Granite Construction Company awarded $13.1M for Border Patrol Fences in Tucson Sector

Contract Overview

Contract Amount: $13,137,677 ($13.1M)

Contractor: Granite Construction Company

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2009-09-30

Contract Duration: 369 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MATOC BORDER PATROL FENCES TUCSON SECTOR

Place of Performance

Location: PLAYAS, HIDALGO County, NEW MEXICO, 88009

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to GRANITE CONSTRUCTION COMPANY for work described as: MATOC BORDER PATROL FENCES TUCSON SECTOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 369 days indicates a focused, medium-term project. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The award was a delivery order under a larger MATOC, implying a pre-competed framework. 5. The North American Industry Classification System (NAICS) code 237310 points to significant infrastructure construction. 6. The contract was awarded by the Department of the Army, indicating a defense-related procurement mechanism for a civilian agency need. 7. The project location in the Tucson Sector highlights a specific operational area of focus for border security.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the MATOC it falls under. However, the total award amount of $13.1 million for border patrol fences in a specific sector suggests a significant investment. Without comparable delivery orders or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm fixed-price nature provides some cost control, but the overall efficiency depends on the initial pricing and execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely as a delivery order against a Multiple Award Task Order Contract (MATOC). This indicates that multiple companies were eligible to bid, and the selection was based on a competitive process. The presence of 14 bids suggests a healthy level of interest and competition for this type of work, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a wide range of potential suppliers, driving down costs through competitive pressure and ensuring that the most cost-effective solutions are considered.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) through the Department of the Army's procurement. The services delivered involve the construction of border patrol fences, enhancing border security infrastructure. The geographic impact is concentrated in the Tucson Sector, a key area for border operations. The contract supports the construction workforce, likely involving skilled labor in the civil engineering and construction trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates were inaccurate, despite fixed-price nature.
Scope creep could occur if project requirements change significantly after award.
Dependency on the performance of the prime contractor and any subcontractors.
Logistical challenges in remote or sensitive border regions could impact timelines and costs.

Positive Signals

Firm Fixed Price contract type mitigates risk of cost increases for the government.
Full and open competition suggests a competitive environment that should yield reasonable pricing.
Awarded as a delivery order under a MATOC, implying a pre-vetted contractor pool and established processes.
The Department of the Army's involvement suggests adherence to established procurement and oversight standards.

Sector Analysis

This contract falls within the construction sector, specifically related to infrastructure development for national security. The Highway, Street, and Bridge Construction (NAICS 237310) classification indicates a focus on heavy civil engineering projects. Spending on border infrastructure is a significant component of federal security budgets, with numerous contracts awarded annually across various agencies. Comparable spending benchmarks would typically be found within the broader category of federal construction projects, particularly those related to defense or homeland security.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this doesn't preclude small businesses from subcontracting, there's no explicit requirement for them in the prime award. The impact on the small business ecosystem would depend on whether Granite Construction Company utilizes small businesses for subcontracting opportunities, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting command, which manages the MATOC and subsequent delivery orders. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery according to specifications. Transparency is generally provided through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Border Security Infrastructure Projects
Department of Homeland Security Contracts
Army Corps of Engineers Construction Contracts
Federal Law Enforcement Support Services
National Defense Construction Programs

Risk Flags

Potential for scope creep
Unforeseen site conditions
Schedule delays due to external factors
Quality control issues
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to GRANITE CONSTRUCTION COMPANY. MATOC BORDER PATROL FENCES TUCSON SECTOR

Who is the contractor on this award?

The obligated recipient is GRANITE CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2008-09-26. End: 2009-09-30.

What is the historical spending pattern for border fence construction in the Tucson Sector by the Department of the Army?

Analyzing historical spending for border fence construction in the Tucson Sector by the Department of the Army requires accessing detailed procurement data over multiple fiscal years. This specific contract, awarded in late 2008 and ending in late 2009, represents a snapshot. To understand patterns, one would need to aggregate data for similar projects (e.g., fence construction, barrier enhancement) within the Tucson Sector, potentially looking at contracts awarded by agencies like CBP or through inter-agency agreements with the Army. Factors such as changes in administration priorities, funding allocations, and evolving border security strategies would influence these patterns. Without a broader dataset, it's difficult to establish a definitive historical trend solely from this single award.

How does the awarded amount compare to the estimated cost or budget for this specific border fence project?

The provided data shows an awarded amount of $13,137,677.35 for this delivery order. However, it does not include the original estimated cost or the allocated budget for this specific project. To compare the awarded amount to the budget, one would need access to the contract's baseline cost estimates or funding documents. In a competitive bidding process, the awarded amount is typically the result of proposals from multiple contractors, and it is expected to be at or below the government's independent government cost estimate (IGCE). A significant difference between the awarded amount and the IGCE could indicate either a highly competitive market or potential issues with the government's initial estimate. Without the budget information, a direct comparison is not possible.

What is Granite Construction Company's track record with similar federal construction contracts, particularly for border infrastructure?

Granite Construction Company has a substantial history of performing large-scale civil engineering and construction projects for federal agencies. While this specific data point relates to border patrol fences, Granite's broader portfolio includes significant work in areas such as highways, bridges, airfields, and other infrastructure critical to government operations. To assess their track record specifically for border infrastructure, a deeper dive into their contract history with agencies like the Department of Homeland Security (DHS), Customs and Border Protection (CBP), and the Department of Defense (DoD) would be necessary. This would involve reviewing past performance evaluations, project completion records, and any documented issues or successes on similar projects. Their general experience in heavy civil construction suggests they possess the capabilities for such work.

What are the key performance indicators (KPIs) used to measure the success of this border fence construction contract?

Key performance indicators (KPIs) for a border fence construction contract typically revolve around adherence to specifications, quality of work, schedule compliance, and safety. For this specific contract, KPIs would likely include: 1) Completion of fence sections according to approved designs and material specifications (e.g., height, depth, materials used). 2) Meeting or exceeding quality control standards, verified through inspections and testing. 3) Timely completion of milestones and the overall project within the 369-day duration. 4) Maintaining a safe work environment, evidenced by low incident rates. 5) Compliance with environmental regulations during construction. Performance would be formally assessed through contract close-out reports and potentially past performance reviews for future bids.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided data does not contain information regarding specific challenges or disputes encountered during the performance of this contract. Contract performance data, including modifications, claims, or litigation, is typically found in more detailed contract files or performance reports. While this was a firm fixed-price contract awarded under full and open competition, challenges such as unforeseen site conditions, weather delays, or changes in requirements could potentially arise. Without access to contract modification logs, correspondence, or official dispute resolution records, it is impossible to determine if any significant issues occurred during its execution.

How does the number of bids received (14) reflect the competitiveness of the market for border infrastructure projects?

Receiving 14 bids for this delivery order suggests a moderately to highly competitive market for border infrastructure projects of this nature. A higher number of bids generally indicates that multiple firms possess the capability and interest to undertake such work, and that the solicitation was accessible and attractive. This level of competition is beneficial for the government as it increases the likelihood of receiving competitive pricing and innovative solutions. It also suggests that the barriers to entry for qualified contractors are not excessively high, allowing a reasonable pool of potential bidders to participate. The specific nature of border infrastructure, often involving specialized requirements and security considerations, can influence market size, but 14 bids point to a healthy competitive landscape.

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: Granite Construction Incorporated (UEI: 622826360)

Address: 585 WEST BEACH ST, WATSONVILLE, CA, 95076

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,137,677

Exercised Options: $13,137,677

Current Obligation: $13,137,677

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2024

IDV Type: IDC

Timeline