DoD awards $447M for bridge security, with Kiewit Infrastructure Co. leading the construction effort

Contract Overview

Contract Amount: $447,307,201 ($447.3M)

Contractor: Kiewit Infrastructure CO.

Awarding Agency: Department of Defense

Start Date: 2019-09-12

End Date: 2026-07-23

Contract Duration: 2,506 days

Daily Burn Rate: $178.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF PHYSICAL SECURITY/SAFETY IMPROVEMENTS IN THE NEW YORK, NY AREA (MANHATTAN AND BROOKLYN BOROUGHS) ON AND AROUND LONG SPAN BRIDGES.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10038

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $447.3 million to KIEWIT INFRASTRUCTURE CO. for work described as: CONSTRUCTION OF PHYSICAL SECURITY/SAFETY IMPROVEMENTS IN THE NEW YORK, NY AREA (MANHATTAN AND BROOKLYN BOROUGHS) ON AND AROUND LONG SPAN BRIDGES. Key points: 1. Significant investment in critical infrastructure security for major New York bridges. 2. Contract awarded through full and open competition, suggesting a robust bidding process. 3. Long duration of the contract (over 6 years) indicates a complex and extensive project. 4. Favorable contract type (Firm Fixed Price) shifts cost risk to the contractor. 5. Project scope includes physical security and safety enhancements, vital for public safety. 6. The award represents a substantial commitment to maintaining and upgrading essential transportation assets.

Value Assessment

Rating: good

The contract value of $447.3 million for physical security and safety improvements on New York bridges appears substantial, reflecting the scale and complexity of work on major infrastructure. Benchmarking this against similar large-scale bridge construction and security upgrade projects would be necessary for a precise value-for-money assessment. However, the Firm Fixed Price contract type is generally favorable for the government, as it caps the contractor's potential earnings and transfers cost overrun risks.

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. With 7 bidders participating, the competition level appears healthy, which typically drives more competitive pricing and better value for the government. The presence of multiple bidders suggests that the market has sufficient capacity and interest in undertaking such large-scale infrastructure projects.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by encouraging lower prices and ensuring the government receives the best possible value for its investment.

Public Impact

Residents and commuters in the New York City area (Manhattan and Brooklyn) will benefit from enhanced safety and security on critical long-span bridges. The project will deliver physical security and safety improvements, potentially reducing vulnerabilities and improving emergency response capabilities. The geographic impact is concentrated on major transportation arteries, ensuring continued and safer mobility. The construction activities will likely create numerous jobs for skilled laborers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting critical transportation routes.
Risk of cost overruns if unforeseen site conditions arise, despite FFP contract.
Ensuring consistent quality and adherence to security standards across a long project duration.

Positive Signals

Firm Fixed Price contract mitigates cost escalation risk for the government.
Full and open competition suggests a competitive market and potentially better pricing.
Long-term contract allows for sustained focus on critical infrastructure security.

Sector Analysis

This contract falls within the construction sector, specifically focusing on highway, street, and bridge construction. The market for large-scale infrastructure projects, particularly those involving critical transportation assets and security enhancements, is often dominated by a few large, specialized firms. The value of this contract is significant, representing a substantial portion of annual spending in this niche within the broader construction industry. Comparable spending benchmarks would typically involve other major bridge repair, upgrade, or new construction projects across the country.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that small business participation (SB) is false. Given the large scale and specialized nature of bridge construction and security improvements, it is common for prime contracts to be awarded to large corporations. However, Kiewit Infrastructure Co. may engage small businesses as subcontractors for specific tasks, which would be detailed in subcontracting plans. The lack of a direct set-aside means the primary focus is on securing the best overall bid from the open market.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through its engineering or contracting divisions. Accountability measures would include regular progress reports, site inspections, and adherence to contract milestones. Transparency is typically maintained through contract award databases and public reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Bridge Program
Department of Homeland Security Critical Infrastructure Protection
Army Corps of Engineers Civil Works Projects
National Highway System Infrastructure Investments

Risk Flags

Long project duration increases risk of cost escalation and technological obsolescence.
Potential for disruption to critical transportation infrastructure during construction.
Complexity of security enhancements requires rigorous oversight and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $447.3 million to KIEWIT INFRASTRUCTURE CO.. CONSTRUCTION OF PHYSICAL SECURITY/SAFETY IMPROVEMENTS IN THE NEW YORK, NY AREA (MANHATTAN AND BROOKLYN BOROUGHS) ON AND AROUND LONG SPAN BRIDGES.

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE 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 $447.3 million.

What is the period of performance?

Start: 2019-09-12. End: 2026-07-23.

What is Kiewit Infrastructure Co.'s track record with similar large-scale federal infrastructure projects, particularly those involving security enhancements?

Kiewit Infrastructure Co. has a significant track record with large-scale federal infrastructure projects. They are a major player in heavy civil construction, often undertaking complex projects for the Department of Transportation and the Department of Defense. Their experience includes building and repairing bridges, tunnels, and other transportation infrastructure. While specific data on their past security enhancement projects for bridges isn't detailed here, their general expertise in large, complex civil engineering works suggests they are well-equipped. A deeper dive into their contract history with federal agencies would reveal the scale and nature of their previous security-related work and their performance on those contracts.

How does the $447.3 million contract value compare to typical spending on bridge security and safety improvements in the New York area?

The $447.3 million contract value is substantial and likely represents a significant investment in the physical security and safety of major New York bridges. To benchmark this, one would need to compare it against historical spending on similar large-scale infrastructure upgrades, particularly those with a security focus, in the New York metropolitan area or other major urban centers. Such projects often involve complex engineering, specialized materials, and extensive labor, driving up costs. Without specific historical data on comparable bridge security projects in NYC, it's difficult to definitively state if this value is high or low, but it indicates a major commitment to upgrading critical assets.

What are the primary risks associated with a construction project of this magnitude and duration (over 6 years)?

Projects of this magnitude and duration carry several inherent risks. Firstly, there's the risk of unforeseen site conditions (e.g., geological issues, hazardous materials) that could lead to delays and cost increases, even with a Firm Fixed Price contract. Secondly, the long timeline increases exposure to potential changes in regulations, material price volatility, and labor availability. Thirdly, managing a project over multiple years requires sustained oversight to ensure quality control and adherence to evolving security standards. Finally, disruptions to traffic and local communities during construction are significant logistical challenges that need careful management.

What specific security and safety improvements are anticipated under this contract?

While the provided data specifies 'physical security/safety improvements,' the exact nature of these enhancements is not detailed. Typically, such improvements on major bridges could include upgrades to surveillance systems (CCTV), access control measures, structural reinforcement against potential threats, enhanced lighting, installation of barriers, and improvements to emergency response infrastructure. The focus is generally on hardening the structure against physical attacks and ensuring the safety of users in various emergency scenarios. The specific scope would be further defined in the detailed contract specifications and statements of work.

How might the long contract duration (2019-2026) impact the project's cost and effectiveness?

A long contract duration, such as the 2019-2026 timeframe for this project, can have mixed impacts. On the positive side, it allows for a phased approach to complex upgrades, potentially minimizing disruption and enabling thorough execution. It also provides stability for the contractor and workforce. However, a longer duration increases the risk of cost escalation due to inflation in labor and materials, even under a fixed-price contract, if contingencies aren't adequately managed. Furthermore, technology or security threats might evolve significantly over such a period, potentially requiring contract modifications or rendering some initial improvements less effective by the project's end. Effective project management and adaptive planning are crucial.

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: W912DS19R0002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kiewit-Turner a Joint Venture

Address: 470 CHESTNUT RIDGE RD '2ND FL', WOODCLIFF LAKE, NJ, 07677

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

Financial Breakdown

Contract Ceiling: $447,307,201

Exercised Options: $447,307,201

Current Obligation: $447,307,201

Actual Outlays: $79,204,266

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $72,690,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline