DOT awards $12.5M for Natchez Trace Parkway paving and bridge work to APAC-Mississippi

Contract Overview

Contract Amount: $12,514,053 ($12.5M)

Contractor: Apac-Mississippi, Inc.

Awarding Agency: Department of Transportation

Start Date: 2006-12-21

End Date: 2008-05-25

Contract Duration: 521 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PROJECT CONSISTS OF MILLING AND OVERLAY OF BRIDGES IN SECTION 3Q AND 3R; SECTION 3S PAVING OF MAINLINE NATCHEZ TRACE PARKWAY AND ASSOCIATED PARKING AREAS WITH OPTIONAL SECTION 3S PAVING OF MAINLINE NATCHEZ TRACE PARKWAY, SECTION 3T PAVING OF MAINLINE NATCHEZ TRACE PARKWAY, SECTION 3W PAVING OF MAINLINE NATCHEZ TRACE PARKWAY AND ASSOCIATED PARKING AREAS AND PAVING OF MISCELLANEOUS ADMINISTRATIVE AREAS INCLUDING: THE EMERALD MOUND SIDEWALK, MOUNT LOCUST AND PORT GIBSON MAINTENANCE AREAS, THE ROCKY SPRINGS MAINTENANCE AREAS, AND THE CAMPGROUNDS AND OTHER WORK.

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38804

State: Mississippi Government Spending

Plain-Language Summary

Department of Transportation obligated $12.5 million to APAC-MISSISSIPPI, INC. for work described as: THE PROJECT CONSISTS OF MILLING AND OVERLAY OF BRIDGES IN SECTION 3Q AND 3R; SECTION 3S PAVING OF MAINLINE NATCHEZ TRACE PARKWAY AND ASSOCIATED PARKING AREAS WITH OPTIONAL SECTION 3S PAVING OF MAINLINE NATCHEZ TRACE PARKWAY, SECTION 3T PAVING OF MAINLINE NATCHEZ TRACE PARKWAY, SE… Key points: 1. Contract focuses on essential infrastructure maintenance and upgrades for a significant portion of the Natchez Trace Parkway. 2. The project scope includes milling, overlaying bridges, and paving mainline parkway sections and associated areas. 3. Work is geographically concentrated within Mississippi, impacting specific sections and administrative areas. 4. The contract duration of 521 days suggests a substantial, multi-phase construction effort. 5. Fixed-price contract type aims to control costs, but potential for change orders exists. 6. The award was made under full and open competition, indicating a competitive bidding process.

Value Assessment

Rating: good

The contract value of $12.5 million for highway construction appears reasonable given the scope of work, which includes milling, overlaying bridges, and paving multiple sections of the Natchez Trace Parkway. Without specific benchmarks for this type of specialized parkway construction, a direct comparison is difficult. However, the fixed-price nature of the contract suggests an effort to manage costs effectively. The duration of over a year also implies a significant undertaking, making the total value a plausible estimate for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 3 bids received. 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 a healthy market for this type of construction service.

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

Public Impact

The primary beneficiaries are users of the Natchez Trace Parkway in Mississippi, who will experience improved road conditions and safety. Services delivered include critical infrastructure maintenance, ensuring the longevity and usability of the parkway. The geographic impact is concentrated in Mississippi, specifically affecting sections 3Q, 3R, 3S, 3T, and 3W, as well as administrative areas. Workforce implications include employment opportunities for construction workers, engineers, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or change orders given the complexity of infrastructure projects.
Weather delays could impact the project timeline and potentially increase costs if not managed effectively.
Ensuring consistent quality control across all phases of milling, paving, and bridge work is crucial.

Positive Signals

Fixed-price contract type helps to lock in costs and reduce financial risk for the government.
Award under full and open competition suggests a competitive market and potentially good value.
The contractor, APAC-Mississippi, Inc., has experience in heavy civil construction, which is relevant to this project.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a significant segment of the construction industry. This sector is characterized by large-scale projects requiring specialized equipment and expertise. Spending in this area is often driven by federal and state infrastructure initiatives aimed at maintaining and improving transportation networks. Comparable spending benchmarks would typically be found in other federal or state DOT projects for similar road and bridge repair work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, APAC-Mississippi, Inc., may choose to subcontract portions of the work to small businesses as part of their standard business practices or supply chain management.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Federal Highway Administration (FHWA). Mechanisms likely include regular progress reports from the contractor, site inspections by government representatives, and adherence to contract specifications. Accountability is ensured through the fixed-price contract terms and the potential for penalties or withholding payment for non-performance. Transparency is generally maintained through contract award databases and public reporting of federal spending.

Related Government Programs

Federal Highway Administration Construction Projects
National Park Service Infrastructure Maintenance
State Department of Transportation Road Repair Contracts

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of schedule delays due to weather or other external factors.
Ensuring consistent quality across diverse construction tasks (milling, paving, bridges).

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.5 million to APAC-MISSISSIPPI, INC.. THE PROJECT CONSISTS OF MILLING AND OVERLAY OF BRIDGES IN SECTION 3Q AND 3R; SECTION 3S PAVING OF MAINLINE NATCHEZ TRACE PARKWAY AND ASSOCIATED PARKING AREAS WITH OPTIONAL SECTION 3S PAVING OF MAINLINE NATCHEZ TRACE PARKWAY, SECTION 3T PAVING OF MAINLINE NATCHEZ TRACE PARKWAY, SECTION 3W PAVING OF MAINLINE NATCHEZ TRACE PARKWAY AND ASSOCIATED PARKING AREAS AND PAVING OF MISCELLANEOUS ADMINISTRATIVE AREAS INCLUDING: THE EMERALD MOUND SIDEWALK, MOUNT LOCUST AND PORT GIBSON MAINTENANCE AREAS, THE R

Who is the contractor on this award?

The obligated recipient is APAC-MISSISSIPPI, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2006-12-21. End: 2008-05-25.

What is the track record of APAC-Mississippi, Inc. on similar federal contracts?

APAC-Mississippi, Inc. has a history of performing construction work, including highway and infrastructure projects. While specific details on past federal contracts are not provided in this data snippet, their selection for this significant Department of Transportation project suggests they possess the necessary qualifications and experience. A deeper dive into their contract history with federal agencies, including performance reviews and any past disputes or awards, would provide a more comprehensive understanding of their track record. Examining their past performance on projects of similar scale and complexity would be key to assessing their reliability and capability for this Natchez Trace Parkway work.

How does the awarded amount compare to similar bridge and paving projects on national parkways?

Directly comparing the $12.5 million award to similar projects on national parkways is challenging without access to a comprehensive database of comparable contracts. Factors such as the specific type of milling and overlay, bridge complexity, geographic location (which affects labor and material costs), and the overall scope of work (including associated parking areas and administrative sites) significantly influence project costs. However, the fixed-price nature of this contract suggests a defined budget. Benchmarking against other FHWA or National Park Service projects of similar scale and technical requirements would be necessary to determine if this award represents a particularly high or low cost.

What are the primary risks associated with this specific contract, and how are they mitigated?

Key risks for this contract include potential weather delays impacting the 521-day schedule, unforeseen site conditions during milling and paving, and the possibility of scope creep if additional work is identified. Mitigation strategies likely involve detailed project planning by APAC-Mississippi, Inc., contingency planning for weather, thorough site investigations before work begins, and strict change order management by the Federal Highway Administration. The fixed-price contract also incentivizes the contractor to manage costs efficiently. The geographic concentration in Mississippi could also pose risks related to local material availability or specialized labor.

How effective is the 'full and open competition' strategy in ensuring value for this type of infrastructure project?

Full and open competition is generally considered an effective strategy for ensuring value in infrastructure projects like this one. By allowing all qualified contractors to bid, it fosters a competitive environment that can drive down prices and encourage innovation. The fact that 3 bids were received suggests sufficient market interest. This process helps the government secure the best possible price and contractor for the work. However, the effectiveness also depends on the clarity of the bid requirements and the thoroughness of the evaluation process to ensure the lowest bid is also from a capable and responsible contractor.

What is the historical spending trend for highway and bridge construction by the Federal Highway Administration?

The Federal Highway Administration (FHWA) is a major spender on highway and bridge construction, with annual obligations typically in the tens of billions of dollars. This spending is driven by federal transportation funding programs, such as the Highway Trust Fund, and is allocated to states and directly for federal lands highways. Historical trends show consistent, substantial investment in maintaining and improving the nation's road infrastructure. While specific year-over-year trends fluctuate based on economic conditions, legislative appropriations, and national priorities, the FHWA remains a critical source of funding for such projects, with a long-term commitment to infrastructure development.

Are there any specific performance metrics or KPIs tied to this contract for measuring success?

The provided data does not explicitly detail specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, standard practice for federal construction contracts includes adherence to project schedules, compliance with technical specifications (e.g., material quality, paving thickness, bridge integrity), safety standards, and overall workmanship. The Federal Highway Administration would likely monitor these aspects through regular inspections and progress reports. Successful completion within the fixed-price budget and by the specified end date would be primary indicators of success, alongside meeting all quality and safety requirements.

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: DTFH7106B00028

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interstate Concrete and Asphalt Company (UEI: 219509155)

Address: 5725 HIGHWAY 18, JACKSON, MS, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,514,053

Exercised Options: $12,514,053

Current Obligation: $12,514,053

Contract Characteristics

Cost or Pricing Data: YES

Timeline