Virgin Islands highway construction contract awarded to American Bridge Co. for over $48.5 million

Contract Overview

Contract Amount: $48,587,907 ($48.6M)

Contractor: American Bridge CO

Awarding Agency: Department of Transportation

Start Date: 2017-09-08

End Date: 2023-01-26

Contract Duration: 1,966 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF PROJECT: VI DPC-34(1), VETERANS DRIVE (ROUTE 30), U.S. VIRGIN ISLANDS, ST. THOMAS

Place of Performance

Location: ST THOMAS, SAINT THOMAS County, VIRGIN ISLANDS OF THE U.S., 00802

Plain-Language Summary

Department of Transportation obligated $48.6 million to AMERICAN BRIDGE CO for work described as: IGF::OT::IGF PROJECT: VI DPC-34(1), VETERANS DRIVE (ROUTE 30), U.S. VIRGIN ISLANDS, ST. THOMAS Key points: 1. Contract awarded for a significant infrastructure project in the U.S. Virgin Islands. 2. Project duration of nearly 2000 days indicates a complex and lengthy undertaking. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. Full and Open Competition was utilized, implying a broad market solicitation. 5. The contract value represents a substantial investment in regional transportation infrastructure. 6. The project falls under Highway, Street, and Bridge Construction, a critical sector.

Value Assessment

Rating: fair

The contract value of $48.59 million for highway construction in the U.S. Virgin Islands appears substantial. Benchmarking this against similar large-scale bridge and highway projects in remote or island territories would be necessary for a precise value-for-money assessment. Given the duration and scope, the fixed-price nature provides some cost control, but the final cost could still be influenced by unforeseen site conditions or material escalations. Without specific comparable data for the region, it's difficult to definitively assess if the pricing is competitive.

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 deliberate effort to maximize competition and potentially achieve better pricing and quality. The number of bidders is not specified, but the use of this procurement method generally leads to a more robust price discovery process compared to limited or sole-source awards.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified contractors, which can lead to more efficient use of public funds.

Public Impact

Residents and businesses in the U.S. Virgin Islands will benefit from improved transportation infrastructure. The project delivers essential highway, street, and bridge construction services. Geographic impact is concentrated in St. Thomas, U.S. Virgin Islands. The construction activities will likely create temporary employment opportunities in the region. Enhanced road networks can support economic development and tourism in the islands.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1966 days) increases the risk of cost overruns due to inflation or unforeseen issues.
Construction in island territories can present unique logistical challenges and higher material costs.
Dependence on a single prime contractor for such a long duration requires robust oversight.

Positive Signals

Firm Fixed Price contract provides cost certainty and limits the government's exposure to cost increases.
Full and Open Competition suggests a competitive bidding process, potentially leading to better value.
The project addresses critical infrastructure needs, which is a positive indicator of public benefit.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a vital part of the broader Construction industry. This sector is characterized by large-scale projects requiring significant capital investment, specialized labor, and complex project management. Spending in this area is often driven by government initiatives to maintain and upgrade aging infrastructure, improve transportation efficiency, and support economic growth. Comparable spending benchmarks would typically involve analyzing other major federal or state-level highway and bridge projects, considering regional cost variations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As a large infrastructure project, it is possible that the prime contractor, American Bridge Co., may engage small businesses for specific services or supplies. However, without explicit set-aside requirements or reporting on subcontracting, the direct impact on the small business ecosystem is not detailed in this record.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Highway Administration (FHWA), an agency within the Department of Transportation. The contract's 'Full and Open Competition' and 'Firm Fixed Price' nature suggest established procurement processes. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports may not be publicly accessible.

Related Government Programs

Federal Highway Administration Grants
Infrastructure Investment and Jobs Act Programs
Department of Transportation Capital Improvement Projects
U.S. Virgin Islands Public Works Projects

Risk Flags

Long contract duration may increase risk of cost escalation or delays.
Island location may present logistical challenges and higher costs.
Potential for unforeseen site conditions in construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $48.6 million to AMERICAN BRIDGE CO. IGF::OT::IGF PROJECT: VI DPC-34(1), VETERANS DRIVE (ROUTE 30), U.S. VIRGIN ISLANDS, ST. THOMAS

Who is the contractor on this award?

The obligated recipient is AMERICAN BRIDGE CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $48.6 million.

What is the period of performance?

Start: 2017-09-08. End: 2023-01-26.

What is the track record of American Bridge Company on similar large-scale infrastructure projects?

American Bridge Company has a long history and extensive experience in constructing major infrastructure projects, including bridges, highways, and other heavy civil engineering works. They have been involved in iconic structures globally. Their track record typically includes managing complex projects, adhering to safety standards, and delivering large-scale construction. However, specific performance metrics, such as on-time and on-budget completion rates for projects of this exact scale and type, would require a deeper dive into their project portfolio and client feedback. Assessing their performance on this specific U.S. Virgin Islands contract would involve reviewing its completion against the original schedule and budget, and any modifications or claims that arose during its execution.

How does the $48.59 million contract value compare to similar highway construction projects in island territories?

Benchmarking the $48.59 million contract value for highway construction in the U.S. Virgin Islands against similar projects in island territories is challenging without specific comparable data. Island territories often face higher logistical costs for materials and labor, potentially inflating project costs compared to mainland projects of similar scope. Factors such as the specific terrain, environmental considerations, and the scale of the 'Veterans Drive (Route 30)' project (e.g., miles of road, bridge complexity) are crucial. Generally, infrastructure projects in remote or island locations tend to be more expensive on a per-unit basis (e.g., per mile or per square foot) due to these unique challenges. A detailed comparison would require identifying projects with similar geographical constraints, project types, and contract durations.

What are the primary risks associated with a nearly 2000-day construction contract in the U.S. Virgin Islands?

A contract duration of 1966 days (over 5 years) for highway construction in the U.S. Virgin Islands presents several significant risks. Firstly, the extended timeline increases exposure to economic fluctuations, including inflation impacting material and labor costs, even with a fixed-price contract. Secondly, logistical challenges inherent to island locations (transportation of materials, equipment, and personnel) can be exacerbated over a long period, potentially leading to delays and increased costs if not meticulously managed. Thirdly, environmental factors, such as hurricane seasons or unforeseen geological conditions specific to the islands, pose a risk to project continuity and structural integrity. Finally, maintaining consistent project oversight and contractor performance over such an extended duration requires sustained effort and robust management from the contracting agency.

What is the expected effectiveness of the completed Veterans Drive (Route 30) project in improving transportation?

The effectiveness of the completed Veterans Drive (Route 30) project hinges on its specific scope and the existing transportation challenges in St. Thomas, U.S. Virgin Islands. Typically, such highway and bridge construction aims to improve traffic flow, reduce travel times, enhance road safety, and provide better access for residents, businesses, and tourists. If Veterans Drive is a key arterial route, its modernization or expansion could significantly alleviate congestion, improve connectivity between different parts of the island, and support economic activities by facilitating the movement of goods and people. The long duration suggests a substantial upgrade or reconstruction, implying a significant expected improvement in the quality and capacity of this transportation link.

How has federal spending on highway and bridge construction in the U.S. Virgin Islands trended historically?

Analyzing historical federal spending trends on highway and bridge construction specifically in the U.S. Virgin Islands requires access to detailed historical federal contract and grant data. Generally, federal investment in territorial infrastructure is crucial due to limited local revenue streams for large-scale projects. Spending often correlates with federal infrastructure initiatives, disaster recovery efforts (given the vulnerability to hurricanes), and specific needs identified by the Department of Transportation and local governments. Without specific historical data for this contract category in the VI, it's presumed that federal funding plays a vital role, potentially fluctuating based on congressional appropriations and the prioritization of infrastructure needs in the territories.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DTFH7117R00014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Bridge Holding Company

Address: 5411 W TYSON AVE, TAMPA, FL, 33611

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

Financial Breakdown

Contract Ceiling: $48,587,907

Exercised Options: $48,587,907

Current Obligation: $48,587,907

Actual Outlays: $22,631,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline