Kiewit Western Co. awarded $17M for TRES Rios Environmental Restoration Project Phase 3A in Arizona

Contract Overview

Contract Amount: $16,982,479 ($17.0M)

Contractor: Kiewit Western CO.

Awarding Agency: Department of Defense

Start Date: 2010-06-30

End Date: 2012-07-12

Contract Duration: 743 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION TRES RIOS ENVIRONMENTAL RESTORATION PROJECT PHASE 3A, MARICOPA COUNTY, AZ

Place of Performance

Location: TOLLESON, MARICOPA County, ARIZONA, 85353

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to KIEWIT WESTERN CO. for work described as: DESIGN AND CONSTRUCTION TRES RIOS ENVIRONMENTAL RESTORATION PROJECT PHASE 3A, MARICOPA COUNTY, AZ Key points: 1. The contract value represents a significant investment in environmental restoration within Maricopa County. 2. The project's duration of approximately two years suggests a substantial scope of work. 3. The firm-fixed-price contract type indicates that cost risks are largely borne by the contractor. 4. The Department of the Army is the contracting agency, aligning with defense infrastructure and environmental stewardship. 5. The project falls under the Highway, Street, and Bridge Construction NAICS code, suggesting significant civil engineering components.

Value Assessment

Rating: good

The contract value of $16.98 million for the TRES Rios Environmental Restoration Project Phase 3A appears reasonable given the scope of a multi-year, large-scale civil engineering and environmental project. Benchmarking against similar large-scale environmental restoration or civil construction projects managed by the Army Corps of Engineers would provide a more precise value-for-money assessment. The firm-fixed-price structure generally promotes cost control, but the ultimate value depends on the successful completion of the defined restoration objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 14 bids suggests a healthy level of interest and competition for this type of environmental restoration work. A competitive bidding process typically leads to more favorable pricing for the government and taxpayers, as contractors vie to offer the most attractive proposals.

Taxpayer Impact: The full and open competition for this project likely resulted in a more cost-effective outcome for taxpayers by driving down prices through competitive bidding.

Public Impact

The primary beneficiaries are the local environment and ecosystems in Maricopa County, Arizona, through restoration efforts. The project delivers critical environmental restoration services, likely involving habitat reconstruction, water quality improvement, or flood control measures. The geographic impact is concentrated in Maricopa County, Arizona, potentially improving local environmental conditions and recreational opportunities. The project implies a need for skilled labor in civil engineering, environmental science, and construction trades within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen environmental conditions arise during construction.
  • Ensuring timely completion within the specified duration to avoid extended disruption.
  • Monitoring environmental compliance throughout the restoration process.

Positive Signals

  • Firm-fixed-price contract structure shifts cost risk to the contractor.
  • Full and open competition suggests a robust bidding process and potentially competitive pricing.
  • The project addresses a specific environmental need, indicating a clear objective and potential for positive impact.

Sector Analysis

The TRES Rios Environmental Restoration Project Phase 3A falls within the civil engineering and construction sector, specifically focusing on environmental remediation and infrastructure development. This sector is characterized by large-scale projects often undertaken by government agencies to address public works and environmental concerns. Comparable spending benchmarks would involve other large federal environmental restoration projects, such as those managed by the Army Corps of Engineers or the Environmental Protection Agency, which can range from millions to billions of dollars depending on scale and complexity.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. However, large prime contracts often include subcontracting opportunities. The prime contractor, Kiewit Western Co., may engage small businesses for specialized services or materials, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within budget. Transparency is generally maintained through contract award databases and public reporting, though specific project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Army Corps of Engineers Civil Works Projects
  • Environmental Protection Agency Superfund Sites
  • Bureau of Reclamation Water Infrastructure Projects
  • National Park Service Conservation Projects

Risk Flags

  • Potential for unforeseen environmental conditions impacting cost and schedule.
  • Contract duration requires careful management to ensure timely completion.
  • Firm-fixed-price necessitates accurate initial scope definition to avoid contractor risk.

Tags

construction, environmental-restoration, department-of-defense, department-of-the-army, arizona, maricopa-county, full-and-open-competition, firm-fixed-price, large-contract, civil-engineering, infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to KIEWIT WESTERN CO.. DESIGN AND CONSTRUCTION TRES RIOS ENVIRONMENTAL RESTORATION PROJECT PHASE 3A, MARICOPA COUNTY, AZ

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 $17.0 million.

What is the period of performance?

Start: 2010-06-30. End: 2012-07-12.

What is the historical spending pattern for the TRES Rios Environmental Restoration Project?

The provided data only details Phase 3A of the TRES Rios Environmental Restoration Project, awarded for $16.98 million. To understand the historical spending pattern, one would need to examine data for previous phases (Phase 1, Phase 2, etc.) of the same project, as well as any subsequent phases. This would involve searching federal procurement databases for contracts associated with the TRES Rios project under the Department of the Army or other relevant agencies. Analyzing the total cumulative spending across all phases would reveal the project's overall financial scale and commitment over time. It's also important to note if the project scope has evolved or if there have been significant cost adjustments in earlier phases, which could indicate potential risks or efficiencies.

How does the cost per mile or per acre for this restoration project compare to similar projects?

Benchmarking the cost per unit for the TRES Rios Environmental Restoration Project requires defining a relevant unit of measure. Given it's an environmental restoration project, units could be acres restored, linear feet of riverbank stabilized, or volume of material moved. The contract value is $16.98 million over approximately 743 days (about 2 years). Without specific details on the acreage or linear footage involved in Phase 3A, a precise per-unit cost cannot be calculated. However, if, for example, Phase 3A restored 500 acres, the cost would be approximately $33,960 per acre. This figure would then need to be compared against data from similar Army Corps of Engineers or EPA-funded environmental restoration projects in comparable geographic regions and with similar ecological challenges. Factors like land acquisition costs, complexity of remediation, and required engineering solutions significantly influence per-unit costs.

What are the specific environmental restoration goals of Phase 3A?

The provided data indicates the contract is for 'DESIGN AND CONSTRUCTION TRES RIOS ENVIRONMENTAL RESTORATION PROJECT PHASE 3A'. While the NAICS code suggests Highway, Street, and Bridge Construction, the project title clearly points to environmental restoration. Specific goals for Phase 3A are not detailed in the summary data. Typically, environmental restoration projects aim to improve ecological health, restore natural habitats, enhance water quality, manage floodplains, or mitigate pollution. Given the 'TRES Rios' (Three Rivers) name, it's likely related to riverine ecosystems. Detailed project descriptions, environmental impact statements, or the contract statement of work would be necessary to ascertain the precise restoration objectives, such as re-establishing native vegetation, improving fish passage, controlling erosion, or managing water flow dynamics.

What is Kiewit Western Co.'s track record with similar environmental restoration contracts?

Kiewit Western Co. is a major construction firm with extensive experience in large-scale infrastructure and civil engineering projects. While specific details on their environmental restoration contract portfolio are not provided here, their general capabilities often include projects involving earthmoving, water management, and infrastructure development that can be applied to environmental remediation. To assess their track record for *similar* environmental restoration contracts, one would need to search federal procurement databases (like FPDS or SAM.gov) for contracts awarded to Kiewit Western Co. specifically tagged with environmental restoration, ecosystem management, or remediation keywords, particularly those issued by the Department of Defense or the Army Corps of Engineers. Evaluating past performance reviews, project completion timeliness, and adherence to budget on such projects would provide insight into their suitability and success rate.

What are the potential risks associated with the firm-fixed-price contract type for this project?

The primary risk associated with a firm-fixed-price (FFP) contract for the TRES Rios Environmental Restoration Project Phase 3A is that the contractor, Kiewit Western Co., bears the brunt of any cost overruns. If unforeseen environmental conditions arise (e.g., discovering hazardous materials, unexpected soil instability, extreme weather events impacting construction schedules), or if material and labor costs escalate significantly beyond initial estimates, Kiewit's profit margin will be reduced, or they could incur a loss. While FFP is generally advantageous for the government in controlling costs, it requires a very well-defined scope of work and accurate initial cost estimations. If the scope is not perfectly understood or if the contractor's bid was too aggressive, it could lead to quality compromises or disputes if the contractor attempts to cut corners to maintain profitability, although the government's oversight should mitigate this.

Industry Classification

NAICS: ConstructionHighway, Street, and Bridge ConstructionHighway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCT OF RESTORATION ACTIVITIES

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, 68131

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,265,479

Exercised Options: $16,982,479

Current Obligation: $16,982,479

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2022

IDV Type: IDC

Timeline

Start Date: 2010-06-30

Current End Date: 2012-07-12

Potential End Date: 2012-07-12 00:00:00

Last Modified: 2017-01-19

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