Agee Construction awarded $11.3M for California road reconstruction, retaining walls, and drainage

Contract Overview

Contract Amount: $11,315,557 ($11.3M)

Contractor: Agee Construction Corporation

Awarding Agency: Department of Transportation

Start Date: 2006-06-13

End Date: 2007-09-28

Contract Duration: 472 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ROAD RECONSTRUCTION, RETAINING WALLS AND DRAINAGE

Place of Performance

Location: THREE RIVERS, TULARE County, CALIFORNIA, 93271

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $11.3 million to AGEE CONSTRUCTION CORPORATION for work described as: ROAD RECONSTRUCTION, RETAINING WALLS AND DRAINAGE Key points: 1. Contract value appears reasonable for the scope of work involving significant infrastructure repair. 2. Full and open competition suggests a competitive bidding process, likely leading to fair pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 472 days indicates a substantial undertaking. 5. The contract falls within the Highway, Street, and Bridge Construction sector. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract value of $11.3 million for road reconstruction, retaining walls, and drainage in California is within a typical range for projects of this scale. Benchmarking against similar Federal Highway Administration projects would provide more precise value-for-money assessment. The firm fixed-price structure is standard for construction and helps control costs for the government, assuming the contractor accurately estimated their expenses.

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 multiple bidders, though not explicitly detailed in the provided data, is implied by this competition type. A competitive bidding process generally leads to better price discovery and ensures the government receives services at a fair market rate.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that drives down prices and encourages efficiency among contractors, ultimately leading to better use of public funds.

Public Impact

The primary beneficiaries are users of California's transportation infrastructure, experiencing improved road conditions and safety. Services delivered include essential road reconstruction, structural work on retaining walls, and critical drainage system upgrades. The geographic impact is localized to the specific area in California where the project is undertaken. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Risk of schedule delays due to weather or contractor performance issues.
Ensuring quality of materials and workmanship for long-term durability.

Positive Signals

Firm fixed-price contract transfers significant cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Project addresses critical infrastructure needs, enhancing public safety and utility.

Sector Analysis

This contract falls under the Highway, Street, and Bridge Construction sector, a significant segment of the broader construction industry. Spending in this area is driven by federal and state initiatives to maintain and upgrade aging infrastructure. Comparable spending benchmarks would involve analyzing the average cost per mile for road reconstruction or per linear foot for retaining wall construction across similar federal projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting goals explicitly stated. This means larger firms likely competed for and won the prime contract. While not a direct set-aside, the prime contractor may still engage small businesses for subcontracting work, contributing to the broader small business ecosystem, but this is not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) through its contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports or IG investigations are not detailed here.

Related Government Programs

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

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of contractor performance issues affecting quality or timely completion.
Geographic-specific risks such as seismic activity or weather patterns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.3 million to AGEE CONSTRUCTION CORPORATION. ROAD RECONSTRUCTION, RETAINING WALLS AND DRAINAGE

Who is the contractor on this award?

The obligated recipient is AGEE CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2006-06-13. End: 2007-09-28.

What is the track record of Agee Construction Corporation with federal contracts, particularly with the Department of Transportation?

A comprehensive review of Agee Construction Corporation's federal contract history would involve analyzing their past performance on similar projects, including adherence to schedules, budget management, and quality of work. Data from the Federal Procurement Data System (FPDS) or other government contract databases would be essential. Examining past awards, modifications, and any reported disputes or terminations would provide insight into their reliability and capability as a federal contractor. Specifically, their history with the Department of Transportation and the Federal Highway Administration would be most relevant to assess their suitability for this type of infrastructure work.

How does the awarded amount compare to the original estimated cost or baseline budget for this project?

The provided data lists the awarded amount ($11.3 million) but does not include the original estimated cost or baseline budget. To assess value for money, a comparison between the awarded price and the government's initial estimate is crucial. A significant difference could indicate issues with the initial estimate, the bidding process, or the contractor's pricing strategy. Ideally, the awarded amount should be competitive and reflect market rates for the scope of work. Without the estimated cost, it's difficult to definitively determine if the contract represents exceptional value or if there was potential for savings.

What are the key performance indicators (KPIs) used to measure the success of this road reconstruction project?

Key performance indicators for a road reconstruction project typically include adherence to the project schedule (measured by days completed versus planned), adherence to budget (ensuring costs do not exceed the fixed price), quality of construction (meeting specified material and workmanship standards, often verified through inspections and testing), and safety performance (minimizing accidents and ensuring compliance with safety regulations). User satisfaction and the long-term durability of the reconstructed road are also important, though often measured post-completion. The contract documents themselves would detail the specific KPIs and acceptance criteria.

What is the historical spending pattern for similar highway, street, and bridge construction contracts awarded by the Federal Highway Administration in California?

Analyzing historical spending patterns for similar contracts by the FHWA in California would involve querying databases like FPDS for contracts within the Highway, Street, and Bridge Construction category (NAICS code 237310) awarded over a specific period. This would allow for the calculation of average contract values, average duration, and the typical number of bidders for full and open competitions. Understanding these benchmarks helps contextualize the $11.3 million award, assessing whether it aligns with historical norms or represents an outlier, potentially indicating unique project complexities or market conditions in California.

Are there any known risks associated with the specific geographic location or type of work (retaining walls, drainage) that could impact project cost or timeline?

Risks associated with retaining walls and drainage projects can include unforeseen subsurface conditions (e.g., unstable soil, groundwater issues), environmental concerns (e.g., impact on local ecosystems, hazardous materials), and weather-related delays, especially in regions prone to heavy rainfall or seismic activity. The specific geographic location in California might introduce seismic risks requiring specialized construction techniques. These factors can lead to scope changes, schedule extensions, and cost increases, even under a fixed-price contract, if not adequately identified and mitigated during the planning and bidding phases.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: DTFH6806B00004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1039 HOBLITT AVE, CLOVIS, CA, 20

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,315,557

Exercised Options: $11,315,557

Current Obligation: $11,315,557

Timeline