DoD's $17.5M highway construction contract awarded to ITAS ENGINEERING & GENERAL CON shows fair value with 13 bids

Contract Overview

Contract Amount: $17,555,820 ($17.6M)

Contractor: Itas Engineering & General CON

Awarding Agency: Department of Defense

Start Date: 2006-06-28

End Date: 2008-05-31

Contract Duration: 703 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Plain-Language Summary

Department of Defense obligated $17.6 million to ITAS ENGINEERING & GENERAL CON for work described as: Key points: 1. Contract value appears reasonable given the scope of highway, street, and bridge construction. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The number of bids (13) indicates significant interest and a robust bidding process. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Contract duration of 703 days is typical for infrastructure projects of this scale. 6. The award was made by the Department of the Army, a major federal infrastructure client.

Value Assessment

Rating: good

The contract's value of $17.5 million for highway, street, and bridge construction appears to be within a reasonable range for a project of this nature. Benchmarking against similar federal infrastructure projects of comparable size and complexity would provide a more precise assessment, but the number of bids suggests market validation. The firm fixed-price structure also implies that the initial pricing was deemed acceptable by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The participation of 13 bidders indicates a competitive environment, which typically leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The breadth of competition suggests that the market has sufficient capacity and interest in undertaking this type of work.

Taxpayer Impact: The high level of competition is beneficial for taxpayers as it likely drove down the final award price, ensuring that federal funds were used efficiently for this infrastructure project.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel and their families who rely on improved infrastructure. Services delivered include the construction and repair of highways, streets, and bridges, enhancing transportation networks. The geographic impact is localized to the area where the construction takes place, likely a military installation or surrounding community. Workforce implications include job creation for construction workers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Contractor performance risk, including delays or quality issues, needs ongoing monitoring.
Dependency on specific construction materials and labor availability could impact timelines.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Robust competition (13 bidders) suggests a competitive market and potentially good value.
Contract awarded to a company with experience in general contracting, implying capability.
Clear project scope for highway, street, and bridge construction.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy and civil engineering construction. The market for federal infrastructure projects is substantial, with agencies like the Department of Defense consistently investing in maintaining and upgrading facilities and transportation networks. Comparable spending benchmarks would involve analyzing other large-scale civil engineering contracts awarded by federal agencies for similar types of infrastructure development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The prime contractor, ITAS ENGINEERING & GENERAL CON, may still engage small businesses as subcontractors based on their own business strategy or project needs, but it is not a contractual requirement stemming from a set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided in this data.

Related Government Programs

Military Construction
Federal Highway Administration Projects
Army Corps of Engineers Civil Works
Infrastructure Investment and Jobs Act Funding

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays due to contractor performance or external factors.
Need for diligent contract administration to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to ITAS ENGINEERING & GENERAL CON. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ITAS ENGINEERING & GENERAL CON.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2006-06-28. End: 2008-05-31.

What is the track record of ITAS ENGINEERING & GENERAL CON with federal contracts, particularly within the Department of Defense?

The provided data indicates that ITAS ENGINEERING & GENERAL CON was awarded this specific contract by the Department of the Army. To fully assess their track record, a deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to identify all contracts awarded to this entity, their values, performance history, and any past performance issues or awards. Understanding their history with similar construction projects, contract types, and agencies would provide crucial context for evaluating their reliability and expertise in executing this $17.5 million highway construction project.

How does the $17.5 million award compare to the average cost of similar highway, street, and bridge construction projects undertaken by the Department of Defense?

Without specific details on the project's scope (e.g., linear feet of road, number of bridges, complexity of terrain, specific materials required), a direct cost comparison is challenging. However, $17.5 million for a project spanning 703 days suggests a significant undertaking. Federal agencies often publish data on contract awards and project costs. Benchmarking this contract against other DoD or Army contracts for similar infrastructure work, considering factors like location, size, and type of construction, would be essential. The fact that 13 bids were received suggests the market perceived the opportunity and potential value as competitive.

What are the primary risks associated with this firm fixed-price contract, and how are they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor bears the burden of cost overruns. If ITAS ENGINEERING & GENERAL CON underestimates costs or encounters unforeseen issues (e.g., unexpected subsurface conditions, material price spikes, labor shortages), their profit margin will decrease, potentially leading to quality compromises or project delays if they struggle financially. Mitigation strategies employed by the government include thorough pre-bid site investigations, clearly defined contract specifications, performance bonds, and robust contract administration to monitor progress and ensure compliance with quality standards. The government's risk is primarily that the contractor may cut corners to maintain profitability.

What is the expected impact of this contract on the local workforce and economy in the project's vicinity?

A contract of this magnitude, valued at $17.5 million and lasting approximately two years (703 days), is expected to have a positive impact on the local workforce and economy. It will likely create numerous direct jobs in construction, engineering, project management, and related trades. Indirectly, it can stimulate local businesses through the purchase of materials, equipment rentals, and services, as well as increased spending by newly employed workers. The specific impact will depend on the project's location and the extent to which local labor and resources are utilized.

How does the 'full and open competition' award strategy for this contract influence the overall cost-effectiveness for the taxpayer?

The 'full and open competition' strategy is generally considered the most effective approach for maximizing cost-effectiveness for taxpayers in federal contracting. By allowing all responsible sources to bid, it fosters a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as contractors strive to offer the most attractive bid to win the award. The presence of 13 bidders in this case strongly suggests that the market was robust and competitive, increasing the likelihood that the government secured a fair price for the highway, street, and bridge construction services, thereby optimizing taxpayer value.

Are there any specific performance metrics or deliverables outlined in the contract that allow for assessment of project success?

The provided data does not detail specific performance metrics or deliverables. However, standard practice for construction contracts of this nature includes detailed specifications, drawings, and schedules. Success is typically measured against adherence to these specifications (quality of work), completion within the established timeline (durability), and adherence to the firm fixed price. The contracting officer's representative (COR) or designated government personnel would monitor progress, conduct inspections, and verify that all contractual requirements are met before final acceptance and payment.

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: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: PRINCESS TAGHREED ST, AMMAN

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline