The Bluegrass Institute for Public Policy Solutions

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KYTC rejects $10.5 million in single bid offers from highway industry

Kentucky's Transportation Cabinet has published their October 9 bid letting results for highway construction projects. There were twenty single bids from Kentucky's highway contractors in play.

  • Eleven single bid contracts were awarded for bids below the cabinet engineer's estimates.

  • Six single bid proposals exceeding the cabinet's estimates were rejected.

  • Three single bid contracts were awarded to bidders whose project proposals exceeded the engineer's estimates.

The three single bid contracts with costs exceeding KYTC's internal estimates were awarded to L-M Asphalt Partners, Scotty's Contracting and Stone and H.G. Mays Corporation. Combined, those single bid awards totaled $2.7 million.

Both The Allen Company and Nally & Gibson had two single bids rejected. L-M Asphalt Partners and Gaddie-Shamrock each had one single bid proposal rejected. The six single-bid proposals rejected by KYTC would have cost taxpayers $10.55 million if they had been awarded.

We are working on a deeper dive with analysis on what still appears to be a positive trend from KYTC. Kentucky Transportation Secretary Jim Gray is a private sector guy. In a meeting with Gray in early 2020, we got the impression his company has competed for projects all around the United States; he appreciates competition and the value of a level playing field.

We've asked the Cabinet to provide responses to questions about how single-bids are being handled. Providing those answers will be informative to the public and members of the General Assembly interested in maximizing every dollar spent on Kentucky's infrastructure.

Complete single bid results: KYTC.Oct92020.BidLetting.SingleBids