Department of Defense awards $20.8M contract for highway, street, and bridge construction in Tennessee

Contract Overview

Contract Amount: $20,819,549 ($20.8M)

Contractor: Avisco, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-04-19

End Date: 2015-08-24

Contract Duration: 857 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE RELOCATION OF BCR WILL TIE IN TO THE RECENTLY COMPLETED ROADWAY ON THE EAST IN THE VICINITY OF THE WEST END OF THE POLARIS PARKING LOT AND, ON THE WEST, WILL TIE-IN TO THE EXISTING BEAR CREEK ROAD JUST BEFORE THE INTERSECTION WITH OLD BEAR CREEK ROAD. THE RELOCATED BCR WILL BE AN URBAN-COLLECTOR TYPE ROAD, COMPLIANT WITH TENNESSEE DEPARTMENT OF TRANSPORTATION (TDOT) STANDARDS. THE ROAD WILL HAVE 12-FOOT LANES (ONE IN EACH DIRECTION) WITH A 10-FOOT-WIDE UTILITY SHOULDER ON THE SOUTH SIDE AND AN 18-FOOT-WIDE UTILITY SHOULDER ON THE NORTH. A PRECAST CONCRETE BEAM BRIDGE WILL BE ERECTED SO BCR WILL PASS OVER THE HAUL ROAD TO PREVENT TRAFFIC INTO THE Y-12 COMPLEX FROM BEING INTERRUPTED OR DELAYED BY TRUCKS ON THE HAUL ROAD. THE OVERPASS WILL PROVIDE MINIMUM VERTICAL CLEARANCE OF 20 FEET, AND THE LOWER HAUL ROAD WILL HAVE A MINIMUM WIDTH CLEARANCE OF 45 FEET FOR THE FULL LENGTH OF THE ROAD UNDER THE BRIDGE. THE CD-2/3A BCR RELOCATION SCOPE CONSISTS OF: ROADWAY CONSTRUCTION, INCLUDING OVERPASS TIE-IN TO BCR EASTERN SECTION TIE-IN ON THE WEST JUST BEFORE THE INTERSECTION OF EXISTING BCR AND OLD BEAR CREEK ROAD STEEL CASING FOR FUTURE DUCT BANK CROSSING DRAINAGE STRUCTURES (INCLUDING 3 RETENTION PONDS AND STORM DRAINS) SAFETY APPURTENANCES (I.E., GUARDRAILS, ETC.) SIGNS AND PAVEMENT MARKING SPUR UNDER THE OVERPASS WITH A BASE COURSE OF ASPHALT AND TEMPORARY LANE MARKINGS AND SIGNS SIGNALIZATION, AS DETERMINED BY A STUDY CONSTRUCTION OF 4,000 FEET OF A CITY OF OAK RIDGE 24-IN DIAMETER WATERLINE AND ~3,600 FEET OF A PLANT 16-IN DIAMETER WATERLINE, ARE PART OF THE ROAD CONSTRUCTION. THE NEW REINSTALLED POTABLE WATER LINES WILL PARALLEL THE RELOCATED BEAR CREEK ROAD. THE 24-IN LINE WILL BE INSTALLED IN THE 18-FOOT UTILITY SHOULDER ON THE NORTH SIDE OF THE ROAD, WHILE THE 16-IN LINE, WHICH WILL REDUCE TO 12 INCHES, WILL BE INSTALLED IN THE 10-FOOT SHOULDER ON THE SOUTH SIDE. INSTALLATION WILL INCLUDE NEW VALVE VAULTS IN ADDITION TO USE OF EXISTING VALVE VAULTS. INSTALLATION ALSO INCLUDES ELECTRICAL SERVICE FOR MOTOR-OPERATED VALVES AND FLOW EVENT DATE W912P5-12-R-0004 PAGE 6 OF 111 MESSAGING; DUCT BANKS WILL BE INSTALLED FOR LINES AND CABLES, AND AN EXISTING CONTROL PANEL WILL BE RELOCATED AND A NEW CONTROL PANEL INSTALLED. ALTHOUGH THESE WATERLINES AND ASSOCIATED POWER WILL BE INSTALLED IN THIS WBS ELEMENT, TIE-INS TO THE CITY OF OAK RIDGE AND Y-12 POTABLE WATER SYSTEMS, AS WELL AS ELECTRICAL TIE-INS WILL OCCUR IN A FOLLOWING PHASE OF WORK.

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830, UNITED STATES OF AMERICA

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to AVISCO, INC. for work described as: THE RELOCATION OF BCR WILL TIE IN TO THE RECENTLY COMPLETED ROADWAY ON THE EAST IN THE VICINITY OF THE WEST END OF THE POLARIS PARKING LOT AND, ON THE WEST, WILL TIE-IN TO THE EXISTING BEAR CREEK ROAD JUST BEFORE THE INTERSECTION WITH OLD BEAR CREEK ROAD. THE RELOCATED BCR WILL B… Key points: 1. Contract focuses on critical infrastructure improvements, including road relocation and bridge construction. 2. Project aims to enhance traffic flow and safety by integrating new roadways with existing infrastructure. 3. The construction will adhere to Tennessee Department of Transportation (TDOT) standards, ensuring quality and compliance. 4. A key feature is a precast concrete beam bridge to maintain uninterrupted traffic during haul road operations. 5. The contract duration of 857 days indicates a substantial construction project. 6. The firm fixed-price contract type suggests a defined scope and budget, potentially mitigating cost overruns.

Value Assessment

Rating: good

The awarded amount of $20.8 million for highway, street, and bridge construction appears reasonable given the scope of work, which includes road relocation and the construction of a bridge over a haul road. Benchmarking against similar large-scale infrastructure projects would provide a more precise value assessment. The firm fixed-price nature of the contract suggests that the pricing was established upfront, which can be advantageous for the government if the scope remains stable. However, without detailed cost breakdowns or comparisons to industry standards for similar projects in Tennessee, a definitive value-for-money judgment is challenging.

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 bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection. The government's ability to select the best value among these competitors is a positive outcome of the competitive process.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and quality. The selection of a contractor from multiple bids helps to ensure the government receives fair market value for the services rendered.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel and civilian employees at the Y-12 complex, who will experience improved access and reduced traffic disruptions. The project delivers essential infrastructure upgrades, including a relocated road and a new bridge, enhancing operational efficiency and safety. The geographic impact is localized to the vicinity of the Y-12 complex in Tennessee. The project will likely involve a significant number of construction workers, providing employment opportunities within the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large infrastructure projects, which could impact final costs if not managed tightly.
Ensuring adherence to TDOT standards throughout the construction process requires diligent oversight.
Coordination between construction activities and ongoing operations at the Y-12 complex is critical to avoid disruptions.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process aimed at achieving best value.
The project's focus on critical infrastructure improvements indicates a strategic investment in operational support.
Adherence to TDOT standards implies a commitment to quality and safety in construction.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering projects like highway, street, and bridge construction. The market for such projects is substantial, driven by government infrastructure needs and private development. The Department of Defense, particularly entities like the Army, frequently engages in construction contracts to maintain and upgrade its facilities. Comparable spending benchmarks would involve analyzing other large-scale road and bridge projects awarded by federal agencies or state transportation departments.

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. However, the prime contractor, AVISCO, INC., may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the availability of qualified small business vendors in the region.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Quality assurance surveillance plans (QASPs) would likely be in place to monitor performance, adherence to specifications, and compliance with safety regulations. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Construction
Federal Highway Administration Projects
Department of Energy Infrastructure Projects (Y-12 National Nuclear Security Complex)
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of construction delays due to weather or unforeseen site conditions.
Ensuring compliance with all TDOT standards requires rigorous quality control.
Coordination with Y-12 complex operations is critical to avoid disruptions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to AVISCO, INC.. THE RELOCATION OF BCR WILL TIE IN TO THE RECENTLY COMPLETED ROADWAY ON THE EAST IN THE VICINITY OF THE WEST END OF THE POLARIS PARKING LOT AND, ON THE WEST, WILL TIE-IN TO THE EXISTING BEAR CREEK ROAD JUST BEFORE THE INTERSECTION WITH OLD BEAR CREEK ROAD. THE RELOCATED BCR WILL BE AN URBAN-COLLECTOR TYPE ROAD, COMPLIANT WITH TENNESSEE DEPARTMENT OF TRANSPORTATION (TDOT) STANDARDS. THE ROAD WILL HAVE 12-FOOT LANES (ONE IN EACH DIRECTION) WITH A 10-FOOT-WIDE UTILITY SHOULDER ON THE SOUTH SIDE AND

Who is the contractor on this award?

The obligated recipient is AVISCO, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2013-04-19. End: 2015-08-24.

What is the track record of AVISCO, INC. with federal contracts, particularly in highway and bridge construction?

AVISCO, INC. has a history of federal contracting, with this specific award representing a significant portion of their federal work. Analyzing their past performance on similar projects, including on-time completion rates, budget adherence, and any documented disputes or contract modifications, would provide insight into their reliability. A review of their contract history with the Department of Defense and other agencies would reveal their experience in managing large-scale infrastructure projects and their capacity to meet federal standards and requirements. Information on past performance evaluations, if available, would be crucial for a comprehensive assessment.

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

The awarded amount of $20,819,548.89 represents the final contract value. Without access to the government's initial cost estimates or the bids submitted by other competitors, it is difficult to definitively state how the awarded amount compares to the budget. However, the fact that it was awarded under full and open competition with three bidders suggests that the price was deemed competitive and fair by the contracting agency. Further analysis would require comparing this figure to similar TDOT-compliant road and bridge construction projects of comparable scale and complexity in the region.

What are the primary risks associated with this specific construction project, and how are they being mitigated?

Key risks include potential delays due to unforeseen site conditions, weather impacts on construction schedules, and coordination challenges with ongoing activities at the Y-12 complex. The construction of a bridge over a haul road introduces specific engineering and safety risks that require meticulous planning and execution. Mitigation strategies likely involve detailed project scheduling, contingency planning for weather delays, robust safety protocols, and close coordination with facility operations. The firm fixed-price contract structure also incentivizes the contractor to manage risks effectively to avoid cost overruns.

How effective is the chosen contract type (Firm Fixed Price) in ensuring value for money for this type of infrastructure project?

A Firm Fixed Price (FFP) contract is generally considered effective for infrastructure projects where the scope of work is well-defined, as it shifts the risk of cost overruns to the contractor. This provides budget certainty for the government. For this highway, street, and bridge construction project, where specifications like TDOT standards are clear, an FFP contract is appropriate. It incentivizes the contractor to control costs and perform efficiently. However, if unforeseen issues arise that significantly alter the scope, change orders could increase the total cost, potentially negating some of the FFP benefits.

What is the historical spending trend for similar highway, street, and bridge construction contracts by the Department of the Army in Tennessee?

Analyzing historical spending by the Department of the Army in Tennessee for similar construction projects would provide context for the $20.8 million award. This would involve examining contract databases for the past 5-10 years to identify the number, size, and duration of comparable projects. Understanding the average cost per mile of road construction or per square foot of bridge construction in the region, as well as the typical range of awarded contract values, would help determine if this project's cost is within historical norms or represents an outlier. This analysis could reveal trends in pricing, competition levels, and contractor performance.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P512R0004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1005 CLARENCE LARSEN DR, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,106,539

Exercised Options: $20,819,549

Current Obligation: $20,819,549

Contract Characteristics

Cost or Pricing Data: NO

Timeline