Transportation contract for bridge replacement and parkway rehabilitation awarded to Cianbro Corporation for over $37.6 million

Contract Overview

Contract Amount: $37,672,107 ($37.7M)

Contractor: Cianbro Corporation

Awarding Agency: Department of Transportation

Start Date: 2007-10-31

End Date: 2017-03-08

Contract Duration: 3,416 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF BRIDGE OVER BOUNDARY CHANNEL, REHABILITATION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY, AND OTHER MISCELLANEOUS WORK.

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $37.7 million to CIANBRO CORPORATION for work described as: REPLACEMENT OF BRIDGE OVER BOUNDARY CHANNEL, REHABILITATION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY, AND OTHER MISCELLANEOUS WORK. Key points: 1. Contract value exceeds $37.6 million, indicating a significant investment in infrastructure. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. The contract duration of 3416 days (approximately 9.3 years) points to a long-term infrastructure project. 4. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. This project falls under the Highway, Street, and Bridge Construction sector, crucial for national transportation networks. 6. The Federal Highway Administration's involvement highlights the national importance of the George Washington Memorial Parkway.

Value Assessment

Rating: good

The contract value of over $37.6 million for bridge replacement and parkway rehabilitation appears reasonable given the extensive scope and long duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract shifts cost overrun risks to the contractor, which can be favorable for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar rehabilitation work, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment where multiple companies likely vied for the work. The presence of two bids (no: 2) indicates some level of competition, though a higher number of bidders would typically lead to more aggressive pricing and potentially better value. The specific details of the bidding process and the number of proposals received are not provided, limiting a deeper analysis of price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. While only two bids were received, the open nature of the competition suggests that the government sought the best possible offer from the market.

Public Impact

The primary beneficiaries are users of the George Washington Memorial Parkway and the surrounding transportation infrastructure, experiencing improved safety and reliability. Services delivered include critical bridge replacement and rehabilitation, ensuring the longevity and functionality of vital transportation links. The geographic impact is concentrated in Virginia, affecting local commuters, businesses, and potentially tourism. The project likely supports a significant number of jobs in the construction sector, including engineers, laborers, and specialized trades, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) increases the risk of scope creep or unforeseen cost increases if not managed meticulously.
Limited competition (2 bids) may have resulted in a higher price than if more bidders had participated.
Firm fixed-price contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen, though this is a general risk.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm fixed-price contract type provides cost certainty for the government, assuming the contractor manages risks effectively.
The project addresses critical infrastructure needs, ensuring the safety and usability of a major transportation artery.
The long duration allows for phased implementation and potentially minimizes disruption to traffic flow.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the broader Construction industry. This sector is characterized by large-scale projects requiring significant capital investment, specialized labor, and adherence to stringent safety and environmental regulations. The market size for federal highway and bridge construction is substantial, driven by government funding for infrastructure maintenance and development. This specific contract for the George Washington Memorial Parkway rehabilitation represents a significant investment in maintaining and upgrading a key piece of national infrastructure.

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 or specific benefits for small businesses arising from a set-aside provision. The prime contractor, Cianbro Corporation, would determine any subcontracting opportunities based on their own business needs and capabilities, rather than a federal mandate for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Highway Administration. As a large infrastructure project with a long duration, regular progress reviews, site inspections, and financial audits are expected. The firm fixed-price nature of the contract implies that the government's primary oversight concern would be ensuring adherence to the contract scope, quality standards, and schedule, rather than managing cost fluctuations. Transparency would be facilitated through contract award notices and potentially public reporting on project milestones.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
National Park Service Infrastructure Maintenance
Department of Transportation Bridge Rehabilitation Programs
Interstate Highway System Construction and Repair

Risk Flags

Long contract duration may increase risk of unforeseen costs or scope changes.
Limited number of bids received could indicate potential for higher pricing.
Infrastructure projects of this scale are susceptible to environmental and geological challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $37.7 million to CIANBRO CORPORATION. REPLACEMENT OF BRIDGE OVER BOUNDARY CHANNEL, REHABILITATION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY, AND OTHER MISCELLANEOUS WORK.

Who is the contractor on this award?

The obligated recipient is CIANBRO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2007-10-31. End: 2017-03-08.

What is Cianbro Corporation's track record with similar large-scale federal infrastructure projects?

Cianbro Corporation has a history of undertaking large and complex construction projects, including significant infrastructure work. While specific details on their past federal contracts of comparable size and scope to this $37.6 million award are not provided in this data snippet, their involvement in major projects suggests they possess the necessary experience and capacity. A deeper dive into their contract history with agencies like the Department of Transportation, Army Corps of Engineers, or other federal entities would reveal their performance trends, including on-time delivery, budget adherence, and quality of work on similar rehabilitation and construction efforts. Examining past performance evaluations and any reported disputes or claims would offer further insight into their reliability as a federal contractor.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates an awarded amount of $37,672,107.21. However, there is no information available regarding the initial estimated cost or the allocated budget for this specific project. Without this baseline, it is impossible to determine if the awarded amount represents a cost overrun, a cost saving, or if it aligns with expectations. Typically, government agencies establish a cost estimate before soliciting bids. Comparing the final award to this estimate is crucial for assessing the effectiveness of the procurement process and the government's ability to manage project funding. Further investigation into the Federal Highway Administration's project documentation would be necessary to ascertain the original budget.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical metrics for large infrastructure projects like bridge replacement and parkway rehabilitation include adherence to schedule, quality of construction, safety compliance, and successful completion of all contract deliverables. For a firm fixed-price contract, meeting the defined scope of work within the agreed-upon price is paramount. The Federal Highway Administration would likely monitor progress through regular site inspections, review of contractor reports, and potentially milestone-based payments. Post-completion, KPIs might also include the long-term durability and reduced maintenance needs of the rehabilitated infrastructure, contributing to the overall value for taxpayers.

What is the historical spending trend for the George Washington Memorial Parkway rehabilitation and similar projects?

The provided data focuses on a single contract award for the replacement of a bridge over Boundary Channel and rehabilitation of the George Washington Memorial Parkway, awarded in 2007 and ending in 2017. It does not offer historical spending trends for this specific parkway or for similar infrastructure projects managed by the Federal Highway Administration. To analyze historical spending, one would need access to multi-year budget allocations and expenditure data for the George Washington Memorial Parkway, as well as comparable data for other parkway and bridge rehabilitation projects across the FHWA's portfolio. This would allow for an assessment of investment patterns, funding priorities, and the overall scale of federal commitment to maintaining such critical infrastructure over time.

What are the potential risks associated with the long duration (over 9 years) of this contract?

The extended duration of this contract, spanning over 3416 days (approximately 9.3 years), introduces several potential risks. Firstly, there is an increased likelihood of encountering unforeseen site conditions or material price escalations over such a long period, which could strain the fixed-price agreement if not adequately managed through contract clauses. Secondly, the extended timeline may lead to scope creep, where additional requirements or modifications are introduced, potentially increasing the overall cost and complexity. Thirdly, maintaining consistent oversight and quality control over nearly a decade requires sustained agency resources and focus. Finally, technological advancements or changes in regulatory requirements during the contract period could necessitate modifications, impacting the original plan and potentially leading to delays or increased costs if not handled proactively.

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: DTFH7107R00004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Cianbro Companies (UEI: 109132519)

Address: 1 HUNNEWELL AVE, PITTSFIELD, ME, 04967

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,672,107

Exercised Options: $37,672,107

Current Obligation: $37,672,107

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline