Army Awards $63M for Tijuana Project Features, Southwest Valley Constructors Wins Contract

Contract Overview

Contract Amount: $63,166,013 ($63.2M)

Contractor: Southwest Valley Constructors CO

Awarding Agency: Department of Defense

Start Date: 2020-09-24

End Date: 2027-01-02

Contract Duration: 2,291 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF PROJECT FEATURES TIJUANA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $63.2 million to SOUTHWEST VALLEY CONSTRUCTORS CO for work described as: CONSTRUCTION OF PROJECT FEATURES TIJUANA Key points: 1. Significant investment in infrastructure development. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of 2291 days indicates a long-term project. 4. Focus on highway, street, and bridge construction.

Value Assessment

Rating: good

The contract value of $63.2 million for highway, street, and bridge construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

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 had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this significant infrastructure project.

Public Impact

Enhances regional transportation infrastructure. Supports economic development through construction jobs. Improves connectivity and potentially trade routes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration may introduce cost escalation risks.
Geopolitical factors related to 'Tijuana' could impact execution.
Potential for scope creep over the 2291-day period.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Project addresses critical infrastructure needs.

Sector Analysis

This contract falls within the construction sector, specifically highway, street, and bridge construction. Spending in this sector is often driven by government infrastructure initiatives and economic stimulus programs.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific information provided regarding small business participation or subcontracting goals. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of the Army is responsible for oversight of this contract. The duration and value suggest robust project management and financial controls will be necessary to ensure successful completion and accountability.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration (2291 days).
Potential for cost overruns due to project length.
Geopolitical implications of 'Tijuana' location.
Lack of detail on specific project scope.
Uncertainty regarding small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.2 million to SOUTHWEST VALLEY CONSTRUCTORS CO. CONSTRUCTION OF PROJECT FEATURES TIJUANA

Who is the contractor on this award?

The obligated recipient is SOUTHWEST VALLEY CONSTRUCTORS 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 $63.2 million.

What is the period of performance?

Start: 2020-09-24. End: 2027-01-02.

What is the specific scope of 'Project Features Tijuana' and how does it align with broader infrastructure goals?

The provided data does not detail the specific 'Project Features Tijuana.' However, given the NAICS code 237310 (Highway, Street, and Bridge Construction) and the awarding agency (Department of the Army), it likely involves the construction or improvement of transportation infrastructure. This could include roads, bridges, or related facilities, potentially supporting military readiness or regional economic development.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Specific Key Performance Indicators (KPIs) are not detailed in the provided data. Typically, for construction contracts of this magnitude, KPIs would include adherence to schedule, budget compliance, quality of work, safety standards, and meeting technical specifications. The Department of the Army would establish these metrics and monitor progress throughout the contract's duration.

Are there any environmental or regulatory considerations specific to the Tijuana region that could impact project timelines or costs?

The data does not specify environmental or regulatory considerations. However, construction projects, especially those near international borders or in specific geographic regions like Tijuana, often face unique environmental reviews, permitting processes, and potential cross-border regulatory coordination. These factors could influence project timelines and costs, requiring careful management by the contractor and the awarding agency.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5130 MASTHEAD ST NE, ALBUQUERQUE, NM, 87109

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

Financial Breakdown

Contract Ceiling: $64,903,013

Exercised Options: $63,166,013

Current Obligation: $63,166,013

Actual Outlays: $2,158,360

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $15,479,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G19D0017

IDV Type: IDC

Timeline