DOD Awards $377M Runway Extension to Kiewit Infrastructure West Co. in Alaska
Contract Overview
Contract Amount: $377,349,388 ($377.3M)
Contractor: Kiewit Infrastructure West CO.
Awarding Agency: Department of Defense
Start Date: 2022-07-22
End Date: 2026-09-21
Contract Duration: 1,522 days
Daily Burn Rate: $247.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: JBE054 RUNWAY EXTENSION, JBER, ALASKA
Place of Performance
Location: JBER, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $377.3 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: JBE054 RUNWAY EXTENSION, JBER, ALASKA Key points: 1. Significant investment in critical infrastructure at Joint Base Elmendorf-Richardson. 2. Kiewit Infrastructure West Co. secured a large contract, indicating strong capabilities. 3. The project faces potential risks associated with large-scale construction in remote locations. 4. Spending falls within the broad category of heavy civil construction.
Value Assessment
Rating: good
The contract value of $377.3 million for a runway extension appears substantial. Benchmarking against similar large-scale airfield construction projects would be necessary for a precise assessment, but the firm fixed-price structure suggests an effort to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a definitive contract with a firm fixed price indicates a clear scope and cost objective.
Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure upgrades, aiming for long-term operational benefits and readiness.
Public Impact
Enhances operational capabilities and readiness at a key military installation. Supports local economy through construction jobs and related services. Improves safety and efficiency of aircraft operations at JBER.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to unforeseen site conditions.
- Schedule delays impacting operational readiness.
- Environmental compliance challenges in Alaska's sensitive ecosystem.
Positive Signals
- Modernization of critical airbase infrastructure.
- Awarded through competitive bidding process.
- Long-term asset for national defense.
Sector Analysis
This project falls under heavy civil construction, specifically airfield infrastructure. Large-scale projects like this often involve significant capital investment and can be subject to weather and logistical challenges, particularly in remote locations like Alaska.
Small Business Impact
The data indicates this contract was awarded to Kiewit Infrastructure West Co., a large prime contractor. There is no explicit information on small business subcontracting participation in this data snippet, which is a common area for oversight in large federal construction projects.
Oversight & Accountability
The award was made by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to scope, schedule, budget, and quality standards throughout the project lifecycle.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value increases potential for cost overruns.
- Extended project duration (1522 days) heightens risk of schedule delays.
- Construction in Alaska presents unique logistical and environmental challenges.
- Lack of explicit small business subcontracting data requires further review.
Tags
highway-street-and-bridge-construction, department-of-defense, ak, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $377.3 million to KIEWIT INFRASTRUCTURE WEST CO.. JBE054 RUNWAY EXTENSION, JBER, ALASKA
Who is the contractor on this award?
The obligated recipient is KIEWIT INFRASTRUCTURE WEST 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 $377.3 million.
What is the period of performance?
Start: 2022-07-22. End: 2026-09-21.
What is the projected return on investment for this runway extension in terms of improved operational efficiency and reduced maintenance costs?
The precise ROI is difficult to quantify without detailed operational data from JBER. However, extending the runway likely enhances aircraft capacity, allows for larger or heavier aircraft, and reduces wear on existing infrastructure, indirectly improving efficiency and potentially lowering future repair costs. The long-term strategic value for military readiness is a primary driver.
What specific risk mitigation strategies are in place to address potential environmental impacts during construction in Alaska?
Federal projects in Alaska are subject to stringent environmental regulations. Mitigation strategies likely include detailed environmental impact assessments, adherence to specific construction protocols to minimize habitat disruption, waste management plans, and potentially monitoring for wildlife and permafrost stability. The Army Corps of Engineers would oversee compliance.
How does the firm fixed-price contract structure effectively manage cost uncertainty for a project of this magnitude and duration?
The firm fixed-price (FFP) structure shifts most of the cost risk to the contractor, Kiewit. This incentivizes efficient management and cost control. However, for a project of this scale and duration (over 4 years), significant contingencies are likely built into Kiewit's bid to cover unforeseen issues like material price fluctuations or labor cost increases.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911KB22R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $396,766,782
Exercised Options: $377,417,782
Current Obligation: $377,349,388
Actual Outlays: $23,428,761
Subaward Activity
Number of Subawards: 258
Total Subaward Amount: $699,691,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-22
Current End Date: 2026-09-21
Potential End Date: 2026-09-21 00:00:00
Last Modified: 2026-01-13
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