Transportation contract awarded to Staker & Parson Companies for $12.15M for highway construction in Colorado

Contract Overview

Contract Amount: $12,148,686 ($12.1M)

Contractor: Staker & Parson Companies

Awarding Agency: Department of Transportation

Start Date: 2025-01-20

End Date: 2026-05-29

Contract Duration: 494 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION CONTRACTS FOR UT FTNP DINO 10(3) & 100(2) GREEN RIVER RD & QUARRY ACCESS RD

Place of Performance

Location: DINOSAUR, MOFFAT County, COLORADO, 81610

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $12.1 million to STAKER & PARSON COMPANIES for work described as: CONSTRUCTION CONTRACTS FOR UT FTNP DINO 10(3) & 100(2) GREEN RIVER RD & QUARRY ACCESS RD Key points: 1. The contract value of $12.15 million represents a significant investment in regional infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing project expenses. 4. The project duration of 494 days indicates a substantial construction timeline. 5. The contract is categorized under Highway, Street, and Bridge Construction, a critical sector for economic activity. 6. The award to Staker & Parson Companies, a single entity, highlights the concentration of large-scale construction capabilities.

Value Assessment

Rating: good

The contract value of $12.15 million for highway construction appears reasonable given the scope and duration. Benchmarking against similar Federal Highway Administration projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, assuming the initial bid accurately reflected project requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially lead to lower prices, three offers often provide sufficient price discovery for a project of this nature.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing for infrastructure investments.

Public Impact

The primary beneficiaries are users of the Green River Road and Quarry Access Road, who will experience improved transportation infrastructure. The project will deliver essential highway, street, and bridge construction services, enhancing regional connectivity. The geographic impact is concentrated in Colorado, supporting local and regional economic development. The construction activities will likely create temporary employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Risk of schedule delays due to weather, material availability, or labor issues.
Ensuring compliance with environmental regulations during construction activities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding environment.
Award to an established contractor with experience in highway construction.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction subsector, a vital component of the broader Construction industry. This sector is characterized by large-scale projects requiring significant capital investment and specialized expertise. Comparable spending benchmarks for similar federal highway projects can vary widely based on location, complexity, and specific requirements, but a $12.15 million award for road improvements is within the typical range for significant infrastructure undertakings.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA) contracting officers and project managers. Accountability measures will include adherence to contract terms, performance milestones, and quality control. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not be publicly available.

Related Government Programs

Federal Highway Administration Construction Projects
Department of Transportation Infrastructure Grants
State Highway Improvement Programs
National Highway System Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting project completion.
Ensuring contractor compliance with quality and safety standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.1 million to STAKER & PARSON COMPANIES. CONSTRUCTION CONTRACTS FOR UT FTNP DINO 10(3) & 100(2) GREEN RIVER RD & QUARRY ACCESS RD

Who is the contractor on this award?

The obligated recipient is STAKER & PARSON COMPANIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2025-01-20. End: 2026-05-29.

What is the track record of Staker & Parson Companies with the Federal Highway Administration?

Staker & Parson Companies has a history of performing construction work, including highway projects. A detailed review of their past performance with the Federal Highway Administration (FHWA) would involve examining contract completion records, any instances of disputes or claims, and client satisfaction ratings. While this specific contract is for $12.15 million, understanding their experience with projects of similar scale and complexity is crucial for assessing their capability to deliver successfully. Their past performance data, often available through federal procurement databases, can provide insights into their reliability, quality of work, and adherence to schedules and budgets on previous government contracts.

How does the awarded amount compare to similar highway construction projects in Colorado?

To benchmark the $12.15 million award, one would need to compare it against similar highway construction projects undertaken by the Federal Highway Administration or state transportation departments in Colorado over the past few years. Key comparison factors include project scope (e.g., miles of road, type of construction, number of bridges), geological conditions, labor costs, and material prices prevalent in the region during the bidding period. Without specific data on comparable projects, it's difficult to definitively state if this award represents exceptional value. However, the firm-fixed-price contract and full and open competition suggest an effort to secure competitive pricing.

What are the primary risks associated with this specific highway construction project?

The primary risks associated with this highway construction project include potential unforeseen site conditions (e.g., subsurface rock, groundwater issues) that could lead to cost increases, despite the firm-fixed-price contract. Schedule delays are also a significant risk, stemming from adverse weather, material supply chain disruptions, or labor shortages, particularly in a dynamic construction environment. Environmental compliance during construction, such as managing runoff or protecting local ecosystems, presents another area of risk. Furthermore, ensuring the long-term durability and safety of the constructed roadway under varying traffic loads and environmental stresses is a performance risk that extends beyond the construction phase.

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 like this highway construction, as it shifts the majority of the cost risk to the contractor, Staker & Parson Companies. This means the government agrees to pay a set price, regardless of the contractor's actual costs incurred, provided the contractor meets the contract's specifications. This structure incentivizes the contractor to control costs and manage resources efficiently to maximize their profit margin. However, the effectiveness relies heavily on the accuracy of the initial cost estimate and the contractor's ability to anticipate and manage potential challenges. If unforeseen issues arise that were not reasonably foreseeable during the bidding process, the FFP structure can lead to contractor claims for equitable adjustments, potentially increasing the final cost.

What is the historical spending trend for highway construction contracts awarded by the FHWA in Colorado?

Analyzing historical spending trends for highway construction contracts awarded by the Federal Highway Administration (FHWA) in Colorado would involve examining aggregate data over several fiscal years. This would reveal the typical volume and value of such contracts, identifying any patterns of increase or decrease in spending. Factors influencing these trends could include federal infrastructure funding allocations, state transportation priorities, economic conditions, and the number of major projects initiated. Understanding these historical patterns can help contextualize the current $12.15 million award, indicating whether it represents a typical investment or a significant deviation from past spending levels for highway infrastructure in the state.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2350 S 1900 W STE 100, OGDEN, UT, 84401

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

Financial Breakdown

Contract Ceiling: $12,148,686

Exercised Options: $12,148,686

Current Obligation: $12,148,686

Actual Outlays: $10,576,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline