Virginia DOT Awards $111.5M Design/Build Road Project to Cherry Hill Construction Inc
Contract Overview
Contract Amount: $111,490,727 ($111.5M)
Contractor: Cherry Hill Construction Inc
Awarding Agency: Department of Transportation
Start Date: 2008-09-26
End Date: 2011-07-18
Contract Duration: 1,025 days
Daily Burn Rate: $108.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: DESIGN/BUILD A ROAD FROM US ROUTE 1 ON THE SOUTHERN TERMINUS AND STATE ROUTE 7.
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $111.5 million to CHERRY HILL CONSTRUCTION INC for work described as: DESIGN/BUILD A ROAD FROM US ROUTE 1 ON THE SOUTHERN TERMINUS AND STATE ROUTE 7. Key points: 1. Project involves constructing a road from US Route 1 to State Route 7. 2. Cherry Hill Construction Inc. secured the contract. 3. The contract is a Firm Fixed Price, Definitive Contract. 4. This project falls under Highway, Street, and Bridge Construction. 5. The contract duration was 1025 days.
Value Assessment
Rating: good
The contract value of $111.5 million for a design/build road project appears reasonable given the scope. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment, but the fixed-price nature suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices and encourage efficiency from the contractor.
Taxpayer Impact: Taxpayer funds are being used for this infrastructure development, with the expectation of long-term economic benefits from improved transportation.
Public Impact
Improved transportation infrastructure connecting key routes. Potential for economic development in the serviced area. Job creation during the construction phase. Enhanced connectivity for residents and businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Delays in construction could impact the final delivery date.
- Ensuring quality of construction to meet long-term durability standards.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Design/build approach can streamline project delivery.
Sector Analysis
This project falls within the Highway, Street, and Bridge Construction sector, a critical area for national infrastructure. Spending in this sector is often substantial, driven by maintenance, upgrades, and new construction needs.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Federal Highway Administration's oversight is crucial for ensuring the project adheres to specifications, timelines, and budget. Regular progress reviews and quality control measures are standard for such large infrastructure projects.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Potential for scope creep if design changes are extensive.
- Contractor's financial stability and capacity to manage a large project.
- Environmental impact assessments and mitigation effectiveness.
- Coordination challenges between design and construction teams.
Tags
highway-street-and-bridge-construction, department-of-transportation, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $111.5 million to CHERRY HILL CONSTRUCTION INC. DESIGN/BUILD A ROAD FROM US ROUTE 1 ON THE SOUTHERN TERMINUS AND STATE ROUTE 7.
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 $111.5 million.
What is the period of performance?
Start: 2008-09-26. End: 2011-07-18.
What was the specific justification for the design/build approach versus traditional design-bid-build?
The design/build approach was likely chosen to expedite project delivery by overlapping design and construction phases. This method can also foster innovation and provide a single point of accountability for the government, potentially leading to better integration of design and construction elements and a more streamlined process overall.
How does the final cost compare to initial estimates or benchmarks for similar road construction projects?
Without initial estimates or specific benchmark data for comparable projects, a definitive comparison is difficult. However, the $111.5 million award for a significant road construction project suggests a substantial investment. A detailed cost-benefit analysis and comparison with industry standards would be necessary for a thorough evaluation of value for money.
What mechanisms are in place to ensure the long-term durability and maintenance needs of the new road?
The contract likely includes specifications for materials, construction standards, and potentially a warranty period. The Department of Transportation will be responsible for ongoing maintenance post-completion. The design/build contract should ensure that the design incorporates considerations for long-term performance and ease of maintenance to minimize future 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: DTFH7108R00007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tutor Perini Corporation (UEI: 006954432)
Address: 8211 WASHINGTON BLVD, JESSUP, MD, 20794
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $111,490,727
Exercised Options: $111,490,727
Current Obligation: $111,490,727
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-09-26
Current End Date: 2011-07-18
Potential End Date: 2011-07-18 00:00:00
Last Modified: 2018-02-14
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