DOT awards $58.5M Design-Build contract for 9th Street Bridge to Cherry Hill Construction Inc
Contract Overview
Contract Amount: $58,516,783 ($58.5M)
Contractor: Cherry Hill Construction Inc
Awarding Agency: Department of Transportation
Start Date: 2006-08-21
End Date: 2011-07-26
Contract Duration: 1,800 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD 9TH STREET BRIDGE IN DC
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of Transportation obligated $58.5 million to CHERRY HILL CONSTRUCTION INC for work described as: DESIGN-BUILD 9TH STREET BRIDGE IN DC Key points: 1. The contract value of $58.5M is significant for a bridge construction project. 2. Cherry Hill Construction Inc. secured the contract through full and open competition. 3. The project duration of 1800 days (approx. 5 years) indicates a large-scale undertaking. 4. The fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: fair
The contract value of $58.5M is substantial. Benchmarking against similar large-scale bridge construction projects would be necessary to fully assess its value. The fixed-price nature suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. Multiple bids were likely considered, leading to a competitive price.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, promoting efficiency and potentially lower costs.
Public Impact
Improved transportation infrastructure in Washington D.C. with the 9th Street Bridge. Potential for local job creation during the multi-year construction period. Disruption to local traffic and residents during the extensive construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration may lead to cost overruns or scope creep.
- Potential for unforeseen site conditions impacting budget and timeline.
- Reliance on a single prime contractor for a complex project.
Positive Signals
- Design-build approach can streamline project delivery.
- Fixed-price contract provides cost certainty.
- Awarded through full and open competition.
Sector Analysis
Bridge construction falls under the broader 'Highway, Street, and Bridge Construction' sector. Spending in this sector is often driven by infrastructure needs and federal/state funding initiatives. Project values can vary widely based on scale and complexity.
Small Business Impact
The data does not indicate any specific subcontracting requirements for small businesses on this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Federal Highway Administration (FHWA) is responsible for overseeing this project. Oversight would focus on adherence to design-build specifications, timelines, and budget.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Long project duration (1800 days).
- Potential for unforeseen site conditions.
- Reliance on a single prime contractor for a complex project.
- Fixed-price contract risk for cost escalation.
Tags
highway-street-and-bridge-construction, department-of-transportation, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $58.5 million to CHERRY HILL CONSTRUCTION INC. DESIGN-BUILD 9TH STREET BRIDGE IN DC
Who is the contractor on this award?
The obligated recipient is CHERRY HILL CONSTRUCTION INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $58.5 million.
What is the period of performance?
Start: 2006-08-21. End: 2011-07-26.
What was the competitive landscape like for this specific bridge project, and how did the number of bids influence the final price?
The contract was awarded under 'full and open competition,' indicating that multiple bidders were eligible to submit proposals. While the exact number of bids isn't provided, this method generally fosters a competitive environment. A higher number of qualified bids typically leads to more aggressive pricing as contractors vie for the award, potentially resulting in better value for the government and taxpayers.
Given the 5-year duration and fixed-price nature, what are the primary risks associated with cost escalation or scope changes for the government?
The primary risk with a long-term, fixed-price contract is that unforeseen issues like material price increases, labor shortages, or complex site conditions could lead to contractor claims for additional compensation or scope adjustments. While the fixed price aims for certainty, the government bears the risk if the contractor can demonstrate that changes were necessitated by factors beyond their control or were not adequately accounted for in the initial bid.
How effectively does the design-build approach typically streamline project delivery compared to traditional design-bid-build methods for large infrastructure projects like this bridge?
The design-build approach consolidates design and construction under a single contract, which can significantly streamline project delivery by fostering collaboration between designers and builders early on. This integration often leads to faster project completion, reduced administrative burden, and fewer conflicts compared to traditional methods where design and construction are separate phases. For large infrastructure projects, this can translate to quicker realization of public benefits and potentially lower overall costs.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DTFH7104R00009
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tutor Perini Corporation (UEI: 006954432)
Address: 8211 WASHINGTON BLVD, JESSUP, MD, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,516,783
Exercised Options: $58,516,783
Current Obligation: $58,516,783
Timeline
Start Date: 2006-08-21
Current End Date: 2011-07-26
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2013-09-27
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