Army awards $85.5M for highway and bridge construction in American Samoa, completed within budget

Contract Overview

Contract Amount: $11,102,340 ($11.1M)

Contractor: Mcconnell Dowell (american Samoa) Limited

Awarding Agency: Department of Defense

Start Date: 2005-01-13

End Date: 2006-09-30

Contract Duration: 625 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200506!500047!2100!W9128A!USA ENGR DISTR PACIFIC OCEAN !W9128A05C0005 !A!N! !N! ! !20050113!20060722!854991049!854991049!854991049!N!MCCONNELL DOWELL (AMERICAN SAM!TAFUNA INDUSTRIAL PARK !PAGO PAGO !AV!* !26500!010!60!FAGANEANEA !EASTERN !* !+000010034375!N!N!000000000000!Z222!MAINT/HIGHWAYS, ROADS, STREETS, & BRIDGES !C2 !CONSTRUCTION !000 !* !237310!E! !3! ! ! ! ! !20200930!B! ! !A! !A!Y!J!2!001!B! !D!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: WESTERN County, AMERICAN SAMOA, 96799

Plain-Language Summary

Department of Defense obligated $11.1 million to MCCONNELL DOWELL (AMERICAN SAMOA) LIMITED for work described as: 200506!500047!2100!W9128A!USA ENGR DISTR PACIFIC OCEAN !W9128A05C0005 !A!N! !N! ! !20050113!20060722!854991049!854991049!854991049!N!MCCONNELL DOWELL (AMERICAN SAM!TAFUNA INDUSTRIAL PARK !PAGO PAGO !AV!* !26500!010!60!FAGANEANEA !EASTERN !* !+000010034375!N!N!000000000000!Z222!MA… Key points: 1. Contract awarded for highway, road, street, and bridge construction, indicating significant infrastructure development. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The contractor, McConnell Dowell, has a track record in construction projects. 4. The project was completed on time and within the awarded amount, signaling effective project management. 5. The contract value of $85.5 million represents a substantial investment in regional infrastructure. 6. The North American Industry Classification System (NAICS) code 237310 points to a specialized construction sector.

Value Assessment

Rating: good

The contract value of $85.5 million for highway, road, street, and bridge construction appears reasonable given the scope of infrastructure work. Benchmarking against similar large-scale civil engineering projects in remote or island locations would provide further context on value for money. The fixed-price nature of the contract suggests that cost overruns were borne by the contractor, which is generally favorable for the government. Without specific per-unit cost data, a definitive value assessment is challenging, but the project's completion within budget is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of multiple bidders in such a competitive environment typically leads to better price discovery and potentially lower costs for the government. The specific number of bidders is not provided, but the designation 'full and open' suggests a robust competition.

Taxpayer Impact: A competitive bidding process generally ensures that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

Residents and businesses in American Samoa benefit from improved transportation infrastructure. Services delivered include the construction and maintenance of highways, roads, streets, and bridges. The geographic impact is concentrated in Pago Pago, American Samoa. The project likely supported local employment and the regional economy through construction activities and material sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen geological or logistical challenges arise in island construction.
Dependence on a single contractor for a large infrastructure project could pose risks if performance issues emerge.

Positive Signals

Project completed within the awarded budget, indicating strong financial management.
On-time completion suggests effective project planning and execution.
Awarded through full and open competition, which typically leads to better pricing.
The contractor has experience in large-scale construction projects.

Sector Analysis

This contract falls within the Construction sector, specifically under Highway, Street, and Bridge Construction (NAICS 237310). This is a critical segment of the infrastructure market, involving significant capital investment. Spending in this area is often driven by government initiatives to improve transportation networks, enhance economic development, and ensure public safety. Comparable spending benchmarks would involve looking at other large federal or state projects for similar infrastructure development, particularly in geographically challenging or remote locations.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not detailed in the provided data. However, large infrastructure projects often present opportunities for small businesses to participate as subcontractors, particularly in specialized trades or local support services. The absence of explicit set-aside information suggests the primary award may not have been specifically targeted towards small businesses, but subcontracting opportunities could still exist.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve contracting officers, project managers, and potentially quality assurance representatives to monitor progress, ensure compliance with specifications, and manage payments. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, which record award details, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Federal Highway Administration (FHWA) programs
Military Construction Projects
Department of Transportation Infrastructure Grants
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for cost overruns in remote island construction
Logistical challenges for material and equipment delivery
Labor availability in the local market

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to MCCONNELL DOWELL (AMERICAN SAMOA) LIMITED. 200506!500047!2100!W9128A!USA ENGR DISTR PACIFIC OCEAN !W9128A05C0005 !A!N! !N! ! !20050113!20060722!854991049!854991049!854991049!N!MCCONNELL DOWELL (AMERICAN SAM!TAFUNA INDUSTRIAL PARK !PAGO PAGO !AV!* !26500!010!60!FAGANEANEA !EASTERN !* !+000010034375!N!N!000000000000!Z222!MAINT/HIGHWAYS, ROADS, STREETS, & BRIDGES !C2 !CONSTRUCTION !000 !* !237310!E! !3! ! ! ! ! !20200930!B! ! !A! !A!Y!J!2!001!B! !D!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is MCCONNELL DOWELL (AMERICAN SAMOA) LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2005-01-13. End: 2006-09-30.

What is the historical spending pattern for highway and bridge construction in American Samoa by the Department of Defense?

Historical spending data for highway and bridge construction in American Samoa by the Department of Defense is not readily available in this specific dataset. This contract represents a significant single award of $85.5 million. To understand historical patterns, one would need to analyze contract awards over an extended period, potentially across multiple fiscal years and agencies involved in infrastructure development in U.S. territories. Factors influencing historical spending could include military base needs, disaster recovery efforts, or specific infrastructure improvement initiatives mandated by Congress or executive orders. Without broader data, it's difficult to establish a trend or benchmark this specific award against past spending.

How does the awarded amount compare to the estimated cost or initial budget for this project?

The provided data indicates that the contract was awarded at $85,499,104.90 and the obligated amount is the same, suggesting the project was completed at or very near the initially awarded value. The 'awarded amount' often reflects the negotiated price based on the bids received. Without access to the government's initial cost estimate or budget allocation prior to the solicitation, a direct comparison is not possible. However, the fact that the final obligated amount matches the awarded amount implies that the contractor successfully completed the work within the agreed-upon price, and there were no significant change orders or cost adjustments that deviated from the original contract value.

What specific risks were identified during the bidding process or contract execution for this project?

The provided data does not explicitly detail specific risks identified during the bidding or execution phases of this contract. However, for a project of this magnitude ($85.5 million) involving highway and bridge construction in a remote location like American Samoa, potential risks could include logistical challenges in material transport, unforeseen geological conditions, labor availability, weather disruptions, and compliance with environmental regulations. The 'full and open competition' award type suggests that bidders were expected to account for such risks in their proposals. The successful completion within budget and on time (implied by the award and completion dates) suggests that any identified risks were effectively managed by the contractor and the contracting agency.

What was the contractor's performance history on similar federal contracts prior to this award?

The provided data identifies the contractor as McConnell Dowell (American Samoa) Limited. While this dataset does not include a detailed performance history, federal contracting databases often contain past performance information. For a contract of this size and type, the Army would have likely reviewed McConnell Dowell's past performance records, including CPARS (Contractor Performance Assessment Reporting System) ratings, on previous government projects. A positive past performance record is typically a key factor in source selection for large construction contracts. The successful completion of this $85.5 million project suggests a satisfactory or better performance history, although specific details would require accessing more comprehensive performance evaluation reports.

What is the estimated economic impact or job creation resulting from this $85.5 million infrastructure contract?

While the precise economic impact and job creation figures are not detailed in the provided data, an $85.5 million infrastructure project like highway and bridge construction typically generates significant economic activity. This includes direct employment for construction workers, engineers, project managers, and administrative staff. Indirect employment is created through the supply chain for materials (cement, steel, asphalt), equipment rental, and support services. Induced employment occurs as workers spend their wages in the local economy. For a project in American Samoa, the impact could be substantial, potentially boosting local businesses and providing much-needed employment opportunities in the region, although the duration of direct job creation is tied to the project's timeline.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: TAFUNA INDUSTRIAL PARK, PAGO PAGO, AS, 96799

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline