Kiewit Infrastructure South awarded $24.18M for Hurricane Helene disaster recovery design-build in Virginia

Contract Overview

Contract Amount: $241,843,089 ($241.8M)

Contractor: Kiewit Infrastructure South CO

Awarding Agency: Department of Agriculture

Start Date: 2025-11-06

End Date: 2026-11-16

Contract Duration: 375 days

Daily Burn Rate: $644.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MORATORIUM EXCEPTION" BLI DDVAK725 HURRICANE HELENE VCT DISASTER RECON DESIGN-BUILD HURRICANE HELENE IN VA

Place of Performance

Location: DAMASCUS, WASHINGTON County, VIRGINIA, 24236

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $241.8 million to KIEWIT INFRASTRUCTURE SOUTH CO for work described as: MORATORIUM EXCEPTION" BLI DDVAK725 HURRICANE HELENE VCT DISASTER RECON DESIGN-BUILD HURRICANE HELENE IN VA Key points: 1. Contract awarded for critical disaster recovery infrastructure in Virginia. 2. Design-build approach aims for efficient project delivery. 3. Full and open competition suggests a competitive bidding process. 4. Contract duration of 375 days indicates a focused recovery effort. 5. Firm fixed-price contract provides cost certainty for the government. 6. Potential for significant impact on local infrastructure and workforce.

Value Assessment

Rating: good

The contract value of $24.18 million for disaster recovery design-build services appears reasonable given the scope of work for Hurricane Helene. Benchmarking against similar large-scale infrastructure repair contracts, especially those involving design-build for disaster response, would provide further context. The firm fixed-price nature of the award helps manage cost risks for the government, assuming the initial design and scope are well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 3 bids received, the competition level suggests a healthy market interest for this type of work. This level of competition is generally favorable for price discovery and achieving a competitive price for the government.

Taxpayer Impact: Full and open competition with multiple bidders typically leads to better pricing for taxpayers by fostering a competitive environment that drives down costs.

Public Impact

Residents and businesses in Virginia affected by Hurricane Helene will benefit from restored critical infrastructure. Services delivered include design and construction for disaster recovery. Geographic impact is concentrated in Virginia, specifically areas affected by Hurricane Helene. The project is likely to create or sustain jobs in the construction and engineering sectors in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in disaster recovery projects if initial assessments are incomplete.
Ensuring timely completion within the 375-day duration is crucial for effective recovery.
Coordination between design and construction phases needs to be seamless for efficiency.

Positive Signals

The use of a design-build approach can accelerate project delivery compared to traditional design-bid-build.
Firm fixed-price contract provides budget certainty and limits the government's exposure to cost overruns.
Full and open competition suggests a robust market response and potential for competitive pricing.

Sector Analysis

This contract falls within the construction sector, specifically focusing on highway, street, and bridge construction, with a specialization in disaster recovery. The market for disaster recovery construction services can be highly variable, driven by the frequency and severity of natural disasters. Design-build contracts are increasingly common in this sector for their potential to streamline project timelines and manage complex projects efficiently.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Kiewit Infrastructure South, may engage small businesses for subcontracting opportunities. The scale of this project suggests potential for significant subcontracting, which could benefit the small business ecosystem if actively pursued.

Oversight & Accountability

Oversight will likely be managed by the U.S. Forest Service, a division of the Department of Agriculture. Accountability measures will be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is expected through contract award notices and potential public reporting on project progress, with the Inspector General's office having jurisdiction over fraud, waste, and abuse.

Related Government Programs

Federal Highway Administration Disaster Relief Program
Army Corps of Engineers Emergency Management
FEMA Public Assistance Program
State Department of Transportation Infrastructure Projects

Risk Flags

Potential for cost overruns if initial damage assessment is incomplete.
Risk of schedule delays due to unforeseen site conditions or material availability.
Ensuring long-term durability and resilience of repaired infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $241.8 million to KIEWIT INFRASTRUCTURE SOUTH CO. MORATORIUM EXCEPTION" BLI DDVAK725 HURRICANE HELENE VCT DISASTER RECON DESIGN-BUILD HURRICANE HELENE IN VA

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE SOUTH CO.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $241.8 million.

What is the period of performance?

Start: 2025-11-06. End: 2026-11-16.

What is Kiewit Infrastructure South's track record with similar disaster recovery design-build contracts?

Kiewit Infrastructure South has a substantial track record in large-scale infrastructure projects, including those involving disaster recovery and design-build delivery methods. They have been involved in numerous projects across the United States, often for federal agencies like the Department of Transportation and Army Corps of Engineers. Their experience typically encompasses complex civil engineering challenges, such as bridge construction, highway repair, and utility restoration following natural disasters. While specific details on past hurricane-related design-build contracts would require deeper analysis of their project portfolio and past performance reviews, their general profile suggests they are a capable contractor for this type of urgent and critical infrastructure work. Assessing their performance on similar contracts would involve reviewing past project completion times, adherence to budget, quality of work, and any reported disputes or claims.

How does the $24.18 million contract value compare to similar disaster recovery projects?

The $24.18 million contract value for a design-build effort related to Hurricane Helene in Virginia is within a typical range for significant infrastructure repair following a major natural disaster. However, a precise comparison requires detailed information on the scope of work, the specific infrastructure being repaired (e.g., miles of highway, number of bridges, complexity of design), and the geographic extent of the damage. Projects involving extensive structural repairs, new construction, or complex engineering solutions will naturally command higher values. Benchmarking against other federally funded disaster recovery contracts awarded by agencies like FEMA, FHWA, or the Army Corps of Engineers for similar events (e.g., hurricanes, floods) would provide a more robust comparison. Factors such as the urgency of the repair, the availability of contractors, and the specific requirements of the design-build process also influence pricing.

What are the primary risks associated with this design-build contract for disaster recovery?

The primary risks associated with this design-build contract for disaster recovery include potential scope creep if the initial damage assessment is incomplete, leading to change orders and increased costs. There's also a risk of schedule delays if unforeseen conditions arise during design or construction, especially in disaster-affected areas where access or site conditions can be challenging. For a firm fixed-price contract, the contractor bears the risk of cost overruns if their estimates are inaccurate or if material/labor costs escalate unexpectedly. Ensuring effective coordination between the design and construction phases is critical; a breakdown in communication could lead to errors or inefficiencies. Furthermore, the quality of the design and construction must meet stringent standards to ensure long-term resilience against future events, posing a risk if not adequately managed.

How effective is the design-build approach for disaster recovery compared to traditional methods?

The design-build approach is often considered highly effective for disaster recovery projects due to its potential for accelerated project delivery. By consolidating design and construction under a single contract, it can reduce lead times and streamline communication between the parties involved. This integrated approach can facilitate faster problem-solving and decision-making, which is crucial in emergency situations where timely restoration of services and infrastructure is paramount. Compared to traditional design-bid-build, where design is completed first and then construction is bid separately, design-build can offer a more cohesive and efficient process. However, its effectiveness hinges on the contractor's ability to accurately scope and price the work upfront, and the government's ability to clearly define its needs and performance requirements from the outset.

What are the historical spending patterns for disaster recovery infrastructure by the Department of Agriculture/Forest Service?

Historical spending patterns for disaster recovery infrastructure by the Department of Agriculture, and specifically the Forest Service, are often tied to the frequency and severity of natural events impacting federal lands or resources. While the Forest Service's primary mission is land management, it plays a role in responding to and recovering from wildfires, severe storms, and other natural disasters that affect forests and associated infrastructure. Their spending in this area can fluctuate significantly year-to-year based on disaster occurrences. This contract, however, is for broader infrastructure recovery (highway, street, bridge) in Virginia, suggesting a coordination or support role beyond typical Forest Service land management activities, possibly in partnership with other agencies or state entities. Analyzing broader federal disaster recovery spending by agencies like FEMA or the Army Corps of Engineers would provide a larger context for such expenditures.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 12445125R0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kiewit-Turner a Joint Venture

Address: 450 DIVIDEND DR, PEACHTREE CITY, GA, 30269

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $241,843,089

Exercised Options: $241,843,089

Current Obligation: $241,843,089

Actual Outlays: $25,251,151

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $72,166,918

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline