Jensen Construction Company awarded $11.98M for highway, street, and bridge construction in Arkansas

Contract Overview

Contract Amount: $11,984,600 ($12.0M)

Contractor: Jensen Construction Company

Awarding Agency: Department of Defense

Start Date: 2004-08-09

End Date: 2006-11-04

Contract Duration: 817 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200411!001348!96CE!W9127S!USA ENGINEER DIST LITTLE ROCK !W9127S04C0024 !A!N! !N! ! !20040809!20060918!070040100!004827481!364611079!N!JENSEN CONSTRUCTION COMPANY !11301 WEST 57TH STREET !SAND SPRINGS !OK!74063!41000!119!05!LITTLE ROCK !PULASKI !ARKANSAS !+000011431772!N!N!000011431772!Y222!HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS !C2 !CONSTRUCTION !000 !* !237310!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!008!B! !D!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!B!Y! !N! ! ! ! !0001! !

Place of Performance

Location: RUSSELLVILLE, POPE County, ARKANSAS, 72802

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to JENSEN CONSTRUCTION COMPANY for work described as: 200411!001348!96CE!W9127S!USA ENGINEER DIST LITTLE ROCK !W9127S04C0024 !A!N! !N! ! !20040809!20060918!070040100!004827481!364611079!N!JENSEN CONSTRUCTION COMPANY !11301 WEST 57TH STREET !SAND SPRINGS !OK!74063!41000!119!05!LITTLE ROCK !PULA… Key points: 1. Contract value of $11.98 million for highway, street, and bridge construction. 2. Awarded by the Department of the Army, Engineer District, Little Rock. 3. Contract duration of 817 days, indicating a significant project timeline. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. The North American Industry Classification System (NAICS) code 237310 points to specialized heavy civil construction. 6. The contract was awarded under full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The contract value of $11.98 million for highway, street, and bridge construction appears reasonable given the project's scope and duration. While specific per-unit cost benchmarks are not available without more detailed project specifications, the firm fixed-price nature of the contract suggests that the government secured predictable costs. Comparing this to similar large-scale infrastructure projects within the Department of Defense or other federal agencies would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of 8 bids suggests a competitive environment, which typically drives down prices and encourages innovation. The government's ability to solicit bids from a wide range of qualified contractors is a positive sign for price discovery and ensuring the best value is obtained.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors must offer competitive pricing to win awards. This process helps ensure that federal funds are used efficiently and that the government is not overpaying for services.

Public Impact

The primary beneficiaries are likely the residents and businesses in Arkansas who will benefit from improved transportation infrastructure. Services delivered include the construction or repair of highways, streets, bridges, and potentially railways. The geographic impact is focused on Arkansas, specifically within the Little Rock Engineer District's area of operations. The project will likely create or sustain jobs in the construction sector, including skilled labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by firm fixed-price.
Risk of project delays due to weather, material availability, or labor issues.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process leading to potentially better pricing.
The contractor, Jensen Construction Company, has a track record in large-scale construction projects.
The project addresses critical infrastructure needs, which has long-term economic benefits.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on transportation infrastructure. The market for such projects is substantial, driven by federal, state, and local government investments in maintaining and upgrading aging infrastructure. Comparable spending benchmarks would involve looking at other large highway and bridge construction contracts awarded by agencies like the Department of Transportation or the Army Corps of Engineers.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract. Given the substantial value of $11.98 million, it is likely that larger construction firms were the primary bidders. However, the prime contractor may engage small businesses as subcontractors for specialized services or material supply, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, Little Rock District. Accountability measures would include contract milestones, quality control inspections, and performance reviews. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Grants
Army Corps of Engineers Civil Works Projects
Department of Transportation Infrastructure Initiatives
State and Local Transportation Improvement Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays due to weather or material availability.
Ensuring compliance with environmental regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to JENSEN CONSTRUCTION COMPANY. 200411!001348!96CE!W9127S!USA ENGINEER DIST LITTLE ROCK !W9127S04C0024 !A!N! !N! ! !20040809!20060918!070040100!004827481!364611079!N!JENSEN CONSTRUCTION COMPANY !11301 WEST 57TH STREET !SAND SPRINGS !OK!74063!41000!119!05!LITTLE ROCK !PULASKI !ARKANSAS !+000011431772!N!N!000011431772!Y222!HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS !C2 !CONSTRUCTION !000 !* !237310!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is JENSEN CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2004-08-09. End: 2006-11-04.

What is Jensen Construction Company's track record with federal contracts, particularly within the Department of Defense?

Jensen Construction Company has a history of securing federal contracts, including those with the Department of Defense. While this specific contract is for $11.98 million, their portfolio likely includes a range of projects. Analyzing their past performance on similar infrastructure projects, adherence to schedules, and quality of work would provide a clearer picture of their reliability. Federal procurement data can be reviewed to identify other awards, their values, and any performance feedback or disputes associated with them. A deeper dive would involve examining contract close-out data and any modifications or claims filed during the contract period to assess their overall federal contracting performance.

How does the $11.98 million award compare to the average cost of similar highway and bridge construction projects?

The $11.98 million award for highway, street, and bridge construction is a significant sum, indicative of a large-scale project. To benchmark this value, one would need to compare it against similar projects in terms of scope, complexity, and geographic location. For instance, comparing it to other Army Corps of Engineers projects or Department of Transportation contracts for bridge replacements or new highway segments of comparable length and engineering requirements would be informative. Factors such as material costs, labor rates in Arkansas, and the specific engineering challenges (e.g., soil conditions, environmental mitigation) influence project costs. Without detailed project specifications, a precise comparison is difficult, but the award size suggests a substantial infrastructure undertaking.

What are the primary risks associated with this type of construction contract, and how are they mitigated?

Primary risks for this highway and bridge construction contract include unforeseen site conditions (e.g., encountering unexpected geological issues), material cost fluctuations, labor shortages, and weather-related delays. The firm fixed-price (FFP) contract type is a key mitigation strategy, as it shifts the risk of cost overruns to the contractor, Jensen Construction Company. The government's liability is capped at the agreed-upon price. Further mitigation involves detailed site investigations prior to bidding, robust project management by the Army Corps of Engineers, clear specifications, and contingency planning for potential delays. The contractor's own risk management practices, including insurance and bonding, also play a crucial role.

How effective is full and open competition in ensuring value for money for taxpayers on large infrastructure projects?

Full and open competition is generally considered the most effective method for ensuring value for money on large infrastructure projects. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most efficient solutions to win the contract. The presence of multiple bidders, as indicated by the 8 bids received in this case, increases the likelihood that the government will receive a competitive price. This process also promotes transparency and reduces the risk of favorit-ism or non-competitive pricing that can occur with sole-source or limited competition awards. Ultimately, it helps ensure that taxpayer dollars are used efficiently.

What are the historical spending patterns for highway, street, and bridge construction by the Department of the Army?

The Department of the Army, primarily through the Army Corps of Engineers, has a long history of funding and executing highway, street, and bridge construction projects, particularly those related to military installations, civil works, and disaster recovery. Historical spending patterns reveal significant investment in infrastructure maintenance and development. Analyzing past contract awards within NAICS code 237310 for the Department of the Army would show trends in contract values, types of projects undertaken, and geographic distribution. This data can help contextualize the $11.98 million award, indicating whether it aligns with typical spending levels for such projects or represents a particularly large or small investment.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11301 WEST 57TH STREET, SAND SPRINGS, OK, 74063

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline