Department of Transportation awards $14.2M for Parkway resurfacing, rehabilitation, and reclamation in North Carolina

Contract Overview

Contract Amount: $14,185,130 ($14.2M)

Contractor: Oldcastle Materials, Inc.

Awarding Agency: Department of Transportation

Start Date: 2008-09-08

End Date: 2011-07-07

Contract Duration: 1,032 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PROJECT CONSISTS OF THE RESURFACING AND REHABILITATING THE PARKWAY, PULL-OFFS, AND PARKING AREAS; MILLING AND OVERLAY; FULL DEPTH PAVEMENT RECLAMATION; AND OTHER MISCELLANEOUS WORK.

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28803

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $14.2 million to OLDCASTLE MATERIALS, INC. for work described as: THE PROJECT CONSISTS OF THE RESURFACING AND REHABILITATING THE PARKWAY, PULL-OFFS, AND PARKING AREAS; MILLING AND OVERLAY; FULL DEPTH PAVEMENT RECLAMATION; AND OTHER MISCELLANEOUS WORK. Key points: 1. Contract focuses on essential infrastructure maintenance, including resurfacing, milling, overlay, and reclamation. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Project duration of 1032 days indicates a significant, multi-year undertaking. 5. The contractor, Oldcastle Materials, Inc., is a major player in the construction materials industry.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and material costs. The total award amount of $14.2 million for over 1000 days of work on parkway, pull-offs, and parking areas suggests a moderate per-day expenditure. However, without comparable projects in the region or detailed cost breakdowns, it's difficult to definitively assess if this represents excellent value for money. The fixed-price nature of the contract provides some cost control, but the overall efficiency depends heavily on project management and execution.

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 a bid. With two bids received (as suggested by 'no': 2), the competition level appears to be limited. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The limited number of bids here might suggest specific market conditions or a niche service requirement.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the limited number of bids received could mean that taxpayers did not benefit from the most competitive pricing possible.

Public Impact

Benefits road users and the general public by improving the condition and safety of parkways and associated areas. Enhances the aesthetic and functional quality of recreational and travel routes. Supports local and regional transportation networks by maintaining critical infrastructure. May involve local labor for construction and material supply, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Dependence on a single contractor for a multi-year project introduces execution risk.
Limited competition may have resulted in a higher-than-optimal price.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition process, in principle, allows for broad market participation.
Project addresses essential infrastructure maintenance, ensuring long-term usability and safety.

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, often involving public funding, and requires specialized equipment and expertise. The market size for such infrastructure projects is substantial, driven by ongoing needs for repair, maintenance, and expansion of transportation networks. This specific contract for parkway rehabilitation aligns with typical government spending on maintaining public roadways.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false) and there is no explicit mention of subcontracting requirements for small businesses ('ss': false). This suggests that the primary award went to a larger entity, and opportunities for small businesses may be limited to direct supply chain roles or potentially through subcontracting if the prime contractor chooses to engage them, which is not mandated here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. Mechanisms likely include regular progress reviews, site inspections, and adherence to contract specifications. Accountability is ensured through the firm fixed-price contract terms, which penalize deviations from scope or quality. Transparency is generally maintained through public contract databases, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Federal Highway Administration (FHWA) Projects
Department of Transportation Infrastructure Maintenance
National Highway System Projects
Road and Parkway Construction Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns (Contractor Risk)
Quality Assurance Concerns (Government Oversight Need)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $14.2 million to OLDCASTLE MATERIALS, INC.. THE PROJECT CONSISTS OF THE RESURFACING AND REHABILITATING THE PARKWAY, PULL-OFFS, AND PARKING AREAS; MILLING AND OVERLAY; FULL DEPTH PAVEMENT RECLAMATION; AND OTHER MISCELLANEOUS WORK.

Who is the contractor on this award?

The obligated recipient is OLDCASTLE MATERIALS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2008-09-08. End: 2011-07-07.

What is the track record of Oldcastle Materials, Inc. with the Department of Transportation and similar federal agencies?

Oldcastle Materials, Inc., now a part of CRH, is a major producer of aggregates, asphalt, and concrete, and a significant player in paving and construction services. They have a substantial history of working with federal, state, and local transportation agencies across the United States. While specific contract performance details for this particular $14.2 million project are not detailed here, their extensive experience suggests a capacity to handle large infrastructure projects. Federal procurement data would likely show numerous other awards to Oldcastle and its subsidiaries for similar road construction and materials supply work. A deeper dive into past performance reviews and any documented disputes or successes on prior DOT contracts would provide a more granular understanding of their reliability and quality of work.

How does the $14.2 million award compare to similar parkway rehabilitation projects in North Carolina or the surrounding region?

Comparing this $14.2 million award requires detailed project scope, length, and specific rehabilitation activities. Parkway rehabilitation can range widely in cost depending on the extent of work (e.g., simple resurfacing vs. full-depth reclamation), the specific materials used, and the geographic location's labor and material costs. Without access to a database of comparable projects with similar specifications and timelines (1032 days), a precise benchmark is difficult. However, for a multi-year, comprehensive rehabilitation of significant parkway mileage and associated areas, $14.2 million appears to be within a plausible range for large-scale infrastructure work. It would be beneficial to compare the cost per mile or cost per square yard of pavement treated against other FHWA or NCDOT projects of similar scope.

What are the primary risks associated with a firm fixed-price contract for a project of this duration and scope?

The primary risk for the government in a firm fixed-price (FFP) contract, especially one spanning over 1000 days, is that the contractor may not deliver the highest quality work if they find ways to cut corners to maximize profit, assuming the oversight is not sufficiently rigorous. Conversely, the risk for the contractor is absorbing unforeseen cost increases due to inflation in materials, labor, or fuel, or encountering unexpected site conditions that significantly escalate expenses beyond what was anticipated during the bidding phase. For this project, the risk of scope creep is mitigated by the FFP nature, but the contractor bears the brunt of cost volatility. The government's main risk lies in ensuring the contractor meets all quality and performance specifications within the agreed price.

What does the limited number of bids (2) suggest about the market for this type of highway construction service?

The fact that only two bids were received for this 'full and open competition' contract suggests a potentially concentrated market for this specific type of highway construction service in the relevant geographic area or for the particular scope of work. This could be due to several factors: a high barrier to entry (e.g., specialized equipment, bonding capacity requirements), a limited number of qualified contractors capable of undertaking a project of this scale and complexity, or perhaps the timing of the solicitation coincided with other major projects that occupied potential bidders. While two bidders still represent competition, it is less robust than if there were five or more, potentially impacting the final price achieved and indicating less overall market dynamism.

How has federal spending on highway and bridge construction evolved over the period this contract was active (2008-2011)?

The period of this contract (September 2008 to July 2011) coincided with significant economic shifts, including the Great Recession and subsequent stimulus efforts. Federal spending on highway and bridge construction saw fluctuations during this time. The American Recovery and Reinvestment Act of 2009 (ARRA) injected substantial funding into infrastructure projects, aiming to stimulate the economy. Therefore, while overall federal transportation spending might have been influenced by economic downturns, specific contract awards like this one could have been accelerated or prioritized due to stimulus funding or existing infrastructure needs. Analyzing broader federal transportation budgets for FY2008-2011 would reveal trends in overall investment, which this contract represents a small part of.

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: DTFH7108R00014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1188 SMOKEY PARK HWY, CANDLER, NC, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,185,130

Exercised Options: $14,185,130

Current Obligation: $14,185,130

Timeline