Frehner Construction awarded $13.9M for Nevada highway rehabilitation, a follow-on to a competed action

Contract Overview

Contract Amount: $13,944,334 ($13.9M)

Contractor: Frehner Construction Company, Inc.

Awarding Agency: Department of Transportation

Start Date: 2005-12-21

End Date: 2007-05-18

Contract Duration: 513 days

Daily Burn Rate: $27.2K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRADING, DRAINAGE, ASPHALT SURFACING AND PAVEMENT REHABILITATION

Place of Performance

Location: BOULDER CITY, CLARK County, NEVADA, 89005

State: Nevada Government Spending

Plain-Language Summary

Department of Transportation obligated $13.9 million to FREHNER CONSTRUCTION COMPANY, INC. for work described as: GRADING, DRAINAGE, ASPHALT SURFACING AND PAVEMENT REHABILITATION Key points: 1. Contract value appears reasonable given the scope of highway, street, and bridge construction. 2. Follow-on nature suggests potential for established performance, but requires scrutiny of original competition. 3. Fixed-price contract type generally shifts risk to the contractor. 4. Performance period of 513 days indicates a substantial project timeline. 5. Geographic focus on Nevada suggests localized economic impact. 6. Contract is for highway, street, and bridge construction, a critical infrastructure sector.

Value Assessment

Rating: good

The contract value of $13.9 million for highway, street, and bridge construction in Nevada is within a typical range for such projects. Without specific details on the scope of work (e.g., miles of road, type of rehabilitation), a direct per-unit cost comparison is difficult. However, the fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the work is completed as specified. The 'follow on to competed action' status implies that the initial award was subject to competition, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' which indicates that the original contract was competed. However, the specifics of this particular award being a follow-on suggest that it might not have undergone a full and open competition process itself, potentially limiting the number of bidders or the scope of the competitive environment for this specific task order. Further details on the original competition and the reasons for a follow-on award would be needed to fully assess the competitive landscape.

Taxpayer Impact: A follow-on action, even if originating from a competed contract, may offer less competitive pressure on pricing compared to a new, fully competed solicitation. This could potentially lead to less favorable pricing for taxpayers if the follow-on is not rigorously managed or re-competed.

Public Impact

Benefits road users in Nevada through improved infrastructure. Delivers essential highway, street, and bridge construction and rehabilitation services. Geographic impact is concentrated within Nevada, supporting local economic activity. Workforce implications include employment for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in follow-on actions if not clearly defined.
Ensuring the 'follow on' aspect doesn't circumvent robust competition for subsequent phases.
Monitoring contractor performance to ensure quality and adherence to specifications.

Positive Signals

Fixed-price contract type generally favors the government by capping costs.
Follow-on to competed action suggests a foundation of competitive pricing from the initial award.
Focus on infrastructure rehabilitation addresses critical public needs.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant part of the broader Construction industry. This sector is vital for national infrastructure and economic development, often involving large-scale projects funded by federal agencies like the Department of Transportation. Spending in this area can fluctuate based on federal infrastructure initiatives and economic conditions. Comparable spending benchmarks would typically be found by analyzing other Federal Highway Administration contracts for similar rehabilitation projects in the Western United States.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. As this is a follow-on action, the original contract's small business provisions would be relevant. Without specific details, it's difficult to assess the impact on the small business ecosystem for this particular award, though large infrastructure projects often present subcontracting opportunities.

Oversight & Accountability

Oversight would typically be provided by the Federal Highway Administration (FHWA) through contract officers and technical representatives. The fixed-price nature of the contract places the onus on the contractor for performance, but government oversight is still crucial to ensure quality, timeliness, and adherence to contract specifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Highway Administration Grants
National Highway System Program
Surface Transportation Block Grants
Infrastructure Investment and Jobs Act Funding

Risk Flags

Potential lack of full and open competition for the follow-on action.
Need for detailed performance history review of the contractor.
Unclear scope definition for the follow-on action without original contract details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.9 million to FREHNER CONSTRUCTION COMPANY, INC.. GRADING, DRAINAGE, ASPHALT SURFACING AND PAVEMENT REHABILITATION

Who is the contractor on this award?

The obligated recipient is FREHNER CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2005-12-21. End: 2007-05-18.

What specific rehabilitation tasks were included in the original competed action that this contract is a follow-on to?

The provided data indicates this is a 'FOLLOW ON TO COMPETED ACTION' for 'GRADING, DRAINAGE, ASPHALT SURFACING AND PAVEMENT REHABILITATION' in Nevada. However, it does not detail the specific tasks included in the original competed action. To understand the full scope and how this follow-on builds upon it, one would need to access the original contract award documents and task orders. This would clarify whether the follow-on represents an expansion of scope, additional phases, or simply continued work under the same general contract vehicle. Understanding the original tasks is crucial for assessing the cumulative value and performance history.

How did the pricing of this follow-on action compare to the original competed action's pricing, if applicable?

The provided data does not include pricing details for the original competed action, making a direct comparison impossible. As this is a follow-on action, it's essential to determine if the pricing structure was maintained, adjusted based on market rates, or renegotiated. If the original action was competitively bid, its pricing would serve as a benchmark. Without access to that information, assessing whether this follow-on represents good value for money in terms of price escalation or efficiency is challenging. A thorough analysis would require comparing unit costs or total project costs against historical data from the initial award.

What were the key performance indicators (KPIs) and outcomes of the original contract, and how are they being monitored for this follow-on?

The data provided does not specify the Key Performance Indicators (KPIs) or outcomes for the original contract, nor does it detail the monitoring mechanisms for this follow-on action. Typically, for highway construction, KPIs might include adherence to project schedules, quality of materials and workmanship, safety compliance, and completion within budget. The Federal Highway Administration (FHWA) would be responsible for overseeing these aspects. Understanding the performance history of the original contract is vital for assessing the risk associated with this follow-on award and ensuring that taxpayer funds are being used effectively to achieve the desired infrastructure improvements.

What was the level of competition for the original contract that this action is a follow-on to?

The data states this contract is a 'FOLLOW ON TO COMPETED ACTION,' implying the original contract underwent a competitive bidding process. However, it does not specify the number of bidders or the nature of that competition (e.g., full and open, limited competition). A 'follow-on' action can sometimes indicate a sole-source modification or a limited competition if specific criteria are met, such as unique capabilities or urgency. To fully assess the competitive dynamics and their impact on pricing and value, further investigation into the original solicitation and award documentation is necessary.

Are there any known performance issues or disputes associated with Frehner Construction Company, Inc. on similar federal contracts?

The provided data does not contain information on past performance issues or disputes for Frehner Construction Company, Inc. A comprehensive risk assessment would require reviewing contract performance databases (like the Contractor Performance Assessment Reporting System - CPARS), legal filings, and any publicly available records of disputes or claims. Without this information, it is difficult to gauge the contractor's track record and potential risks associated with this specific award. Federal agencies typically use past performance as a significant factor in source selection.

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: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Holcim U K Holdings Ltd (UEI: 345910488)

Address: 3920 W HACIENDA AVE, LAS VEGAS, NV, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,944,334

Exercised Options: $13,944,334

Current Obligation: $13,944,334

Contract Characteristics

Cost or Pricing Data: NO

Timeline