DoD awards $13.1M for road reconstruction, with Metro Paving Corp. securing the contract

Contract Overview

Contract Amount: $13,096,670 ($13.1M)

Contractor: Metro Paving Corp

Awarding Agency: Department of Defense

Start Date: 2023-10-10

End Date: 2025-07-18

Contract Duration: 647 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS PROJECT IS TO REPAIR BY FULL DEPTH ROAD RECONSTRUCTION OF THE FOLLOWING ROADS: SHERIDAN DRIVE, WILSON DRIVE, MCCLELLAN DRIVE, AND THE WEEKS/GRANT LOOP.

Place of Performance

Location: FORT MYER, ARLINGTON County, VIRGINIA, 22211

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to METRO PAVING CORP for work described as: THIS PROJECT IS TO REPAIR BY FULL DEPTH ROAD RECONSTRUCTION OF THE FOLLOWING ROADS: SHERIDAN DRIVE, WILSON DRIVE, MCCLELLAN DRIVE, AND THE WEEKS/GRANT LOOP. Key points: 1. The contract focuses on full-depth road reconstruction, indicating a significant infrastructure investment. 2. The fixed-price nature of the contract shifts cost overrun risk to the contractor. 3. The duration of 647 days suggests a substantial scope of work. 4. The contract was awarded under full and open competition after exclusion of sources, implying a competitive process. 5. The project is located in Virginia, potentially impacting local employment and businesses. 6. The contract value of $13.1 million represents a significant expenditure within the heavy civil engineering sector.

Value Assessment

Rating: good

The contract value of $13.1 million for road reconstruction appears reasonable given the scope of work involving full-depth reconstruction of multiple roads. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment of value for money. The firm-fixed-price contract type suggests the government has locked in a price, though the final cost could fluctuate based on unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that the solicitation was broadly advertised, and multiple bids were likely received. The exclusion of sources suggests that specific requirements or pre-qualification criteria may have been applied, but the overall intent was to allow broad participation. The presence of multiple bidders generally fosters price competition.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it is expected to drive down costs and ensure the government receives the best possible price for the road reconstruction services.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the improved road infrastructure. The services delivered include full-depth road reconstruction, enhancing the durability and safety of the specified roads. The geographic impact is localized to the areas where Sheridan Drive, Wilson Drive, McClellan Drive, and the Weeks/Grant Loop are situated. The project is likely to create employment opportunities for construction workers and related trades in the Virginia region.

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.
  • Contractor performance risk given the multi-year duration and complexity of full-depth reconstruction.
  • Dependency on timely material procurement and labor availability for project completion within the scheduled timeframe.

Positive Signals

  • Firm-fixed-price contract provides cost certainty for the government.
  • Full and open competition suggests a robust bidding process, likely leading to competitive pricing.
  • The contract is for essential infrastructure repair, ensuring operational readiness and safety.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on road and infrastructure repair. This sector is characterized by large-scale projects, significant capital investment, and a reliance on specialized equipment and labor. The market size for civil engineering construction is substantial, driven by government infrastructure spending and private development. This contract represents a typical expenditure for significant road maintenance and reconstruction within a military installation or related government facility.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While the prime contractor, Metro Paving Corp., may engage small businesses as subcontractors, there is no explicit requirement for small business set-asides within the contract's primary award. This means the direct impact on the small business ecosystem is likely limited unless subcontracting opportunities are actively pursued and awarded to small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring will be crucial given the project's duration and scope. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • Military Construction
  • Base Realignment and Closure (BRAC) Infrastructure Projects
  • Federal Highway Administration (FHWA) Grants
  • Department of Transportation - Federal-Aid Highways

Risk Flags

  • Potential for unforeseen site conditions impacting cost and schedule.
  • Contractor performance and adherence to quality standards over a long duration.
  • Dependency on timely delivery of materials and availability of skilled labor.

Tags

construction, department-of-defense, department-of-the-army, heavy-civil-engineering, road-reconstruction, firm-fixed-price, full-and-open-competition, virginia, infrastructure, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to METRO PAVING CORP. THIS PROJECT IS TO REPAIR BY FULL DEPTH ROAD RECONSTRUCTION OF THE FOLLOWING ROADS: SHERIDAN DRIVE, WILSON DRIVE, MCCLELLAN DRIVE, AND THE WEEKS/GRANT LOOP.

Who is the contractor on this award?

The obligated recipient is METRO PAVING CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2023-10-10. End: 2025-07-18.

What is the track record of Metro Paving Corp. in completing similar large-scale road reconstruction projects for the federal government?

A review of federal procurement data would be necessary to fully assess Metro Paving Corp.'s track record. However, the award of a $13.1 million contract for full-depth road reconstruction by the Department of the Army suggests a level of demonstrated capability and experience. Key indicators to examine would include past performance evaluations on similar projects, on-time completion rates, adherence to budget, and any history of contract disputes or performance issues. Understanding their experience with firm-fixed-price contracts of this magnitude is also important for evaluating their suitability for this specific project.

How does the awarded price of $13.1 million compare to similar road reconstruction projects undertaken by the Department of Defense or other federal agencies?

Benchmarking this $13.1 million contract against similar projects requires detailed analysis of scope, location, and specific reconstruction methods. However, for large-scale road reconstruction involving full-depth work on multiple routes, this figure appears within a reasonable range for significant infrastructure investment. Factors influencing cost include material prices, labor rates in Virginia, and the complexity of the terrain and existing infrastructure. A comparative analysis with projects of similar square footage or linear miles of roadwork, adjusted for regional economic differences, would provide a more precise value-for-money assessment.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks include potential cost overruns due to unforeseen subsurface conditions (e.g., soil instability, underground utilities), contractor performance issues leading to delays, and material price volatility. Given the firm-fixed-price contract, the contractor bears the primary financial risk of cost overruns. Mitigation strategies typically involve thorough site investigations prior to bidding, robust contract administration and oversight by the government to monitor progress and quality, and clear communication channels with the contractor. The contract's duration of 647 days also presents a risk of schedule slippage, requiring diligent project management.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for infrastructure projects of this nature?

This procurement method aims to balance broad competition with specific project needs. By excluding sources, the agency ensures that only responsible contractors meeting certain criteria can bid, potentially reducing the number of bids but increasing the likelihood of qualified bidders. 'Full and open competition' ensures that the solicitation is widely advertised to all eligible sources. This combination generally leads to competitive pricing by allowing multiple qualified contractors to vie for the work, driving down costs through market forces. However, the effectiveness can be influenced by the specificity of the exclusion criteria.

What is the historical spending pattern for road maintenance and reconstruction within the Department of the Army, and how does this contract fit within that trend?

Historical spending on road maintenance and reconstruction by the Department of the Army is substantial, reflecting the vast network of infrastructure on military installations. This $13.1 million contract for full-depth reconstruction aligns with ongoing efforts to modernize and maintain critical infrastructure, often driven by aging facilities and the need to support operational readiness. Such expenditures are typically part of larger, multi-year infrastructure investment plans. Analyzing past annual budgets for similar repair and construction projects would reveal whether this award represents a typical or exceptional level of investment for this type of work.

What are the potential long-term benefits of this road reconstruction project beyond immediate usability?

Beyond immediate usability and improved safety, this full-depth road reconstruction project offers significant long-term benefits. Enhanced road integrity reduces future maintenance costs and minimizes disruptions caused by frequent repairs. Improved infrastructure supports the efficient movement of personnel, equipment, and supplies, contributing to operational effectiveness. Furthermore, durable roads can increase property values within the affected area and contribute to a more professional and functional environment for military personnel and their families. The investment also supports the local economy through job creation and utilization of construction resources.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9123621R2012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5470 LAFAYETTE PLACE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,709,170

Exercised Options: $13,096,670

Current Obligation: $13,096,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123621D2012

IDV Type: IDC

Timeline

Start Date: 2023-10-10

Current End Date: 2025-07-18

Potential End Date: 2025-07-18 00:00:00

Last Modified: 2025-10-16

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