California DOT Awards $9.46M for Blue Lake Road Reconstruction to Steelhead Constructors JV

Contract Overview

Contract Amount: $9,458,429 ($9.5M)

Contractor: Steelhead Constructors JV

Awarding Agency: Department of Transportation

Start Date: 2026-01-21

End Date: 2026-10-09

Contract Duration: 261 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CA FLAP MOD 258(1) BLUE LAKE ROAD ROAD RECONSTRUCTION, REHABILITATION, ASPHALT SURFACING, GUARDRAIL, DRAINAGE, SIGNS, AND PERMANENT PAVEMENT MARKINGS

Place of Performance

Location: ALTURAS, MODOC County, CALIFORNIA, 96101

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $9.5 million to STEELHEAD CONSTRUCTORS JV for work described as: CA FLAP MOD 258(1) BLUE LAKE ROAD ROAD RECONSTRUCTION, REHABILITATION, ASPHALT SURFACING, GUARDRAIL, DRAINAGE, SIGNS, AND PERMANENT PAVEMENT MARKINGS Key points: 1. Project focuses on road reconstruction, surfacing, and safety features. 2. Steelhead Constructors JV secured the contract. 3. The contract is a Delivery Order under a larger agreement. 4. The project is located in California and managed by the Federal Highway Administration.

Value Assessment

Rating: fair

The contract value of $9.46M for road reconstruction appears within a reasonable range for similar projects of this scope and complexity. However, without specific details on the extent of reconstruction and materials used, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher costs than a fully open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure improvements. The limited competition raises a flag for potential overspending compared to a broader bidding process.

Public Impact

Improved road safety and driving conditions for the public. Potential for traffic disruptions during construction phases. Supports local and regional transportation networks. Job creation through construction activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Potential for schedule delays impacting public access.

Positive Signals

Addresses critical infrastructure needs.
Utilizes a firm-fixed-price contract, providing cost certainty.

Sector Analysis

This project falls under the Highway, Street, and Bridge Construction sector. Spending in this sector is driven by infrastructure needs, federal and state funding allocations, and economic conditions. Benchmarks vary widely based on project scale and location.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract or the larger agreement it falls under. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Federal Highway Administration is responsible for overseeing this project. Oversight typically includes monitoring progress, ensuring compliance with regulations, and managing contract performance to safeguard taxpayer interests.

Related Government Programs

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

Risk Flags

Limited competition may result in higher costs.
Potential for schedule overruns impacting public access.
Lack of transparency regarding source exclusion criteria.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.5 million to STEELHEAD CONSTRUCTORS JV. CA FLAP MOD 258(1) BLUE LAKE ROAD ROAD RECONSTRUCTION, REHABILITATION, ASPHALT SURFACING, GUARDRAIL, DRAINAGE, SIGNS, AND PERMANENT PAVEMENT MARKINGS

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 $9.5 million.

What is the period of performance?

Start: 2026-01-21. End: 2026-10-09.

What specific factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?

The exclusion of sources suggests specific criteria or requirements that narrowed the field of eligible bidders. This could be due to specialized equipment, unique expertise, or specific performance standards. While limiting competition can sometimes increase prices due to reduced bidder numbers, the firm-fixed-price nature of this contract provides some cost control. A detailed review of the solicitation documents would clarify the rationale and its pricing implications.

What are the key performance indicators (KPIs) for this reconstruction project, and how will their achievement be measured to ensure effectiveness and value for money?

Key performance indicators likely include adherence to the construction schedule, quality of materials and workmanship, compliance with safety standards, and the final condition of the reconstructed road. Effectiveness will be measured by the reduction in road defects, improved traffic flow, and enhanced safety features post-completion. The Department of Transportation and Federal Highway Administration will monitor these KPIs through site inspections, material testing, and performance reports.

Given the $9.46M contract value and the limited competition, what is the estimated cost savings or premium compared to a scenario with full and open competition?

Estimating the precise cost difference without a comparative bid analysis is challenging. However, limited competition generally carries a risk of a price premium. If a full and open competition had yielded, for example, 5-10 more bids from qualified contractors, the competitive pressure could have potentially driven the price down by a similar percentage. The actual premium or savings depends heavily on the specific market conditions and the uniqueness of the required services.

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

Solicitation ID: 6982AF25R000017

Offers Received: 8

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: $9,458,429

Exercised Options: $9,458,429

Current Obligation: $9,458,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6982AF26D000001

IDV Type: IDC

Timeline