Road construction task order awarded to APCO ARCON LLC for $15.2M, completed within 7 months

Contract Overview

Contract Amount: $15,204,745 ($15.2M)

Contractor: Apco Arcon LLC

Awarding Agency: Agency for International Development

Start Date: 2008-10-20

End Date: 2009-05-19

Contract Duration: 211 days

Daily Burn Rate: $72.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO CINSTRUCT THE TARQUMIA CROSSING ROAD

Plain-Language Summary

Agency for International Development obligated $15.2 million to APCO ARCON LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO CINSTRUCT THE TARQUMIA CROSSING ROAD Key points: 1. Value for money appears fair given the fixed-price nature of the contract and the relatively short duration. 2. Competition dynamics indicate a competitive delivery order, suggesting multiple bids were considered. 3. Risk indicators are moderate, with a fixed-price contract potentially mitigating cost overrun risks. 4. Performance context shows a completed project within its scheduled timeframe. 5. Sector positioning is within engineering services, specifically infrastructure development.

Value Assessment

Rating: fair

The contract value of $15.2 million for road construction over approximately 7 months suggests a moderate per-month expenditure. Benchmarking against similar infrastructure projects would be necessary for a precise value assessment. However, the fixed-price contract type offers some assurance against uncontrolled cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that it was competed among multiple potential offerors. The presence of 3 bids (no: 3) suggests a reasonable level of competition, which typically aids in price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient allocation of resources and potentially lower prices compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely the users of the Tarqumia Crossing Road, improving transportation and potentially economic activity in the region. The service delivered is the construction of a road, a critical piece of infrastructure. The geographic impact is localized to the Tarqumia Crossing area. Workforce implications would include construction jobs during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, although fixed-price mitigates direct cost impact.
Ensuring quality of construction meets long-term durability standards.
Logistical challenges in remote construction areas can impact timelines and costs.

Positive Signals

Fixed-price contract structure provides cost certainty.
Competitive award process suggests potential for good value.
Completion within the scheduled duration indicates effective project management.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on infrastructure development. The global market for construction and engineering services is substantial, with government contracts forming a significant portion. This project represents a specific investment in transportation infrastructure, comparable to other road, bridge, or transit projects funded by government agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. As the contract was awarded competitively, it's possible that small businesses participated either as prime contractors or subcontractors, but this cannot be confirmed without further details. The impact on the small business ecosystem would depend on their level of involvement.

Oversight & Accountability

Oversight for this task order would typically fall under the Agency for International Development (USAID). Mechanisms would include contract administration, performance monitoring, and potentially site inspections. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Infrastructure Development Projects
Road Construction Contracts
International Development Projects
Engineering Services Contracts

Risk Flags

Potential for unforeseen site conditions
Weather-related delays
Material cost volatility (mitigated by fixed price)

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $15.2 million to APCO ARCON LLC. THE PURPOSE OF THIS TASK ORDER IS TO CINSTRUCT THE TARQUMIA CROSSING ROAD

Who is the contractor on this award?

The obligated recipient is APCO ARCON LLC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2008-10-20. End: 2009-05-19.

What was the contractor's track record with similar road construction projects prior to this award?

The provided data does not include specific details on APCO ARCON LLC's prior track record with similar road construction projects. To assess their suitability and past performance, a review of their contract history, client references, and any past performance evaluations would be necessary. This would help determine if they have a history of successful project completion, adherence to budget, and quality workmanship in comparable infrastructure endeavors. Without this information, it's difficult to gauge their experience level specifically for this type of work.

How does the $15.2 million cost compare to similar road construction projects of comparable scope and duration?

A direct comparison of the $15.2 million cost requires detailed information on the project's scope, length, terrain, materials used, and labor costs, which are not fully provided. However, the contract was a fixed-price delivery order completed in approximately 7 months. For benchmarking, one would look at other government or private sector road construction projects of similar mileage, complexity (e.g., bridges, tunnels), and location. The cost per mile or per square foot, adjusted for regional economic factors and material costs, would be a key metric. Given the competitive nature, the price is presumed to be market-driven, but external benchmarks are crucial for a definitive value assessment.

What were the primary risk factors identified during the bidding process for this road construction task order?

While specific risk factors from the bidding process are not detailed, common risks in road construction include unforeseen geological conditions (e.g., unstable soil, unexpected rock formations), extreme weather impacting schedules, material price fluctuations (though mitigated by fixed-price), labor availability issues, and potential environmental compliance challenges. The competitive nature of the award suggests that bidders would have assessed these risks and factored them into their pricing. The fixed-price contract type shifts much of the cost overrun risk to the contractor, APCO ARCON LLC.

How effective was the project management in ensuring the road construction met quality standards and was completed on time?

The data indicates the contract was awarded on October 20, 2008, and completed by May 19, 2009, a duration of approximately 7 months. This suggests the project was completed within its scheduled timeframe. Effectiveness in meeting quality standards is harder to ascertain from the provided data alone. Typically, government agencies conduct inspections and accept deliverables based on predefined specifications. A review of project close-out reports, final acceptance documentation, and any post-completion performance reviews would be needed to fully assess the quality outcomes and overall project management effectiveness.

What is the historical spending trend for road construction projects by the Agency for International Development?

The provided data is specific to a single task order and does not offer historical spending trends for the Agency for International Development (USAID) on road construction. To analyze historical spending, one would need to query contract databases (like FPDS) for all road construction contracts awarded by USAID over several fiscal years. This analysis would reveal the total annual expenditure, the number and average value of contracts, and potentially identify trends in project types or geographic focus. Such data would provide context for the $15.2 million award relative to USAID's overall infrastructure investment patterns.

Were there any significant cost variances or change orders associated with this fixed-price contract?

The provided data does not specify whether there were significant cost variances or change orders associated with this fixed-price contract. Fixed-price contracts are designed to limit cost variances, as the contractor assumes the risk of cost overruns. However, change orders can still occur if the scope of work is modified by the government. If significant change orders were issued, they would typically be documented, potentially impacting the final cost or schedule, even under a fixed-price arrangement. A review of the contract's modification history would be required to answer this definitively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26600 TELEGRAPH RD STE 455, SOUTHFIELD, MI, 48033

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $22,807,117

Exercised Options: $22,807,117

Current Obligation: $15,204,745

Parent Contract

Parent Award PIID: AID294I000800221

IDV Type: IDC

Timeline