DOT Awards $13.3M for Arizona Highway and Greenway Construction to Fann Contracting
Contract Overview
Contract Amount: $13,336,228 ($13.3M)
Contractor: Fann Contracting, Inc.
Awarding Agency: Department of Transportation
Start Date: 2007-12-17
End Date: 2011-04-20
Contract Duration: 1,220 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Construction
Official Description: ONE SCHDEULE FOR GRADING, DRAINAGE AND SURFACING ON 7.11 MILES OF HERMIT ROAD, AND 2 OPTIONS, ONE FOR WIDENING AND BYPASS LANE CONSTRUCTION ON 1.34 MILES OF THE SOUTH ENTRANCE ROAD AND ONE FOR 1.98 MILES OF GREENWAY/BIKE PATH ALONG HERMIT ROAD.
Place of Performance
Location: GRAND CANYON, COCONINO County, ARIZONA, 86023
State: Arizona Government Spending
Plain-Language Summary
Department of Transportation obligated $13.3 million to FANN CONTRACTING, INC. for work described as: ONE SCHDEULE FOR GRADING, DRAINAGE AND SURFACING ON 7.11 MILES OF HERMIT ROAD, AND 2 OPTIONS, ONE FOR WIDENING AND BYPASS LANE CONSTRUCTION ON 1.34 MILES OF THE SOUTH ENTRANCE ROAD AND ONE FOR 1.98 MILES OF GREENWAY/BIKE PATH ALONG HERMIT ROAD. Key points: 1. Contract covers grading, drainage, surfacing, widening, and bike path construction. 2. Fann Contracting, Inc. secured the award. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Highway, Street, and Bridge Construction.
Value Assessment
Rating: good
The total award amount is $13.3 million. Without specific per-unit cost data or benchmarks for similar projects, a precise value assessment is difficult. However, the fixed-price incentive contract type suggests an effort to control costs while incentivizing performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for necessary infrastructure improvements.
Public Impact
Improves critical transportation infrastructure in Arizona. Enhances recreational opportunities with a new bike path. Supports economic activity through construction jobs and material procurement. Addresses road safety and capacity needs on Hermit Road and South Entrance Road.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if incentive targets are not met.
- Project duration of 1220 days could be subject to delays.
Positive Signals
- Full and open competition likely yielded a fair price.
- Fixed-price incentive contract aligns contractor and government interests.
- Project addresses multiple infrastructure needs.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, which is a significant area of federal spending for infrastructure development. Benchmarks for similar projects would be needed for a more detailed cost comparison.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Federal Highway Administration, under the Department of Transportation, is responsible for overseeing this contract. The fixed-price incentive structure implies performance monitoring to ensure project completion and cost control.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Lack of detailed cost breakdown per project segment.
- Unclear incentive targets and profit/loss sharing formula.
- No explicit mention of small business participation.
- Long project duration increases risk of unforeseen issues.
Tags
highway-street-and-bridge-construction, department-of-transportation, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $13.3 million to FANN CONTRACTING, INC.. ONE SCHDEULE FOR GRADING, DRAINAGE AND SURFACING ON 7.11 MILES OF HERMIT ROAD, AND 2 OPTIONS, ONE FOR WIDENING AND BYPASS LANE CONSTRUCTION ON 1.34 MILES OF THE SOUTH ENTRANCE ROAD AND ONE FOR 1.98 MILES OF GREENWAY/BIKE PATH ALONG HERMIT ROAD.
Who is the contractor on this award?
The obligated recipient is FANN CONTRACTING, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2007-12-17. End: 2011-04-20.
What is the estimated cost per mile for the grading, drainage, and surfacing work?
The total award is $13.3 million for multiple components across different mileages. To estimate the cost per mile for grading, drainage, and surfacing on 7.11 miles of Hermit Road, we would need to isolate the costs associated with that specific segment. Without a breakdown of costs per task or segment, calculating an accurate per-mile figure is not possible from the provided data.
What are the specific incentive targets and their potential financial impact?
The contract type is Fixed Price Incentive (FPI), which means the final price is based on the negotiated target cost and target profit. If the final cost is higher than the target, the price increases, but the profit decreases according to a pre-defined formula. Conversely, if the final cost is lower, both price and profit are adjusted. The specific incentive targets and the sharing formula are not detailed in the provided data, making it impossible to quantify the exact financial impact of meeting or exceeding these targets.
How does the cost of the bike path construction compare to similar projects?
The data provides the total award amount but does not break down the cost specifically for the 1.98-mile Greenway/Bike Path. To compare its cost-effectiveness, we would need to know the allocated budget for this segment and benchmark it against the per-mile construction costs of similar recreational trails or bike paths in comparable geographic and economic conditions.
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: DTFH6808B00008
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1403 INDUSTRIAL WAY, PRESCOTT, AZ, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,336,228
Exercised Options: $13,336,228
Current Obligation: $13,336,228
Timeline
Start Date: 2007-12-17
Current End Date: 2011-04-20
Potential End Date: 2011-04-20 00:00:00
Last Modified: 2011-04-20
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