The Kentucky Forum for Rights, Economics & Education (KYFREE) released new data today revealing that the Kentucky Transportation Cabinet (KYTC) awarded $1,337,917,048 in single-bid asphalt projects over a three-year period (2023-2025). One company, L-M Asphalt Partners, secured $424,690,688 of the single-bid contracts awarded during the years covered by the analysis.
KYFREE also calculated that 33% of L-M’s contracts were for asphalt-related projects in Fayette County. L-M has long dominated the asphalt market in the state’s second-largest county. That contrasts with Kentucky’s other metropolitan areas, Louisville and the Northern Kentucky region, both of which have highly competitive markets for asphalt jobs.
“This latest analysis is further evidence that L-M has an asphalt monopoly in Fayette County,” stated Andrew McNeill, KYFREE’s President and Senior Policy Fellow. “As a result, millions of dollars of the taxpayers’ money have been wasted while dangerous roads needing improvement have been neglected across the state.”
A peer-reviewed study published in 2020 and co-authored by a University of Kentucky economist raised questions of “tacit collusion” by the state’s asphalt industry. The study asserted that “stark evidence (exists) that county lines provide a focal point for collusive bidding.”
Scotty’s Contracting was the second-biggest winner over the three-year period with $214,776,876 in single-bid awards. KYTC consistently awarded single-bid jobs in Hopkins, Muhlenberg, Ohio, Simpson and Warren counties to the Bowling Green-based company.
Mountain Enterprises secured $182,194,317 in single-bid jobs, primarily in eastern Kentucky. Mountain Enterprises is a subsidiary of CRH-Oldcastle, a multi-national construction conglomerate. Another CRH-Oldcastle subsidiary, Hinkle Contracting, won $95,504,870 in asphalt single-bid contracts during the three years.
A 2024 report from the General Assembly’s Legislative Oversight and Investigations Committee found that single-bid awards are the most common method KYTC uses for asphalt projects. Single-bid projects have been a problem in Kentucky for decades, raising questions of why KYTC has been unable or unwilling to address the abusive and wasteful practice.
Last session, legislation sponsored by Rep. Kim Holloway, R-Mayfield, was filed to require the state Auditor’s Office to examine the Transportation Cabinet’s asphalt awards every two years. The legislation requires special statistical analysis to determine if the road contractors consistently winning asphalt single-bid contracts are engaging in anti-competitive bidding practices that result in local paving monopolies.
KYFREE is an independent, public policy think tank. We lead the state toward insightful, informative and impactful policy. We shine a light on Frankfort’s waste, fraud and abuse and represent the voice of the taxpayers in the big debates. Honest and effective public service is what we demand and we’re committed to making it the highest priority in the state capital. (www.kentuckyfree.org)
