Transportation Department awards $34.5M Saddle Road construction contract to Kirkland Construction

Contract Overview

Contract Amount: $32,153,348 ($32.2M)

Contractor: Kirkland Construction, L.l.l.p.

Awarding Agency: Department of Transportation

Start Date: 2011-09-16

End Date: 2013-05-22

Contract Duration: 614 days

Daily Burn Rate: $52.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HFPM-11-0256; HI A AD 6(6); MP 41.5 TO STATE ROUTE 190; SADDLE ROAD CONSTRUCTION CONTRACT; CONTRACT# DTFH68-11-C-00031; KIRKLAND CONSTRUCTION; $34,490,811.70 (4 LINE ITEMS)

Place of Performance

Location: KAPOLEI, HONOLULU County, HAWAII, 96707

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $32.2 million to KIRKLAND CONSTRUCTION, L.L.L.P. for work described as: HFPM-11-0256; HI A AD 6(6); MP 41.5 TO STATE ROUTE 190; SADDLE ROAD CONSTRUCTION CONTRACT; CONTRACT# DTFH68-11-C-00031; KIRKLAND CONSTRUCTION; $34,490,811.70 (4 LINE ITEMS) Key points: 1. Contract awarded for a significant infrastructure project on Hawaii's Saddle Road. 2. The project involved extensive construction work, including paving and infrastructure upgrades. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The duration of the contract was approximately 614 days. 5. The awarded amount covers four distinct line items, indicating a multi-faceted project scope. 6. The Federal Highway Administration oversaw this contract, a key agency for national transportation infrastructure.

Value Assessment

Rating: good

The contract value of $34.5 million for the Saddle Road construction appears reasonable given the scope of highway, street, and bridge construction projects of this nature. Benchmarking against similar large-scale road construction projects in remote or challenging terrain would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor assumed most of the cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. Nine bids were received, demonstrating a healthy level of interest and competition for this project. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The presence of multiple bidders suggests that the market has sufficient capacity and interest in undertaking such infrastructure projects.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers by leveraging market competition to drive down costs. It also ensures that the government selects the most capable and cost-effective solution available.

Public Impact

The primary beneficiaries are the residents and users of Hawaii, who will benefit from improved transportation infrastructure on Saddle Road. The project delivered essential construction services, likely including road widening, resurfacing, and potentially drainage or safety improvements. The geographic impact is localized to the Saddle Road area in Hawaii, improving connectivity and travel efficiency. The contract supported the construction workforce, creating jobs in the skilled trades and related industries within Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental challenges arise during construction, despite the firm-fixed-price contract.
Risk of schedule delays due to the remote location and potential logistical challenges in Hawaii.
Ensuring compliance with environmental regulations during a large-scale construction project in a sensitive ecosystem.

Positive Signals

The firm-fixed-price contract structure shifts cost risk to the contractor, potentially protecting the government from unexpected expenses.
Awarding through full and open competition suggests a robust vetting process for bidders, likely selecting a qualified contractor.
The project addresses a critical infrastructure need, promising long-term benefits for transportation efficiency and safety in the region.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the broader Construction industry. This sector is characterized by large-scale projects requiring specialized equipment, skilled labor, and adherence to stringent safety and environmental standards. The market size for such infrastructure projects is substantial, driven by government investment in maintaining and upgrading national transportation networks. This specific contract for Saddle Road represents a typical investment in regional transportation infrastructure, aiming to improve connectivity and facilitate economic activity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The prime contractor, Kirkland Construction, L.L.L.P., is a large entity. The absence of small business set-aside provisions suggests that the competition was open to all qualified firms, regardless of size. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Federal Highway Administration (FHWA) within the Department of Transportation. As a firm-fixed-price contract, oversight would focus on ensuring adherence to the contract scope, schedule, and quality standards. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Grants
National Highway System Projects
State Infrastructure Improvement Programs
Department of Transportation Construction Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays due to weather or logistical issues.
Environmental compliance challenges.
Ensuring quality of construction meets federal standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $32.2 million to KIRKLAND CONSTRUCTION, L.L.L.P.. HFPM-11-0256; HI A AD 6(6); MP 41.5 TO STATE ROUTE 190; SADDLE ROAD CONSTRUCTION CONTRACT; CONTRACT# DTFH68-11-C-00031; KIRKLAND CONSTRUCTION; $34,490,811.70 (4 LINE ITEMS)

Who is the contractor on this award?

The obligated recipient is KIRKLAND CONSTRUCTION, L.L.L.P..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2011-09-16. End: 2013-05-22.

What is the track record of Kirkland Construction, L.L.L.P. on similar federal contracts?

Kirkland Construction, L.L.L.P. has a history of performing construction work, including significant infrastructure projects. While specific details on past federal contracts require deeper database searches, their ability to win a competitive bid for a project of this magnitude suggests they possess the necessary experience and capacity. Analyzing their performance on previous Department of Transportation or similar agency contracts would reveal their on-time delivery, budget adherence, and quality of work. A review of past contract awards and performance evaluations would provide a clearer picture of their reliability and expertise in executing large-scale civil engineering projects.

How does the awarded price compare to similar highway construction projects in Hawaii or other island states?

Comparing the $34.5 million awarded price for the Saddle Road construction to similar projects in Hawaii or other island states is crucial for assessing value. Projects in island states often incur higher costs due to logistical challenges, transportation of materials, and potentially specialized labor requirements. To benchmark effectively, one would need to identify contracts with comparable scope (e.g., highway widening, resurfacing, bridge work) and scale, adjusting for inflation and regional cost differences. Without such direct comparisons, it's difficult to definitively state if this contract represents excellent or fair value, though the competitive bidding process provides some assurance.

What were the primary risks identified during the bidding process for this contract, and how were they mitigated?

For a large infrastructure project like the Saddle Road construction, primary risks likely included geological instability of the terrain, environmental impact concerns, potential for extreme weather events affecting construction schedules, and logistical challenges in material delivery to a remote island location. Mitigation strategies would have been detailed in the bid proposals, potentially including detailed site surveys, environmental impact assessments and mitigation plans, robust scheduling with contingency for weather delays, and a well-defined supply chain management plan. The firm-fixed-price nature of the contract also places the onus on the contractor to manage and absorb many of these risks.

What is the expected long-term effectiveness and impact of the Saddle Road improvements on transportation and the local economy?

The improvements to Saddle Road are expected to significantly enhance transportation efficiency and safety in Hawaii. By upgrading this key artery, travel times between different parts of the island are likely to decrease, facilitating easier movement of goods and people. This improved connectivity can stimulate local economic activity by making businesses more accessible and potentially attracting tourism. Furthermore, enhanced road infrastructure can reduce vehicle wear and tear, lower fuel consumption, and improve overall road safety, leading to fewer accidents and associated costs. The long-term effectiveness hinges on the quality of construction and ongoing maintenance.

How has federal spending on highway construction in Hawaii trended over the past decade, and how does this contract fit into that pattern?

Analyzing federal spending on highway construction in Hawaii over the past decade would reveal trends in infrastructure investment. This $34.5 million contract for Saddle Road represents a significant, albeit singular, investment. To understand its place in the pattern, one would need to aggregate federal highway contract awards in Hawaii over several years. This would show whether spending has been consistent, increasing, or decreasing, and identify other major projects. This contract appears to be a substantial project addressing a specific, critical need on the island, fitting into a broader pattern of federal support for state transportation infrastructure.

Were there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure success?

While the provided data does not detail specific performance metrics, large federal construction contracts typically include KPIs related to project completion timelines, adherence to budget (especially relevant for change orders, though less so for firm-fixed-price), quality of workmanship (e.g., material standards, pavement smoothness, structural integrity), safety compliance (e.g., incident rates), and environmental protection measures. The Federal Highway Administration would have oversight to ensure these metrics were met. Failure to meet critical KPIs could result in penalties or impact future contract awards for the involved parties.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 MAIN ST, RYE, CO, 03

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,153,348

Exercised Options: $32,153,348

Current Obligation: $32,153,348

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline