This technical report examines the concern of how mergers and acquisitions (M&As) within industries that produce, supply, and install aggregates and plant-produced materials for transportation projects may result in reduced competition and higher prices for public sector construction projects. This report documents research undertaken to analyze relationships and trends that occur when M&As take place in materials supply. The study presents strategies that selected States have employed to minimize adverse impacts and protect taxpayers from unfair pricing and anticompetitive behaviors. These State department of transportation (DOT) practices may limit adverse impacts to competitive market share distribution, bid pricing, and overall project costs.

This report also examines multiyear collections of State DOT construction materials bid prices and processes to monitor and analyze State DOT practices for bidding and letting projects. The research team reviewed data covering a 10-yr period between 2006 and 2016 to explore trends across 31 States. Nine case studies provided additional information to understand better the state of the practice for assessing bid prices and monitoring industry activities. The report and accompanying technical brief (FHWA-HRT-22-081) offer insights into the challenges associated with determining price impacts of M&A activity in the construction materials industry.

Recommended citation: Federal Highway Administration, Analysis of Material Source Mergers and Acquisitions on Project Delivery Quality and Costs (Washington, DC: 2023) https://doi.org/10.21949/1521910