DOD's $23.2M Border Construction Contract Awarded to Kiewit Western Co. Under Full and Open Competition
Contract Overview
Contract Amount: $23,193,425 ($23.2M)
Contractor: Kiewit Western CO.
Awarding Agency: Department of Defense
Start Date: 2007-09-30
End Date: 2008-02-14
Contract Duration: 137 days
Daily Burn Rate: $169.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CQ01 - CONSTRUCTION OF PRIMARY BORDER
Place of Performance
Location: LUKEVILLE, PIMA County, ARIZONA, 85341
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $23.2 million to KIEWIT WESTERN CO. for work described as: CQ01 - CONSTRUCTION OF PRIMARY BORDER Key points: 1. The contract for border construction was awarded to Kiewit Western Co. for $23.2 million. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract was awarded by the Department of Defense, specifically the Department of the Army. 4. The project falls under the Highway, Street, and Bridge Construction sector.
Value Assessment
Rating: fair
The contract value of $23.2 million for border construction appears within a reasonable range for a project of this nature, though specific benchmarks are difficult without detailed scope. The firm fixed-price contract type suggests price certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.
Public Impact
Direct impact on border infrastructure and security in Arizona. Potential for job creation and economic activity in the local region. Enhancement of transportation networks related to border management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may limit thoroughness.
- Fixed-price contract could lead to change order disputes if scope is not well-defined.
Positive Signals
- Full and open competition utilized.
- Clear contract type (firm fixed price).
Sector Analysis
This contract falls within the Construction sector, specifically Highway, Street, and Bridge Construction. Spending in this sector can vary significantly based on infrastructure needs and government priorities. Benchmarks for border construction projects are highly project-specific.
Small Business Impact
The data indicates that the prime contractor is Kiewit Western Co. There is no explicit information provided regarding small business subcontracting goals or achievements for this specific contract.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for oversight. The firm fixed-price contract type provides some cost control, but monitoring performance and adherence to scope is crucial for accountability.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Short contract duration.
- Potential for change orders on fixed-price contracts.
- Lack of detailed scope information for value assessment.
- No explicit small business participation data.
Tags
highway-street-and-bridge-construction, department-of-defense, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.2 million to KIEWIT WESTERN CO.. CQ01 - CONSTRUCTION OF PRIMARY BORDER
Who is the contractor on this award?
The obligated recipient is KIEWIT WESTERN CO..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.2 million.
What is the period of performance?
Start: 2007-09-30. End: 2008-02-14.
What was the specific scope of work for this border construction project, and how does the $23.2 million cost align with similar projects?
The provided data identifies the project as 'CONSTRUCTION OF PRIMARY BORDER' but lacks specific details on the scope of work. To assess value, a comparison with similar border infrastructure projects, considering factors like linear footage, materials, and complexity, would be necessary. Without this granular detail, a precise value assessment against benchmarks is challenging.
Given the short duration (137 days) and fixed-price nature, what are the primary risks associated with this contract?
The primary risks include potential scope creep leading to costly change orders, as the fixed price may not adequately account for unforeseen issues in a short, complex construction timeline. Additionally, a compressed schedule could impact quality or safety if not managed meticulously by both the contractor and the contracting officer's representative.
How effectively did the 'full and open competition' process ensure the best value was obtained for this border construction project?
Full and open competition generally increases the likelihood of obtaining best value by allowing a wider pool of qualified contractors to bid. The effectiveness hinges on the clarity of the solicitation, the evaluation criteria used, and the responsiveness of bidders. Without access to the bid proposals and evaluation results, it's difficult to definitively assess the outcome beyond the process itself.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 14
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)
Address: KIEWIT PLZ, OMAHA, NE, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,193,425
Exercised Options: $23,193,425
Current Obligation: $23,193,425
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912BV07D2022
IDV Type: IDC
Timeline
Start Date: 2007-09-30
Current End Date: 2008-02-14
Potential End Date: 2008-02-14 00:00:00
Last Modified: 2010-09-20
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