Granite Construction Company awarded $34M for BIA road maintenance in New Mexico

Contract Overview

Contract Amount: $34,003,587 ($34.0M)

Contractor: Granite Construction Company

Awarding Agency: Department of the Interior

Start Date: 2010-06-16

End Date: 2012-09-06

Contract Duration: 813 days

Daily Burn Rate: $41.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::14-69-9/0-0504.20::TAS. PROJECT NOS. N3229100, N3249500, N3447600, N3447300, N3447400. ROAD MAINTENANCE FOR BIA ROADS IN NEW MEXICO.

Place of Performance

Location: CROWNPOINT, MCKINLEY County, NEW MEXICO, 87313

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $34.0 million to GRANITE CONSTRUCTION COMPANY for work described as: TAS::14-69-9/0-0504.20::TAS. PROJECT NOS. N3229100, N3249500, N3447600, N3447300, N3447400. ROAD MAINTENANCE FOR BIA ROADS IN NEW MEXICO. Key points: 1. Contract value of $34 million for highway, street, and bridge construction. 2. Awarded by the Department of the Interior's Bureau of Indian Affairs. 3. Definitive contract type with a firm fixed price. 4. Duration of 813 days, spanning from June 2010 to September 2012. 5. Full and open competition was utilized for this award. 6. No small business set-aside was applied to this contract.

Value Assessment

Rating: good

The contract value of $34 million for road maintenance in New Mexico appears reasonable given the scope of highway, street, and bridge construction. Benchmarking against similar large-scale infrastructure projects managed by the Bureau of Indian Affairs or other federal agencies would provide further context. The firm fixed-price structure suggests a degree of cost certainty for the government, assuming the contractor accurately estimated project expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a competitive environment, which typically benefits price discovery and can lead to more favorable pricing for the government. The specific number of bids received is a key indicator of the level of interest and competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive bidding process that can drive down costs and improve service quality.

Public Impact

Benefits Native American communities by improving essential road infrastructure on Bureau of Indian Affairs land. Services delivered include highway, street, and bridge construction and maintenance. Geographic impact is concentrated in New Mexico. Supports the construction and maintenance workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in road construction.
Ensuring timely completion within the 813-day timeframe is critical for service delivery.
Quality control and adherence to construction standards are paramount for long-term road durability.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Award to an established contractor like Granite Construction Company may indicate a track record of performance.

Sector Analysis

This contract falls within the construction sector, specifically highway, street, and bridge construction. This is a significant area of federal spending, particularly for agencies responsible for infrastructure on public lands or serving specific populations like Native American tribes. The market for heavy civil construction is often characterized by large, established firms capable of undertaking complex projects, with competition influenced by project size, location, and specific requirements.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor.

Oversight & Accountability

As a definitive contract awarded through full and open competition, oversight would typically involve contract administration by the Department of the Interior, ensuring adherence to the firm fixed-price terms and project milestones. Transparency is generally maintained through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Highway Administration Programs
Bureau of Indian Affairs Infrastructure Projects
Department of Transportation Construction Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting service delivery.
Ensuring long-term durability and quality of construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $34.0 million to GRANITE CONSTRUCTION COMPANY. TAS::14-69-9/0-0504.20::TAS. PROJECT NOS. N3229100, N3249500, N3447600, N3447300, N3447400. ROAD MAINTENANCE FOR BIA ROADS IN NEW MEXICO.

Who is the contractor on this award?

The obligated recipient is GRANITE CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2010-06-16. End: 2012-09-06.

What is the historical spending pattern for road maintenance by the Bureau of Indian Affairs in New Mexico?

Analyzing historical spending for road maintenance by the Bureau of Indian Affairs (BIA) in New Mexico would involve reviewing procurement data over several fiscal years. This would help establish a baseline for typical contract values, durations, and the types of services procured. For instance, understanding if the $34 million awarded to Granite Construction Company represents a significant increase or decrease compared to previous BIA road maintenance efforts in the state is crucial. It would also reveal trends in contract types (e.g., fixed-price vs. cost-plus) and competition levels. Such historical context allows for a more informed assessment of whether the current contract represents a fair price and efficient use of taxpayer funds, and whether spending has been consistent or subject to significant fluctuations.

How does the per-mile cost of this contract compare to similar BIA road projects?

To assess the per-mile cost, we would need the total mileage of roads covered under this $34 million contract. Assuming this information were available, we could calculate a per-mile expenditure. This figure would then be benchmarked against the average per-mile cost of similar road maintenance and construction projects undertaken by the Bureau of Indian Affairs in other regions or by comparable federal agencies managing infrastructure on tribal lands. Factors such as terrain, complexity of construction (e.g., bridges, tunnels), and material costs specific to New Mexico would need to be considered for a fair comparison. A significantly higher per-mile cost might indicate potential inefficiencies or unique project challenges, while a lower cost could suggest strong competition or efficient execution.

What is Granite Construction Company's track record with federal infrastructure contracts?

Granite Construction Company has a substantial track record with federal infrastructure projects, often securing large-scale contracts for transportation, civil works, and utility infrastructure. A review of their federal contract history would likely reveal numerous awards from agencies such as the Department of Transportation, Department of Defense, and various public works departments. Analyzing past performance ratings, on-time delivery metrics, and any history of contract disputes or claims associated with their federal work is essential. Understanding their experience with projects of similar scope and complexity, particularly in challenging environments or remote locations, provides insight into their capability to successfully execute this BIA road maintenance contract. Their overall performance history serves as a key indicator of reliability and potential risk.

What are the specific risks associated with road construction in New Mexico for this contract?

Road construction in New Mexico can present several specific risks. Environmental factors such as extreme temperatures, potential for flash floods in certain areas, and arid conditions impacting soil stability are significant considerations. Geological risks, including seismic activity in some regions and the presence of unstable soils or rock formations, can affect construction timelines and costs. Furthermore, logistical challenges related to the remote locations of some Bureau of Indian Affairs roads may increase transportation costs for materials and personnel. Ensuring compliance with federal environmental regulations and land use permits, especially when working on or near protected lands, adds another layer of complexity. The availability of skilled labor in specific regions can also pose a risk to timely project completion.

How has the Bureau of Indian Affairs historically managed its road maintenance budget?

The Bureau of Indian Affairs (BIA) historically faces significant challenges in managing its road maintenance budget due to the vast network of roads under its jurisdiction and often insufficient funding allocations. The BIA is responsible for maintaining thousands of miles of roads on tribal lands, many of which are in poor condition and require substantial investment. Budgetary constraints often lead to deferred maintenance, prioritizing critical repairs over routine upkeep, which can result in higher long-term costs. Funding for BIA roads typically comes from congressional appropriations, which can fluctuate annually, making long-term planning difficult. The agency often relies on a combination of direct federal funding, grants, and sometimes partnerships with state or local entities to address infrastructure needs. Analyzing past budget requests versus actual appropriations would reveal the extent of funding gaps and the impact on maintenance programs.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: INIRA000910033

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Granite Construction Incorporated

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

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

Financial Breakdown

Contract Ceiling: $34,003,587

Exercised Options: $34,003,587

Current Obligation: $34,003,587

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline