Over $10 million awarded for road and intersection construction in Maryland, with 5 bids received

Contract Overview

Contract Amount: $10,147,143 ($10.1M)

Contractor: Daisy Concrete, Inc. of Maryland

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2011-10-15

Contract Duration: 1,478 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ROADS & INTERSECTIONS, APG, MD

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to DAISY CONCRETE, INC. OF MARYLAND for work described as: ROADS & INTERSECTIONS, APG, MD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a long-term agreement for services. 3. Firm fixed price contract type helps manage cost certainty for the government. 4. The contract duration of nearly 4 years suggests a significant project scope. 5. Awarded by the Department of the Army, indicating a defense-related infrastructure need. 6. The North American Industry Classification System (NAICS) code 237310 points to highway, street, and bridge construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and the condition of the roads and intersections. However, the award amount of over $10 million for a nearly four-year project in Maryland suggests a substantial investment in infrastructure. Comparing this to similar highway and bridge construction contracts awarded by the Department of Defense or other federal agencies would provide a clearer picture of whether the pricing was competitive and represented good value for money. The firm fixed price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project was completed within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The fact that five bids were received indicates a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood that the government will receive the best value. The specific details of the bidding process, such as the evaluation criteria and the relative strengths of each proposal, would further illuminate the effectiveness of the competition.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The presence of multiple bidders increases the pressure on each company to offer their most competitive rates.

Public Impact

The primary beneficiaries of this contract are likely the residents and businesses in Maryland who will experience improved road infrastructure. The services delivered include the construction and potentially repair of roads and intersections, enhancing transportation efficiency and safety. The geographic impact is focused on Maryland, specifically within the jurisdiction of Aberdeen Proving Ground (APG). The project would likely involve a workforce of construction laborers, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen site conditions or material price fluctuations.
Risk of delays in project completion impacting the intended benefits of improved infrastructure.
Ensuring the quality of construction meets federal and state standards is crucial for long-term durability.

Positive Signals

The firm fixed price contract structure shifts cost risk to the contractor, potentially protecting the government from unexpected expenses.
Awarding through full and open competition suggests a thorough vetting of bidders and a competitive pricing environment.
The long contract duration allows for comprehensive project execution and potentially phased completion of complex roadworks.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction related to transportation infrastructure. The market for road and intersection construction is substantial, driven by federal, state, and local government investments in maintaining and upgrading transportation networks. Comparable spending benchmarks would involve analyzing other large-scale highway and bridge construction contracts awarded by agencies like the Department of Transportation, the Army Corps of Engineers, or state transportation departments. The size of this contract, exceeding $10 million, places it in the mid-to-large tier for individual infrastructure projects.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This means the contract was not exclusively reserved for small businesses. While there's no explicit mention of subcontracting goals for small businesses, it is common practice for larger prime contractors to engage small businesses for specialized services or materials. The impact on the small business ecosystem would depend on whether Daisy Concrete, Inc. of Maryland actively sought out and utilized small business subcontractors for portions of this project.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with contract terms and performance standards. Accountability measures would be embedded in the contract's clauses, including performance metrics, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases like FPDS, which provide public access to contract details, though specific project-level oversight reports might not be publicly available.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to fixed-price nature.
Risk of project delays impacting infrastructure benefits.
Ensuring construction quality meets long-term standards.
Contractor capacity and performance risk over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to DAISY CONCRETE, INC. OF MARYLAND. ROADS & INTERSECTIONS, APG, MD

Who is the contractor on this award?

The obligated recipient is DAISY CONCRETE, INC. OF MARYLAND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2007-09-28. End: 2011-10-15.

What was the specific scope of work for this road and intersection construction contract?

The provided data indicates the contract (NA 237310) is for Highway, Street, and Bridge Construction. However, the specific scope of work is not detailed. Typically, such contracts can involve new construction, repair, resurfacing, widening of roads, intersection improvements (e.g., traffic signal installation, lane additions), and potentially bridge construction or repair within the specified geographic area of Aberdeen Proving Ground, Maryland. The exact deliverables would have been outlined in the contract's Statement of Work (SOW), which is not included in the provided summary data.

How does the awarded amount of over $10 million compare to similar infrastructure projects by the Department of Defense?

Comparing the $10.15 million award to similar Department of Defense (DoD) infrastructure projects requires access to a broader dataset of contracts. However, for a nearly four-year project involving road and intersection construction, this amount appears to be within a reasonable range for significant infrastructure work. Larger military installations often undertake substantial construction projects. For context, major highway projects managed by the Federal Highway Administration (FHWA) can range from millions to hundreds of millions of dollars depending on scale and complexity. The DoD's own construction budgets are substantial, and this contract likely represents a portion of their ongoing infrastructure maintenance and development needs.

What are the potential risks associated with a firm fixed-price contract for construction?

While firm fixed-price (FFP) contracts are generally favored for cost control, they carry inherent risks for the contractor. For this road and intersection construction project, risks include unforeseen site conditions (e.g., unexpected soil issues, underground utilities), fluctuations in material costs (e.g., asphalt, concrete, steel), labor shortages, or weather delays. If the contractor underestimated these risks or the initial price was too low, they could incur significant losses. Conversely, the government benefits from price certainty, but must ensure the initial price was fair and reasonable, and that the contractor has the capacity to execute the work to the required standards despite the cost pressures.

What does the duration of 1478 days (approximately 4 years) imply about the project's complexity?

A contract duration of approximately four years for road and intersection construction suggests a project of considerable scale and complexity. This could involve multiple phases, extensive planning and design work, significant earthmoving or structural components, or work in a highly trafficked or environmentally sensitive area requiring careful scheduling and mitigation. It might also indicate a program of work rather than a single, discrete project, allowing for ongoing maintenance or upgrades over an extended period. Such durations often require robust project management and oversight to ensure progress and adherence to the schedule.

How might the competition level (5 bidders) have influenced the final contract price?

Having five bidders for this contract likely exerted downward pressure on the price, benefiting the government and taxpayers. With multiple companies competing, each bidder is incentivized to submit a more competitive offer to win the contract. This increased competition generally leads to a more efficient price discovery process, where the market effectively determines a fair value for the services. While the exact impact isn't quantifiable without knowing the bid amounts, a higher number of bids typically correlates with better pricing outcomes compared to situations with fewer competitors.

What is the significance of the contract being awarded to 'DAISY CONCRETE, INC. OF MARYLAND'?

The award to Daisy Concrete, Inc. of Maryland signifies that this specific company was deemed the most advantageous offeror based on the evaluation criteria outlined in the solicitation. As a Maryland-based company, it suggests potential benefits for the local economy through job creation and business activity within the state. The company's ability to win a federal contract of this size indicates they possess the necessary qualifications, experience, and capacity to perform the required construction services. Further investigation into the company's past performance and financial stability would provide a more complete picture of their suitability.

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: SEALED BID

Solicitation ID: W912BU07B0020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3128 NEW CASTLE AVE, NEW CASTLE, DE, 19720

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,147,143

Exercised Options: $10,147,143

Current Obligation: $10,147,143

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline