Steelhead Constructors JV awarded $2.3M contract for Grayback Road reconstruction in California

Contract Overview

Contract Amount: $2,296,787 ($2.3M)

Contractor: Steelhead Constructors JV

Awarding Agency: Department of Transportation

Start Date: 2024-12-12

End Date: 2026-10-08

Contract Duration: 665 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CA ERFO FS KLMTH 2023-2(2) GRAYBACK ROAD ROAD RECONSTRUCTION CONTRACT

Place of Performance

Location: YREKA, SISKIYOU County, CALIFORNIA, 96097

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.3 million to STEELHEAD CONSTRUCTORS JV for work described as: CA ERFO FS KLMTH 2023-2(2) GRAYBACK ROAD ROAD RECONSTRUCTION CONTRACT Key points: 1. Contract value appears reasonable for a road reconstruction project of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Project duration of 665 days indicates a significant reconstruction effort. 4. The contract is firm-fixed-price, transferring cost risk to the contractor. 5. This project falls under highway, street, and bridge construction. 6. The contractor, Steelhead Constructors JV, is a joint venture. 7. The project is located in California, a state with extensive infrastructure needs.

Value Assessment

Rating: good

The contract value of $2.3 million for road reconstruction is within a typical range for such projects, especially considering it's a firm-fixed-price contract. Benchmarking against similar Federal Highway Administration (FHWA) projects in California would provide a more precise value-for-money assessment. However, the use of full and open competition suggests that pricing was likely driven by market forces, which generally leads to better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The presence of three bidders (no) suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and better selection of qualified contractors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple firms to bid, driving down costs and ensuring the government receives the best possible price for the services rendered.

Public Impact

Residents and commuters in the vicinity of Grayback Road in California will benefit from improved road infrastructure. The project will deliver essential road reconstruction services, enhancing safety and travel efficiency. The geographic impact is localized to the specific area of Grayback Road in California. While specific workforce implications are not detailed, road construction projects typically create temporary employment opportunities for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite firm-fixed-price structure.
Risk of project delays due to weather or supply chain issues impacting construction timelines.
Ensuring the quality of reconstruction meets federal highway standards requires diligent oversight.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a robust selection process.
The contractor is a joint venture, potentially bringing diverse expertise to the project.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the construction industry focused on public infrastructure. Spending in this sector is often driven by federal and state initiatives to maintain and upgrade transportation networks. Comparable spending benchmarks would involve analyzing other FHWA reconstruction projects of similar scale and complexity within California or other states.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses as prime contractors is limited. However, the selected contractor, Steelhead Constructors JV, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA) through the Department of Transportation. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to complete the work to specifications. Transparency is generally maintained through contract award databases and public reporting, though specific oversight activities are not detailed here.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
State Transportation Infrastructure Projects
National Highway System Construction and Repair

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of contractor performance issues or delays.
Need for robust quality assurance to meet federal standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.3 million to STEELHEAD CONSTRUCTORS JV. CA ERFO FS KLMTH 2023-2(2) GRAYBACK ROAD ROAD RECONSTRUCTION CONTRACT

Who is the contractor on this award?

The obligated recipient is STEELHEAD CONSTRUCTORS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-12-12. End: 2026-10-08.

What is the track record of Steelhead Constructors JV on similar federal projects?

Information regarding the specific track record of Steelhead Constructors JV on similar federal projects is not directly available in the provided data. As a joint venture, its performance history would depend on the combined experience of its constituent companies. A deeper dive into federal contract databases (like SAM.gov or FPDS) would be necessary to assess past performance, including on-time delivery, quality of work, and any past disputes or contract modifications. Understanding their experience with firm-fixed-price contracts and highway reconstruction specifically would be crucial for evaluating their capability to successfully execute this project.

How does the $2.3 million contract value compare to similar road reconstruction projects in California?

The $2.3 million contract value for the Grayback Road reconstruction needs to be benchmarked against similar projects to assess its value for money. Factors such as the length of road reconstructed, the scope of work (e.g., resurfacing, full depth repair, drainage improvements), and the specific location within California significantly influence costs. Without detailed project specifications and comparable project data from the Federal Highway Administration or California Department of Transportation, a precise comparison is difficult. However, for a significant reconstruction effort over a 665-day period, $2.3 million appears to be within a reasonable range, especially given the firm-fixed-price nature which transfers risk to the contractor.

What are the primary risks associated with this firm-fixed-price contract for road reconstruction?

The primary risks associated with this firm-fixed-price contract for road reconstruction, despite shifting cost risk to the contractor, include potential for scope creep if unforeseen conditions necessitate changes, contractor default or poor performance, and project delays. While the contractor is responsible for cost overruns, significant unforeseen issues (like discovering hazardous materials or unexpected subsurface conditions) could lead to change orders, increasing the total contract cost. Delays due to weather, labor shortages, or material availability can also impact project completion and potentially lead to claims. Ensuring robust quality control and diligent project management by the contracting agency is essential to mitigate these risks.

How effective is full and open competition in ensuring competitive pricing for infrastructure projects?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for infrastructure projects. By allowing all responsible sources to submit bids, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving multiple competitive offers. This competitive pressure incentivizes bidders to offer their best pricing and terms to win the contract. The data shows three bidders for this contract, indicating a moderate level of competition. While more bidders could potentially drive prices lower, the 'full and open' designation itself signifies a commitment to market-based pricing rather than restricted or sole-source approaches.

What is the historical spending pattern for highway construction by the Federal Highway Administration in California?

Historical spending patterns for highway construction by the Federal Highway Administration (FHWA) in California are substantial, reflecting the state's large population, extensive road network, and significant transportation needs. The FHWA typically provides funding and oversight for major highway projects, often in partnership with the California Department of Transportation (Caltrans). Annual federal obligations for highway projects in California can range from hundreds of millions to over a billion dollars, depending on federal appropriations and the pipeline of large-scale infrastructure initiatives. This specific $2.3 million contract represents a small fraction of the overall federal investment in California's transportation infrastructure.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2940 INNSBRUCK DR, REDDING, CA, 96003

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,296,787

Exercised Options: $2,296,787

Current Obligation: $2,296,787

Actual Outlays: $77,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6982AF24D000005

IDV Type: IDC

Timeline