFO NP DEVA 2022-1(2) SALT CREEK INTERPRETIVE TRAIL Key points: 1. Contract awarded to MWC Group, Inc. for $6.65 million. 2. Project falls under 'Other Heavy and Civil Engineering Construction' sector. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract duration is 332 days, with an estimated completion date of October 6, 2025.

Value Assessment

Rating: good

The contract value of $6.65 million appears reasonable for a heavy civil engineering project of this nature. Benchmarking against similar trail construction projects would provide a more precise assessment, but the initial value does not raise immediate concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The exclusion of sources clause warrants further investigation to understand its justification and potential impact on price discovery.

Taxpayer Impact: The $6.65 million expenditure is a direct cost to taxpayers for infrastructure development. The competitive nature of the award suggests efficient use of funds, but the specific justification for excluding sources needs to be clear to ensure maximum taxpayer benefit.

Public Impact

Enhances recreational opportunities in California with the Salt Creek Interpretive Trail. Supports local infrastructure development and potentially creates jobs in the construction sector. Improves public access to natural resources and promotes outdoor activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Justification for 'Exclusion of Sources' needs review.
Potential for cost overruns in heavy civil engineering projects.

Positive Signals

Awarded through full and open competition.
Clear project scope and firm fixed price contract.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is characterized by large-scale infrastructure projects. Spending in this sector can vary significantly based on federal infrastructure initiatives and economic conditions. The $6.65 million award is a moderate-sized contract for this type of work.

Small Business Impact

The contract was awarded to MWC Group, Inc., which is not indicated as a small business. Further analysis would be needed to determine if small business subcontracting opportunities were adequately pursued or mandated.

Oversight & Accountability

The Federal Highway Administration, under the Department of Transportation, is responsible for overseeing this contract. Standard oversight procedures for construction projects, including progress monitoring and quality control, should be in place to ensure timely and successful completion.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential lack of robust competition due to source exclusion.
Risk of cost overruns common in heavy civil engineering.
Contract duration may be tight for complex construction.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.6 million to MWC GROUP, INC.. CA ERFO NP DEVA 2022-1(2) SALT CREEK INTERPRETIVE TRAIL

Who is the contractor on this award?

The obligated recipient is MWC GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2024-11-08. End: 2025-10-06.

What was the specific justification for excluding sources in this full and open competition?

The justification for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award needs to be thoroughly documented and reviewed. Typically, such exclusions are based on specific technical requirements, national security concerns, or unique capabilities that only a limited number of entities possess. Understanding this rationale is crucial for assessing whether the exclusion was necessary and if it potentially limited competitive pricing.

Are there any identified risks associated with MWC Group, Inc.'s past performance on similar projects?

Assessing MWC Group, Inc.'s past performance is critical for mitigating project risks. A review of their track record on similar heavy and civil engineering construction projects, including adherence to schedules, budget management, and quality of work, would reveal potential challenges. Any history of delays, cost overruns, or disputes could indicate a higher risk for this contract's successful execution.

How does the final contract price compare to the initial bid or estimated cost, and what does this indicate about price discovery?

The final contract price of $6.65 million should be compared against the initial bids received and any pre-award estimates. A significant difference could suggest issues with the initial cost estimation or the effectiveness of the competitive bidding process. If the final price is well within the range of competitive bids and close to estimates, it indicates effective price discovery and a fair market price was likely achieved.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: 6982AF24B000019

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MWC Group Inc.

Address: 12321 HIBISCUS RD, ADELANTO, CA, 92301

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

Financial Breakdown

Contract Ceiling: $6,649,128

Exercised Options: $6,649,128

Current Obligation: $6,649,128

Actual Outlays: $6,404,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline