New Mexico Road Resurfacing Project Awarded for $7.79M, Enhancing Historic District Infrastructure

Contract Overview

Contract Amount: $7,794,305 ($7.8M)

Contractor: Whelcon Contractors LLC

Awarding Agency: Department of Transportation

Start Date: 2025-04-15

End Date: 2026-03-13

Contract Duration: 332 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NM BR AAO ELBU(1). THE PROJECT WILL USE ASPHALT AND AGGREGATE BASE TO RESURFACE, RESTORE, AND REHABILITATE MULTIPLE ROAD SEGMENTS WITHIN THE ELEPHANT BUTTE HISTORIC DISTRICT. SIX PAVED PARKING LOTS WILL BE REHABILITATED AND REPAVED.

Place of Performance

Location: ELEPHANT BUTTE, SIERRA County, NEW MEXICO, 87935

State: New Mexico Government Spending

Plain-Language Summary

Department of Transportation obligated $7.8 million to WHELCON CONTRACTORS LLC for work described as: NM BR AAO ELBU(1). THE PROJECT WILL USE ASPHALT AND AGGREGATE BASE TO RESURFACE, RESTORE, AND REHABILITATE MULTIPLE ROAD SEGMENTS WITHIN THE ELEPHANT BUTTE HISTORIC DISTRICT. SIX PAVED PARKING LOTS WILL BE REHABILITATED AND REPAVED. Key points: 1. Project focuses on resurfacing, restoring, and rehabilitating roads and parking lots in the Elephant Butte Historic District. 2. Whelcon Contractors LLC secured the contract, indicating a specific market player in regional infrastructure. 3. The contract type is a Definitive Contract with a Firm Fixed Price, suggesting defined scope and cost control. 4. While the award is for highway construction, the specific location within a historic district may introduce unique preservation considerations.

Value Assessment

Rating: good

The contract value of $7.79M for road and parking lot rehabilitation appears reasonable for a project of this scope and duration. Benchmarking against similar federal highway construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competition, potentially impacting price discovery. The rationale for excluding other sources needs further examination to ensure optimal pricing.

Taxpayer Impact: Taxpayers are impacted through funding for essential infrastructure improvements, with the final cost influenced by the competitive nature of the procurement.

Public Impact

Improved transportation infrastructure within the Elephant Butte Historic District, benefiting local residents and visitors. Rehabilitation of parking lots will enhance accessibility and usability for the historic area. Potential for increased tourism and economic activity due to better infrastructure. Preservation of the historic character of the district while undertaking necessary upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than full and open competition.
Potential for unforeseen historical preservation challenges impacting cost and schedule.
Firm Fixed Price contract offers cost certainty but may limit flexibility for scope changes.

Positive Signals

Addresses critical infrastructure needs in a specific, historically significant area.
Clear contract type and pricing structure.
Defined project duration and completion date.

Sector Analysis

This project falls under the Highway, Street, and Bridge Construction sector. Federal spending in this sector is substantial, driven by national infrastructure needs. The $7.79M award is a moderate-sized contract within this broad category.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting goals were explicitly met or required for this contract. Further analysis is needed to determine if small businesses had a fair opportunity to compete or participate.

Oversight & Accountability

The Federal Highway Administration (FHWA) is responsible for overseeing this project. Oversight will likely focus on adherence to construction standards, timelines, and budget, ensuring taxpayer funds are used effectively.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Limited competition
Potential for historical preservation issues
Contract type may limit flexibility for scope changes
Lack of explicit small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.8 million to WHELCON CONTRACTORS LLC. NM BR AAO ELBU(1). THE PROJECT WILL USE ASPHALT AND AGGREGATE BASE TO RESURFACE, RESTORE, AND REHABILITATE MULTIPLE ROAD SEGMENTS WITHIN THE ELEPHANT BUTTE HISTORIC DISTRICT. SIX PAVED PARKING LOTS WILL BE REHABILITATED AND REPAVED.

Who is the contractor on this award?

The obligated recipient is WHELCON CONTRACTORS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2025-04-15. End: 2026-03-13.

What was the specific justification for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method, and how did this impact the final contract price?

The justification for excluding sources needs to be thoroughly reviewed. Typically, such exclusions are based on specific technical requirements, unique capabilities, or urgent needs. Understanding this rationale is crucial to assess if it genuinely served the government's best interest or if it inadvertently limited competition, potentially leading to a less favorable price for taxpayers.

What are the potential risks associated with performing construction work within a designated historic district, and what mitigation strategies are in place?

Construction within historic districts carries risks such as encountering unforeseen historical artifacts, damage to existing structures, and stricter regulatory compliance. Mitigation strategies should include detailed site surveys, consultation with historical preservation experts, specialized construction techniques, and contingency plans for unexpected discoveries or preservation requirements.

How does the firm fixed price contract structure balance cost control with the potential for unforeseen challenges during the rehabilitation of roads and parking lots?

A firm fixed price contract provides cost certainty for the government but places the risk of cost overruns on the contractor. While this encourages efficiency, it can lead to contractors being less flexible with scope adjustments or potentially cutting corners if unforeseen issues arise, impacting quality. Robust contract management and clear change order processes are vital.

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: 6982AF24B000011

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 W WETMORE RD STE 203, TUCSON, AZ, 85705

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,794,305

Exercised Options: $7,794,305

Current Obligation: $7,794,305

Actual Outlays: $4,106,089

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline